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ORDINANCE NO.
AN ORDINANCE AUTHORIZING THE CONSTRUCTION
OF CERTAIN EXTENSIONS, BETTER4ENTS AND
IMPROVEMENTS TO THE WATER SYSTEM OF THE
CITY OF BATESVILLE, ARKANSAS; AUTHORIZING
THE ISSUANCE OF WATER SYSTEM REVENUE BONDS
FOR THE PURPOSE OF FINANCING A PORTION OF
THE COST OF SAID CONSTRUCTION; PROVIDING
FOR THE PAYMENT OF PRINCIPAL AND INTEREST
ON THE BONDS; PRESCRIBING OTHER MATTERS
RELATING THERETO; AND DECLARING AN EMERGENCY.
L ;
WHEREAS, the Water System (called/ "System") presently
serving the City of Batesville, Arkansas (called "City"), is
inadequate for the immediate needs of the inhabitants of the
City; and
WHEREAS, the City Council has determined that the
existing System should be improved and that certain extensions,
betterments and improvements thereto should be constructed; and
WHEREAS, the Council has had prepared by Max Mehlburger
Engineers, Consulting Engineers, a preliminary report and estimates
of cost of the needed extensions, betterments and improvements
(called "project"); and
WHEREAS, the said plans and estimates have been examined
and approved by the City Council and a copy thereof is on file in
the office of the City Clerk, where it may be inspected by any
interested person; and
WHEREAS, a brief general description of the project is
as follows: Construction of raw water river intake, pump station,
booster pump station, transmission line to plant site, feeder mains,
elevated storage tank, a new water treatment plant, and additions
to distribution lines; and
NOW loop
Page 2
WHEREAS, the City does not have available sufficient
funds with which to construct said project, but can obtain funds
by the issuance of Water System Revenue Bonds in the aggregate
principal amount of Three Hundred Thousand Dollars ($3001,000),
which, together with funds to be obtained from an agency or agencies
of the Government of the United States of America and.other avail-
able funds of the City, will be sufficient to finance the cost of
said project, including all costs necessary and incidental thereto
and to the issuance of the bonds; and
WHEREAS, the City has outstanding an issue of Water System
Revenue Bonds, dated October 1, 1961; and
WHEREAS, the City has entered into a contract with the
United States of America, Department of Housing and Urban Develop-
ment, for the sale of $300,000 in principal amount of Water System
Revenue Bonds at a price of par and accrued interest for bonds
bearing interest at the rates of three and three-fourths (3-3/4%)
per centum per annum and three and one-half (3-1/2%) per centum per
annum, as hereafter set forth in detail;
j/ NOW, THEREFORE, BE IT ORDAINED, by the City Council of
the City of Batesville, Arkansas:
Section 1. That the project be constructed.
Section 2. That the bonds be, and they are hereby, sold
to the United States of America under the terms set forth above.
Page 3
Section 3. That the City Council hereby finds and
declares that the period of usefulness of the water facilities
after the completion of the project will be more than forty (40)
years, which is longer than the term of the proposed Revenue Bonds.
Section 4. That 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, City of Batesville,
Arkansas, Second Lien Water System Revenue Bonds, Series 1965, are
hereby authorized and ordered issued in the principal amount of
Three Hundred Thousand Dollars ($300,000), the proceeds of which
are necessary, together with other available funds, to pay the cost
to the City of constructing the above-described project, including
other necessary expenses incidental thereto and to the issuance of
the bonds. The bonds shall be dated April 1, 1965, and shall be
numbered consecutively from one (1) to three hundred one (301),
inclusive. All bonds shall be in the denomination of $1,000 each,
except that Bond No. 160 shall be in the denomination of $700, and
Bond No. 161 shall be in the denomination of $300. Bonds Nos. 1
to 160., inclusive, shall bear interest at the rate of 3-3/4% per
annum, and Bonds Nos. 161 to 301, inclusive, shall bear interest
at the rate of 3-1/2% per annum. The interest shall be payable
semiannually on April 1 and October 1 of each year, commencing
October 1, 1965, and the interest shall be evidenced by interest
coupons. The principal and interest shall be payable in lawful
s
Page 4
money of the United States of America upon presentation of the
bond or proper coupon at The First National Bank in Little Rock
Little Rock , Arkansas (the "Paying Agent"), or, at the
option of the holder, at The Chase Manhattan Bank
Borough of Manhattan, City and State of New York (the "Alternate
Paying Agent").
