21911 ORDINANCE NO. 21,911
2
3 AN ORDINANCE TO AMEND LITTLE ROCK, ARKANSAS,
4 ORDINANCE NO. 21,699 (APRIL 2, 2019); TO AUTHORIZE A REVISED
5 REPAYMENT SCHEDULE AND INTEREST RATE FOR THE
6 OUTSTANDING CITY OF LITTLE ROCK, ARKANSAS WATER
7 RECLAMATION SYSTEM REVENUE BOND, SERIES 2019; TO
8 PRESCRIBE OTHER MATTERS THAT RELATE THERETO; AND FOR
9 OTHER PURPOSES.
10
11 WHEREAS,the City of Little Rock, Arkansas(the "City"), has issued its Water Reclamation System
12 Revenue Bond, Series 2019, dated April 2, 2019(the "Bond"), in order to finance extensions, betterments
13 and improvements to the City's Water Reclamation System, which is operated by the Little Rock Water
14 Reclamation Authority; and,
15 WHEREAS,the City entered into a Bond Purchase Agreement, dated February 19, 2019 (the "Bond
16 Purchase Agreement"), with the Arkansas Natural Resources Commission ("ANRC") and the Arkansas
17 Development Finance Authority (the "Bondholder") providing for the purchase by the Bondholder of the
18 Bond in the principal amount of Eighteen Million Dollars($18,000,000.00); and,
19 WHEREAS,the Bond bears interest at the rate of 2.0%and principal installments are payable on each
20 April 15`h and October 15th with the final payment due October 15,2052;and,
21 WHEREAS,the City pays a servicing fee to the Bondholder on the dates that interest on the Bond is
22 due at the rate of 1%on the outstanding principal of the Bond; and,
23 WHEREAS, ANRC and the Bondholder have agreed to modify the terms of the Bond by deferring
24 the principal of the Bond due in 2023 by one year after the current maturity date;and,
25 WHEREAS, ANRC and the Bondholder have agreed that the Bond will not bear interest after the
26 current maturity date and that there will not be any additional interest or financing fee amounts as a result
27 of the restructuring;and,
28 WHEREAS,the Bond was issued under and pursuant to Ordinance No. 21,699 passed February 19,
29 2019.
30 NOW,THEREFORE,BE IT ORDAINED BY THE BOARD OF DIRECTORS OF THE CITY
31 OF LITTLE ROCK,ARKANSAS:
32 Section 1. The fifth WHEREAS clauses of Ordinance of No. 21,699 is hereby amended to read as
33 follows:
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1 "WHEREAS, the City is making arrangements for the sale of a Eighteen Million Dollars
2 ($18,000,000.00)principal amount bond to the Arkansas Development Finance Authority,as purchaser(the
3 "Bondholder"), at a price of par pursuant to a Bond Purchase Agreement (the "Agreement") among the
4 City, the Bondholder and the Arkansas Natural Resources Commission (the "Commission"), which
5 Agreement has been presented to and is before this meeting; and"
6 Section 2. The ninth WHEREAS clause of Ordinance No. 21,699 is hereby amended to read as
7 follows:
8 "WHEREAS,the City will also be required to pay to the Arkansas Development Finance Authority,
9 as servicer with respect to the bond, a servicing fee based upon variable rates applied to the outstanding
10 principal amount of the bond(the "Servicing Fee"); and,"
11 Section 3. Section 2 of Ordinance No.21,699 is hereby amended to read as follows:
12 "The sale to the Bondholder of a bond in the maximum principal amount of Eighteen Million Dollars
13 ($18,000,000.00)at a price of par, subject to the terms and provisions hereafter in this ordinance set forth
14 in detail be, and is hereby approved and the bond is hereby sold to the Bondholder. The Mayor is hereby
15 authorized and directed to execute and deliver the Agreement on behalf of the City and to take all action
16 required on the part of the City to fulfill its obligations under the Agreement. The Agreement is hereby
17 approved in substantially the form submitted to this meeting with such changes as may be approved by the
18 Mayor,his execution to constitute complete evidence of such approval."
19 Section 4. The second paragraph of Section 4 of Ordinance No. 21,699 is hereby amended to read as
20 follows:
21 "The bond shall bear interest at the rates and shall be subject to Servicing Fees calculated at the rates
22 based upon a 360-day year of twelve (12)consecutive thirty(30)-day months compounded semiannually.
