21908 1 ORDINANCE NO. 21,908
2
3 AN ORDINANCE TO AMEND LITTLE ROCK, ARKANSAS,
4 ORDINANCE NO. 20,711 (MAY 8, 2013); TO AUTHORIZE A REVISED
5 REPAYMENT SCHEDULE AND INTEREST RATE FOR THE
6 OUTSTANDING CITY OF LITTLE ROCK, ARKANSAS SEWER
7 REVENUE BOND, SERIES 2013; TO PRESCRIBE OTHER MATTERS
8 THAT RELATE THERETO; AND FOR OTHER PURPOSES.
9
10 WHEREAS,the City of Little Rock,Arkansas(the"City"),has issued its Sewer Revenue Bond,Series
11 2013,dated May 8,2013 (the"Bond"),in order to finance extensions,betterments and improvements to the
12 City's Water Reclamation System,which is operated by the Little Rock Water Reclamation Authority;and,
13 WHEREAS, the City entered into a Bond Purchase Agreement, dated April 2, 2013 (the "Bond
14 Purchase Agreement"), with the Arkansas Natural Resources Commission ("ANRC") and the Arkansas
15 Development Finance Authority (the "Bondholder")to provide for the purchase by the Bondholder of the
16 Bond in the principal amount of Thirty-Six Million Dollars($36,000,000.00);and,
17 WHEREAS, the Bond bears interest at the rate of 1.25% and principal installments are payable on
18 each April 15th and October 15th with the final payment due October 15,2036; and,
19 WHEREAS,the City pays a financing fee to the Bondholder on the dates that interest on the Bond is
20 due at the rate of 1%on the outstanding principal of the Bond; and,
21 WHEREAS,ANRC and the Bondholder have agreed to modify the terms of the Bond by deferring the
22 principal of the Bond due in 2021, 2022,and 2023,by three(3)years after the current maturity date; and,
23 WHEREAS, ANRC and the Bondholder have agreed that the Bond will not bear interest after the
24 current maturity date and that there will not be any additional interest or financing fee amounts as a result
25 of the restructuring; and,
26 WHEREAS,the Bond was issued under and pursuant to Ordinance No.20,711 passed April 2, 2013.
27 NOW,THEREFORE,BE IT ORDAINED BY THE BOARD OF DIRECTORS OF THE CITY
28 OF LITTLE ROCK,ARKANSAS:
29 Section 1. The fifth WHEREAS clauses of Ordinance of No. 20,711 is hereby amended to read as
30 follows:
31 "WHEREAS, the City is making arrangements for the sale of a Thirty-Six Million Dollar
32 ($36,000,000.00)principal amount bond to the Arkansas Development Finance Authority,as purchaser(the
33 "Bondholder"), at a price of par pursuant to a Bond Purchase Agreement (the "Agreement") among the
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1 City, the Bondholder and the Arkansas Natural Resources Commission (the "Commission"), which
2 Agreement has been presented to and is before this meeting; and,"
3 Section 2. The ninth WHEREAS clause of Ordinance No. 20,711 is hereby amended to read as
4 follows:
5 "WHEREAS, the City will also be required to pay to the Arkansas Development Finance Authority,
6 as servicer with respect to the bond, a financing fee based upon variable rates applied to the outstanding
7 principal amount of the bond(the "Financing Fee"); and,"
8 Section 3. Section 2 of Ordinance No.20,711 is hereby amended to read as follows:
9 "The sale to the Bondholder of a bond in the maximum principal amount of Thirty-Six Million Dollars
10 ($36,000,000.00)at a price of par, subject to the terms and provisions hereafter in this ordinance set forth
11 in detail be, and is hereby approved and the bond is hereby sold to the Bondholder. The Mayor is hereby
12 authorized and directed to execute and deliver the Agreement on behalf of the City and to take all action
13 required on the part of the City to fulfill its obligations under the Agreement. The Agreement is hereby
14 approved in substantially the form submitted to this meeting with such changes as may be approved by the
15 Mayor, his execution to constitute complete evidence of such approval."
16 Section 4. The second paragraph of Section 4 of Ordinance No. 20,711 is hereby amended to read as
17 follows:
18 "The bond shall bear interest at the rates and shall be subject to Financing Fees calculated at the rates
19 based upon a 360-day year of twelve (12)consecutive thirty(30)-day months compounded semiannually.