9
The bonds shall mature on April 1 in each year as follows,
but shall be callable for payment prior to maturity as provided in
the face of the bonds:
YEAR
BONDS
NOS.
AMOUNT
1994
1 -
20
$203,000
1995
21 -
40
203,000
1996
41 -
60
20,000
1997
61 -
85
25,000
1998
86 -
110
25,000
1999
111 -
135
25,000
2000
136 -
161
25,000
2001
162 -
186
25,000
2002
187 -
211
25,000
2003
212 -
241
30,000
2004
242 -
271
30,000
2005
272 -
301
30,000
Section 5.. That the bonds shall be executed on behalf
of the City with either the manual or facsimile signature of the
Mayor and with the manual signature of the City Clerk, and shall
have impressed thereon the seal of the City. Interest coupons
attached to each of said bonds shall have the facsimile signature
of the Mayor lithographed or printed thereon. The facsimile signature
of the Mayor shall have the same force and effect as if'he had per-
sonally signed each of said bonds and coupons. The bonds, together
with interest thereon, shall be payable solely out of the Second
Lien Revenue Bond Fund, as hereinafter set forth, and shall be a
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valid claim of the holders thereof only against such fund, and
the amount of revenues pledged to such fund, which amount of
revenues is hereby pledged and mortgaged for the equal and ratable
payment of the bonds of this issue, and shall be used for no other
purpose than to pay the principal of and interest on said bonds
and the Paying Agent's fees, except as hereinafter specifically
provided. The bonds and interest thereon shall not constitute an
indebtedness of the City within any constitutional or statutory
limitation.
Section 6. That the bonds and coupons shall be in
substantially the following form, and the Mayor and City Clerk
are hereby authorized and directed to make all the recitals
contained therein:
0
En
UNITED STATES OF AMERICA
STATE OF ARKANSAS
COUNTY OF INDEPENDENCE
CITY OF BATESVILLE
SECOND LIEN WATER SYSTEM REVENUE BOND,
SERIES 1965
No.
KNOW ALL MEN BY THESE PRESENTS;
That the City of Batesville, in the County of Independence,
State of Arkansas (called "City"), acknowledges itself to owe and
for value received, hereby promises to pay to bearer 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 April, 19 , and to pay solely from said special fund interest
thereon at the rate of
per cent (-7.)
per annum, from date, semiannually on the first day of April and
October of each year, until the principal hereof is fully paid,
commencing October 1, 1965, upon presentation and surrender of the
annexed coupons as they severally become due. Both principal and
interest of this revenue bond are made payable at The First National
Bank in Little Rock
option of the holder, at
Little Rock
Arkansas, or, at the
The Chase Manhattan Bank
Borough of Manhattan, City and State of New York.
This bond is one an issue of three hundred one (301)
y
Revenue Bonds, aggregating Three Hundred Thousand Dollars ($300,000),
dated April 1, 1965, numbered from one (1) to three hundred one (301),
VA►
Page 7
,Nor
inclusive, all of like tenor and effect, except as to number,
denomination, rate of interest, maturity and right of prior re-
demption, and are issued for the purpose of financing a portion
of the cost to the City of constructing extensions, betterments
and improvements to the Water System (with ft balance of the total
cost to be obtained from other available funds of the City and as
a grant from an agency or agencies of the Government of the United
States of America).
This bond and the issue of which it forms a part 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, and pursuant to
Ordinance No. 72.Z of the Ordinances of the City, duly adopted
and approved on the day of,ph{ , 1966(called
"authorizing Ordinance"), which Ordinance sets forth specifically
and in detail the pledges and covenants of the City for the payment
of the principal of and interest on the bonds and to which reference
may be had for a detailed statement of said pledges and covenants.
The City has outstanding Waterworks Revenue Bonds, dated October 1,
1961, and the lien of the bonds of this issue upon the revenues of
the Water System shall be subject to the lien of the outstanding
bonds of the October 1, 1961, issue.
