Loading...
HomeMy WebLinkAbout892qa\ ORDINANCE NO. 9D2' AN ORDINANCE AUTHORIZING THE ISSUANCE OF WATER AND SEWER REVENUE BONDS FOR THE PURPOSE OF FINANCING THE COST OF CONSTRUCTING EXTENSIONS, BETTERMENTS AND IMPROVEMENTS TO THE WATER AND SEWER SYSTEM (DESCRIBED r IN THE ORDINANCE); PROVIDING FOR THE PAYMENT OF THE BONDS; ESTABLISHING RATES FOR SERVICES OF THE SYSTEM; REFERRING THE ORDINANCE TO THE ELECTORS OF THE CITY; PRESCRIBING OTHER MATTERS RELATING THERETO; AND DECLARING AN EMERGENCY. WHEREAS, the City of Batesville, Arkansas (the "City") owns and operates waterworks facilities and sewer facilities as a single municipal undertaking (the "System"); and WHEREAS, the System and its related properties and facilities are operated, managed and maintained by the Batesville Utilities Commission (the "Utilities Commission"); and WHEREAS, the estimated cost of the improvements is approximately $8,386,000, and in order to pay the cost of the improvements it is necessary that $2,250,000 be financed by the issuance of revenue bonds (the balance to be paid from funds on hand and from federal grant funds); and WHEREAS, the City has outstanding an issue of Water and Sewer Refunding Revenue Bonds, dated August 1, 1976 (the "1976 Bonds"), issued under and pursuant to the provisions of Ordinance No. 854, adopted and approved on June 22, 1976 (the "1976 Ordinance"); and WHEREAS, the City has determined that extensions, betterments and improvements to the System are necessary and has caused to be prepared by consulting engineers, Hilsdon & Sonnenburg, Memphis, Tennessee, plans and estimates of cost of constructing extensions, betterments and improvements to the System (the "improvements"), and a copy of the report and plans prepared by the consulting engineers is on file in the office of the City Clerk and reference may be made thereto by any interested person; and 6M -2- rm WHEREAS, the City Council and the Utilities Commission have consulted with the City's fiscal agent, T.J. Raney & Sons, Inc., Little Rock, Arkansas, and it has been determined that the best procedure for issuance of proposed revenue bonds is by public sale; NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Batesville, Arkansas: Section 1. The improvements shall be accomplished. The City Council hereby finds and declares that the period of usefulness of the System after the completion of the improvements will be more than forty (40) years, which is longer than the term of the bonds. Section 2. Under the authority of the Constitution and laws of the State of Arkansas, including particularly Act No. 131 of the Acts of Arkansas of 1933, as amended, Act No. 132 of the Acts of Arkansas of 1933, as amended, and applicable decisions of the Supreme Court of the State of Arkansas, including particularly City of Harrison v. Braswell, 209 Ark. 1094, 194 S.W. 2d 12 (1946), Water and Sewer Revenue Bonds are hereby authorized and ordered issued in the principal amount of $2,250,000 (the "bonds"). The bonds shall be dated May 1, 1978 and interest thereon shall be payable semiannually on February 1 and August 1 of each year, commencing February 1, 1979. The principal shall mature on February 1 of each year as follows (subject to redemption prior to maturity and to the provisions hereof regarding conversion to lower rates of interest): Year Principal Year Principal 1980 $35,000 1993 $ 85,000 1981 40,000 1994 90,000 1982 45,000 1995 100,000 1983 45,000 1996 105,000 1984 50,000 1997 110,000 1985 50,000 1998 120,000 1986 55,000 1999 130,000 1987 60,000 2000 135,000 1988 65,000 2001 145,000 1989 65,000 2002 155,000 1990 70,000 2003 165,000 1991 75,000 2004 175,000 1992 80,000 r L= -3- 0 The Bonds shall be sold at public sale after advertise- ment in such publications as the Mayor, upon consultation with the City's fiscal agent, shall determine will insure adequate notice and opportunity for bidding. The Notice of Sale shall contain such terms and provisions as shall be determined (after consultation with the fiscal agent) to be appropriate in order to obtain the most favorable bids and the best terms for the City. The Notice of Sale may provide that, subject to approval of the City Council, the bonds may be converted to an issue bearing interest at lower rates and that the successful bidder may name the Trustee and Paying Agent for the bonds. The terms of the sale (and conversion, if any) and the designation of the Trustee and Paying Agent must be approved by the City Council by resolution. In each such resolution the City Council shall set forth (in addition to other pertinent matters) the details of the bonds as they are being issued, including principal amount, numbers, denominations, rates of interest, a schedule reflecting the annual principal maturities, the semiannual interest requirements and the total annual requirements, and applicable redemption provisions. Section 3. The bonds shall be executed on behalf of the City by the Mayor and City Clerk and shall have impressed or printed thereon the seal of the City. The bonds may be executed by the facsimile signature of the Mayor and the interest coupons attached to the bonds shall be executed by the facsimile signature of the Mayor, with the facsimile signature of the Mayor to have the same force and effect as if personally signed by him. The bonds must be executed by the manual signature of the City Clerk. The bonds, together with interest thereon, shall be payable solely out of the 1978 Water and Sewer Revenue Bond Fund (the "Bond Fund") as O -4- I"`" hereinafter set forth, and shall be a valid claim of the holders thereof only against the Bond Fund and the revenues pledged to the Bond Fund, which revenues are hereby pledged and mortgaged for the equal and ratable payment of the principal of and interest on the bonds. The pledge of revenues to the security and payment of the bonds shall be subordinate to the pledge in favor of the 1976 Bonds. The principal and interest on the bonds shall not constitute an indebtedness of the City within any constitutional or statutory limitation. Section 4. The bonds and coupons shall be in substantially the following form and the Mayor and City Clerk are hereby expressly authorized and directed to make all recitals contained therein: cm CM UNITED STATES OF AMERICA STATE OF ARKANSAS COUNTY OF INDEPENDENCE CITY OF BATESVILLE % WATER AND SEWER REVENUE BOND r No. KNOW ALL MEN BY THESE PRESENTS: 8 That the City of Batesville, Independence County, Arkansas (the "City"), acknowledges itself to owe, and for value received, hereby promises to pay to bearer, or if this bond be registered to the registered owner hereof, solely from the special fund provided as hereinafter set forth, the principal sum of DOLLARS in lawful money of the United States of America on the first day of February, 19_, and to xray interest thereon at the rate of percent (_%) per annum from date until paid. Interest is payable semiannually on February 1 and August 1 of each year, commencing February 1, 1979. Payment of interest, when registered as to interest, may be by check or draft mailed to the registered owner at his address reflected on the registration book of the