11530ORDINANCE N). 11,530
AN ORDINANCE AUTHORIZING THE ISSUANCE OF A $19000,000
CITY OF LITTLE ROCK WATER REVENUE PROMISSORY NOTE TO
PROVIDE IMMEDIATE CONSTRUCTION FUNDS PRIOR TO ISSUANCE
OF WATER REVENUE BONDS; PRESCRIBING OTHER MATTERS
RELATING THERETO; AND DECLARING AN EMERGENCY
WHEREAS, the Board of Commissioners of the Little Rock
Municipal Water Works has elected to improve the City's waterworks
system by the construction of a new filter plant, water main
extensions and appurtenances thereto at an estimated cost of
$4,800,000 and to finance the cost by the sale of water revenue
bonds; and
WHEREAS, approximately $1,000,000 of said cost will be
required for construction payments before proceeds of the bond
issue are available; and
WHEREAS, Worthen Bank and Trust Company, of Little Rock,
Arkansas, has offered to lend the sum of $1,000,000 to be
evidenced by a water revenue promissory note bearing interest at
the rate of 3% per annum, upon terms as more particularly set
forth hereafter; Now, Therefore,
BE IT ORDAINED BY THE BOARD OF DIRECTORS OF THE CITY OF
LITTLE ROCK, ARKANSAS:
Section 1. That, under the authority of the Constitution
and laws of the State of Arkansas, including particularly Act
321 of the Acts of Arkansas of 1955, amending Act 131 of the
Acts of 1933, as amended, the Mayor and City Clerk of the City
of Little Rock, Arkansas, be, and they are hereby, authorized
and directed to execute a water revenue promissory note in the
amount of $1,000,000, said note to be in substance and form
substantially as follows, to -wit:
Coo -40
D - f°
$1,000,000
WATER REVENUE PROMISSORY NOTE
Little Rock, Arkansas
October 6, 1964
The City of Little Rock, in the County of Pulaski, State of
Arkansas, for value received, hereby promises to pay to Worthen
Bank and Trust Company, of Little Rock, Arkansas, on or before
January 6, 1965, solely from revenues derived from the operation
of the City's waterworks system and /or from the proceeds of the
sale by the City of water revenue bonds, the sum of One Million
and no /100 Dollars ($1,000,000.00) with interest at the rate of
three per cent (3 %) per annum. Both principal and interest
shall be payable at the office of the Worthen Bank and Trust
Company in Little Rock, Arkansas.
This revenue promissory note is issued under the authority
of the Constitution and laws of the State of Arkansas, particularly
Act 321 of the Acts of Arkansas of 1955, amending Act 131 of the
Acts of Arkansas of 1933, as amended, and under Ordinance No.
duly adopted by the Board of Directors of the City of
Little Rock and approved on October 5, 1964, and does not
constitute an indebtedness of the City of Little Rock within any
constitutional or statutory limitation, but the municipal
revenues and funds out of which this note is payable are hereby
pledged, to the full extent permitted by law, as security for
the payment of this obligation.
The City shall be entitled to draw upon the principal sum
on the dates and in the amounts set forth hereafter:
October 6, 1964
November 1, 1964
December 1, 1964
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$250,000.00
350,000.00
400,000.00.
Interest as aforesaid shall be payable only upon the amount or
amounts of principal which have been withdrawn by the City and
shall be payable only from the date or dates of withdrawal. Any
portion of the amount due hereunder may be prepaid without notice
and without penalty on any business day.
The proceeds of the loan evidenced by this note shall be
deposited in a special City of Little Rock Water Revenue Note Fund
and shall be used solely for paying portions of the cost of
constructing a new waterworks filter plant, water main extensions
and appurtenances thereto.
It is hereby certified, recited and declared that all acts,
conditions and things required to exist, to be performed and to
happen precedent to and in the issuance of this note have
existed, have been performed and have happened in due time, form
and manner as required by law.
The City of Little Rock waives presentment for payment,
notice of nonpayment, protest and notice of protest.
IN WITNESS WHEREOF, the City of Little Rock, Arkansas, by
its Board of Directors, has caused this note to be executed by
the Mayor and City Clerk thereof and its corporate seal affixed,
all as of the 6th day of October, 1964.
Attest:
City Clerk
(Seal)
CITY OF LITTLE ROCK, ARKANSAS
By _
Mayor
Section 2. That the principal of and interest on said note
shall be payable solely out of revenues derived by the City from
the operation of its waterworks system and /or from the proceeds
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of a subsequent water revenue bond issue, and the City hereby
covenants and agrees to so pay the principal of and interest on
the note in strict conformity with the terms thereof. The note
is a special obligation payable solely from the above described
sources and shall not constitute an indebtedness of the City of
Little Rock within any constitutional or statutory limitation,
but the municipal revenues and funds out of which this note is
payable are hereby pledged, to the full extent permitted by law,
as security for the payment of this obligation.
Section 3. That the proceeds of said note shall be paid to
the Board of Commissioners of the Little Rock Municipal Water
Works and shall be deposited in a special fund to be known as
"City of Little Rock Water Revenue Note Fund "; the proceeds shall
be used solely for paying portions of the cost of constructing a
new waterworks filter plant, water main extensions and
appurtenances thereto.
Section 4. That the provisions of this ordinance are
separable and if any provision shall for any reason be held illegal
or invalid, it shall not affect the validity of the remainder of
the ordinance.
Section 5. That all ordinances and resolutions in conflict
herewith are hereby repealed to the extent of such conflict.
Section 6. That it is hereby ascertained and declared that
a contract for the construction of a portion of the aforesaid
improvements has been let and the work is in process; that procedures
have been instituted for the sale of water revenue bonds to
finance said construction; that the proceeds of said bond sale
will not be available immediately; that payments for said
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construction will fall due before the bond proceeds are available;
and that the proceeds of the note authorized by this ordinance
will be necessary to pay said construction costs. 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 5, 1964.
ATTEST:
City Clerk
(Seal)
APPROVED:
Mayor
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RESOLUTION
WHEREAS, the Board of Commissioners operating the Little
Rock Municipal Water Works system has elected to construct a new
filter plant, water main extensions and appurtenances thereto at
an estimated cost of $4,800,000 and to finance the cost of said
project by the sale of water revenue bonds; and
WHEREAS, there is a need for $1,000,000 to pay construction
costs falling due before the proceeds of the bond issue will be
avail abl e; and
WHEREAS, it has been determined that Worthen Bank and Trust
Company will lend the City of Little Rock the aforesaid sum of
$1,000,000 to bear interest at the rate of 3% per annum, with the
City having the privilege of withdrawing the principal in
installments and paying interest on principal only from the date
of withdrawal and with the privilege of prepaying any amount due
without penalty on any business day, said loan to be evidenced
by the City of Little Rock's water revenue promissory note; Now,
Therefore,
BE IT RESOLVED by the Board of Commissioners of the Little
Rock Municipal Water Works that the Board of Directors of the
City of Little Rock, Arkansas, be requested to adopt an ordinance
authorizing the issuance of a $1,000,000 City of Little Rock
water revenue promissory note in substance and form substantially
as shown by the copy attached hereto.
PASSED AND UNANIMOUSLY ADOPTED this 29th day of September,
1964.
® Burford
Certificate
I, H. J. Burford, Secretary of the Board of Commissioners
of the Little Rock Municipal Water Works, certify that, as
such Secretary, I have custody of the minutes of the Little
Rock Municipal Water Works, and that the above and foregoing is
a correct copy of a resolution adopted by said Board of
Commissioners at a special meeting held September 29, 1964.
ir' - refiry