The City has established and has covenanted and agreed
to maintain rates for water which shall be sufficient at all times
to provide for the payment of the principal, interest and Paying
Agent's fees in connection with the October 1, 1961, Revenue Bonds
and in connection with the bonds of this issue, as the same mature,
`rrr NOW
Page 8
to make adequate provision for the depreciation of the Water System
And to provide for the payment of the reasonable and proper expenses
of operation and maintenance of the Water System. The bonds do not
constitute an indebtedness of the City within any constitutional or
statutory limitation. They are not general obligations of the City,
but are special obligations payable solely from revenues derived
from the operation of the Water System, as set forth above, a fixed
amount of which has been duly set aside and pledged as a special
fund for that purpose and identified as the "Second Lien Revenue
Bond Fund" established by the authorizing Ordinance.
There is a statutory mortgage lien upon the Water System,
which shall exist in favor of the holders of the October 1, 1961,
bonds and of the holders of the bonds of this issue, and each of
them, and in favor of the holders of the coupons attached to the
bonds, and the Water System shall remain subject to such statutory
mortgage lien.until payment in full of the interest on and principal
of the bonds of both issues; provided, however, that such statutory
mortgage lien shall be interpreted according to the decision of the
Supreme Court of the State of Arkansas in City of Harrison v.
Braswell, 209 Ark. 1094. The statutory mortgage lien of the bonds
of this issue shall be subject to the statutory mortgage lien in
favor of the October 1, 1961, issue.
This bond is expressly made negotiable under the laws of
the State of Arkansas and is issued with the intent that the laws
of the State of Arkansas shall govern the construction thereof.
The bonds of this issue shall be callable for payment
prior to maturity, in whole or in part, in inverse numerical order,
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as follows: From surplus moneys in the Construction Fund
remaining, after all costs of the construction of the extensions,
betterments and improvements to the System have been paid, on
any interest paying date, at par and accrued interest; from funds
from any source, at the option of the City, on any interest paying
date on and after April 1, 1975, at par and accrued interest, plus
a premium of four (4%) per cent on all bonds so called on April 1,
19751, with a reduction in premium of one-fourth (1/4) of one (1%)
per cent per year thereafter until April 1, 1991, on and after
which date there shall be no premium on any bonds so called.
Notice of the call for redemption shall be published one time in
a financial newspaper having national circulation at least thirty
(30) days prior to the redemption date, giving the number and ma-
turity of each bond being called, and after the date fixed for
redemption,each bond so called shall cease to bear interest, pro-
vided funds for its payment are on deposit with the Paying Agent
at that time.
This bond shall not be valid until it shall have been
authenticated by the certificate hereon duly signed by The First
National Bank in Little Rock , Little Rock , Arkansas.
IT IS HEREBY CERTIFIED, RECITED AND DECLARED that all
acts, conditions and things required to exist, happen and be per-
formed, 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 this bond
and the issue of which it forms a part does not exceed any con-
stitutional or statutory limitation; and that sufficient of the
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income and revenue which is deemed to be derived from the operation
of the System has been pledged to and will be set aside into said
special fund for the payment of the principal of and interest on
said bonds.
IN WITNESS WHEREOF, the City of Batesville, Arkansas,
by its City Council, has caused this bond to be executed by either
the manual or facsimile signature of the Mayor and by the manual
signature of the City Clerk and sealed with the corporate seal of
the City, and has caused the coupons hereto attached to be exe-
cuted by the facsimile signature of the Mayor, all as of the first
day of April, 1965.
ATTEST:
(SEAL)
CITY OF BATESVILLE, ARKANSAS
By
City Clerk
'ter
Page 11
(Form of Coupon)
No.
April
On the first day of October., 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, 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 office of The
First National Bank in Little Rock , Little Rock
, Arkansas,
or, at the option of the holder, at The Chase Manhattan Bank
Borough of Manhattan, City and State of New York, being six (6)
months interest then due on its Second Lien Water System Revenue
Bond, Series 1965, dated April 1, 1965, and numbered
CITY OF BATESVILLE, ARKANSAS
By (Facsimile Signature)
Mayor
On each bond shall appear the following:
CERTIFICATE
The First National Bank in Little Rock ,
Little Rock
Arkansas, hereby certifies that this is one of the issue of bonds
described herein aggregating $300,000, numbered from 1 to 301,
inclusive.
