HomeMy WebLinkAbout2018-04-01 ORDINANCE NO:OLS–04-01
AN ORDINANCE AMENDING ORDINANCE NO. 2015-06-01;
AUTHORIZING A REVISED REPAYMENT SCHEDULE FOR
THE OUTSTANDING CITY OF BATESVILLE, ARKANSAS
SALES AND USE TAX BOND, SERIES 2015; AND
PRESCRIBING OTHER MATTERS RELATING THERETO.
WHEREAS, there was submitted to the qualified electors of the City of
Batesville, Arkansas (the "City") at a special election held March 10, 2009, the question of
issuing capital improvement bonds in the maximum principal amount of $50,000,000 for the
purpose of financing all or a portion of the costs of acquiring, constructing and equipping
extensions, betterments and improvements to the City's sewer system (the "Improvements"); and
WHEREAS, at the special election, a majority of the electors voting on the
question approved the issuance of the bonds and the levy of a new sales and use tax at the rate of
1%to retire the bonds; and
WHEREAS, pursuant to Ordinance No. 2015-06-01 of the City, adopted on
June 22, 2015 ("Ordinance No. 2015-06-01"), the City has issued its Sales and Use Tax Bond,
Series 2015 in the principal amount of$10,200,000 (the "Series 2015 Bond") for the purpose of
financing a portion of the costs of the Improvements; and
WHEREAS, the City, pursuant to Ordinance No. 2015-06-01, entered into a Bond
Purchase Agreement, dated June 22, 2015 (the "Bond Purchase Agreement"), with the Arkansas
Natural Resources Commission and the Arkansas Development Finance Authority (the
"Bondholder") providing for the purchase by the Bondholder of the Series 2015 Bond; and
WHEREAS, the Improvements, which were expected to be completed by April
15, 2018, are not yet complete due to circumstances beyond the City's control; and
WHEREAS, the purchase price for the Series 2015 Bond is being paid by the
Bondholder in multiple advances; and
WHEREAS, the Bondholder has agreed to make additional advances against the
Series 2015 Bond after April 15, 2018 but only so long as all advances are made before October
15, 2021; and
WHEREAS, it is necessary to amend Ordinance No. 2015-06-01 to authorize a
new repayment schedule for the Series 2015 Bond;
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of
Batesville, Arkansas:
Section 1. The last sentence in the second paragraph of Section 2 of
Ordinance No. 2015-06-01 which contains the principal payment schedule for the Series 2015
Bond, is hereby amended as follows:
"Principal shall be payable in installments on April 15, 2022 and each April 15 and
October 15 thereafter until the unpaid principal is paid in full as follows:
Date Amount Date Amount
04/15/22 $198,098 04/15/32 253,969
10/15/22 200,574 10/15/32 257,143
04/15/23 203,081 04/15/33 260,358
10/15/23 205,620 10/15/33 263,613
04/15/24 208,190 04/15/34 266,908
10/15/24 210,793 10/15/34 270,244
04/15/25 213,428 04/15/35 273,622
10/15/25 216,095 10/15/35 277,043
04/15/26 218,796 04/15/36 280,505
10/15/26 221,531 10/15/36 284,011
04/15/27 224,301 04/15/37 287,561
10/15/27 227,105 10/15/37 291,156
04/15/28 229,943 04/15/38 294,796
10/15/28 232,818 10/15/38 298,481
04/15/29 235,728 04/15/39 302,211
10/15/29 238,675 10/15/39 305,990
04/15/30 241,658 04/15/40 309,814
10/15/30 244,678 10/15/40 313,687
04/15/31 247,737 04/15/41 317,608
10/15/31 250,833 10/15/41 321,598"
Section 2. The first sentence of Section 5(b) of Ordinance No. 2015-06-01 is
hereby amended as follows:
"In order to pay interest on the Series 2015 Bond, there shall be deposited from
moneys in the Revenue Fund into the 2015 ADFA Bond Fund on each April 15 and
October 15 after the Series 2015 Bond is issued and delivered until October 15, 2021,
the interest due on the Series 2015 Bond on such dates."
Section 3. The Mayor, for and on behalf of the City, is hereby authorized to
enter into a supplement to the Bond Purchase Agreement having terms consistent with the
provisions of this Ordinance.
Section 4. The Mayor and City Clerk, for and on behalf of the City, are
authorized to execute and deliver a new bond certificate providing (a) that this Ordinance has
been adopted, (b) for the new payment amount and (c) such other terms as consistent with this
Ordinance. The new bond certificate shall be a "Series 2015 Bond" issued under the provisions
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of Ordinance No. 2015-06-01 and shall be entitled to the benefits, security and terms of
Ordinance No. 2015-06-01, except as to the repayment terms set forth herein.
Section 5. 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 this Ordinance.
Section 6. All ordinances and resolutions and parts thereof in conflict
herewith are hereby repealed to the extent of such conflict.
Section 7. Ordinance No. 2015-06-01, as amended and supplemented hereby,
shall remain in full force and effect.
PASSED: April 10, 2018.
APPROVED:
ATTEST:
/a-
Mayor
City Clerk
(SEAL)
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CERTIFICATE
The undersigned, City Clerk of the City of Batesville, Arkansas (the
hereby certifies that the foregoing pages are a true and perfect copy of Ordinance N
adopted at a regular session of the City Council of the City, held at the regular meeting place in
the City at 5:30 o'clock p.m., on the 10th day of April, 2018, and that the Ordinance is of record
in Ordinance Record Book No. -, Page M, now in my possession.
GIVEN under my hand and seal on this 10th day of April, 2018.
City Cler
(SEAL)
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