21033 1 ORDINANCE NO. 21,033
2
3 AN ORDINANCE TO AUTHORIZE THE ISSUANCE OF A PROMISSORY
4 NOTE TO PROVIDE SHORT-TERM FINANCING UNDER AMENDMENT
5 NO. 78 TO THE ARKANSAS CONSTITUION FOR THE ACQUISITION,
6 CONSTRUCTION, EQUIPPING AND INSTALLATION OF REAL AND
7 TANGIBLE PERSONAL PROPERTY; TO DECLARE AN EMERGENCY;
8 AND FOR OTHER PURPOSES.
9
10 WHEREAS, the City of Little Rock, Arkansas (the "City") is authorized and empowered under the
11 provisions of Amendment No. 78 to the Arkansas Constitution ("Amendment No. 78") and Act 1808 of
12 2001 (codified as Title 14,Chapter 78 of the Arkansas Code of 1987 Annotated)(the "Act"),to issue notes
13 and expend the proceeds thereof to finance all or a portion of the cost of acquiring,constructing,equipping
14 and installing real property or tangible personal property having an expected useful life of more than one
15 (1)-year; and,
16 WHEREAS, the City proposes to finance (i) capital improvements associated with public safety,
17 including, but not limited to, the acquisition of Police Vehicles and equipment, and (ii) capital
18 improvements associated with the acquisition, construction and equipping of a West Central Community
19 Center(collectively,the "Property to be Financed"); and,
20 WHEREAS, it is proposed that the City issue its promissory note in the principal amount of Five
21 Million,Nine Hundred Ten Thousand Dollars($5,910,000.00)(the "Note")under Amendment No. 78 and
22 the Act for the purpose of financing all or a portion of the costs of the Property to be Financed; and,
23 WHEREAS, the City intends to arrange for a loan (the "Loan") from a banking institution (the
24 "Lender")and to issue the Note to the Lender in consideration for the Loan;
25 NOW,THEREFORE,BE IT ORDAINED BY THE BOARD OF DIRECTORS OF THE CITY
26 OF LITTLE ROCK,ARKANSAS:
27 Section 1. The Board of Directors hereby finds that the Property to be financed is real property or
28 tangible personal property having a useful life of more than one (1)-year. The Board of Directors further
29 finds that the aggregate principal amount of the Note and the City's outstanding indebtedness issued or
30 incurred under Amendment No. 78 does not exceed 5% of the assessed value of taxable property located
31 within the City as determined by the last tax assessment.
32 Section 2. Under the authority of the Constitution and laws of the State of Arkansas (the "State"),
33 including particularly Amendment No. 78 and the Act,the Note is hereby authorized and ordered issued in
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1 the principal amount of Five Million,Nine Hundred Ten Thousand Dollars($5,910,000.00)for the purpose
2 of financing all or a portion of the costs of acquiring,constructing,equipping and installing the Property to
3 be Financed and paying expenses of issuing the Note. The Note shall be dated the date of its issuance and
4 shall bear interest on the outstanding principal amount at a fixed rate not to exceed 3.00%per annum. The
5 Note shall be repaid in five(5) substantially equal annual amortized installments of principal and interest,
6 commencing one(1)-year from the date of the Note and on the same day of each year thereafter, with the
7 final installment due five (5)years from the date of the Note. The Note shall be issued in fully registered
8 form. The Note shall be executed by the Mayor and the City Clerk,and the seal of the City shall be affixed
9 to the Note,
10 Section 3. The Note shall be issued to the Lender in consideration for the Loan. The Lender shall be
11 selected by the City Manager based upon the commitment or proposal for the Loan that the City Manager
12 determines to have the lowest cost to the City. The City Treasurer is hereby authorized and directed to
13 solicit proposals or commitments for the Loan from at least three(3)banking institutions having offices in
14 the City, in such manner as shall be approved by the City Manager. The City Manager shall have the right
15 to reject any and all proposals and commitments.