The First National Bank
in Little Rock
Little Rock Arkansas
By
(Authorized Signature)
Y
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Page 12
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Section 7. (a) That the City has heretofore, by
Ordinance No. 712, passed and approved May 11, 1965, fixed and
established rates for services of the Water System, to which
Ordinance reference is hereby made for said rates and other pro-
visions relating thereto, and the Council hereby confirms and
continues said rates.
(b) That the City covenants and agrees with the holders
of the bonds and coupons that said rates will produce a total
revenue which shall be at least sufficient to pay the principal
of and interest on all bonds payable from revenues of the Water
System, including the bonds of this issue, and the Paying Agent's
fees, on all such bonds, make the required provisions for depre-
ciation, and pay the reasonable and proper operation and maintenance
expenses of the System, and the City covenants and agrees that said
rates shall, if and when necessary, be increased in an amount suf-
ficient to produce total revenues at least sufficient to meet the
above requirements.
(c) That the City further covenants and agrees that
said rates shall never be reduced until all outstanding bonds and
coupons are paid in full.
Section 8. Nothing in this Ordinance shall be construed
to in any manner impair the rights of the holders of the Water
System Revenue Bonds of the City, dated October 1, 1961, and the
lien of the bonds herein authorized on the revenues of the System
shall be subject to the lien of said October 1, 1961, Bonds as
long as any of said bonds are outstanding and unpaid. But after
the bonds of said prior issue are paid, the lien of the bonds of
Page 13
the issue authorized herein upon the revenues of the System shall
constitute a first claim upon the gross revenues of the System.
Section 9. That the City Treasurer shall be custodian
of the gross revenues derived from the operation of the System and
shall give bond for the faithful discharge of his duties as such
custodian. The amount of the bond shall at all times be at least
equal to the total funds in his custody at any one time, and the
bond shall be approved by the City Council and by the Trustee.
From and after the delivery of any bonds issued under the pro-
visions of this Ordinance, the System shall be continuously operated
as a revenue producing undertaking. All moneys received by the
Treasurer shall be deposited by him in such depository or depositories
as may be,lawfully designated from time to time by the City Council,
provided that all such depositories shall hold membership in the
Federal Deposit Insurance Corporation, and all deposits in any
depository in excess of the amount insured by the Federal Depcsit
Insurance Corporation shall be secured by bonds or other direct or
fully guaranteed obligations of the United States of America.
Section 10. Waterworks Revenue Fund. There was estab-
lished by Section 9 of Ordinance No. 681 of the Ordinances of the
City, passed and approved on September 19, 1961 (called 'Ordinance
No. 681"), a Waterworks Revenue Fund into which all revenues derived
from the operation of the System, including the extensions and im-
provements authorized herein, shall be deposited. Said Waterworks
Revenue Fund is hereby confirmed and continued.
Section 11. Second Lien Revenue Bond Fund. (a) There
is hereby created and so long as any of the bonds issued,hereby
LM
Page 14
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are outstanding there shall be maintained a special fund to be
known as the "Second Lien Revenue Bond Fund," into which there
shall be set aside from the Waterworks Revenue Fund established
by Section 9 of Ordinance No. 6813, subject to other payments from
said Waterworks Revenue Fund as are required to be made into the
1961 Waterworks Revenue Bond Fund established by Section 10 of
Ordinance No. 681, the sums in the amounts and at the tim6sherein-
after stated in Subsection (b) for the purpose of providing funds
for the payment of the principal of and interest on the bonds
herein authorized and the Paying Agent's fees as they mature, and
to establish and maintain a debt service reserve in the amount of
$62,400:
Page 15
BOND NOS.
INTEREST
YEAR - �Both Incl.) Principal
April 1
October 1
TOTAL
1965
$5,449.68
$ 5,449,63
1966
5,449.62
5,449.63
10,899.25
1967
5,449.62
5,449.63
10,899.25
1968
5,449.62
5,449.63
10,899.25
1969
5,449.62
5,449.63
10,899.25
1970
5,449.62
5,449.63
10,899.25
1971
5,449.62
5,449.63
10,899.25
1972
5,449.62 ,
5,449.63
10,899.25
1973
5,449.62
5,449.63
10,899.25
1974
5,449.62
5,449.63
10,899.25
1975
5,449.62
5,449.63
10,899.25
1976
5,449.62
5,449.63
10,899.25
1977
5,449.62
5,449.63
10,899.25
1978
5,449.62
5,449.63
10,899.25
1979
5,449.62
5,449.63
10,899.25
1980
5,449.62
5,449.63
10,899.25
1981
5,449.62
5,449.63
10,899.25
1982 '.