City maintained by the Trustee. Payment of principal, and payment of interest evidenced by coupons, shall be at the principal office of (the "Trustee" and "Paying Agent"). This bond is one of an issue of Water and Sewer Revenue Bonds aggregating Dollars ($ dated May 1, 1978, numbered from 1 to , inclusive, all of like tenor and effect except as to number, denomination, rate of interest, maturity and right of prior redemption (the "bonds"), issued for the purpose of financing a portion of the cost to the City of constructing extensions, betterments and improvements to the waterworks and sewer facilities of the City, which facilities are operated as a single municipal undertaking (the "System"). D M rM The bonds are issued pursuant to and in full compliance with the Constitution and laws of the State of Arkansas, including particularly Act No. 131 of the Acts of Arkansas of 1933, as amended, Act No. 132 of the Acts of Arkansas of 1933, as amended, and applicable decisions of the Supreme Court of the State of Arkansas, including decisions of the Supreme Court of the State of Arkansas, including particularly Citv of Harrison v. Braswell, 209 Ark. 1094, 194 S.W. 2d 12 (1946), and pursuant to an Ordinance of the City Council of the City, duly adopted and approved (the "Authorizing Ordinance"), and do not constitute an indebtedness of the City within any constitutional or statutory limitation. The bonds are not general obligations of the City but are special obligations payable solely from revenues of the System. The lien, pledge and security of the bonds as to System revenues is subordinate to the pledge securing certain outstanding bonds of the City (as described in detail in the Authorizing Ordinance) so long as those bonds are outstanding. An amount of System revenues sufficient to pay the principal of and interest on the bonds and to create and maintain a debt service reserve is to be set aside in a special fund for that purpose identified as "1978 Water and Sewer Revenue Bond Fund" created by the Authorizing Ordinance. Reference is hereby made to the Authorizing Ordinance for a statement of the nature and extent of the security and the rights and obligations of the City, the Trustee and the holders and registered owners of the bonds. The City has fixed and has covenanted and agreed to maintain rates for water and sewer services which shall be sufficient at all times at least to provide for the payment of the reasonable expenses of operation and maintenance of the System, provide for the payment, principal and interest, of all bonds to which payments must be made to satisfy pledges of System revenues, including specifically the bonds of this issue, and make the required deposits for depreciation of the System. `4r -7- The bonds will be subject to redemption prior to maturity, in whole or in part, at the option of the City, in inverse numerical order, at a price of the principal amount being redeemed plus accrued interest, from funds from any source, on any interest payment date on and after August 1, 1988. Notice of the call for redemption shall be published one time in a newspaper published in the City of Little Rock, Arkansas, and having a general circulation throughout the State of Arkansas, giving the number and maturity of each bond being called, the publi- cation to be at least fifteen (15) days prior to the redemption date, and after the date fixed for redemption each bond so called shall cease to bear interest, provided funds for its payment are on deposit with the Paying Agent at that time. In addition, notice shall be given by registered or certified mail mailed fifteen (15) days prior to the redemption date to the registered owner of each bond registered as to principal at the address of such owner reflected on the bond registration book kept by the Trustee, and, if all outstanding bonds shall be registered as to principal, notice by registered or certified mail to the registered owners thereof shall be sufficient and it shall not be necessary to publish notice of the call. This bond may be registered as to principal alone or as to principal and interest and may be discharged from such registration in the manner, with the effect and subject to the terms and conditions endorsed hereon. Subject to the provisions of registration endorsed hereon, nothing contained in this bond or in the Authorizing Ordinance shall affect or impair the negotiability of this bond and this bond shall be deemed a negotiable instrument under the laws of the State of Arkansas. This bond is issued with the intent that the laws of the State of Arkansas will govern its construction. This bond shall not be valid until it shall have been authenticated by the certificate hereon duly signed by the Trustee. w WE .rr IT IS HEREBY CERTIFIED, RECITED AND DECLARED that all acts, conditions and things required to exist, happen and to be performed precedent to and in the issuance of this bond, have existed, have happened and have been performed in due time, form and manner, as required by law; that the indebtedness represented by the bonds of this issue does not exceed any constitutional or statutory limitations; and that sufficient revenues have been pledged to and will be set aside into the Bond Fund for the payment of the principal of and interest on the bonds of this issue. IN WITNESS WHEREOF, the City of Batesville, Arkansas, by its City Council, has caused this bond to be executed by the facsimile signature of the Mayor and the manual signature of the City Clerk, and its corporate sea! to be affixed or imprinted, and has caused the interest coupons attached to be executed by the facsimile signature of its Mayor, all as of the first day of May, 1978. CITY OF BATESVILLE, ARKANSAS ATTEST: By (facsimile signature) Mayor City Clerk (SEAL) ow (Form of Coupon) $ No. On the first day of (February) (August), 19 , the City of Batesville, Arkansas, unless the bond to which this coupon is attached is paid prior thereto, hereby promises to pay to bearer solely out of the fund specified in the bond to which this coupon is attached DOLLARS in lawful money of the United States of America, at the principal office of being six (6) months interest then due on its Water and Sewer Revenue Bond, dated May 1, 1978, and numbered CITY OF BATESVILLE, ARKANSAS By (facsimile signature) Mayor On each bond shall appear the following: CERTIFICATE OF AUTHENTICATION This is one of the bonds of the City of Batesville, Arkansas Water and Sewer Revenue Bonds, dated May 1, 1978. By Authorized Signature D 0 PROVISIONS FOR REGISTRATION AND RECONVERSION This bond may be registered as to principal alone on books of the City, kept by the Trustee as bond registrar, upon presentation hereof to the bond registrar, which shall make mention of such registration in the registration blank below, and this bond may thereafter be transferred only upon an assignment duly executed by the registered owner or his attorney or legal representative in such form as shall be satisfactory to the bond registrar, such transfer to be made on such books and endorsed hereon by the bond registrar. Such transfer may be to bearer, and there- after transferability