15193381
ORDINANCE NO. 15,193
AN ORDINANCE AMENDING ORDINANCE NO. 15,150
OF THE CITY OF LITTLE ROCK, ARKANSAS;
APPROVING THE DESIGNATION OF A TRUSTEE AND
PAYING AGENT; PRESCRIBING OTHER MATTERS
RELATING THERETO; AND DECLARING AN EMERGEN-
CY.
WHEREAS, by Ordinance No. 15,150 of the ordinances of
the City of Little Rock, Arkansas (the "City "), passed and
approved on the 5th day of August, 1986 ( "Ordinance No.
15,150 "), there were authorized and ordered sold City of Little
Rock, Arkansas General, Obligation Industrial Development Bonds.,
Port Authority Project, in the total principal amount of
$2,500,000 (the "Bonds "); and
WHEREAS, at the public sale conducted September 23,
1986, the Bonds (hereinafter described in detail) were sold by
the City to George K. Baum & Company, Dabbs Sullivan Division
and FirstSouth Capital Corp. (the "Purchasers "); and
WHEREAS, in accordance with the terms of Ordinance No.
15,150, the Purchasers have designated First Commercial Bank,
National Association, Little Rock, Arkansas, as Trustee and
Paying Agent; and
WHEREAS, the Board of Directors has determined that
certain provisions of Ordinance No. 15,150, should be amended
and clarified;
NOW, THEREFORE, BE IT RESOLVED by the Board of Direc-
tors of the City of Little Rock, Arkansas:
Section 1. That First Commercial Bank, National
Association, Little Rock, Arkansas, is hereby approved -and
confirmed as Trustee and Paying Agent of the Bonds.
Section 2. That as provided in Ordinance No. 15,150,
the principal of and interest on the Bonds shall be paid from
funds in the "General Obligation Port Bond Retirement Fund" as
they mature according to the following schedule:
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Year
Interest
Interest
Mar. 1)
Rate
Principal
March 1
September 1
Total
1987
74,586.25
74,586.25
74,586.25
1988
74,586.25
74,586.25
149,172.50
1989
7.00
95,000
74,586.25
71,261.25
244,172.50
1990
7.00
100,000
71,261.25
67,761.25
242,522.50
1991
7.00
110,000
67,761.25
63,911.25
245,522.50
1992
7.00
115,000
63,911.25
59,886.25
242,822.50
1993
5.90
130,000
59,886.25
56,051.25
249,772.50
1994
6.05
135,000
56,051.25
51,967.50
247,102.50
1995
6.20
145,000
51,967.50
47,472.50
248,935.00
1996
6.35
160,000
47,472.50
42,392.50
254,945.00
1997
6.40
170,000
42,392.50
36,952.50
254,785.00
1998
6.40
185,000
36,952.50
31,032.50
258,905.00
1999
6.20
195,000
31,032.50
24,987.50
257,065.00
2000
6.00
215,000
24,987.50
18,537.50
264,975.00
2001
5.50
230,000
18,537.50
12,212.50
267,075.00
2002
5.00
250,000
12,212.50
5,962.50
274,425.00
2003
4.50
265,000
5,962.50
276,925.00
Section 3. That the second full paragraph on the
reverse side of the bond form in Section 5 of Ordinance No.
15,150 be amended to read as follows:
"The City has covenanted that, except as otherwise
provided in the Authorizing Ordinance, surplus tax collections,
being collections of the Special Tax in excess of the amount
necessary to insure the prompt payment of the principal of,
interest on and Trustee's fees in connection with the Bonds as
the same become due and to make required deposits into the Debt
Service Reserve Account (defined in the Authorizing Ordinance),
must be used as set forth in Section 6 of the Authorizing
Ordinance."
Section 4. That Section 6 of Ordinance No. 15,150 be
amended to read as follows:
"That in order to pay the Bonds as they mature, with
interest thereon, there is hereby levied upon all taxable
property within the City a continuing annual special tax of .50
of one mill on each dollar of assessed valuation of personal
property and .30 of one mill on each dollar of assessed
valuation of real property located within the City. The tax
hereby levied shall be referred to as the "Special Tax." The
Special Tax shall be collected in 1986 and annually thereafter
(with the exception of the year 1987, for which collection will
be suspended) as long as may be necessary to pay the principal
of, interest on and Trustee's fees in connection with the Bonds.