5,449.62
5,449.63
10,899.25
1983
5,449.62
5,449.63
10,899.25
1984
5,449.62
5,449.63
10,899.25
1985
5,449.62
5,449.63
10,899.25
1986
5,449.62
5,449.63
10,899.25
1987
5,449.62
5,449.63
10,899.25
1988
5,449.62
5,449.63
10,899.25
1989
5,449.62
5,449.63
10,899.25
1990
5,449.62
5,449.63
10,899.25
1991
5,449.62
5,449.63
10,899.25
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Page 15 - A
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INTEREST
YL?A.R
(Both
Incl.)
PRINCIPAL
April 1
October 1
TOTAL
1992
$5,449.62
$5,449.63
$10,899.25
1993
5,449.62
5,449.63
10,899.25
1994
1
- 20
$20,000
5,449.62
5,074.63
30,524.25
1995
21
- 40
20,000
5,074.62
4,699.63
29,774.25
1996
4i
- 60
20,000
4,699.62
4,324.63
29,024.25
197
61
- 85
25,000
4,324.62
3,855.88
33,180.50
1998
86
-110
25,000
3,855.87
3,387.13
32,243.00
1999
111
-135
25,000
3,387.12
2,918.38
31,305.50
2000
136
- 161
25,000
2,918.37
2,450.00
30,368.37
2001
162
- 186
25,000
2,450.00
2,012.50
29,462.50
2002
187
- 211
25,000
2,012.50
1,575.00
28,587.50
2003
212
- 241
30,000
1,575.00
1,050.00
32,625.00
2004
242
- 271
30,000
1,050.00
525.00
31,575.00
2005
272
- 301
30,000
525.00
30,525.00
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Page 16
(b) That there shall be paid by the Treasurer from the
Waterworks Revenue Fund into the Second Lien Revenue Bond Fund,
beginning on the first business day of the month following delivery
of the bonds, and continuing on the first business day of each
month thereafter 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 not less than one-fifth (1/5) of the
next installment of interest and an amount sufficient to provide
for the Paying Agent's fees on all outstanding bonds. There shall
be paid by the Treasurer from the Waterworks Revenue Fund into the
Second Lien Revenue Bond Fund, beginning on the first business day
of the month of April, 1993, and continuing on the first business
day of each month thereafter 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 not less than one-tenth (1/10)
of the next installment of principal and an amount sufficient to
provide for the Paying Agent's fees on all outstanding bonds. It
is provided, however, that when there shall have been accumulated
in the Second Lien Revenue Bond Fund a debt service reserve in the
amount of $62,400, and so long as said debt service reserve is main-
tained in that amount, the monthly payments into the Second Lien
Revenue Bond Fund may be reduced to one-sixth (1/6) of the next
installment of interest and one -twelfth (1/12) of the next install-
ment of principal, together with an amount sufficient to provide
for the Paying Agent's fees on all outstanding bonds.
(c) That the amount required to be paid from the Waterworks
Revenue Fund into the Second Lien Revenue Bond Fund shall be paid
0
Page 17
before any of the revenues of the Waterworks System are used for
any purpose other than making payments into the 1961 Waterworks
Revenue Bond Fund as required by Section 10 of Ordinance No. 681.
If the revenues of the Water System are insufficient to make the
required payment by the first business day of the following month
into the Second Lien Revenue Bond Fund, then the amount of any such
deficiency in the payment made shall be added to the amount other-
wise required to be paid into the Second Lien Revenue Bond Fund by
the first business day of the next month.
(d) That if, for any reason, the funds in the Second
Lien Revenue Bond Fund shall at any time be insufficient to meet
any interest or principal payment on the bonds, the sum then held
as a debt service reserve shall be used to the extent necessary to
make said interest and/or principal payment, but such reserve shall
be reimbursed from the Waterworks Revenue Fund before any other
moneys in the Waterworks Revenue Fund shall be used for any other
purpose except for making the payments required to be made into the
1961 Waterworks Revenue Bond Fund by Ordinance No. 681, and the pay-
ments hereinabove required to be made into the Second Lien Revenue
Bond Fund. The debt service reserve of the present issue shall be
used solely as herein provided.
