11670ORDINANCE NO. 11._. '_
AN ORDINANCE AUTHORIZING THE ISSUANCE OF GENERAL
OBLIGATION REFUNDING AND CAPITAL IMPROVEMENT BONDS;
LEVYING A TAX SUFFICIENT TO PAY THE PRINCIPAL OF
AND INTEREST ON THE BONDS; PRESCRIBING OTHER MATTERS
RELATING THERETO; AND DECLARING AN EMERGENCY.
WHEREAS, the City of Little Rock, Arkansas is a City of the
first class; and
WHEREAS, by Ordinance No. 11,621 duly passed by the Board
of Directors and approved on the 6th day of July, 1965, there was
submitted to the qualified electors of the City of Little Rock,
Arkansas, the question of the issuance of bonds in the following
amounts for the following purposes:
$ 570,000 for the purchase, development and improvement
of public parks;
$ 300,000 for the purchase of sites for and constructing
and equipping buildings for the housing of
fire fighting apparatus, and the purchase of
fire fighting apparatus;
$4,055,000 for the purchase of rights -of -way for and
constructing streets and boulevards, includ-
ing, without limitation, widening, straight-
ening, surfacing and drainage;
with the provision that in the event that bonds were approved for all
of said purposes, all of the said bonds, together with bonds in the
principal amount of $3,075,000 for the purpose of refunding the out-
standing General Obligation Improvement Bonds of the City of Little
Rock, Arkansas, dated December 1, 1958, would be combined into a single
issue; and
Page 1
r_0;
WHEREAS, due notice of the election was given as required
by law and the election was duly held on the 14th day of September,
1965, at which election the electors approved the issuance of bonds
for each of said purposes; and
WHEREAS, the results of the election were announced by the
Mayor by a Proclamation duly published as required by law in a news-
paper of bona fide circulation in the City of Little Rock, Arkansas;
and
WHEREAS, bonds in the aggregate principal amount of
$8,000,000 for said purposes above set forth were duly advertised
for sale, the said bonds to be dated August 1, 1965, the interest
thereon to be payable semi - annually on February 1 and August 1 of
each year and with the bonds maturing on February 1 in each of
the years 1967 to 1991, inclusive, all as specified in the Notice
of Sale; and
` WHEREAS, said sale was duly held pursuant to advertisement
on the 14th day of October, 1965, and at said sale Halsey, Stuart
& Company, Inc., of Chicago, Illinois, and Dabbs Sullivan & Company,
Inc., and E. L. Villareal & Company, Inc., both of Little Rock,
Arkansas, and Associates, bid and offered the price of par plus a
premium of $2,960.00 and accrued interest for bonds bearing interest
at the rate of 3.26952% per annum, and this being the best bid for
said bonds, the bonds were sold to the purchasers for said price;
and
WHEREAS, the said Notice of Sale permitted the purchaser
to designate not more than four interest rates provided that the
total interest cost of the interest rates so designated did not
Page 2
exceed the rate of 3.26952% per annum with the provision that the
bonds of each maturity must bear interest from date to maturity at
the same rate and that the difference between the highest and lowest
rate must not exceed 2 %; and
WHEREAS, pursuant to the said provisions set forth in the
Notice of Sale, the purchasers have designated a rate of 3.80% for
the bonds maturing in the years 1967 to 1985, inclusive, 3.50% for
the bonds maturing in the years 1986 to 1988, inclusive, and 1.80%
for the bonds maturing in the years 1989 to 1991, inclusive; and
WHEREAS, the Board of Directors has examined the maturity
schedule of bonds bearing interest at the rate of 3.26952% per annum
and the maturity schedule of bonds bearing interest at the above
set forth rates designated by the purchasers and finds that the
total interest cost of the rates designated by the purchasers, after
allowing the premium of $2,960.00, is the same total interest cost of
bonds bearing interest at 3.26952% per annum, so that said designa-
tions by the purchasers are proper and are within the terms of the
Notice of Sale;
NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF DIRECTORS OF
THE CITY OF LITTLE ROCK, ARKANSAS:
Section 1. That the sale of $8,000,000 of 3.26952% bonds
to Halsey, Stuart & Company, Inc., of Chicago, Illinois, and Dabbs
Sullivan Company, Inc., and E. L. Villareal & Company, Inc., both
of Little Rock, Arkansas, and Associates, at a price of par and
accrued interest plus a premium of $2,960.00, and the designations
by said purchasers of interest rates of 3.80 %, 3.50 %, and 1.80% for
the years set forth above be, and the same are hereby, approved and
confirmed.
