HomeMy WebLinkAbout711ORDINANCE NO. 7
AN ORDINANCE AUTHORIZING THE ISSUANCE OF GENERAL
OBLIGATION IMPROVEMENT BONDS UNDER THE PROVISIONS
OF AMENDMENT NO. 13 TO THE CONSTITUTION OF THE
STATE OF ARKANSAS FOR THE PURPOSES SPECIFIED IN
THE ORDINANCE; LEVYING A TAX SUFFICIENT TO PAY
THE PRINCIPAL OF AND INTEREST ON SAID BONDS;
PRESCRIBING OTHER MATTERS RELATING THERETO; AND
DECLARING AN EMERGENCY.
WHEREAS by Ordinance No. 709, duly passed by the City
Council of the City of Batesville, Arkansas (called "City") and
approved on the 25th day of August, 1964, there was submitted to
the electors of the City at the General Election on the third day
of November, 1964, the questions of voting for or against the
issuance of bonds in the amount of $41,000 for the purpose of con-
structing and equipping of a building to house firefighting apparatus
(a fire station), and the issuance of bonds in the amount of $19,000
for the purchase of firefighting apparatus (a fire truck) (both
of said purposes will sometimes be referred to collectively as
"public improvements"); and
WHEREAS due notice of the election was given as required
by law, and said election was duly held on the third day of
November, 1964, at which election the electors voted favorably on
both questions and approved the issuance of all of said bonds; and
WHEREAS the results of the election were duly announced
by the Mayor by proclamation published on the twelfth day of
November, 1964 in a newspaper of general circulation in the City;
and
WHEREAS as approved by the electors at said General
Election, and as authorized by Amendment No. 13 to the Constitution
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of the State of Arkansas, the bonds for the separate purposes so
approved have been combined into one issue in the total principal
amount of $60,000, dated October 1, 1964, with interest payable
semiannually on June 1 and December 1 of each year, commencing
June 1, 1965, and with the principal maturing on December 1 in
each of the years 1967 to 1979, inclusive, and said bonds were
duly advertised for public sale on the 9th day of February, 1965;
and
WHEREAS at said public sale the best bid was offered
jointly by Southern Securities Corporation, Dabbs Sullivan Company,
Inc., and E. L. Villareal & Company, Inc., all of Little Rock,
Arkansas, being par and accrued interest plus a premium of $13.85
for bonds bearing interest at the rates of 3.25% and 2.80% per
annum (those bonds maturing in the years 1967 to 1977, inclusive,
bearing interest at the rate of 3.25%, and those bonds maturing
in the years 1978 to 1979, inclusive, bearing interest at the
rate of 2.80% per annum), and said bonds were sold to said purchasers
at that price; and
WHEREAS pursuant to the authorization in the Notice of
Sale the said purchasers have elected to convert the $60,000 in
principal amount of bonds bearing interest at the rates of 3.25%
per annum and 2.80% per annum (as described above) to an issue of
$62,300 in principal amount of 3% and 2 1147. per annum bonds,
hereafter described in detail, and the City Council has examined
the conversion and has found the same to be within the provisions
of the Notice of sale and by virtue of which the City will receive
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no less and pay no more than it would receive and pay had the
bonds not been converted;
NOW, THEREFORE, BE IT ORDAINED by the City Council of
the City of Batesville, Arkansas:
Section 1. That the sale of $60,000 in principal amount
of bonds to Southern Securities Corporation, Dabbs Sullivan Company,
Inc., and E. L. Villareal & Company, Inc., all of Little Rock,
Arkansas, for the price set forth above and the conversion of said
bonds to an issue of $62,300 in principal amount as set forth above
and is hereafter described in detail be, and the same are hereby,
approved and confirmed.
Section 2. That the public improvements described above
be accomplished in accordance with plans, specifications and con-
tracts approved by the City Council and copies of which shall be
filed in the office of the City Clerk.