by delivery shall be restored, but this bond shall again be subject to successive registrations and transfers as before. The principal of this bond, if registered, unless registered to bearer, shall be payable only to or upon the order of the registered owner or his legal representative. Interest accruing on this bond will be paid only on presentation and surrender of the attached interest coupons as they respectively become due, and notwithstanding the registration of this bond as to principal, the appurtenant interest coupons shall remain payable to bearer and shall continue to be transferable by delivery; provided, that if upon registration of this bond, or at any time thereafter while this bond is registered in the name of the owner, the unmatured coupons attached evidencing interest to be thereafter paid hereon shall be surrendered to said bond registrar, a statement to that effect will be endorsed hereon by the bond registrar and thereafter interest evidenced by such surrendered coupons may be paid by check or draft of the bond registrar at the times provided herein to the registered owner of this bond by mail to the address shown on the registration books. This bond when so converted into a bond registered as to both principal and interest may be reconverted into a coupon bond at the written request of the registered owner and upon presentation at the office of said bond registrar. Upon such reconversion the coupons repre- senting the interest to become due thereafter to the date of maturity will again be O now attached to this bond and a statement will be endorsed hereon by the bond registrar in the registration blank below whether it is then registered as to r principal or payable to bearer. Manner of Signature of Date of Registration : Name of Registered Owner Registration Bond Registrar 0 -12- Section 5. The rates set forth below, which have been found to be fair, just and equitable, are established as the rates for the water and sewer services of the System. Water The monthly rates charged for the water services of the System shall be as follows: First 3,000 gallons or part thereof - $2.80 ( minimum charge) Next 97,000 gallons or part thereof - 0.60 per 1000 gallons Next 1,900,000 gallons or part thereof- 0.50 per 1000 gallons All over 2,000,000 gallons - $0.45 per _000 gallons Sewer (a) The monthly rates for sewer services of the System shall be as set forth below for users located in the City. Monthly sewer charges shall be based upon water con- sumption. The Utilities Commission shall classify all users of the sanitary sewer system (user being hereby defined as any landowner whose buildings or premises are connected with and use the sanitary sewer system of the City or otherwise discharges sewage, industrial waste, water or other liquids either directly or indirectly into the sewer system of the City) as either domestic or commercial on the basis of whether the water consumption for the individual user is used for domestic or commercial purposes. In the case of domestic users, the average monthly water consump- tion for the months of January, February, March, October, November, and December of the calender year preceding that in which sewer bills are rendered shall be computed separately for each domestic user and a uniform monthly charge for each domestic user shall be determined by applying the following schedule of rates to the average monthly water consumption so computed. In the case of commercial users, the monthly water consumption for the month in which the sewer bills are rendered shall be computed separately VMW -13- for each commercial user and the sewer charge for each commercial user shall be determined by applying the following schedule of rates to the monthly water consumption so computed; provided that in the case of a commercial customer using an appreciable amount of water that does not reach the sewer system, the Utilities Commission, upon request by such commercial user, shall determine the percentage of the total water usage that does reach the sewer system and the following schedule shall be applied to that percentage. The following schedule of rates shall be applied: First 3,000 gallons or part thereof - _"2.50 (minimum charge) All over 3,000 gallons - $0.83 per 1000 gallons For users of the sanitary sewer system who do not use water provided by the City's water system (or an appreciable amount thereof) water consumption and sewer discharge shall be determined by the. Utilities Commission where feasible, and the schedule of rates set forth above shall be applied. Where such determination is not feasible the monthly charge shall be as follows: (i) Domestic, $10.00; and (ii) Commercial, $15.00. (b) For users of the sanitary sewer system located out- side the City, the monthly rates for sewer services of the System shall be 150% of the sewer rates set forth above for users located in the City. (c) Each user, commercial or domestic, of the sewer system which is not also a user of the water system shall place on deposit with the Utilities Commission a sum equal to twice the monthly rate as hereinabove defined, which deposit shall be re- turned to the user upon the termination of status as a user of the sewer system, and upon payment of all fees then due and owing to the City for the use of the sewer system. The Utilities Commission is hereby empowered to cause sewerage metering equip- ment to be placed upon the premises of any such commercial enterprise CM C"—"3 =ME and attached to the sewer lines thereon for the purpose of metering the discharge of any such enterprise into the sewer system. The Utilities Commission, in such case, shall be reim- bursed for the value of such metering equipment and the cost of installation before such enterprise is allowed to use the System. The City, its agents and employees, and particularly agents and employees of the Utilities Commission, shall be allowed to go upon the premises of any user of the sewer system who is not a user of the water system for the purposes of inspection of interconnecting sewerage lines and for determination of the number of users upon the premises. Any user of the sanitary sewer system who is not a user of the water system shall be liable to the City for fees at the rate or rates hereinabove set forth until written notice of the termination of use is given to the Utilities Commission. (d) All statements of fees for the use of the sanitary sewer system of the City shall be rendered at least bi-monthly to the user in the net amount due. Any charge which is not paid within thirty (30) days after it is due will be considered a delinquent charge. The owner of the premises upon which a user is situate shall be liable for the payment of all delinquent charges, even though the use of the sewer system is by a tenant, lessee or sublessee instead of the owner. If the charges are not paid before delinquency, suit shall be brought in accordance with the laws of the State of Arkansas to enforce a lien upon the land upon which the user is or was situate and to collect the amounts due, together with a ten percent (100) penalty and a reasonable attorney's fee. (e) In the event of failure in the payment of any charge for System services, water or sewer, for a period of thirty (30) days, all services of the System to the user liable for such charge may be terminated. 