21844 1 ORDINANCE NO.21,844
2
3 AN ORDINANCE TO AMEND LITTLE ROCK, ARK., ORDINANCE NO.
4 21,258 (JUNE 28, 2016); TO AUTHORIZE A REVISED REPAYMENT
5 SCHEDULE AND INTEREST RATE FOR THE OUTSTANDING CITY OF
6 LITTLE ROCK, ARKANSAS SEWER REVENUE BOND, SERIES 2016;
7 AND FOR OTHER PURPOSES.
8
9 WHEREAS,the City of Little Rock,Arkansas(the"City")has issued its Sewer Revenue Bond, Series
10 2016,dated August 12,2016(the"Bond")in order to finance extensions,betterments and improvements to
11 the City's Water Reclamation System, which is operated by the Little Rock Water Reclamation Authority
12 (the"Authority"); and,
13 WHEREAS, the City entered into a Bond Purchase Agreement, dated June 21, 2016 (the "Bond
14 Purchase Agreement"), with the Arkansas Natural Resources Commission ("ANRC") and the Arkansas
15 Development Finance Authority (the "Bondholder") providing for the purchase by the Bondholder of the
16 Bond in the principal amount of Sixty-One Million Dollars($61,000,000.00); and,
17 WHEREAS,the Bond bears interest at the rate of 1.7210426% and principal installments are payable
18 on October 15, 2020, and each April 15th and October 15t thereafter with the final payment due April 15,
19 2050;and, •
20 WHEREAS,the interest rate and debt service schedule for the Bond is the result of amortizing Forty
21 Million Dollars ($40,000,000.00) of principal over a twenty (20)-year period at the rate of 1.5% and
22 Twenty-One Million Dollars($21,000,000.00)of principal over a thirty(30)-year period at the rate of 2.0%;
23 and,
24 WHEREAS,ANRC and the Bondholder have agreed to modify the terms of the Bond by re-amortizing
25 the full Sixty-One Million Dollars($61,000,000.00)over a thirty(30)-year period at the rate of 2.0%; and,
26 WHEREAS, the proposed re-amortization of the Bond will not extend the maturity of the Bond but
27 will lower the semiannual debt service payments through April 15,2040,thereby improving the cash flow
28 of the Authority for a twenty(20)-year period; and,
29 WHEREAS,the Bond was issued under and pursuant to Little Rock,Ark.,Ordinance No.21,258(June
30 28,2016).
31 NOW,THEREFORE,BE IT ORDAINED BY THE BOARD OF DIRECTORS OF THE CITY
32 OF LITTLE ROCK,ARKANSAS:
33 Section 1. Little Rock, Ark., Ordinance No. 21,258 (June 28, 2016) is hereby amended by changing
34 "1.7210426%" in all places to "2.0%" as the interest rate on the Bond effective April 15,2020.
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1 Section 2. Little Rock,Ark.,Ordinance No.21,258(June 28,2016)is hereby amended by substituting
2 the following bond principal repayment schedule for the one in Section 4 of Little Rock, Ark., Ordinance
3 No. 21,258(June 28,2016):
Date Principal Amount Date Principal Amount
10/15/20 $633,999 10/15/35 $ 990,991
04/15/21 643,509 04/15/36 1,005,856
10/15/21 653,162 10/15/36 1,020,944
04/15/22 662,959 04/15/37 1,036,258
10/15/22 672,903 10/15/37 1,051,802
04/15/23 682,997 04/15/38 1,067,579
10/15/23 693,242 10/15/38 1,083,593
04/15/24 703,641 04/15/39 1,099,847
10/15/24 714,195 10/15/39 1,116,345
04/15/25 724,908 04/15/40 1,133,089
10/15/25 735,782 10/15/40 1,150,086
04/15/26 746,818 04/15/41 1,167,337
10/15/26 758,021 10/15/41 1,184,847
04/15/27 769,391 04/15/42 1,202,620
10/15/27 780,932 10/15/42 1,220,659
04/15/28 792,646 04/15/43 1,238,969
10/15/28 804,536 10/15/43 1,257,554
04/15/29 816,603 04/15/44 1,276,417
10/15/29 828,852 10/15/44 1,295,563
04/15/30 841,285 04/15/45 1,314,996
10/15/30 853,905 10/15/45 1,334,721
04/15/31 866,713 04/15/46 1,354,743
10/15/31 879,714 10/15/46 1,375,064
04/15/32 892,910 04/15/47 1,395,690
10/15/32 906,303 10/15/47 1,416,625
04/15/33 919,898 04/15/48 1,437,874
10/15/33 933,696 10/15/48 1,459,443
04/15/34 947,702 04/15/49 1,481,334
10/15/34 961,917 10/15/49 1,503,554
04/15/35 976,346 04/15/50 1,526,115
4
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1 Section 3. The Mayor, for and on behalf of the City, is hereby authorized and directed to enter into a
2 supplement to the Bond Purchase Agreement having terms consistent with the provisions of this ordinance.
3 Section 4. The Mayor and City Clerk, for and on behalf of the City, are authorized to execute and
4 deliver a new Bond Certificate providing(a)that this ordinance has been adopted,(b)for the new principal
5 payment schedule, (c) for the new interest rate, and(d) such other terms as consistent with this ordinance.
6 The new Bond Certificate shall be a bond issued under the provisions of Little Rock,Ark., Ordinance No.
7 21,258(June 28,2016)as amended, and shall be entitled to the benefits, security and terms of Little Rock,
8 Ark., Ordinance No. 21,258 (June 28, 2016), except as to the interest rate and repayment terms set forth
9 herein.
10 Section 5. Little Rock, Ark., Ordinance No. 21,258 (June 28, 2016), as amended and supplemented
11 hereby, shall remain in full force and effect.
12 Section 6. 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 the ordinance which shall remain in full force and
15 effect as if the portion so declared or adjudged invalid or unconstitutional was not originally a part of the
16 ordinance.
17 Section 7. Repealer. All laws, ordinances,resolutions,or parts of the same,that are inconsistent with
18 the provisions of this resolution,are hereby repealed to the extent of such inconsistency.
19 Section 8. Emergency Clause. Unless the provisions of this ordinance are put into effect immediately,
20 the public health, safety and welfare of the citizens of Little Rock will be adversely affected; therefore, an
21 emergency is hereby declared to exist, and this ordinance shall be in full force and effect from and after its
22 passage.
23 PASSED: February 18,2020
24 ""`` APPROVED:
25 ��
26 MIN,�m►� -44-1---S24.--4
27 u • , iiian..� 'ty Clerk• Frank Scott,Jr., ►� • .,r
28 APP' t VEP , TO LEGAL FORM:
29 _ /
31 Thomas M.Carpenter,City Attorney/
32 //
33 //
34 //
35 //
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