12632' ORDINANCE NO. 12,632
AN ORDINANCE DESIGNATING A WATER QUALITY CONTROL
CHARGE FOR THE SERVICES OF THE SANITARY SEWER SYSTEM
OP THE CITY; PROVIDING FOR THE COLLECTION AND APPLI-
CATION OF THE REVENUES DERIVED THEREFROM; PRESCRIBING
OTHER MATTERS PERTAINING THERETO; AND DECLARING
AN EMERGENCY. .
WHEREAS, the City of Little Rock, Arkansas (the "City "), has
undertaken the construction of extensions, betterments and improvements
(the "Improvements") to the sewer facilities of the City (the "System ");
and
WHEREAS, the City has had prepared an engineering report and esti-
mate of costs for the improvements by a qualified consulting engineer; and
WHEREAS, the improvements include a water pollution control project
a portion of which is eligible for federal assistance under the provisions of the
Federal Water Pollution Control Act, 33 U.S. C .A § 1151, et seq. Jthe eligible
portion being herein called the "Project "); and
WHEREAS, the City does not have sufficient funds to pay the costs
of the Project but can obtain such funds by the use of available funds, by
obtaining federal grant funds available for the purpose ( "federal assistance ")
and by obtaining a state grant (hereinafter described); and
WHEREAS, it is necessary to the obtaining of maximum federal assistance
that the City receive from the Department of Pollution Control and Ecology of
the State of Arkansas (the "Department ") a State Grant for a portion of the costs
of the Project, as authorized by Act No. 108 of 1971, as amended ( "Act No.
108"); and ,
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Page 2
WHEREAS, the City has applied to the Department for a State Grant
in the amount of not to exceed $1, 500, 000; and
WHEREAS, the Department can obtai n sufficient funds for the purpose
of making the State Grant by the sale and issuance of Pollution Control
Revenue Bonds, as authorized by Act No. 108 (the "Department Bonds ")j and
WHEREAS, the Department Bonds, as provided in Act No. 108, will
not constitute an indebtedness of the State of Arkansas or of the Department
within any constitutional or statutory limitation but, as provided by Act No.
108, will be secured by a pledge of and payable solely from revenues derived
by the City from the operation of the System; and
WHEREAS, Act No. 108 requires that the City levy and collect, in
addition to other fees and charges, a charge, designated by Act No. 108 as
the "Water Quality Control Charge", sufficient to produce in each year revenues
at least equal to 125% of the maximum annual debt service (principal and
Interest) on the Department Bonds; and
WHEREAS, the City has levied and Is collecting charges for the services
of the System sufficient to produce In each year revenues at least equal to the
costs of operating and maintaining the System, pay annual debt service and
maintain required reserves for the outstanding Sewer Revenue Bonds of the
City, dated February 1, 1966 (the "City Bonds''), produce an amount equal
to 125% of the maximum annual debt service on the Department Bonds, and
make the required provision for depreciation of the System.
NOW, THEREFORE, BE IT ORDAINED by the Board of Directors of the
City of Little Rock, Arkansas:
Section 1. (a) The rates to be charged for the services of the System,
which have been heretofore fixed by ordinances of the City duly adopted and
approved, are hereby ratified, confirmed and continued.
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Page 3
(b) The City covenants and agrees that so long as any of the City
Bonds or Department Bonds are outstanding it will always and continuously
maintain, including any increases that may be necessary, rates for the
services of the System sufficient to produce in each year revenues at least
equal to pay the costs of operating and maintaining the System, pay annual debt
service on and create and maintain a debt service reserve in connection with
the City Bonds, produce an amount equal to 125% of the maximum annual debt
service on the Department Bonds, and make the required provision for depre-
clation of the System.
Section 2. (a) A charge for the services of the System sufficient to
produce in each year 125% of the maximum annual principal and interest
requirements of the Department Bonds is hereby fixed and designated the
"Water Quality Control Charge ", to be collected at the same time and in
the same manner as other charges for the services of the System, so long as
any of the Department Bonds are outstanding. Since the rates now being
collected are sufficient for the time being, the charge shall take the form
of an allocation from existing collections. - --
(b) So long as any of the Department Bonds are outstanding, all
revenues derived from the Water Quality Control Charge shall be forwarded
to the Paying Agent for the Department Bonds and deposited in the "Depart-
ment.of Pollution Control and Ecology (City of Little Rock, Arkansas Project,
1972) Bond Fund ( "Department Bond Fund ") created by and to be maintained
pursuant to the Resolution of the Department securing the Department Bonds
(the "Department Resolution ") . A certified copy of the Department Resolution
shall be filed with the City Clerk of the City.
(c) The moneys in the Department Bond Fund shall be held, deposited,
Invested and applied as.provided in the Department Resolution.
Section 3. All ordinances and parts thereof In conflict herewith are
hereby repealed to the extent of such conflict.
Page 4
Section 4. The provisions of this Ordinance are hereby declared to
be severable, and in the event any action, provision or part thereof shall
be held to be invalid, such invalidity shall not affect the remainder of the
Ordinance.
Section 5. It is hereby ascertained and declared that the improve-
ments must be accomplished as soon as possible in order to make the
System adequate for the needs of the City and its inhabitants, without
which the life, health, safety and welfare thereof are jeopardized, and that
the issuance of the Department Bonds and the taking of the other action
authorized by this Ordinance is necessary for the accomplishment thereof.
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 April 4 1972.
APPROVED:
ATTEST:
An e
Mayor
Ci rk
(SEAL)
CERTIFICATE -
STATE OF ARKANSAS X
X
COUNTY OF PULASKI X
I, the undersigned, City Clerk of the City of Little Rock, Arkansas,
hereby certify that the foregoing is a true, correct and compared copy of an
Ordinance passed by the Board of Directors of the City at a regular
meeting held in the regular meeting place of the Board in the City at 7:30
o'clock p m. , on the 4th day of April , 1972.
IN WITNESS WHEREOF, I have hereunto set my hand and the seal
of the City this 5th day of April , 1972.
(SEAL)
City Cler
lb
CERTIFICATE
STATE OF ARKANSAS X
X
COUNTY OF PULASKI X
The undersigned, Mayor of the City of Little Rock, Arkansas, hereby
certifies that the attached is a true and correct copy of Ordinance No. 12,632
of the City, adopted and approved by the Board of the City on the 4th day
of April 1972, that the Ordinance has been recorded in the office
of the City Clerk of the City, and that by the Ordinance the City has obligated
itself to levy and collect a Water Quality Control Charge as described in the
Ordinance, in compliance with the provisions of Act No 108 of 1971.
WITNESS my hand this 5th day of. April 1972.
Mayor
ATTEST:
Qa.e.:� (L6,&
City CTeW-
(SEAL) '
u