(e) When the Second Lien Revenue Bond Fund, including
the debt service reserve therein, shall be and remain sufficient
to pay the principal of and interest on all bonds issued hereby
then outstanding, and the Paying Agent's fees, the Treasurer shall
not be obligated to make any further payments into the Second Lien
Revenue Bond Fund.
on
Page 18
0
(f) All moneys in the Second Lien Revenue Bond Fund
shall be used solely for the purpose of paying the principal of
and interest on the bonds of this issue and the Paying Agent's
fees, except as herein specifically provided.
(g) It shall be the duty of the Treasurer to withdraw
from the Second Lien Revenue Bond Fund at least ten (10) days
before the maturity date of any bond or interest coupon issued
hereunder and to deposit 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 fees, and no
withdrawal of funds from said Second Lien Revenue Bond Fund shall
be made for any other purpose, except as otherwise authorized in
this Ordinance. Such deposit shall be at the sole risk of the
City and shall not operate as a payment of the bonds or coupons
until so applied.
(h) The bonds of this issue shall be specifically
secured by a pledge of all the revenues required to be placed
into the Second Lien Revenue Bond Fund. Said 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 con-
formity with the provisions of this Ordinance.
Section 12. Second Lien Contingency Fund. There is
hereby created, and so long as any of the bonds issued hereby
are outstanding, there shall be maintained a special fund to be
known as the 1tSecond Lien Contingency Fund," into which there
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shall be set aside from the Waterworks Revenue Fund established
by Section 9 of Ordinance No. 681, subject to other payments from
said Waterworks Revenue Fund as are required to be made into the
1961 1v1a-"rwor1cs Revenue Bond Fund established by Section 10 of
Ordinance No. 681, and as are required to be made into the Second
Lien Revenue Bond Fund created by this Ordinance, the sum of
$250 per month. Said monthly payment shall begin on the first
business day of the month following delivery of the bonds and
shall continue on the first business day of each month thereater
until the balance of the Second Lien Contingency Fund amounts to
$15,000, and thereafter such amounts, if any, as shall be necessary
to maintain the Fund in the amount of $15,000 shall be transferred
from the Waterworks Revenue Fund. Moneys in the Second Lien
Contingency Fund may be used by the City for the purpose of paying
the cost of unusual or extraordinary maintenance, repairs, replace-
ments and extensions of and to the System and of paying the cost
of improvements to the System which will either enhance its revenue
producing capacity or provide a higher degree of service. In the
event the available balance in the Second Lien Revenue Bond Fund
shall, at any principal or interest payment date be insufficient
to pay the next installment of principal and/or interest and to
maintain the required debt service reserve in the amount of $62,400,
then trans ers shall be made from the Second Lien Contingency Fund
in such amounts as are necessary to make the Second Lien Revenue
Bond Fund sufficient for said purposes.
Section 13. Wate-Zuorks Depreciation Fund. There was
heretofore established by Section 11 of Ordinance No. 681 a
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Waterworks Depreciation Fund, which Fund is hereby confirmed and
cont-inucd as set forth therein. In adcii.:tion, moneys in the
Waterworks Depreciation Fund may be used at any time to the extent
necessary to prevent a default in the payment of the principal of
and i ------est on the bonds authorized by this Ordinance.
Section 14. Waterworks Operation and Maintenance Fund.
There was established by Section 12 of Ordinance No. 681 a Waterworks
Operation and Maintenance Fund, which fund is hereby confirmed and
continued.
Section 15. That any surplus in the Waterworks Revenue
Fund, after making full provision for the other Funds provided for
in Ordinance No. 681 and in this Ordinance, may be used, at the
option of the City, for the calling of bonds of this issue for pay-
ment prior to maturity in accordance with the call provisions set
forth hereinabove, for the construction of extensions, betterments
and improvements to the System, or for any other lawful municipal
purpose.
Section 16. That all payments on the bonds and interest
shall be made only through the Paying Agent, All bonds paid or
purchased either at or before maturity shall be canceled when
such payment or purchase is made, together with all un;matured
interest coupons appertaining thereto, and held by the Treasurer
and shall not be reissued. All unpaid interest coupons maturing on
or prior to the date of such payment or purchase shall continue to
be payable to the respective bearers thereof.