20 The bond shall be dated the date of its delivery to the Bondholder. Accrued interest and the Financing Fee
21 only shall be payable on each April 15th and October 15th,commencing October 15,2013,to and including
22 October 15, 2016. There shall be no interest and Financing Fees due after October 15, 2036. Principal,
23 interest and the Financing Fees shall be payable on April 15,2017,and on each April 15th and October 15th
24 thereafter as follows:
25 Schedule appears below and on page 3
Payment Date Total Payment Interest Rate Interest Financing Fee Financing Fee Principal
October 15,2016
April 15,2017 $1,122,606.00 1.25% $225,000.00 1.00% $180,000.00 $717,606.00
October 15,2017 1,122,606.00 1.25% 220,515.00 1.00% 176,412.00 725,679.00
April 15,2018 1,122,606.00 1.25% 215,979.00 1.00% 172,784.00 733,843.00
October 15,2018 1,122,606.00 1.25% 211,393.00 1.00% 169,114.00 742,099.00
April 15,2019 1,122,606.00 1.25% 206,755.00 1.00% 165,404.00 750,447.00
October 15,2019 1,122,606.00 1.25% 202,065.00 1.00% 161,652.00 758,889.00
April 15,2020 1,122,606.00 1.25% 197,321.00 1.00% 157,857.00 767,428.00
October 15,2020 1,122,606.00 1.25% 192,525.00 1.00% 154,020.00 776,061.00
April 15,2021 337,815.00 1.25% 187,675.00 1.00% 150,140.00 -
October 15,2021 328,986.00 1.22% 182,770.00 0.97% 146,216.00 -
April 15,2022 320,058.00 1.18% 177,810.00 0.95% 142,248.00 -
October 15,2022 311,029.00 1.15% 172,794.00 0.92% 138,235.00 -
April 15,2023 301,898.00 1.12% 167,721.00 0.89% 134,177.00 -
October 15,2023 292,666.00 1.08% 162,592.00 0.87% 130,074.00 -
April 15,2024 1,122,606.00 1.05% 157,405.00 0.84% 125,924.00 839,277.00
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October 15,2024 1,122,606.00 1.04% 152,159.00 0.83% 121,727.00 848,720.00
April 15,2025 1,122,606.00 1.04% 146,855.00 0.83% 117,484.00 858,267.00
October 15,2025 1,122,606.00 1.03% 141,491.00 0.82% 113,193.00 867,922.00
April 15,2026 1,122,606.00 1.02% 136,066.00 0.82% 108,853.00 877,687.00
October 15,2026 1,122,606.00 1.01% 130,581.00 0.81% 104,464.00 887,561.00
April 15,2027 1,122,606.00 1.01% 125,033.00 0.81% 100,027.00 897,546.00
October 15,2027 1,122,606.00 1.00% 119,424.00 0.80% 95,539.00 907,643.00
April 15,2028 1,122,606.00 0.99% 113,751.00 0.79% 91,001.00 917,854.00
October 15,2028 1,122,606.00 0.98% 108,014.00 0.78% 86,411.00 928,181.00
April 15,2029 1,122,606.00 0.96% 102,213.00 0.77% 81,771.00 938,622.00
October 15,2029 1,122,606.00 0.95% 96,347.00 0.76% 77,077.00 949,182.00_
April 15,2030 1,122,606.00 0.94% 90,414.00 0.75% 72,332.00 959,860.00
October 15,2030 1,122,606.00 0.92% 84,415.00 0.74% 67,532.00 970,659.00_
April 15,2031 1,122,606.00 0.90% 78,349.00 0.72% 62,679.00 981,578.00
October 15,2031 1,122,606.00 0.88% 72,214.00 0.70% 57,771.00 992,621.00
April 15,2032 1,122,606.00 0.86% 66,010.00 0.69% 52,808.00 1,003,788.00
October 15,2032 1,122,606.00 0.83% 59,736.00 0.66% 47,789.00 1,015,081.00
April 15,2033 1,122,606.00 0.80% 53,392.00 0.64% 42,714.00 1,026,500.00
October 15,2033 1,122,606.00 0.76% 46,976.00 0.61% 37,581.00 1,038,049.00
April 15,2034 1,122,606.00 0.72% 40,489.00 0.57% 32,391.00 1,049,726.00
October 15,2034 1,122,606.00 0.66% 33,928.00 0.53% 27,142.00 1,061,536.00
April 15,2035 1,122,606.00 0.59% 27,293.00 0.47% 21,835.00 1,073,478.00
October 15,2035 1,122,606.00 0.51% 20,584.00 0.40% 16,467.00 1,085,555.00
April 15,2036 1,122,606.00 0.39% 13,799.00 0.31% 11,039.00 1,097,768.00
October 15,2036 1,122,592.00 0.23% 6,938.00 0.19% 5,551.00 1,110,103.00
April 15,2037 784,791.00 0.00% - 0.00% - 784,791.00
October 15,2037 793,620.00 0.00% - 0.00% - 793,620.00
April 15,2038 802,548.00 0.00% - 0.00% - 802,548.00
• October 15,2038 811,577.00 0.00% - 0.00% - 811,577.00
April 15,2039 820,708.00 0.00% - 0.00% _ - 820,708.00
October 15,2039 829,940.00 0.00% - 0.00% - 829,940.00
1
2 Section 5. The Mayor, for and on behalf of the City, is hereby authorized and directed to enter into a
3 supplement to the Bond Purchase Agreement having terms consistent with the provisions of this ordinance.
4 Section 6. The Mayor and City Clerk, for and on behalf of the City, are authorized to execute and
5 deliver a new bond certificate providing (a) that this ordinance has been adopted, (b) for the new debt
6 service payment schedule, (c) for variable interest rates and Financing Fees and (d) such other terms as
7 consistent with this ordinance. The new bond certificate shall be a bond issued under the provisions of
8 Ordinance No. 20,711 and shall be entitled to the benefits, security and terms of Ordinance No. 20,711,
9 except as to the interest rate, Financing Fee and repayment terms set forth herein.
10 Section 7. Severability. In the event any title, section, paragraph, item, sentence, clause, phrase, or
11 word of this ordinance is declared or adjudged to be invalid or unconstitutional, such declaration or
12 adjudication shall not affect the remaining portions of the ordinance which shall remain in full force and
13 effect as if the portion so declared or adjudged invalid or unconstitutional was not originally a part of the
14 ordinance.
15 Section 8. Repealer. All ordinances, resolutions, bylaws, and other matters inconsistent with this
16 ordinance,particularly including but not limited to Little Rock,Arkansas,Ordinance No. 20,711 (May 18,
17 2013),are hereby repealed to the extent of such inconsistency.
18 PASSED: October 20,2020
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41041 APPROVED:
2
3
4 an gie,ll ity Clerk Frank Scott,J ., or
5 APPROV• 1 AS TO LEGAL FORM:
6
8 Thomas M. Carpenter, City Atto ey
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