Section 3. That under the authority of the Constitution
and laws of the State of Arkansas, including particularly Amendment
No. 13 to the Constitution of the State of Arkansas, City of
Batesville General Obligation Improvement Bonds are hereby authorized
and ordered issued in the total principal amount of $62,300, the
proceeds of the sale of which are necessary to provide sufficient
funds for accomplishing the public improvements for which the bonds
were voted, pay the expenses of issuing the bonds not paid by the
purchasers, and make any provision that is necessary for interest
until tax collections are available in sufficient amounts therefor.
The bonds shall be dated October 1, 1964, and interest thereon
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shall be payable semiannually on June 1 and December 1 of each
year commencing June 1, 1965. The bonds shall be numbered
consecutively from one (1) to sixty-three (63), inclusive, and
shall be in the denomination of $1,000 each, except that Bond
No. 5 shall be in the denomination of $300. The bonds shall bear
interest as follows: Bonds Nos. 1 to 45, inclusive, being the
bonds maturing in the years 1967 to 1976, inclusive, shall bear
interest at the rate of 3% per annum; Bonds Nos. 46 to 63, inclusive,
being the bonds maturing in the years 1977 to 1979, inclusive, shall
bear interest at the rate of 2 1/4% per annum. The principal and
interest shall be payable in lawful money of the United States of
America upon presentation of the bond or proper coupon at the
office of the Union National Bank of Little Rock, Little Rock,
Arkansas. The bonds shall mature on December 1 of each year as
follows, but shall be callable as hereafter set forth:
YEAR BOND NOS. AMOUNT
1967
1 -
5
$ 42300
1968
6
- 9
49000
1969
10 -
13
4,000
1970
14
- 17
4,000
1971
18
- 21
43,000
1972
22 -
25
4,000
1973
26 -
30
5,000
1974
31 -
35
53,000
1975
36 -
40
5,000
1976
41
- 45
53,000
1977
46
- 51
6,000
1978
52 -
57
63,000
1979
58 -
63
62000
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Section 4. That the bonds shall be executed on behalf
of the City by the Mayor and City Clerk and shall have impressed
thereon the seal of the City. The interest coupons attached to
the bonds shall have thereon the facsimile signature of the Mayor,
which signature shall have the same force and effect as if he had
personally signed each of said coupons.
Section 5. That the bonds and coupons shall be in sub-
stantially the following form:
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UNITED STATES OF AMERICA
STATE OF ARKANSAS
COUNTY OF INDEPENDENCE
CITY OF BATESVILLE
GENERAL OBLIGATION IMPROVEMENT BOND
No.
KNOW ALL MEN BY THESE PRESENTS:
That the City of Batesville, Independence County,
Arkansas (called "City") acknowledges itself to owe, and, for
value received, promises to pay to bearer the sum of
in lawful money of the United States of America on the first day
of December, 19 , and to pay interest hereon at the rate of
per cent ( %) per annum from date, semiannually on
June 1 and December 1 of each year, commencing June 1, 1965, upon
presentation and surrender of the annexed coupons as they severally
become due. Both principal and interest of this bond are hereby
made payable at the Union National Bank of Little Rock, Little
Rock, Arkansas.
This bond is one of a series of sixty-three (63) bonds,
aggregating Sixty-two Thousand Three Hundred Dollars ($62,300),
dated October 1, 1964 and numbered consecutively from one (1) to
sixty-three (63)2 inclusive, all of like tenor and effect except
as to number, rate of interest, denomination, maturity and right
of prior redemption, and the bonds are issued for the purpose of
financing the constructing and equipping of a building to house
fire fighting apparatus (a fire station) and financing the pur-
chase of fire fighting apparatus (a fire truck), paying necessary
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expenses incidental thereto, the expenses of issuing the bonds,
and providing for interest during construction to the extent
necessary (called the "bonds").