Section 17. inat as long as any of the bonds authorized
hereby are outstanding, the City shall not issue or attempt to issue
w
Page 21
M
any bonds claimad to be entitled to a priority of lien on the
revenues of the Water System over the lien securing the bonds
of this issue, including ti -Le herein authorized and any and all
future extensions, betterments and improvements.
Nothing in this Ordinance shall be construed to prevent
the issuance by the City of additional bonds to finance or pay
the cost of constructing any future extensions, betterments and
improvements to the Water System; provided, however, the City
shall not authorize or issue any such bonds ranking on a parity
with the outstanding bonds of the October 1, 1961, issue. The
City will not authorize or issue any additional bonds ranking on
a parity with the outstanding bonds of this issue, unless and until
there shall have been procured and filed with the Trustee a statement
by an independent Certified Public Accountant not in the regular
employ of the City reciting the opinion based upon necessary investi-
gation that the net revenues of the Water System (net revenues, for
purposes of this paragraph, being defined as gross revenues less
the reasonable expenses of operation and maintenance of the System
and less the required provision for depreciation) for the fiscal
year immaediately preceding the fiscal year in which the additional
bonds are to be issue were equal to at least one and bne-half
(1-1/2) times tine average annuZl debt service requirement of all
bonds then outstandir.g that are payable from the revenuQs of the
Water System, and unless and until there shall have been procured
and filed with the Trustee a statement by a duly qualified,
recognized Consulting Engineer reciting the opinion based upon
�.r crit`
Page 22
necessLry investigation that the projected net revenues of the
N System for the life of tiro then outstanding bonds payable
from. System revenues and the proposed additional Revenue Bonds
to be issued, small be equal to at least one and one-half (1-1/2)
average annual debt service requirements of the then
outstanding bonds and of the proposed additional bonds.
Section 18. That the bonds of this issue shall be
callable for pa —mans prior to maturity in accordance with the
provisions pertaining thereto set forth in the bond form.
Section 19.
That all covenants, restrictions, conditions
and provisions set forth in Sections 7, 8, 9, 11, 12, 13, 14, 153,
16, 19, 20, 21, 22, 23, 24, 252 27, 28, 30, 31, 32, 33 and 34 of
Ordinance, No. 681, and all other provisions of said Ordinance No.
681, are hereby, each and all, ratified and confirmed, and shall
continue in force and inure to the security and benefit of the bonds
of this issue, together with the above referred to bonds.of the City,
dated October 1, 1961, as fully and as effectively as if herein set
out in full, it being the intent of this Section to give the bonds
of tris issue the full benefit of all such covenants, restrictions,
conditions and provisions,as well as the full benefit of the applicable
provisions of the Constitution and laws of the State of Arkansas.
Section 20. That the Trustee for the bonds of this
issue shall be The First National Bank in Little Rock, Little Rock
Arkansas. The Paying Agent for the bonds of this issue shall be
The First National Bank in Little Rop-k, Little Rock , Arkansas,
and the Alternate Paying Agent shall be The Chase Manhattan Bank
Borough of Manhattan, City and State of New York.
Ir. NWO
ID age 23
Section 21. That the moneys in any fund maintained
by the City may be invested and roinvsted from time to time in
direct or fully guaranteed obligations of the United States of
America which shall mature or which shall be subject to redemption
at t:` option of the holder, prior to the date upon which the
particular funds will be needed for the purpose specified, as
shall be determinad by the City. investments of moneys in a
particular fund shall be considered at all times a part of that
fund and any earnings shall belcredited to the said fund, and any
losses shall be charged against the said fund; provided, however,
that earnings fro=m the investments of moneys in the debt service
res rve which increase the amount therein in excess of the required
amount may, to the extent of such excess, be transferred out of the
debt service reserve and into the Second Lien Revenue Bond Fund and
us, --d as other moneys in the Second Lien Revenue Bond Fund may be
used.