23 The bond shall be dated the date of its delivery to the Bondholder. Accrued interest and the Servicing Fee
24 only shall be payable on each April 15th and October 15th,commencing October 15,2019,to and including
25 October 15, 2023. There shall be no interest and Servicing Fees due after October 15, 2052. Principal,
26 interest and the Servicing Fees shall be payable on April 15, 2024,and on each April 15th and October 15th
27 thereafter as follows:
28 Schedule appears below and on pages 3 and 4
Payment Date Total Payment Interest Rate Interest Servicing Fee Servicing Fee Principal
October 15,2022
April 15,2023 $270,000.00 2.00% $180,000.00 1.00% $90,000.00
October l5,2023 267,194.00 1.98% 178,129.00 0.99% 89,065.00
April 15,2024 457,082.00 1.96% 176,230.00 0.98% 88,115.00 $192,737.00
October 15,2024 457,082.00 1.96% 174,303.00 0.98% 87,151.00 195,628.00
April 15,2025 457,082.00 1.96% 172,347.00 0.98% 86,173.00 198,562.00
October 15,2025 457,082.00 1.96% 170,361.00 0.98% 85,181.00 201,540.00
(Page 2 of 41
April 15,2026 457,082.00 1.96% 168,346.00 0.98% 84,173.00 204,563.00
October 15,2026 457,082.00 1.96% 166,300.00 0.98% 83,150.00 207,632.00
April 15,2027 457,082.00 1.96% 164,224.00 0.98% 82,112.00 210,746.00
October15,2027 457,082.00 1.95% 162,116.00 0.98% 81,058.00 213,908.00
April 15,2028 457,082.00 1.95% 159,977.00 0.98% 79989.00 217,116.00
October 15,2028 457,082.00 1.95% 157,806.00 0.98% 78,903.00 220,373.00
April 15,2029 457,082.00 1.95% 155,602.00 0.98% 77,801.00 223,679.00
October 15,2029 457,082.00 1.95% 153,365.00 0.98% 76,683.00 227,034.00
April 15,2030 457,082.00 1.95% 151,095.00 0.98% 75,548.00 230,439.00
October 15,2030 457,082.00 1.95% 148,791.00 0.98% 74,395.00 233,896.00
April 15,2031 457,082.00 1.95% 146,452.00 0.97% 73,226.00 237,404.00
October 15,2031 457,082.00 1.95% 144,078.00 0.97% 72,039.00 240,965.00
April 15,2032 457,082.00 1.95% 141,668.00 0.97% 70,834.00 244,580.00
October 15,2032 457,082.00 1.95% 139,222.00 0.97% 69,611.00 248,249.00
April 15,2033 457,082.00 1.95% 136,740.00 0.97% 68,370.00 251972.00
October 15,2033 457,082.00 1.95% 134,220.00 0.97% 67,110.00 255,752.00
April 15,2034 457,082.00 1.94% 131,663.00 0.97% 65,831.00 259,588.00
October 15,2034 457,082.00 1.94% 129,067.00 0.97% 64,533.00 263,482.00
April 15,2035 457,082.00 1.94% 126,432.00 0.97% 63,216.00 267,434.00 ,
October 15,2035 457,082.00 1.94% 123,758.00 0.97% 61,879.00 271,445.00
April 15,2036 457,082.00 1.94% 121,043.00 0.97% 60,522.00 275,517.00
October 15,2036 457,082.00 1.94% 118,288.00 0.97% 59,144.00 279,650.00
April 15,2037 457,082.00 1.94% 115,491.00 0.97% 57,746.00 283,845.00
October 15,2037 457,082.00 1.94% 112,653.00 0.97% 56,326.00 288,103.00
April 15,2038 457,082.00 1.93% 109,772.00 0.97% 54,886.00 292,424.00
