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• ORDINANCE NO. aob q- tA-l <br /> AN ORDINANCE AUTHORIZING THE ISSUANCE OF A <br /> SALES AND USE TAX BOND FOR THE PURPOSE OF <br /> FINANCING A PORTION OF THE COST OF <br /> CONSTRUCTING EXTENSIONS, BETTERMENTS AND <br /> IMPROVEMENTS TO THE SEWER FACILITIES OF THE <br /> CITY OF BATESVILLE, ARKANSAS; PROVIDING FOR THE <br /> PAYMENT OF THE PRINCIPAL OF AND INTEREST ON THE <br /> BOND; AND PRESCRIBING OTHER MATTERS RELATING <br /> THERETO. <br /> WHEREAS, the City of Batesville, Arkansas (the "City") owns and operates a <br /> water and sewer system as a single, integrated municipal undertaking (the "System"); and <br /> WHEREAS, the City Council of the City has determined that extensions, <br /> betterments and improvements to the sewer facilities of the System (the "Improvements") are <br /> necessary in order to make the services of the System adequate for the needs of the City; and <br /> WHEREAS, there was submitted to the qualified electors of the City at a special <br /> ® election held March 10, 2009, the question of issuing capital improvement bonds in the <br /> maximum principal amount of $50,000,000 for the purpose of financing all or a portion of the <br /> cost of the Improvements; and <br /> WHEREAS, at the special election, a majority of the electors voting on the <br /> question approved the issuance of the bonds and the levy of a new sales and use tax at the rate of <br /> I% (the"Tax") to retire the bonds; and <br /> WHEREAS, the City is making arrangements for the sale of a City of Batesville, <br /> Arkansas, Sales and Use Tax Bond, Series 2010 (the "Series 2010 Bond") in the principal <br /> amount of $6,300,000 to the Arkansas Development Finance Authority, as purchaser (the <br /> `Bondholder"), at a price of par for a bond bearing interest at the rate of 1.50% per annum <br /> pursuant to a Bond Purchase Agreement (the "Agreement") among the City, the Bondholder and <br /> the Arkansas Natural Resources Commission (the "Commission"), which has been presented to <br /> and is before this meeting; and <br /> WHEREAS, the City is authorized, under the provisions of Amendment No. 62 to <br /> the Arkansas Constitution and the Arkansas Code of 1987 Annotated, Title 14, Chapter 164, <br /> Subchapter 3 (the "Authorizing Legislation"), to enter into the Agreement and to issue the Series <br /> 2010 Bond; and <br /> WHEREAS, the Bondholder proposes to pledge the Series 2010 Bond as <br /> • collateral for the payment of its wastewater system revolving loan fund revenue bonds (the <br /> "ADFA Bonds") pursuant to its general bond resolution, as amended or supplemented from time <br />