The bonds are issued pursuant to and in full compliance
with the Constitution and laws of the State of Arkansas, including
particularly Amendment No. 13 to the Constitution of the State of
Arkansas, and pursuant to Ordinances of the City Council of the
City duly adopted and approved and an election duly held at which
the majority of the legal voters of the City voting on the ques-
tion voted in favor of the issuance of the bonds. The bonds are
general obligations of the City to the payment of the principal of
and interest on which the City pledges its full faith, credit and
taxing power, including a one and fifty-six hundredths (1.56) mills
special tax duly levied under the authority of Amendment No. 13 to
the Constitution of the State of Arkansas.
The bonds will be callable for payment prior to maturity
in inverse numerical order at par and accrued interest as follows:
from surplus proceeds of the sale of the bonds not required for
completing the improvements and from surplus tax collections on
any interest paying date; from funds from any source on any interest
paying date on or after December 1, 1969. 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 circula-
tion throughout the State of Arkansas, giving the number and
maturity of each bond being called, with the publication to be
at least fifteen (15) days prior to the redemption date, and after
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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.
The City covenants that all revenues derived from
collections of said special tax in excess of the amount necessary
to insure the prompt payment of the principal of and interest on
the bonds, as the same become due, must be used from time to time
on each interest paying date for calling the bonds for payment
prior to maturity.
IT IS HEREBY, CERTIFIED, RECITED AND DECLARED that all
acts, conditions and things required to exist, happen and be per-
formed, under the Constitution and laws of the State of Arkansas,
particularly Amendment No. 13 to the Constitution of the State of
Arkansas, precedent to and in the issuance of the bonds 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 does not exceed any constitutional or statutory limi-
tation; and that a tax sufficient to pay the bonds, principal and
interest, has been duly levied in accordance with Amendment No. 13
to the Constitution of the State of Arkansas and made payable
annually until all of the principal of and interest on the bonds
have been fully paid and discharged.
This bond shall not be valid until it shall have been
authenticated by the Certificate hereon duly signed by the Union
National Bank of Little Rock, Little Rock, Arkansas.
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IN WITNESS WHEREOF, the City of Batesville, Arkansas has
caused this bond to be executed by its Mayor and City Clerk and its
corporate seal to be affixed and has caused the coupons attached here-
to to be executed by the facsimile signature of its Mayor, all as of
the first day of October, 1964.
CITY OF BATESVILLE, ARKANSAS
By- ,
Mayor
ATTEST:
City Clerk
(SEAL)
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(Form of Coupon)
KA
No. $-------
June
On the first day of December, 19 , the City of
Batesville, Independence County, Arkansas, unless the bond to
which this coupon is attached is paid prior thereto, hereby
promises to pay to bearer
DOLLARS
in lawful money of the United States of America at the office of
Union National Bank of Little Rock, Little Rock, Arkansas, being
six (6) months' interest then due on General Obligation Improvement
Bond, dated October 1, 1964 and numbered 0
CITY OF BATESVILLE, ARKANSAS
By (Facsimile signature)
Mayor
On each bond shall appear the following:
CERTIFICATE
This is to certify that this is one of the sixty-three
(63) bonds of the issue mentioned and described within.