'f) Ordinance No. 813, adopted and approved June 27, 1972, Orclinance No. 814, adopted and approved July 11, 1972 and Ordinance No. 844, adopted and approved April 8, 1975, are VI.. -15- `w hereby repealed. ordinance No. 740, adopted and approved January 3, 1967, is continued in effect except to the extent that it may be inconsistent with the provisions of this Ordinance. (g) The City covenants and agrees that the rates shall 11 never be reduced while any of the bonds are outstanding unless there is obtained from an independent certified public accountant a certificate that the net revenues of the System (net revenues being defined as gross revenues less the expenses of operation and maintenance of the System, including all expense items properly attributable to the operation and maintenance of the - System under generally accepted accounting principles applicable to municipal waterworks and sewer systems), with the reduced rates, will always be equal to the amount required to be set aside for the Depreciation Fund, and leave a balance equal to at least 1500 of the aggregate average annual principal and interest requirements on all outstanding bonds of the 1976 Bonds, the bonds of this issue and any subsequent parity issue. The City further covenants and agrees that the rates shall when necessary, from time to time, be increased in an amount which will produce net revenues at least sufficient to provide for the required deposit into the Depreciation Fund, to leave a balance equal to the amount necessary for paying principal and interest when due on the 1976 Bonds, the bonds of this issue and the bonds of any subsequent parity issue, and to maintain all funds in connection therewith at required levels. Section 6. The provisions, covenants, undertakings and stipulations set forth in the 1976 Ordinance, including, without limitation, those pertaining to operation of the System, for the collection and application of the revenues from such operation, maintenance of the System, encumbrance of the System properties, and default and remedies available in the event of default, shall inure and appertain to these bonds to the same extent and with like force and effect as if herein set out in full, except only insofar as the same may be inconsistent with the provisions of this Ordinance. The effect of the above covenants shall be to continue the applicable provisions in full force and low -16- 0 effect after payment of the 1976 Bonds until these bonds are paid or provision made therefor. In this regard, nothing herein shall be construed in any manner to impair the security of the 1976 Bonds or the priority of the pledge and lien on revenues in favor of the 1976 Bonds, but it is covenanted that when all of the 1976 Bonds are paid (or the required provision made therefor) these bonds shall become first lien bonds in the sense that the pledge and lien on System revenues in favor of these bonds will become a first and prior pledge and lien on System revenues. It is covenanted and agreed that the City will not issue or attempt to issue any bonds ranking or claiming to rank on a parity of pledge and lien with the 1976 Bonds. Section 7. There shall be transferred from the Water and Sewer Fund, established under Section 9 of the 1976 Ordinance, to the bond fund maintained in connection with the 1976 Bonds those amounts necessary to pay maturing principal and interest on the outstanding 1976 Bonds, in compliance with all applicable provisions of the 1976 Ordinance. When all outstanding 1976 Bonds have been paid, principal and interest, or provision made for their payment, the transfers directed by this Section shall cease. Section 8. There shall be transferred from the Water and Sewer Fund to the Operation and Maintenance Fund, established under Section 11 of the 1976 Ordinance, those amounts specified by the 1976 Ordinance. Section 9. 1978 Water and Sewer Revenue Bond Fund. (a) There is hereby created and ordered established a special fund in the name of the City designated "1978 Water and Sewer Revenue Bond Fund" (the "Bond Fund") to be maintained in e n.r' -17- a bank selected by the City (which must be a member of the Federal Deposit Insurance Corporation ) so long as any of these bonds are outstanding. After making the payments required as set forth in r Section 7 and Section 8 above, there shall be paid into the Bond Fund the sums in the amounts and at the time hereinafter stated in Subsection (b) for the purpose of providing funds for the payment of the principal of and interest on the bonds herein authorized, with Trustee's and Paying Agent's fees. (b) There shall be paid into the Bond Fund on the first business day of each month until all outstanding bonds of this issue with interest thereon have been paid in full or provision made for such payment, a sum equal to one-fifth (1/5) of the next installment of interest and one-tenth (1/10) of the next install- ment of principal (plus any additional amount that may be necessary together with accrued interest received at the time of the delivery of the bonds to fully provide for the first interest payment on the bonds, if any additional amount be required), and an amount sufficient to provide for Trustee's and Paying Agent's fees, on all outstanding bonds, until a debt service reserve shall have been accumulated in an amount equal to the average annual principal and interest requirements on these bonds. When the debt service reserve has been accumulated in the required amount, the monthly payments into the Bond Fund may be reduced to one-sixth (1/6) of the next installment of interest and one -twelfth (1/12) of the next installment of principal, respectively, and an amount sufficient to provide for required fees, but if the debt service reserve becomes impaired, the Payments of one-fifth (1/5) and one-tenth (1/10), respectively, and an amount sufficient to provide for required fees, shall be resumed until the impairment is cured. (c) If the revenues of the System are insufficient to make the required payment on the first business day of the following Iwr 140W month into the Bond Fund, then the amount of any such deficiency in the payment made shall be added to the amount otherwise required to be paid into the Bond Fund on the first business day of the next month. (d) If for any reason there shall be a deficiency in the payments made into the Bond Fund so that there are unavailable sufficient moneys therein to pay the principal of, interest on and required fees in connection with the bonds as the same become due, any sums then held in the debt service reserve shall be used to the extent necessary to pay the principal of, interest on and required fees in connection with the bonds, but the debt service reserve shall be reimbursed in the amount of any such payment as above provided. The debt service reserve shall be used solely as herein provided, but the moneys therein may be invested as subsequently provided in this Ordinance. (iz4) When the moneys held