2024-09-01 - Laserfiche WebLink

Home Browse Search

ORDINANCE NOC�QkLI,0-01 AN ORDINANCE AUTHORIZING THE ISSUANCE OF A SALES AND USE TAX BOND FOR THE PURPOSE OF FINANCING ALL OR A PORTION OF THE COST OF THE CONSTRUCTION OF EXTENSIONS, BETTERMENTS AND IMPROVEMENTS TO THE WATER FACILITIES OF THE CITY OF BATESVILLE, ARKANSAS; PROVIDING FOR THE PAYMENT OF THE PRINCIPAL OF AND INTEREST ON THE BOND; AND PRESCRIBING OTHER MATTERS RELATING THERETO. WHEREAS, the City of Batesville, Arkansas (the "City") owns and operates a water and sewer system as a single, integrated municipal undertaking (the "System"); and WHEREAS, the City Council of the City has determined that extensions, betterments and improvements to the water facilities of the System and any necessary demolition related thereto (the "Improvements") are necessary in order to make the services of the System adequate for the needs of the City; and WHEREAS, there was submitted to the qualified electors of the City the question of issuing capital improvement bonds in the maximum principal amount of$110,000,000 for the purpose of financing all or a portion of the costs of the Improvements; and WHEREAS, at a special election held August 8, 2023, a majority of the electors voting on the question approved the issuance of the bonds and the levy of a sales and use tax at the rate of 1% (the "Tax")to retire the bonds; and WHEREAS,the City is making arrangements for the sale of a bond in the principal amount of $110,000,000 to the Arkansas Development Finance Authority, as purchaser (the 'Bondholder"),at a price of par for a bond bearing interest at the rate of 0.75%per annum pursuant to a Bond Purchase Agreement (the "Agreement") among the City, the Bondholder and the Arkansas Natural Resources Commission(the "Commission"),which has been presented to and is before this meeting; and WHEREAS, the City is authorized, under the provisions of Amendment No. 62 to the Arkansas Constitution and Title 14, Chapter 164, Subchapter 3 of the Arkansas Code of 1987 Annotated(the "Authorizing Legislation"),to enter into the Agreement and to issue the bond; and WHEREAS, the Bondholder may pledge the bond as collateral for the payment of its revolving loan fund revenue bonds (the "ADFA Bonds"), which may be issued from time to time, to the bank or trust company named as trustee for the ADFA Bonds (the "ADFA Trustee"); and WHEREAS, the City is required to pay to the Arkansas Development Finance Authority, as servicer(the "Authority"), a servicing fee equal to 1%per annum of the outstanding principal amount of the bond(the "Servicing Fee");