2024-01-18-AGENDA-Special - Laserfiche WebLink

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This bond is one of an issue of City of Batesville, Arkansas Sales and Use Tax Bonds, Taxable Refunding Series 2024A, aggregating Million Hundred Thousand Dollars ($ ) in aggregate principal amount (the "Series 2024A Bonds"), and is issued for the purpose of financing all or a portion of the costs of refunding the City's Sales and Use Tax Bonds, Series 2012, paying necessary expenses incidental thereto, paying expenses of authorizing, issuing and insuring the Series 2024A Bonds and partially funding a debt service reserve. The City is also issuing its Sales and Use Tax Bonds, Improvement Series 2024B (the "Series 2024B Bonds") and the Series 2024A Bonds and the Series 2024B Bonds (collectively, the "bonds") are equally and ratably secured. The bonds are issued pursuant to and in full compliance with the Constitution and laws of the State of Arkansas (the "State"), particularly Amendment No. 62 to the Constitution of the State and Title 14, Chapter 164, Subchapter 3 of the Arkansas Code of 1987 Annotated (the "Authorizing Legislation"), and pursuant to Ordinance No. of the City duly adopted on January 18, 2024 (the "Authorizing Ordinance"), and an election duly held at which the majority of the legal voters of the City voting on the questions approved the issuance of the bonds. Reference is hereby made to the Authorizing Ordinance for the details of the nature and extent of the security and of the rights and obligations of the City, the Trustee and the registered owners of the bonds. The bonds are special obligations of the City, payable from (a) a 0.5% sales and use tax levied by the City under the authority of Title 26, Chapter 75, Subchapter 2 of the Arkansas Code of 1987 Annotated and Ordinance No. 2011-12-05 adopted on December 27, 2011, as amended by Ordinance No. 2023-05-02 adopted on May 23, 2023 (the "Bond Tax") and (b) a 0.5% sales and use tax levied by the City under the authority of Title 26, Chapter 75, Subchapter 2 of the Arkansas Code of 1987 Annotated and Ordinance No. 2011-12-03 adopted on December 27, 2011 (the "Permanent Tax"), and the City hereby pledges the collections of the Bond Tax and the Permanent Tax for the payment of this bond. The Series 2024A Bonds are subject to extraordinary, optional and mandatory sinking fund redemption prior to maturity as follows: (1) The Series 2024A Bonds shall be redeemed by the City from Surplus Bond Tax Receipts (defined below), at least annually, and from proceeds of the Series 2024A Bonds not needed for the purposes intended, in whole at any time or in part on any interest payment date, at a redemption price equal to the principal amount being redeemed plus accrued interest to the redemption date, in inverse order of maturity (and by lot within a maturity in such manner as the Trustee may determine). In the case of any defeasance of the Series 2024A Bonds, redemption of defeased Series 2024A Bonds shall be scheduled on the basis of the mandatory redemption requirements and assuming collections of the Bond Tax in an amount equal to receipts for the most recent twelve-month period. (2) The Series 2024A Bonds are subject to redemption at the option of the City, from funds from any source, on and after February 1, 2031, in whole or in part at any time, at a redemption price equal to the principal amount being redeemed plus accrued interest to the redemption date. If fewer than all of the Series 2024A Bonds shall be called for redemption, the 8