in the Bond Fund, including the debt service reserve, shall be and remain sufficient to pay the principal of and interest on all the bonds then outstanding and required fees, there shall be no obligation to make any further payments into the Bond Fund. (f) All moneys in the Bond Fund shall be used solely for the purpose of paying the principal of, interest on, and Trustee's and Paying Agent's fees in connection with the bonds, except as herein specifically provided. If a surplus shall exist in the Bond Fund over and above the amount required for making all prin- cipal and interest payments when due for the next ensuing twelve months, and over and above the debt service reserve, such surplus may be used, at the option of the City, for the redemption of these bonds or the 1976 Bonds prior to maturity. (g) There shall be withdrawn from the Bond Fund at least three (3) days before the due date of any bond or interest coupon issued hereunder, at maturity or redemption prior to r "fte►" *40W -19- maturity, and deposited with the Paying Agent an amount equal to the amount of such bond or coupon for the sole purpose of paying the same, together with the Paying Agent's fee, and no withdrawal of funds from the Bond Fund shall be made for any other purpose except as otherwise authorized in this Ordinance. (h) The bonds of this issue shall be specifically secured by a pledge of all the revenues required to be placed into the Bond Fund. This pledge in favor of the bonds is hereby irrevocably made according to the terms of this Ordinance, and the City and its officers and employees shall execute, perform and carry out the terms thereof in strict conformity with the provisions of this Ordinance. Section 10. The bonds authorized hereby and issued hereunder shall be subject to redemption prior to maturity in accordance with the terms set out in the bond form. Section 11. Any surplus in the Water and Sewer Fund after making all disbursements required by the provisions of this Ordinance and making full provision for the other funds herein provided may be used, at the option of the City, for the redemption of bonds prior to maturity in accordance with the redemption provisions herein set forth, for extensions, better- ments and improvements to the System, or for any other lawful municipal purpose. Section 12. The bonds being issued hereunder shall not be entitled to priority one over the other in the application of revenues, regardless of the time or times of their issuance, it being the intention that there shall be no priority among these bonds. The City hereby covenants and agrees that so long as any of these bonds are outstanding and unpaid, it will not issue or incur any other obligation payable from all or any part of the revenues of the System under the provisions for parity bonds as permitted by the 1976 Ordinance. CM -20 - Nothing in this Ordinance, however, shall be construed to prevent the City from issuing additional bonds from time to r time payable from the revenues derived from the operation of the System and ranking on a parity of pledge with these bonds, in order to finance or refinance further extensions, betterments and improvements to the System, subject to the conditions and restrictions pertaining to the issuance of parity bonds contained in Section 16 of the 1976 Ordinance. The additional bonds, the issuance of which is restricted and conditioned by this Section, shall be understood to mean bonds payable from the revenues of the System on a parity with these bonds and shall not be deemed to include other obligations, the security and source of payment of which is subordinate and subject to the pledge securing these bonds. Section 13. When the bonds have been executed and the seal of the City impressed or imprinted as herein provided, they shall be delivered to the Trustee and the Trustee shall authenticate them and deliver them to the purchaser upon payment in cash of the purchase price, plus accrued interest from date of the bonds to the date of delivery ("total sale proceeds"). The total sale proceeds shall be handled as follows: (1) There shall be deducted from the balance of the total sale proceeds the accrued interest on the bonds, plus such additional sums, if any, as shall be necessary to provide for the payment of debt service requirements of the bonds until revenues of the System are available in sufficient quantity therefor, for deposit in the Bond Fund. (2) Expenses of issuance of the bonds may be paid. (3) The Trustee shall deposit the remainder of the total sale proceeds in a special account in the name of the City designated "1975 Water and Sewer Construction Fund" -21 - ("Construction Fund") with a bank that is a member of the Federal Deposit Insurance Corporation. The moneys in the Construction Fund in excess of the amount insured by the Federal Deposit Insurance Corporation shall be continuously secured by bonds or other direct or fully guaranteed obligations of the United States of America, except that any moneys invested as hereafter authorized need not be so secured. The moneys in the Construction Fund shall be disbursed solely in payment of the costs of accomplishing the improvements, paying necessary expenses incidental thereto and paying expenses of issuing the bonds not otherwise paid. Disbursements shall be on the basis of checks or requisitions which shall contain at least the following information: the person to whom payment is being made; the amount of the payment; and the purpose by general classifi- cation of the payment. Each check or requisition must be signed by the individual occupying the top managerial position of the System, and in the case of all items of expense over which the consulting engineers shall exercise supervision (which shall include all expenses except engineering fees, legal fees, and expenses pertaining to the issuance of the bonds) each check or requisition shall be accompanied by a certificate signed by the consulting engineers (or by a representative thereof designated by the consulting engineers) certifying approval thereof. In the case of requisitions, the depository shall issue its check upon the Construction Fund payable to the person, firm or corpora- tion designated in the requisition. The depository of the Construc- tion Fund shall be required to keep records as to all payments made on the basis of requisitions, and the City shall keep records of all payments made on the basis of checks. When the improvements have been completed and all re- quired expenses paid and expenditures made from the Construction Fund for and in connection with the accomplishment of the improve- ments and the financing thereof, this fact shall be evidenced r -22 - by a certificate signed by the person occupying the top managerial position of the System and by the consulting engineers, which certificate shall state, among other things, the date of the completion and that all obligations payable from the Construction Fund have been discharged. A copy of the certificate shall be filed witij the Trustee, and any remaining balance in the Construction Fund shall be transferred to the Bond Fund. Section 14. (a) Moneys held for the