197231
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ORDINANCE NO. 19,723
3 AN ORDINANCE AUTHORIZING THE ISSUANCE OF ONE OR MORE
4 SERIES OF PROMISSORY NOTES TO PROVIDE SHORT -TERM
5 FINANCING UNDER AMENDMENT NO. 78 TO THE ARKANSAS
6 CONSTITUTION FOR THE ACQUISITION, CONSTRUCTION, AND
7 INSTALLATION OF REAL AND TANGIBLE PERSONAL PROPERTY;
8 PROVIDING FOR THE PAYMENT OF THE PRINCIPAL OF AND
9 INTEREST ON THE NOTES; PRESCRIBING OTHER MATTERS
10 PERTAINING THERETO; AND DECLARING AN EMERGENCY.
11
12 WHEREAS, the City of Little Rock, Arkansas (the "City ") is authorized and
13 empowered under the provisions of Amendment No. 78 to the Arkansas Constitution
14 ( "Amendment No. 78 ") and Act No. 1808 of 2001 (codified as Title 14, Chapter 78 of the
15 Arkansas Code of 1987 Annotated) (the "Act "), to issue promissory notes and to expend
16 the proceeds thereof to finance all or a portion of the cost of acquiring, constructing, and
17 installing real property or tangible personal property having an expected useful life of
18 more than one year; and
19 WHEREAS, the City proposes to acquire vehicles, acquire land, acquire, construct,
20 and install facilities, and acquire, construct, and install technology and equipment for the
21 City (collectively, the "Property "); and
22 WHEREAS, it is proposed that the City issue its promissory notes in one or more
23 series in the aggregate principal amount of not to exceed $7,819,000 (the "Notes ") under
24 Amendment No. 78 and the Act for the purpose of financing all or a portion of the costs of
25 the acquisition, construction, and installation of the Property; and
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1 WHEREAS, for each series of Notes the City intends to arrange for a loan (each, a
2 "Loan') from a financial institution (each, a "Lender ") and to issue such series of the Notes
3 to such Lender at a price of par in consideration for such Loan; and
4 WHEREAS, the City intends to issue an initial series of the Notes in the principal
5 amount of not to exceed $5,919,000; and
6 WHEREAS, the issuance of each series of the Notes subsequent to the initial series
7 shall be approved by resolution of the Board of Directors;
8 NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF DIRECTORS OF
9 THE CITY OF LITTLE ROCK, ARKANSAS, THAT:
10 Section 1. The Board of Directors hereby finds that the Property is real property or
11 tangible personal property having a useful life of more than one year. The Board of
12 Directors further finds that the sum of the principal amount of the Notes and the aggregate
13 outstanding principal amount of the City's Promissory Notes dated September 25, 2002,
14 June 18, 2003, September 8, 2004, March 31, 2005, and April 25, 2006 does not exceed five
15 percent of the assessed value of taxable property located within the City as determined by
16 the last tax assessment completed before the issuance of the Notes.
17 Section 2. Under the authority of the Constitution and laws of the State of Arkansas,
18 including particularly Amendment No. 78 and the Act, the Notes are hereby authorized
19 and ordered issued in the principal amount of not to exceed $7,819,000 for the purpose of
20 financing all or a portion of the costs of acquiring, constructing, and installing the Property
21 and paying expenses of issuing the Notes. The Notes shall be issued in one or more series.
22 Each series of the Notes shall be dated the date of its issuance and shall bear interest on the
23 outstanding principal amount at a fixed rate not to exceed 7.5% per annum (calculated on
24 the basis of the actual number of days elapsed in a year of 365 days (366 days in a leap
25 year)). Each series of the Notes shall be repaid in five substantially equal annual amortized
26 installments of principal and interest, commencing one year from the date of such series of
27 the Notes and continuing on the same day of each year thereafter, with the final installment
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1 due five years from the date of each series of the Notes. The Notes shall be issued in fully
2 registered form. Each series of the Notes shall be on a parity of security.
3 Section 3. Each series of the Notes shall be issued to the respective Lender in
4 consideration for the respective Loan. Each Lender shall be selected by the Mayor based
5 upon the commitment or proposal for the respective Loan that the Mayor determines to
6 have the lowest cost to the City. The City Treasurer is hereby authorized and directed to
7 solicit proposals or commitments for each Loan from at least three financial institutions
8 having offices in Pulaski County or having requested to be solicited, in such manner as
9 shall be approved by the Mayor. The Mayor shall have the right to reject any and all
10 proposals and commitments. The initial series of the Notes shall be issued in the principal
11 amount of not to exceed $5,919,000 and the issuance of each series of the Notes subsequent
12 to the initial series shall be approved by resolution of the Board of Directors.
13 Section 4. As provided in Amendment No. 78, the annual debt service payments on
14 the Notes in each fiscal year shall be charged against and paid from the general revenues of
15 the City for such fiscal year. For the purpose of making the annual debt service payments,
16 there is hereby, and shall be, appropriated to pay the Notes, an amount of general revenues
17 of the City sufficient for such purposes. The City Treasurer is hereby authorized and
18 directed to withdraw from the General Fund of the City the amounts and at the times
19 necessary to make the annual debt service payments on the Notes.