October 15,2038 457,082.00 1.93% 106,848.00 0.97% 53,424.00 296,810.00
April 15,2039 457,082.00 , 1.93% 103,880.00 , 0.96% 51940.00 301,262.00
October 15,2039 457,082.00 1.93% 100,867.00 0.96% 50,433.00 305,782.00
April 15,2040 457,082.00 1.93% 97,809.00 0.96% 48,905.00 310,368.00
October 15,2040 457,082.00 1.92% 94,705.00 0.96% 47,353.00 315,024.00
April 15,2041 457,082.00 1.92% 91,555.00 0.96% 45,778.00 319,749.00
October 15,2041 457,082.00 1.92% 88,358.00 0.96% 44,179.00 324,545.00
April 15,2042 457,082.00 1.92% 85,112.00 0.96% 42,556.00 329,414.00
October 15,2042 457,082.00 1.91% 81,818.00 0.96% 40909.00 334,355.00
April 15,2043 457,082.00 1.91% 78,475.00 0.95% 39,237.00 339,370.00
October 15,2043 457,082.00 1.90% 75,081.00 0.95% 37,540.00 344,461.00
April 15,2044 457,082.00 1.90% 71,636.00 0.95% 35,818.00 349,628.00
October 15,2044 457,082.00 1.90% 68,140.00 0.95% 34,070.00 354,872.00
April 15,2045 457,082.00 1.89% 64,591.00 0.94% 32,296.00 360,195.00
October 15,2045 457,082.00 1.88% 60,989.00 0.94% 30,495.00 365,598.00
April 15,2046 457,082.00 1.88% 57,333.00 0.94% 28,667.00 371,082.00
October 15,2046 457,082.00 1.87% 53,623.00 0.93% 26,811.00 376,648.00
April 15,2047 457,082.00 1.86% 49,856.00 0.93% 24,928.00 382,298.00
October 15,2047 457,082.00 1.85% 46,033.00 0.92% 23,017.00 388,032.00
April 15,2048 457,082.00 1.84% 42,153.00 0.92% 21,076.00 393,853.00
October 15,2048 457,082.00 1.82% 38,214.00 0.91% 19,107.00 399,761.00
April 15,2049 457,082.00 1.80% 34,217.00 0.90%o 17,108.00 405,757.00
October 15,2049 457,082.00 1.78% 30,159.00 0.89% 15,080.00 411,843.00
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April 15,2050 457,082.00 1.75% 26,041.00 0.87% 13,020.00 418,021.00
October 15,2050 457,082.00 1.71% 21,860.00 0.85% 10,930.00 424,292.00
April 15,2051 457,082.00 1.65% 17,617.00 0.82% 8,809.00 430,656.00
October 15,2051 457,082.00 1.56% 13,311.00 0.78% 6,655.00 437,116.00
April 15,2052 457,082.00 1.41% 8,940.00 0.70% 4,470.00 443,672.00
October 15,2052 457,058.00 1.09% 4,503.00 0.54% 2,252.00 450,303.00
April 15,2053 187,082.00 0.00% - 0.00% - 187,082.00
October 15,2053 189,888.00 0.00% - 0.00% - 189,888.00
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 Servicing 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. 21,699 and shall be entitled to the benefits, security and terms of Ordinance No. 21,699,
9 except as to the interest rate, Servicing 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. 21,699(April 2,
17 2019),are hereby repealed to the extent of such inconsistency.
18 P .. D: I • r er 20,2020
19 A , ' : APPROVED:
20 ��L ..
1
.
21 . A
22 usan angl• j, .,lerk Frank •cott,Jr.,g ay,r
23 APPR 6 VED .�• EGAL FORM:
24
25 I 'AC -7 !/V!, •
26 Thomas M. Carpenter,City Attor y
27 //
28 //
29 //
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