UNION NATIONAL BANK OF LITTLE ROCK
LITTLE ROCK, ARKANSAS
By
(Authorized Signature)
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Section 6. That in order to pay the bonds as they mature,
with interest thereon, there is hereby levied upon all taxable real
and personal property within the City of Batesville, Arkansas, a tax
of one and fifty-six hundredths (1.56) mills on each dollar of
assessed valuation to be collected with the taxes collected in the
year 1965 and continuing through the year 1979, and as long there-
after as may be necessary to pay the principal of, interest on and
paying agent's fees in connection with the bonds authorized by this
Ordinance, being a sum sufficient to pay the principal of, interest
on and paying agent's fees in connection with the bonds, as they
mature, with more than five per cent (5%) added for unforeseen
contingencies; and the City Clerk is directed to transmit a copy
of this Ordinance to the County Clerk of Independence County,
Arkansas to the end that said tax may be extended on the tax books
of the County and collected annually along with the other taxes
until the bonds and interest thereon are paid in full. The City
covenants and agrees that all the revenues derived from said one
and fifty-six hundredths (1.56) mills tax shall be placed in a
separate fund which is hereby created and designated "1964 General
Obligation Improvement Bond Fund" and shall be used solely for the
payment of the principal of, interest on and paying agent's fees
in connection with the bonds of this issue, as set forth in this
Ordinance. The amount of said deposit in excess of that insured by
the Federal Deposit Insurance Corporation must be continuously
secured by bonds or other direct or fully guaranteed obligations
of the United States of America. The City covenants that all
revenues derived from said special tax in excess of the amount
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necessary to insure the prompt payment of the principal of, interest
on and paying agent's fees in connection with the bonds, as they
mature, shall be used from time to time on each interest paying
date for calling the bonds for payment prior to maturity as soon
as funds are available therefor. The City reserves the right to
invest any moneys held in the Bond Fund for current debt service
requirements in direct obligations of the United States of America
having maturity dates or subject to redemption at the option of the
holder on or before the dates the moneys will be needed for said
current debt service requirements (current debt service requirements
shall include those requirements maturing within not to exceed the
next succeeding twelve months), but nothing herein shall be construed
to in any way impair or alter the City's covenant to use all revenues
derived from said special tax in excess of the amount necessary to
insure the prompt payment of the principal of, interest on and pay-
ing agent's fees in connection with the bonds as they mature to
call bonds for payment prior to maturity.
Section 7. That for the prompt payment of the principal
of and interest on the bonds, the City hereby pledges its full faith,
credit and taxing power, including the tax levied in Section 6.
Section 8. That in order to pay the principal of and
interest on the bonds as they mature and as they are redeemed prior
to maturity there are hereby appropriated the entire proceeds of
the said special tax levied in Section 6 hereof, and if said pro-
ceeds be not sufficient to pay the principal of and interest on
the bonds as they mature, then there are hereby appropriated suffi-
cient additional sums out of the general revenues of the City to
accomplish said payment at maturity. The principal of and interest
on the bonds mature according to the following schedule:
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YEAR
BOND
NOS.
PRINCIPAL
INTEREST
TOTAL
JUNE 1
DECEMBER 1
1965
$1,156.00
$ 867.00
$2,023.00
1966
867.00
867.00
1,734.00
1967
1 -
5
$4,300
867.00
367.00
6,034.00
1968
6 -
9
4,000
802.50
802.50
5,605.00
1969
10 -
13
4,000
742.50
742.50
5,485.00
1970
14 -
17
4,000
682.50
682.50
5,365.00
1971
18 -
21
4,000
622.50
622.50
5,245.00
1972
22 -
25
4,000
562.50
562.50
5,125.00
1973
26 -
30
5,000
502.50
502.50
6,005.00
1974
31 -
35
5,000
427.50
427.50
5,855.00
1975
36 -
40
5,000
352.50
352.50
5,705.00
1976
41 -
45
5,000
277.50
277.50
5,555.00
1977
46 -
51
6,000
202.50
202.50
6,405.00
1978
52 -
57
6,000
135.00
135.00
61270.00
1979
58 -
63
6,000
67.50
67.50
6,135.00
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Section 9. That the bonds of this issue shall be
callable for payment prior to maturity in accordance with the
terms set out in the face of the bond form in Section 5 of
this Ordinance.
Section 10. That the Treasurer of the City is hereby
ordered and directed to place on deposit with the paying agent
at least five (5) days before the maturity or redemption date
of any bond or interest coupon issued hereunder, an amount
from the funds herein appropriated equal to the amount of such
bonds or coupons for the sole purpose of paying the same,
together with the customary paying agent's fees. Such deposit
shall be at the risk of the City and shall not operate as a
payment of the bonds or coupons until so applied. This in-
struction to the Treasurer is irrevocable and may be enforced
by mandamus.