credit of the Bond Fund or for the credit of the debt service reserve in the Bond Fund shall be continuously invested and reinvested pursuant to the direction of the City in direct obligations of, or obliga- tions the principal of and interest on which are unconditionally guaranteed by, the United States Government, or bank certificates of deposit (which certificates of deposit must be fully secured by direct or fully guaranteed obligations of the United States Government) which shall mature, or which shall be subject to redemption by the holder thereof, at the option of such holder, not later than ten (10) years after the date of such investment. (b) Moneys held for the credit of the Construction Fund may, at the option of the City, be invested and reinvested pursuant to the direction of the City in direct obligations of, or obliga- tions the principal of and interest on which are unconditionally guaranteed by, the United States Government, or bank certificates of deposit which shall mature, or which shall be subject to redemption by the holder thereof, at the option of such holder, not later than the date or dates when the money held for the credit of the particular fund will be required for the purposes intended. (c) Moneys held for the credit of any other fund may, at the option of the City, be invested and reinvested pursuant to the direction of the City in direct obligations of, or obligations I VIOW -23- the principal of and interest on which are unconditionally guaranteed by, the United States Government, or certificates of deposit of banks that are members of the Federal Deposit r Insurance Corporation which shall mature, or which shall be subject to redemption by the holder thereof, at the option of such holder, not later than the date or dates when the moneys held for the credit of the particular fund will be required for the purposes intended. (d) Obligations so purchased as an investment of moneys in any such fund shall be deemed at all times to be a part of such fund and the interest accruing thereon and any profit realized from such investment shall be credited to such fund, and any loss resulting from such investment shall be charged to such fund; except that amounts held in the debt service reserve in excess of the required level thereof may to the extent of any such excess be transferred from time to time out of the debt service reserve into the Water and Sewer Fund. Section 15. In the event the office of Mayor, City Clerk, City Treasurer, Manager of the System, Utilities Commission or City Council shall be abolished, or any two or more of such offices shall be merged or consolidated, or in the event the duties of a particular office shall be transferred to another office or officer, or in the event of a vacancy in any such office by reason of death, resignation, removal from office or otherwise, or in the event any such officer shall become incapable of performing the duties of his office by reason of sickness, absence from the City or otherwise, all powers conferred and all obligations and duties imposed upon such office or officer shall be performed by the office or officer succeeding to the principal functions thereof, or by the office or officer upon whom such powers, obligations and duties shall be imposed by law. Section 16. -24 - The provisions of this Ordinance shall constitute a binding contract between the City and the holders and registered owners of the outstanding bonds and coupons issued hereunder, and the City will at all times strictly adhere to the terms and provisions hereof and fully discharge all of its obli- gations hereunder. Subject to the terms and provisions contained in this section and not otherwise, the holders of not less than seventy-five percent (75%) in aggregate principal amount of the bonds then outstanding shall have the right, from time to time, anything contained in this Ordinance to the contrary notwith- standing, to consent to and approve the adoption by the City of such ordinance supplemental hereto as shall be necessary or desirable for the purpose of modifying, altering, amending, adding to or rescinding, in any particular, any of the terms or provisions contained in this Ordinance or in any supplemental ordinance; provided, however, that nothing herein contained shall permit or be construed as permitting (a) an extension of the maturity of the principal of or the interest on any bond issued hereunder, or (b) a reduction in the principal amount of any bond or the rate of interest thereon, or (c) the creation of a lien upon or a pledge of revenues other than as expressly authorized by the appropriate provisions of this Ordinance as now adopted, or (d) the creation of a -privilege or priority of any bond or bonds over any other bond or bonds, or (e) a reduction in the aggregate principal amount of the bonds required for consent to such supplemental ordinance. Section 17. The Mayor is hereby directed to publish this Ordinance one time in a newspaper published in the City and of general circulation therein; there shall appear directly above the Ordinance a Notice signed by him in substantially the following form: r Section 18. -26 - The City covenants that it shall not take any action or suffer or permit any action to be taken or condition to exist which causes or may cause the interest payable r on the bonds to be subject to federal income taxation. Without limiting the generality of the foregoing, the City covenants that the proceeds of the sale of the bonds will not be used directly or indirectly in such manner as to cause the bonds to be treated as "arbitrage bonds" within the meaning of Section 103 (c) of the Internal Revenue Code of 1954, as amended. Section 19. The Trustee shall only be responsible for the exercise of good faith and reasonable prudence in the execution of its trust. The recitals in this Ordinance and in the face of the bonds are the recitals of the City and not of the Trustee. The Trustee shall not be required to take any action as Trustee unless it shall have been requested to do so in writing by the holders and registered owners of not less than ten per cent (loo) in principal amount of the bonds of this issue then outstanding and shall have been offered reasonable security and indemnity against the costs, expenses and liabilities to be incurred therein or thereby. The Trustee may resign at any time by ten (10) days' notice in writing to the City Clerk, and the majority in principal amount of the holders and registered owners of the outstanding bonds of this issue at any time, with or without cause, may remove the Trustee. In the event of a vacancy in the office of Trustee, either by resignation or by removal, the majority in principal amount of the holders and registered owners of the outstanding bonds of this issue may appoint a new Trustee, such appointment to be evidenced by a written instrument or instruments filed with the City Clerk. If the majority in principal amount of the holders and registered owners of the outstanding bonds of this issue shall fail to fill a vacancy within thirty (30) days after the same shall occur, 1W -27- then the City shall forthwith designate a new Trustee by a written instrument filed in the office of the City Clerk. The original Trustee and any successor Trustee shall file a written acceptance and agreement to execute the trust imposed upon it or them by this Ordinance, but only upon the terms and conditions set forth in this Ordinance and subject to the provisions of this Ordinance, to all of which the respective holders and registered owners of the bonds agree. Such written acceptance shall be filed with the City Clerk and a copy thereof shall be placed in the bond transcript. Any successor Trustee shall have all the powers herein granted to the original Trustee. In the event of a change in the office of Trustee, the old Trustee which has resigned or been removed shall cease to be Paying Agent and the new Trustee shall also be Paying Agent. Section 20.