16 Section 4. As provided in Amendment No. 78,the annual debt service payments on the Note in each
17 fiscal year shall be charged against and paid from the general revenues of the City for such fiscal year. For
18 the purpose of making the annual debt service payments,there is hereby, and shall be, appropriated to pay
19 the Note, an amount of general revenues of the City sufficient for such purpose. The City Treasurer is
20 hereby authorized and directed to withdraw from the General Fund of the City the amounts at the times
21 necessary to make the annual debt service payments on the Note.
22 Section 5. (a) The City covenants with the owner of the Note(the"Owner")from time to time that
23 it shall not take any action or suffer or permit any action to be taken or condition to exist which causes or
24 may cause the interest payable on the Note to be included in gross income for federal income tax purposes.
25 Without limiting the generality of the foregoing, the City covenants with the Owner that the proceeds of
26 the sale of the Note will not be used directly or indirectly in such manner as to cause the Note to be treated
27 as an"arbitrage bond"within the meaning of Section 148 of the Internal Revenue Code of 1986,as amended
28 (the"Code").
29 (b) The City covenants with the Owner that it will not use or permit the use of the Property to be
30 Financed or the proceeds of the Note in such manner as to cause the Note to be a "private activity bond"
31 within the meaning of Section 141 of the Code.
32 (c) The City covenants with the Owner that it will not reimburse itself from Note proceeds for any
33 costs paid prior to the date the Note is issued except in compliance with United States Treasury Regulation
34 No. 1.150-2. This ordinance shall constitute an "official intent" for purposes of the Regulation.
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1 (d) The City covenants with the Owner that it will submit to the Secretary of the Treasury of the
2 United States,not later than the 15th day of the second calendar month after the close of the calendar quarter
3 in which the Note is issued, a statement concerning the Note which contains the information required by
4 Section 149(e)of the Code.
5 Section 6. The City shall provide such financial information to the Lender as the Lender may
6 reasonably request.
7 Section 7. The Mayor, City Manager, City Treasurer, City Attorney and City Clerk are hereby
8 authorized and directed, for an on behalf of the City, to perform all acts of whatever nature necessary to
9 effect and carry out the authority conferred by this ordinance and to execute all papers, documents,
10 certificates and other instruments that may be required for the carrying out of such authority or to evidence
11 the exercise thereof.
12 Section 8. Severability. - In the event any title, section, paragraph, item, sentence, clause, phrase or
13 word of this ordinance is declared or adjudged to be invalid or unconstitutional, such declaration or
14 adjudication shall not affect the remaining portions of this ordinance which shall remain in full force and
15 effect as if the portion so declared or adjudged invalid or unconstitutional were not originally a part of the
16 ordinance.
17 Section 9. Repealer. All laws, ordinances, resolutions or parts of the same which are inconsistent
18 with the provisions of this ordinance are hereby repealed to the extent of such inconsistency.
19 Section 10. Emergency Clause. The Board of Directors hereby determines that the instigation and
20 completion of the capital improvements constituting the Property to be Financed hereinabove described are
21 essential to the public health, safety and welfare of the citizens of the City,and must be financed as quickly
22 as possible;an emergency is,therefore,declared to exist and this ordinance shall be in full force and effect
23 from and after the date of its execution.
24 PASSED: May 5,2015
25 _ 111, APPRO/
26
27 N�li.
28 ' usa , City Clerk Tnce Hines,Vice- '.ayor
29 APPR.T iAS TO LEGAL FORM:
30 4"
31 c� w�
32 Thomas M.Carpenter, ity Atto e
33 //
34 //
35 //
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Note: Ordinance 21 ,033 was published as
Ordinance 21 ,034 by the Arkansas Democrat
Gazette in error.
,
1
_ .�em0cratI5 (�aZettArkansas
ORDINANCE NO 21034 .ire ie'i.:'.