Sec -ion 22. That when the bonds of this issue have been
execu-Led a„d sealed, they shall be delivered to the Trustee, which
shad au-henticate the=m and deliver them to the purchaser upon pay-
men-. in cash to the Trustee of the purchase price, plus accrued
interest to date of delivery (called "total sale proceeds"):
The accrued interest shall be deposited in the Second
Lien Revenue Bond Funs:, and the balance of the total sale proceeds
si:all be remitted to the City Treasurer for deposit in a special
account to be designated "Construction Fund” with a depository,
designated by the City Council, that is a member of the Federal
Deposit insurance Corporation. Moneys in the Construction Fund
``JW
Pare 24
d
in excess of t.e amount insured by the Federal Deposit Insurance
Corporation i:nusc be continuously secured by direct obligations
of, or obligations the principal of and interest on which are
guaranteed by, the Unitad States Government, or by a corporate
suety ;a; .-! acceptable to the Trustee; provided, however, any
moneys invested in accordance with the provisions of this Ordinance
nee, not be so secured. moneys in the Construction Fund shall be
diSb,;-_sed solely in pay=ment of the cost of constructing the extensions,
bettc=--nts and improvements to the System herein authorized, including
:I l:.?ii..d, _egal and other necessary expenses incidental thereto
and; to ---ha issuance of the bonds, but only on warrants, checks or
vouchers signed by the Treasurer and one other person designated by
t.e Waterworks Cormnission, briefly specifying the nature of the dis-
bursemant and accompanied by a certificate of the engineer in charge
of su,�ervision of the construction that an obligation in a stated
amount has been incurred and to whom the obligation is owed, except
that no such certificate shall be recuired before payment of engineer-
ing fees, legal fees and the expenses of issuing the bonds.
When the construction of the extensions, betterments and
improvements to the System shall have been completed, this fact shall
be evidenced by a certificate issued by the Mayor, one representative
of the Waterworks Commission and by the Consulting Engineer in charge
of t.e project, and a copy of said certificate shall be filed with
the Trustee, a copy with the City Clerk, and a copy with the depository
bank of the Const -ruction Fund. Thereafter, any remaining moneys in
the Construction Fund may be used to redeem the bonds of this issue,
with any amount not so used to be deposited in the Second Lien Revenue
Bond Piund.
Page 25
Section 23. That the Mayor is hereby authorized and
Batesville Daily Guard,
directed to publish for one insertion in Batesville, Arkansas ,
which is hereby found and declared to be a newspaper published in
the City and of general circulation therein, this Ordinance, to
which .hull be attached a Notice signed by him in substantially
the following form:
*VI
N O T I C E
Notice is hereby given that the City Council of the
City of Batesville. Arkansas, has adopted the Ordinance here-
after set out; that the City contemplates the issuance of the
Water System Revenue Bonds described in the Ordinance; that any
person interested may appear before the Council on the 10th
day of May, 1966, at 7:30 o'clock P. M. at the usual meeting
place of the Council in the City and present protests. At
such hearing all objections and suggestions will be heard, and
the Council will take such action as is deemed proper in the
premises.
Dated this 26th day of April, 1966.
P.- F. i3'hdsey, Mayo
C.
Page 27
Section 24. That this Ordinance shall not create any
right of any kind and no right of any kind shall arise hereunder
;pursuant to it until the bonds authorized by this Ordinance shall
be issued and delivered.
Section 25. That the provisions of this Ordinance are
hereby declared to be separable, and if any provision shall, for
any reason, be held illegal or invalid, it shall not affect the
validity of the remainder of the Ordinance.
Section 26. That all ordinances and resolutions and
parts thereof in conflict herewith are hereby repealed to the
extent of such conflict.
Section 27. That it is hereby ascertained and declared
that the Water System serving the City of Batesville is wholly
inadequate for the immediate needs of the expanding City and the
inhabitants thereof, thus endangering the life, health and safety
of the inhabitants and their property, and that the extensions,
betterments and improvements required to alleviate said hazards
can be obtained only by the issuance of the Revenue Bonds authorized
hereby. 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.
PASSED: �C,(,�.,�' _ , 1966.
APPROVED:
ATTEST:
/Mayor
City Clerk
(SEAL)
I
�1
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, numbered
1 to 27, inclusive, are a true and perfect copy of Ordinance
jl No • 722, adopted ata /LpL�a.t session of the City Council
of the City of Batesville., Arkansas held at: the
I1, regular meeting
place in said City ato'clock P.M. on the day of
1966, and that the said Ordinance is of record
�I in Ordinance Record Book No. atpage��W
i
J , now in
my possession.
Given under my hand and seal on this '7 day of
1966.
j'
i'
ij
City Clerk
(SEa.L)