(a) Pursuant to the provisions of Act No. 218 of 1963, a special election is hereby called to be held in the City on the 23rd day of May, 1978, for the purpose of referring to the electors of the City the question of the approval or disapproval of this Ordinance. (b) The special election shall be held and conducted and the vote canvassed in the manner provided for referendum elections in the City under the provisions of Amendment VII to the Arkansas Constitution. The question shall be placed on the ballot in substantially the following form: r Vote on each measure by placing an "X" in the square above the measure either FOR OR AGAINST: FOR Ordinance No. AGAINST Ordinance No. Referral to the electors of the City of Batesville, Arkansas of Ordinance No. of the City, adopted and approved April 25, 1978, and entitled: ORDINANCE AUTHORIZING THE ISSUANCE OF WATER AND SEWER REVENUE BONDS FOR THE PURPOSE OF FINANCING THE COST OF CONSTRUCTING EXTENSIONS, BETTERMENTS, AND IMPROVEMENTS TO THE WATER AND SEWER SYSTEM (DESCRIBED IN THE ORDINANCE); PROVIDING FOR THE PAYMENT OF THE BONDS; ESTABLISHING RATES FOR SERVICES OF THE SYSTEM; REFERRING THE ORDINANCE TO THE ELECTORS OF THE CITY; PRESCRIBING OTHER MATTERS RELATING THERETO; AND DECLARING AN EMERGENCY. If approved by the electors of the City, Ordinance No. �I� will remain in effect and the City Council will proceed to carry out the powers and authorities contained therein. A copy of Ordinance No. is on file with the City Clerk where it may be inspected by any interested person. (c) The Mayor is hereby directed to give notice of the election by an advertisement published one time in a newspaper published in the City and having a general circulation therein, as required for referendum elections in the City. (d) A copy of this Ordinance shall be delivered to the Independence County Board of Election Commissioners in order that the proper election officials and supplies may be obtained. Section 21. The provisions of this Ordinance are hereby declared to be separable and if any provision shall for any reason be held illegal or invalid, such holding shall not affect the validity of the remainder of the Ordinance. Section 22. All ordinances, resolutions and orders, or parts thereof in conflict herewith are hereby repealed to the extent of such conflict. ` NW -29- Section 23. This Ordinance shall not create any right or obligation until issuance of the bonds authorized hereby. Section 24. It is herebv ascertained and declared r that the improvements must be accomplished as soon as possible in order to make the System adequate for the needs of the City and its inhabitants, without which the life, health, safety and welfare thereof are jeopardized, and that the issuance of the bonds and the taking of the other action authorized by this Ordinance is necessary for the accomplishment thereof. It is, therefore, declared that an emergency exists and this Ordinance being necessary for the immediate preservation of the public peace, health and safety shall take effect and be in force from and after its passage and approval. PASSED: la(j , 1978. APPROVED: ATTEST: Mayor ty _ e rk (SEAL) EM C E R T I F I C A T E The undersigned, City Clerk of the City of Batesville, Arkansas, hereby certifies that the foregoing pages are a true and correct copy of an Ordinance adopted at a J/ ti session of the Council of the City of Batesville, Arkansas, held at the regular meeting place of the Council in said City at �,`�'�' o'clock.m. , on the day of 1978, and that said Ordinance is of record in Ordinance Record Book No. D.' Page %5 now in my possession. _ GIVEN under my hand and seal this � day of i1 1978. (SEAL) Elm City Clerk = Pq R BATESVILLE, ARKANSAS REVISIONS TO WATER AND SEWER RATES AS PROPOSED IN FINANCIAL RESUME' April, 1978 EST'D. REVENUE RE 'D AS PER TABLE 2 OF ABOVE RESUME Water Sales = $515,000 Sewer Chafges = 671,000 WA TE V S ION NO. Firt 13 000 000 ga s .80 min. ch ge 1 ns per f N xt 80, 00 gas to 0.60 per 1000 ext 1,90 0 gal s 0, pe 1000 Over 2,000 gall s = 0.42 1000 EST'D. WATER REVENUE PRODUCED BY REVISION NO. 1 ri... Est' d. Revenue 1977 '/, Water Usage Industrial $248,380 = 46.2% 60% Commercial 22,510 - 4.2% 3.5% Residential 232 020 43.1% 29% Water Districts _ 34,920 6.5% 7.5% $537,830 100% 100% Versus $5x5,000 Req'd. = 4.4% above' j WATER RATE REVISION NO. 2 First 3,000 gallons - - $2.80 (min. charge) Next 97,000 gallons = 0.60 per 1000 I Next 1,900,000 gallons = 0.50 per 1000 Over 2,000,000 gallons = 0 -4:2 ---per 1000 Mr. Marvin Smith City Clerk City Hall Batesville, Arkansas 72501 Re: City of Batesville, Arkansas Water and Sewer Revenue Bonds Dear Mr. Smith: I have enclosed five copies of the Ordinance as introduced. After adoption, I'll need three for bond transcripts. You will probably want to go ahead and give one copy to the County Board of Election Commissioners. Please let me know the date and time of the hearing when it is fixed and ask the newspaper to send me three proofs of publication. It was good to see you last night and I look forward to working with you again. Kindest personal regards. Yours sincerely, V-7 - James A. Buttry JAB/jam Enclosures cc: Mr. Jerry C. Post The Honorable Peyton Golden, Jr. OSCAR E. DAVIS, JR. JAMES C. CLARK, JR. THOMAS P. LEGGETT JOHN DEWEY WATSON LEWIS MATHIS HERMANN WESTER PAUL B. BENHAM,IIL OVERTON S. ANDERSON DAVID A. ORSINI LARRY W. BURKS A.WYCKLIFF NISBET, JR. JAMES E. HARRIS JOSEPH E. KILPATRICK, JR. J. PHILLIP MALCOM JAMES DERRELL HOLLAND JAMES M. SIMPSON MEREDITH P. CATLETT COUNSEL WILLIAM J. SMITH JOHN T. WILLIAMS 1W FRIDAY, ELDREDGE & CLANK NERSCH EL H. FRIDAY WILLIAM A. ELOREDG E, JR. ATTORNEYS AT LAW B. S. CLARK `/ILLIAM L. TERRY THE FIRST NATIONAL BUILDING, TWENTIETH FLOOR OBERT LIGHT `VIrrOVILLIAM H H. SUTTON LITTLE ROCK, ARKANSAS 72201 JERRY T. LIGHT BOYCE R. LOVE TELEPHONE GEORGE E. PIKE, JR. SOI -376-2011 JAMES W. MOORE WILLIAM L. PATTON, JR. BYRON M. EISEMAN, JR. p (] p April 28, 1770 JOE D. BELL MICHAEL G. THOMPSON G. ROSS SMITH JOHN C. ECHOLS JAMES A. BUTTRY FREDERICK S. URSERY H. T. LARZELERE Mr. Marvin Smith City Clerk City Hall Batesville, Arkansas 72501 Re: City of Batesville, Arkansas Water and Sewer Revenue Bonds Dear Mr. Smith: I have enclosed five copies of the Ordinance as introduced. After adoption, I'll need three for bond transcripts. You will probably want to go ahead and give one copy to the County Board of Election Commissioners. Please let me know the date and time of the hearing when it is fixed and ask the newspaper to send me three proofs of publication. It was good to see you last night and I look forward to working with you again. Kindest personal regards. Yours sincerely, V-7 - James A. Buttry JAB/jam Enclosures cc: Mr. Jerry C. Post The Honorable Peyton Golden, Jr. OSCAR E. DAVIS, JR. JAMES C. CLARK, JR. THOMAS P. LEGGETT JOHN DEWEY WATSON LEWIS MATHIS HERMANN WESTER PAUL B. BENHAM,IIL OVERTON S. ANDERSON DAVID A. ORSINI LARRY W. BURKS A.WYCKLIFF NISBET, JR. JAMES E. HARRIS JOSEPH E. KILPATRICK, JR. J. PHILLIP MALCOM JAMES DERRELL HOLLAND JAMES M. SIMPSON MEREDITH P. CATLETT COUNSEL WILLIAM J. SMITH JOHN T. WILLIAMS 1W Re: Batesville, Arkansas Water and Sewer Revenue Bonds Schedule Memo 4/27 - Introduce Ordinance - announce election. LM 5/9 - Hearing and Adopt Ordinance - call election. 