AN ORDINANCE TO AUTHORIZEu ed to the I.u
THE ISSUANCE OF A PROMISS Sr aeration for the L T OF LEGAL ADVERTISING
ID'NOTE TO PROVIDE SHO°
',TERM FINANCING UNDE iy serMshallanager be selectedDasedupon oy the DDIT1ONAL AI) COPY SPACE AS NEEDED
/AMENDMENT NO 78 TO THE AR- commitment or proposal fo'
KANSAS CONSTInJION FOR THE loan that the City!Lai, !'r L' V Ii.+E Iii ANK
ACQUISITION CONSTRUCTION. determines to have ri� I T L� l 1 lfi i=s�
��,EQUIPPING AND INSTALLATION cost to the City. 'ecticni B:Severabili y II,'I. i" ���� '
OF REAL AND TANGIBLE PER- Treasurer is hereby,ruiii-,r, event any title section
:TONAL PROPERTY,TO OECLARE and directed to solicit proposals paragraph item, sentence,
AN EMERGENCY:AND FOR 0TH- or commitments for the Loan from clause,phrase or word of tins
ER PURPOSES. at least three(3)banking instrtu- ordinance is declared or adjudged
WHEREAS the City of Little bons having offices in the City.in to tie invalid or unconstitutional,
Rock,Arkansas(the"City')is such man'ierasSRau be approved such declaration or adjudication
authorizeu and empowered under by the City Manager The City shall not affect the remaining
the previsions of Amendment No. Manager shall nave the rlynt to portions of this ordinance which
78 to elle Arkansas Constitution refect any and all proposals and shall remain in full force and
('Amendment No 78"1 and Act commitments- effect as it the portion so declared
)808at2001(codified asTitle Section 4 As provided in or adjudged invalid of
14,Chapter 78 of the Arkansas Amendment No.78,the annual unconstitutional were net
Code of 1987 Ann,olatedl(the debt service payments on the originally a part of the ordinance,
,her),to issue owes arrd expend Note in each fiscal year shall be Section 9 Repealer.All lawa,
the proceedethereof to finance all charged against and paid from ordinances reaslituons orparts,l,
ora portion-or the cost or emir- hie general revenues Ti the City the Same which ore incons,sleilt
Ing,constructing.equipping and for such fiscal year For the with the provisions of this
installing real property or tangible purpose of making the annual ordinance are hereby repealed to
personal property having an ex- debt service payments,there is the extent of sur-ri inconsistency.
peeled useful life of more than hereby,arid Strati be appe000ated Section 10. Emergency
one(11-year,and, to pay the Note,an amount of Clause. The Board of Director;
WHEREAS,the City proposes to general revenues at the City sufh- hereby determines that the
!mance(i)capital improvements creel for such purpose,The City instigation and completion of the
associated with peeks safety,in. Treasurer Is hereby authorized capital improvements constituting
eluding;but not limited to,the ac- and directed to withdraw from the the Property to be Financed
gWsitioe of police vehicles and General Fund of the City the hereinabove described are
equipment,and pi,capital im- amounts at the times necessary essential to the public health,
provements associated with the to make the annual debt service safety and welfare of the citizerli
acquisition,construction and payments ail the Noteof the City,and must be financed
equipping of a West Central Section 5 (a) The City as Quickly as possible; an
Community Cehtee icoiectrvely. covenants with the owner of the emergency is,therefore,declared
the"Properly to be Financed`!; Note(the"Owner'r from time to to exist and this ordinance shall
and, time that it shall not take any be in full force and effect frorn
WHEREAS,itis propesed that action or suffer or permit any aha after the date of its execution
the City issue es promissory note action to be taken or condition to PASSED May 5.2015
in the principal amount of Five axial which canes or may cause ATTEST'
Million,Rine Hundred Ten Thou- the interest payable on the Note Susan Langley.City Clerk
sand Dollars(S5.910,000.001(the to be included in gross income for APPROvED
'Note')under Amendment No.78 federal income tax purposes. Lance Hines,Vice-Mayor
and the Act furthe purpose of ti' Without limiting the generality of APPROVED AS TO LEGAL
nancing all ora portion of the the foregoing,the City covenants FORM:
casts or the Property to be Ft- with the Owner that the proceeds Thomas M Carpenter.City
Attorney
and, of the sale of the Note will not be
WHEREAS,the City intends to • used directly or indirectly in such 73155331z
arrange tor a loan(Me"Loan') manner as to cause the Note to
from a banking institution(the be treated as an"arbitrage bond'
Lender')and to issue tare Note to within the meaning W Section 148
the Lender in consideration for of the Internal Revenue Code of
the Loan, 1986.as amended(the"Code'l-
NOW,THEREFORE,BE IT OR- (b)The City covenants with the
DAINE°BY THE BOARD OF DI- Owner that It will not use or
RECTORS OF THE CITY OF LITTLE permit the use of the Property to
ROLA,ARKANSAS' be Financed or the proceeds of
Section 1 The Board of Domthe Note in such manner as to
tors hereby tends that the Proper- cause the Note to be a 'private
ly to De financed Is real property activity bond"within the meaning
or tangible personal property of Section 141 of the Code.