20 Section 5. The City covenants with the owner or owners of each series of the Notes
21 issued on a tax - exempt basis (the "Tax- Exempt Series ") from time to time, including
22 without limitation the initial series of the Bonds be issued in the principal amount of not to
23 exceed $5,919,000, as follows:
24 (a) The City shall not take any action or suffer or permit any action to be taken or
25 condition to exist which causes or may cause the interest payable on the Tax - Exempt Series
26 to be included in gross income for federal income tax purposes. Without limiting the
27 generality of the foregoing, the City covenants that the proceeds of the sale of the Tax-
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1 Exempt Series will not be used directly or indirectly in such manner as to cause the Tax -
2 Exempt Series to be treated as an "arbitrage bond" within the meaning of section 148 of the
3 Internal Revenue Code of 1986, as amended (the "Code ").
4 (b) The City will not use or permit the use of the Property acquired, constructed, or
5 equipped with the proceeds of the Tax - Exempt Series in such manner as to cause the Tax -
6 Exempt Series to be a "private activity bond" within the meaning of section 141 of the
7 Code.
8 (c) None of the gross proceeds of the Tax - Exempt Series will be used (directly or
9 indirectly) either to make or finance loans to persons other than state or local governmental
10 units or in any trade or business carried on by any person other than a state or local
11 governmental unit or other than as a member of the general public.
12 (d) The City will take no action which would cause the Tax - Exempt Series to be
13 "federally guaranteed" within the meaning of the Code.
14 (e) The City will not reimburse itself from proceeds of the Tax - Exempt Series for any
15 costs paid prior to the date or dates the Tax - Exempt Series are issued except in compliance
16 with United States Treasury Regulation § 1.150 -2. This Ordinance shall constitute an
17 "official intent" for purposes of the Regulation.
18 (f) The City will submit to the Secretary of the Treasury of the United States, not
19 later than the 15th day of the second calendar month after the close of the calendar quarter
20 in which the Tax - Exempt Series are issued, a statement concerning the Tax - Exempt Series
21 which contains the information required by section 149(e) of the Code.
22 Section 6. The City shall provide such financial information to the Lenders as the
23 Lenders may reasonably request.
24 Section 7. The Mayor, City Clerk, and City Treasurer, for and on behalf of the City,
25 are hereby authorized and directed to do any and all things necessary to effect the issuance,
26 execution, and delivery of the Notes and the performance of all acts of whatever nature
27 necessary to effect and carry out the authority conferred by this Ordinance. The Mayor,
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City Clerk, and City Treasurer are hereby further authorized and directed, for and on
behalf of the City, to execute all papers, documents, certificates, and other instruments that
may be required for the carrying out of such authority or to evidence the exercise thereof.
Section 8. Severability. In the event any title, section, paragraph, item, sentence,
clause, phrase, or word of this ordinance is declared or adjudged to be invalid or
unconstitutional, such declaration or adjudication shall not affect the remaining portions of
this ordinance, which shall remain in full force and effect as if the portion so declared or
adjudged invalid or unconstitutional was not originally a part of this ordinance.
Section 9. Repealer. All ordinances or resolutions of the City in conflict herewith are
hereby repealed to the extent of such conflict.
Section 10. Emergency. The Board of Directors hereby determines that the Property
must be acquired, constructed, and installed as soon as possible in order to alleviate
immediate hazards to the health, safety, and welfare of the City, its inhabitants, and their
property, and that the Property can be acquired, constructed, and installed only by the
issuance of the Notes. 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 enforced from and after its passage.
PASSED: March 20, 2007
ATTEST:
Na cy Woo ,'City Clerk
APPR VED AS TO LEGAL FORM:
g! ' - X--
Thomas M. Carpenter, City Atuorney
i
APP D•
Mark Stodola, Mayor
Erma Hendrix, Director (Ward 1)
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Schedule A
2007 Short -term Financing Detail
March 20, 2007
Vehicles:
Information Technology $ 15,000
Zoo 30,000
Fleet 140,000
Parks 165,000
Fire 362,000
Public Works 625,000
Police 1,186,000
Total Vehicles $ 2,523,000
Facilities and Land:
Park Land (John Barrow Center)
50,000
Zoo Elephant Exhibit
75,000
Backflow Preventors
75,000
Dunbar Center HVAC
100,000
Central Fire Station Facility Upgrade
150,000
Building Upgrades
194,000
(Court, Planning, City Hall, MacArthur Museum)
Riverfront Park Improvements
200,000
Park Restrooms (Otter Creek & Pettaway)
250,000
Park Land for Trails
320,000
Midtown Police Service Center
750,000
Total Facilities and Land
$ 2,164,000
Technology and Equipment:
Computers, scanners, printers $ 35,000
Infrared cameras — Fire 75,000
Fire Extrication Tools 80,000
Parks & Recreation Software and Hardware 165,000
Code Enforcement Software and Hardware 350,000
IT hardware and software 512,500
Total Technology and Equipment $1,217,500
Total Projects $ 5,904,500
Issuance Costs 14,500
Estimated Note Issue $5,919000