Page 3
Section 2. That under the authority of the Constitution
and laws of the State of Arkansas, including particularly Amendment
No. 13 to the Constitution of the State of Arkansas, and Act No. 103
of the regular session of the General Assembly of the year 1945,
City of Little Rock General Obligation Refunding and Capital Im-
provement Bonds are hereby authorized and ordered issued in the
total principal amount of $8,0002000, for the following purposes:
$ 5709000 for the purchase, development and improvement
of public parks;
$ 300,000 for the purchase of sites for and construct-
ing and equipping buildings for the housing
of fire fighting apparatus, and the purchase
of fire fighting apparatus.
$4,055,000 for the purchase of rights -of -way for and
constructing streets and boulevards, including,
without limitation, widening, straightening,
surfacing and drainage;
$3,075,000 for the purpose of refunding the outstanding
General Obligation Improvement Bonds dated
December 1, 1958; and
the principal amount of the bond issue includes necessary expenses
incidental to the completion of the authorized purposes and to the
issuance of bonds and includes an amount sufficient to pay interest
on the bonds until tax collections are available. As provided in
the official ballot and as authorized under the Constitution and
laws of the State of Arkansas, the City has elected to combine
bonds for the various purposes into one issue. The bonds shall be
dated August 1, 1965 and the interest thereon shall be payable
semi - annually on February 1 and August 1 of each year commencing
February 1, 1966. The bonds shall be in the denominations, numbered,
Page 4
c Q
T �
r ,
and mature on February 1 in each of the years 1967 to 1991, inclu-
sive, as follows:
BOND NUMBERS
(All Inclusive)
3652000
1
2 -32
1970
33 -
34
35 -
66
67 -139
1973
140 -
186
187
- 235
236
- 286
287
- 338
339
- 392
393 -
448
449
- 506
507
- 566
567
- 628
629
- 692
693
- 758
759
- 826
827
- 897
898
- 970
971
- 1046
DENOMINATION
$1,000
5,000
1,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
INTEREST
RATE
3,80%
tl
it
it
if
It
to
it
it
of
11
It
11
Page 5
AIMDUNT MATURITY
February 1,
$
1561000 1967
162,000
1968
3652000
1969
23510000
1970
2452000
1971
2552000
1972
2602000
1973
2702000
1974
2802000
1975
290,000
1976
3009000
1977
310,000
1978
3207000
1979
330,000
1980
34010000
1981
355,000
1982
365,000
1983
3802000
1984
r [
Page 6
INTEREST
BOND NUMBERS
DENOMINATION
RATE
AMOUNT
MATURITY
(All Inclusive)
%
February 1,
1047 - 1125
531000
"
3959000
1985
1126 - 1140
131000
"
1141 - 1218
5,000
3__ 50%
4052000
1986
1219 - 1233
12000
"
1234 - 1314
5,000
"
4202000
1987
1315 - 1401
52000
"
4353,000
1988
. 1402 - 2491
53,000
1.80%
45030000
1989
1492 - 1584
5,000
if
4652000
1990
1585 - 1591
12000
to
1592 - 1632
5,000
it
2122000
1991
Page 6
The principal of and interest on the bonds shall be payable
in lawful money of the United States of America upon presentation
of the bond or proper coupon at the office of Worthen Bank & Trust
Company, Little Rock, Arkansas.
Section 3. That the bonds shall be executed on behalf of
the City by the Mayor by his facsimile signature and by the City
Clerk by her manual signature, as provided in Act No. 69 of the Acts
of the General Assembly of the State of Arkansas of the year 1959,
and shall have impressed thereon the seal of the City. Interest
coupons attached to each of the bonds may have the facsimile signature
of the Mayor of the City lithographed or printed thereon, which
signature shall have the same force and effect as if he had personally
signed each of said coupons.