5/23 - Hearing (Water) - No action necessary. 5!23 - Election. 5/23 - Proclaim Result of Election. - Notice of Sale and Applicable Statement Distributed. - Sell Bonds (council meeting). - Council approve Trustee and details of Bonds. Deliver Bonds Re: City of Batesville, Arkansas Water and Sewer Revenue Bonds Dear Mr. Smith: I am enclosing the following: (1) Notice of and Consent to Meeting of City Council. This will be signed by the Mayor, City Clerk and all members of the council, whether present or not, if adopted at a special meeting. (2) Minutes of Meeting covering the hearing on the rates and the adoption of the ordinance. (3) Form of Ballot. This needs to be printed as soon as possible. We would like to see a proof before it is printed in final form. (4) Notice of Election. Please complete all blanks before publishing. Publication instructions are found at the bottom of the Notice. (5) Proclamation of Election. Same instructions as in (4) above. (6) Notice setting the hearing on the bond ordinance (which you already have). This should be published immediately preceding the bond ordinance. We will need four copies of each of the above plus four proofs of publication of the Notice of Election, Proclamation of Election and Notice of Hearing and Bond Ordinance. wow FRIDAY, ELDREDGE & CLARK rr+ HERSCMEL M. FRIDAY WILLIAM A. ELDREDGE, JR. ATTORNEYS AT LAW OSCAR E. DAVIS, JR. B. S. CLARK THE FIRST NATIONAL BUILDING, JAMES C. CLARK, JR. WILLIAM L.TERRY TWENTIETH FLOOR THOMAS P. LEGGETT ,OBERT V. LIGHT JOHN DEWEY WATSON ILLIAM H. SUTTON LITTLE ROCK, ARKANSAS 72201 LEWIS MATHIS _� JERRY T. LIGHT B HERTELEPHONE BENHAME OVCE R. LOVE PAUL' BN $ GEORGE E. PIKE, JR. 501-376-2011 OVERTON S. ANDERSON JAMES W. MOORE DAVID A. ORSINI WILLIAM L. PATIO N, JR. LARRY W. BURKS BYRON M. EISEMAN, JR. (� p May 4, 19 A.WYCKLIFF NISBET, JR. JOE D. BELL /'7 O JAMES E. HARRIS MICHAEL G. THOM PSON JOSEPH E. KILPATRICK, JR. G. ROSS SMITH J. PHILLIP MALCOM JOHN C. ECHOES JAMES DERRELL HOLLAND JAMES A. BUTTRY JAMES M.SIMPSON FREDERICK S. URSERY MEREDITH P. CATLETT H. T. LARZELERE c0u1+5EL WILLIAM J. SMITH JOHN T. WILLIAMS Mr. Marvin Smith City Clerk City Hall Batesville, Arkansas 72501 Re: City of Batesville, Arkansas Water and Sewer Revenue Bonds Dear Mr. Smith: I am enclosing the following: (1) Notice of and Consent to Meeting of City Council. This will be signed by the Mayor, City Clerk and all members of the council, whether present or not, if adopted at a special meeting. (2) Minutes of Meeting covering the hearing on the rates and the adoption of the ordinance. (3) Form of Ballot. This needs to be printed as soon as possible. We would like to see a proof before it is printed in final form. (4) Notice of Election. Please complete all blanks before publishing. Publication instructions are found at the bottom of the Notice. (5) Proclamation of Election. Same instructions as in (4) above. (6) Notice setting the hearing on the bond ordinance (which you already have). This should be published immediately preceding the bond ordinance. We will need four copies of each of the above plus four proofs of publication of the Notice of Election, Proclamation of Election and Notice of Hearing and Bond Ordinance. *rr May 4, 1978 Mr. Marvin Smith Page Two You will want to ensure that the Notice is published directly above the complete ordinance and that the publication takes place at least ten days prior to the date set for hearing. Please let me know if you have any questions. Sincerely yours, James A. Buttry JAB/jam CC: Mr. Jerry C. Post The Honorable Peyton Golden, Jr. Clay Raney I+.. P.S. Please send us a copy of Ordinance No. 740, adopted January 3, 1967 and the portion of the City Code which sets forth the Referendum Ordinance. HERSCHEL H. FRIDAY WILLIAM A. ELDREDGE, JR. B. S. CLARK WILLIAM L. TERRY !OBERT V. LIGHT *AU/'WILLIAM H. SUTTON JERRY T. LIGHT BOYCE R. LOVE GEORGE E. PIKE, JR, JAMES W. MOORE WILLIAM L. PATTON, JR, BYRON M. EISEMAN, JR. JOE D. BELL MICHAEL G. THOMPSON G. ROSS SMITH JOHN C. ECHOLS JAMES A. BUTTRY FREDERICK S. URSERY H. T. LARZELERE WAW FRIDAY, ELDREDGE & CLARK ATTORNEYS AT LAW THE FIRST NATIONAL BUILDING, TWENTIETH FLOOR LITTLE ROCK, ARKANSAS 72201 TELEPHONE 501-376- 2011 Mr. Marvin Smith City Clerk City Hall Batesville, Arkansas 72501 May 4, 1978 Re: City of Batesville, Arkansas Water and Sewer Revenue Bonds Dear Mr. Smith: I am enclosing the following: OSCAR E. DAVIS, JR. JAMES C. CLARK, JR. THOMAS P. LEGGETT JOHN DEWEY WATSON LEWIS MATHIS HERMANN WESTER PAUL B. BENHAM, III OVERTON S. ANDERSON DAVID A. ORSINI LARRY W. BURKS A.WYCKLIFF NISBET, JR. JAMES E. HARRIS JOSEPH E. KILPATRICK, JR. J. PHILLIP MALCOM JAMES DERRELL HOLLAND JAMES M. SIMPSON MEREDITH P. CATLETT �c�unse� WILLIAM J. SMITH JOHN T. WILLIAMS (1) Notice of and Consent to Meeting of City Council. This will be signed by the Mayor, City Clerk and all members of the council, whether present or not, if adopted at a special meeting. (2) Minutes of Meeting covering the hearing on the rates and the adoption of the ordinance. (3) Form of Ballot. This needs to be printed as soon as possible. We would like to see a -proof before it is printed in final form. (4) Notice of Election. Please complete all blanks before publishing. Publication instructions are found at the bottom of the Notice. (5) Proclamation of Election. Same instructions as in (4) above. (6) Notice setting the hearing on the bond ordinance (which you already have). This should be published immediately preceding the bond ordinance. We will need four copies of each of the above plus four proofs of publication of the Notice of Election, Proclamation of Election and Notice of Hearing and Bond Ordinance. AW May 4, 1978 Mr. Marvin Smith Page Two You will want to ensure that the Notice is published directly above the complete ordinance and that the publication takes place at least ten days prior to the date set for hearing. Please let me know if you have any questions. Sincerely yours, James A. Buttry JAB/j am cc: Mr. Jerry C. Post The Honorable Peyton Golden, Jr. Clay Raney 1410. P.S. Please send us a copy of Ordinance No. 740, adopted January 3, 1967 and the portion of the City Code which sets forth the Referendum Ordinance.