The City Clerk is directed to transmit a copy of this Ordinance
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to the County Clerk of Pulaski County, Arkansas, to the end that
the Special Tax may be extended on the tax books of the County
and collected annually along with the other taxes until the
Bonds and interest thereon are paid in full or until adequate
provision is made for their payment. The City covenants and
agrees that all of the revenues from the Special Tax shall be
placed in a separate fund which is hereby created and designated
"General Obligation Port Bond Retirement Fund" (the "Bond
Fund "), in the City's depository bank, and used solely for the
payment of the principal of, interest on and Trustee's fees in
connection with the Bonds. The amount of the deposit in excess
of that insured by the Federal Deposit Insurance Corporation
must be continuously secured by bonds or other direct or fully
guaranteed obligations of the United States of America, except
that moneys invested as hereinafter provided need not be so
secured. Moneys in the Bond Fund may be invested in direct
obligations of, or obligations the principal of and interest on
which are guaranteed by, the United States of America, which
mature or are subject to redemption at the option of the holder
at or prior to the date the moneys will be needed to meet debt
service requirements on the Bonds. All such investments shall
be considered a part of the Bond Fund. Moneys in the Bond Fund
shall be used on each interest payment date in the following
order of priority as and when necessary:
(1) to pay the interest on the Bonds then due;
and
(2) to pay or make provision in the Bond Fund
for the payment of the principal of the Bonds; and
(3) to pay into the Debt Service Reserve Account
(hereinafter identified) the required deposits; and
(4) to redeem Bonds prior to maturity to the
extent that surplus tax collections, being collections
of the Special Tax in excess of the amount necessary
to insure the prompt payment of the principal of,
interest on and Trustee's fees in connection with the
Bonds as the same become due and to make required
deposits into the Debt Service Reserve Account, are
available therefor in the Bond Fund.
As part of the Bond Fund, there shall be established
and maintained a Debt Service Reserve Account in an amount equal
to the maximum annual principal and interest requirements for
the Bonds (the "required level "). Collections of the Special
Tax in excess of the amount necessary to insure the prompt
payment of the principal of, interest on and Trustee's fees in
connection with the Bonds as the same become due shall be
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deposited into the Debt Service Reserve Account in annual
amounts not less than, as selected by the City, (a) all amounts
in excess of amounts necessary to insure prompt payment of
principal of, interest on and Trustee's fees in connection with
the Bonds or (b) the amounts as follows (the "required
deposits "):
Year Amount
1989
$25,000
1990
50,000
1991
50,000
1992
50,000
1993
50,000
1994
53,000
Moneys in the Debt Service Reserve Account over and
above the required level shall be immediately transferred from
the Debt Service Reserve Account into the Bond Fund.
Moneys in the Debt Service Reserve Account shall be
used solely for the purpose of providing for payment of
principal of, interest on and Trustee's fees in connection with
the Bonds, as due, to the extent that other moneys are not
available in the Bond Fund. Any withdrawal of money from the
Debt Service Reserve Account shall be reimbursed by use of the
first available collections of the Special Tax.
The City covenants that all moneys held for the credit
of the Bond Fund in excess of an amount necessary to insure the
prompt payment of the principal of, interest on and Trustee fees
in connection with the Bonds as the same become due and the
amount required to be deposited in the Debt Service Reserve
Account will be used from time to time on each interest payment
date as and to the extent available for the redemption of the
Bonds prior to maturity.
The City hereby agrees to withdraw from the Bond Fund
and pay to the Trustee at least five (5) business days before
each payment of principal of and interest on the Bonds is due,
the amount necessary to pay principal and interest on the Bonds
and Trustee's fees. No withdrawal of such funds from the Bond
Fund shall be made for any other purpose except as otherwise
authorized in this Ordinance."
Section S. That the provisions of this Ordinance are
hereby declared to be separable and if any provision shall for
any reason be held invalid, such holding shall not affect the
validity of the remaining provisions of the Ordinance.
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Section 6. That Ordinance No. 15,150, as supplemented
and amended hereby, shall continue in full force and effect.
Section 7. That it is hereby ascertained and declared
that the issuance of the Bonds authorized by Ordinance No.
15,150 must be accomplished. It is, therefore, declared that an
emergency exists, and this Ordinance being necessary for the
immediate preservation of the public peace, health and safety
shall take effect and be in force from and after its passage.
PASSED: October 21 . 1986.
ATTEST:
City Clerk gane Czech
(SEAL)
APPROVED:
5
385