having a useful life of more then Ic)The City covenants with the
one 11)'year,The Boars of Direr- Owner that it will not reimburse
ors further tends that the a^ to- itself from Note proceeds for airy
rw flog*og*oftfhe costs paid prior to the date the
and ter tpsItpit#lhq Nate is issued except in
open or*ono poor cumuli aur --rt+t'nitcaidles -
AmencimenTNo,78 dove not ex• T r ,y Regldar n No.1.150-C
Geed 5%of the orf Weed til TMS ardifaiee shalt Constitute en
taxable property tacafed within "official intent'for purposes of
the City as determined try the last the Regutahon•
tax assessment. Id)The City covenants with the
Section 2.Under Jia authority of Owner ihaf it will submit to the
the Constitution and taws of the. Secretary of the-Treasury of the
Stale ul Arkansas(the"Stale"), United15th Shotes.not later than the
including particularly Amendment day of the clewsecond calendar
No 78 and the Act,the Note is month after the clew of the cat-
wad ordered is- cedar quarter in which the Note is
hereby authorized
sued In The pnncipal amount of issued,a statement concerning
Five Million,Nine Hundred Tea the Note which contains the
Thousand Duders(55,910,(X1090! information required by Section
for the purpose of financing ail or 149(a)of thea ode.
aportion 01the costsofacgianng, Section 6 The City shall
constructing,equipping atdin- protide suchasPie financial tender tion
stalling the Properly Is be ft- reasonably Inc lender request
Lender may
minced and paying expenses of
issuing the Note. The Note shall Section The Mayou.City
be dated the date of ds issuance Manager.City Treasurer,City
and shall hear interest on the out- Attorney and Coy Cleric are hereby
standing principal amount at a authorized and directed,for an -
Dehen of the Cit -----.
fixed rale not to exceed 3 00% y,to pertain all •I/ /
per annum.-The Note shoe be re- acts of whatever nature ---v' II/ i'° 1% �f-Fl EN EJ. rU
paid in five(51 suDstaritiaay equal necessary to effect and carry out ._ BENNIE J. FULLER
ailmtal amortized installments of the authority conferred by this I NOTARY PUBLIC ARKANSAS
pnncipal and interest,comment• ordinance and to execute all •i'1 ac<1,COt.INTY
rig one 111-year from Me Sate W S f r scribe Av worn to me this � - 1-21-202i
Papers,documents certificates
the Note and on the same day of and other instruments that may ilaAof .- Apa1$'4 i_each year teereaher,with the ti- he required for the carrying out of • 'nalinstallmentduerise151years such authority of to evidence the �q4om the date of five Note. The exescse Itleroet _, �_C '- t
Note shall be issued in fully reg- ...oar Notary Public `
lstered form. The Note shall be r
executed by the Mayor and the
City Clerk;and Bra seal of the City
snarl be affixed to the Note,