2009-12-02 - Laserfiche WebLink

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WHEREAS, the City is required to pay to the Arkansas Development Finance • Authority, as servicer (the "Authority"), a financing fee equal to 1% per annum of the outstanding principal amount of the bond(the "Financing Fee"); and WHEREAS, the Commission is receiving a federal grant under the American Recovery and Reinvestment Act of 2009 ("ARRA") and, pursuant to the terms of the grant, the Bondholder and the Commission agreed to forgive principal of the Bond as advances are made against the purchase price; and WHEREAS, the expenditures of the proceeds of the Bond for the Improvements are subject to the specific requirements of ARRA; NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Batesville, Arkansas: Section 1. The sale to the Bondholder of up to $6,300,000 in principal amount of a bond from the City at a price of par for a bond bearing interest at the rate of 1.50% per annum and otherwise subject to the terms and provisions hereafter in this Ordinance set forth in detail is hereby approved and the bond is hereby sold to the Bondholder. The Mayor is hereby authorized and directed to execute and deliver the Agreement on behalf of the City and to take all action required on the part of the City to fulfill its obligations under the Agreement. The Agreement is hereby approved in substantially the form submitted to this meeting with such changes as may be approved by the Mayor, his execution to constitute complete evidence of such • approval. Section 2. The City Council of the City hereby finds and declares that the period of usefulness of the System after completion of the Improvements will be more than 25 years, which is longer than the term of the bond. Section 3. Under the authority of the Constitution and laws of the State of Arkansas (the "State"), including particularly the Authorizing Legislation and applicable decisions of the Supreme Court of the State, including particularly City of Harrison v. Braswell, 209 Ark. 1094, 194 S.W.2d 12 (1946), City of Batesville, Arkansas Water and Sewer Revenue Bond, Series 2010 (the "bond") is hereby authorized and ordered issued in the principal amount of$6,300,000, the proceeds of the sale of which will be used to accomplish the Improvements, pay expenses incidental thereto and pay expenses of issuing the bond. The bond shall bear interest at the rate of 1.50%per annum based upon a 360-day year of twelve consecutive 30-day months. The bond shall be dated the date of delivery to the Bondholder. Interest shall be payable on each April 15 and October 15 after the bond is issued. Principal shall be payable in installments on April 15, 2013 and each April 15 and October 15 thereafter until the unpaid principal is paid in full as follows: 2