Section 11. That Union National Bank of Little Rock,
Little Rock, Arkansas, is designated as paying agent. The holders
of a majority in value of the outstanding bonds at any time may
by an instrument duly executed and recorded in the office of the
City Clerk appoint a new paying agent, who shall have all the
powers of the paying agent originally named, and the paying agent
herein named may resign at any time upon ten (10) days' notice in
writing mailed to the City Clerk. In the event of a vacancy in
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the office of the paying agent and the failure of the holders of
a majority in value of the outstanding bonds to take the necessary
action to appoint a new paying agent within thirty (30) days after
such vacancy occurs, the City shall forthwith designate a new
paying agent.
Section 12. That if default is made and continues for
thirty (30) days in the payment of any interest coupon, the holder
of the bond to which it is attached may declare the same immediately
due and payable, and the failure of the holder to exercise this
option upon any default shall not be a waiver of his right to
exercise the option upon any subsequent default.
Section 13. That when the bonds have been executed by the
Mayor and City Clerk and the seal of the City impressed as herein
provided, they shall be delivered to Union National Bank of Little
Rock, Little Rock, Arkansas, which shall authenticate them and
deliver them to the purchasers upon payment of the purchase price
of $60,000 plus accrued interest from October 1, 1964 to the date
of delivery plus a premium of $13.85 (called 11total sale proceeds").
There shall be withheld from the total sale proceeds the amount
necessary to insure the payment of interest until tax collections
are available, as shall be specified in a letter of instructions
signed by the Mayor and delivered to the said Bank at the time of
closing, and the said Bank shall be entitled to rely upon said
letter of instructions. The balance of the total sale proceeds
shall be deposited in a special account to be known as the
"1964 General Obligation Construction Fund" in the name of the
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City in a bank that is a member of the Federal Deposit Insurance
Corporation. The moneys in the said Construction Fund shall be
used for accomplishing the authorized improvements, paying expenses
incidental thereto, and paying the expenses of issuing the bonds
not paid by the purchasers, with any unexpended balance to be
deposited in the 1964 General Obligation Improvement Bond Fund.
The City expressly reserves the right to withhold from the first
available proceeds of the special tax not required for insuring the
payment of the principal of and interest on the bonds, an amount
equal to that withheld, if any be withheld, from the total sale
proceeds to cover interest requirements until the availability of
tax proceeds.
Section 14. That the terms of this Ordinance shall con-
stitute a contract between the City of Batesville, Arkansas and
the holder or holders of the bonds, and no variation or change in
the undertakings herein set forth shall be made while any of these
bonds are outstanding, and the holder of any bonds may at any time
for and on his own behalf or for and on behalf of all the bond-
holders enforce the obligations of the City by a proper suit for
that purpose.
Section 15. That the provisions of this Ordinance are
separable, and in the event that any section or part hereof shall
be held to be invalid, such invalidity shall not affect the
remainder of this Ordinance.
Section 16. That all ordinances and resolutions and
parts thereof in conflict herewith are hereby repealed to the
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extent of such conflict.
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Section 17. That this ordinance shall not create any
right of any character and no right of any character shall arise
under or pursuant to it until the bonds authorized by this ordi-
nance shall be issued and delivered.
Section 18. That the improvements to be accomplished
out of the proceeds of the bonds are immediately needed in order
to adequately protect the health, safety and welfare of the
inhabitants of the City, and said improvements can be accomplished
only by the issuance of the bonds authorized hereby. It is, there-
fore, declared that an emergency exists and this ordinance being
necessary for the immediate preservation of the public peace,
health, safety and welfare shall be in force and take effect
immediately from and after its passage.
PASSED:
, 1965.
APPROVED:
L=
Mayor
ATTEST:
City Clerk
lqw
CERTIFICATE
The undersigned, City Clerk of the City of Batesville,
Arkansas, hereby certifies that the foregoing pages are a true
and perfect copy of Ordinance No./ / , passed at a
session of the City Council of Batesville, Arkansas,
held at the regular meeting place of the Council at o'clock
1 _
m. on the day of i` = , 1965, and that said
ordinance is of record in Ordinance Record Book �_, page
now in my possession.
GIVEN under my hand and seal this day of
1965.
(SEAL)
City Clerk