Section 4. That the bonds and coupons shall be in substan-
tailly the following form:
Page 7
UNITED STATES OF AMERICA
STATE OF ARKANSAS
COUNTY OF PULASKI
C ITY OF LITTLE ROCK
GENERAL OBLIGATION REFUNDING AND IMPROVEMENT
BOND
No.
KNOW ALL MEN BY THESE PRESENTS:
v
That the City of Little Rock, in the County of Pulaski and
State of Arkansas, acknowledges itself to owe and for value received
hereby promises to pay to bearer the sum of
THOUSAND DOLLARS
in lawful money of the United States of America on the first day of
February, 19 and to pay interest hereon at the rate of
per cent (�%) per annum from date, semiannually on
February 1 and August 1 of each year, upon presentation and surrender
of the annexed coupons as they severally become due.
Both principal and interest of this bond are hereby made pay-
able at Worthen Bank & Trust Company, Little Rock, Arkansas.
This is one of a series of one thousand six hundred thirty-
two (1,632) bonds, aggregating Eight Million Dollars ($8,000,000.00),
dated August 1, 1965, and numbered from one (1) to one thousaid six
hundred thirty -two (1,632), inclusive, all of like tenor and effect
except as to number, denomination, rate of interest, right of prior
redemption, and maturity, and the bonds are issued for the following
purposes:
Pa ge 8
For the purchase, development and improvement of public
parks;
For the purchase of sites for and constructing and
equipping buildings for the housing of fire fighting
apparatus, and the purchase of fire fighting apparatus;
For the purchase •of rights -of -way for and constructing
streets and boulevards, including,without limitation,
widening, straightening, surfacing and drainage;
For the purpose of refunding the outstanding General
Obligation Improvement.Bonds of the City of Little Rock,
Arkansas, dated December 1, 1958.
This bond and the series of which it forms a part are is-
sued pursuant to and in full compliance with the Constitution and
laws of the State of Arkansas, particularly Amendment No. 13 to the
Constitution of the State of Arkansas, and Act No. 103 of the regular
session of the General Assembly of the State of Arkansas for the year
1945, and pursuant to ordinances and resolutions of the Board of
Directors of the City of Little Rock and an election duly held, at
which a majority of the legal voters of said City voting on the
question voted in favor of the issuance of the bonds. This bond
and the series of which it forms a part are general obligations of the
City of Little Rock, Arkansas, payable from the proceeds of a special
tax levied by the Board of Directors under the authority of Amend-
ment No. 13 to the Constitution of the State of Arkansas, and the
City of Little Rock, Arkansas hereby pledges its full faith, credit
and taxing power, including the said special tax, for the payment of
this bond and the series of which it forms a part. The special tax
pledged to these bonds is as follows: 3.75 millscn the dollar of the
assessed valuation of all taxable real and personal property in the
Page 9
City collected with the taxes payable in 1966 and continuing annually
thereafter until- all of the bonds and interest thereon have been paid
in full.
The City has covenanted and agreed that all revenues derived
from said special tax in excess of the amount necessary to insure the
prompt payment of the principal of and interest on the bonds as they
mature and the Paying Agent's fees will be used to call the bonds for
payment prior to maturity at the times and in the manner provided
herein for call and payment prior to maturity.
The bonds will be callable for payment prior to maturity
in inverse numerical order on any interest paying date from surplus
tax collections at par and accrued interest. They will be callable
on and after February 1, 1972 with funds from any source on any in-
terest paying date at the following prices plus accrued interest:
3k% if
3% if
2k% if
2% if
1k% if
1% if
k% if
redeemed
redeemed
redeemed
redeemed
redeemed
redeemed
redeemed
on February
on February
on February
on February
on February
on February
on February
1,
1,
1,
1,
1,
1,
1,
1972
1973
1974
1975
1976
1977
1978
or August
or August
or August
or August
or August
or August
or August
Par if redeemed after August 1, 1978.
1,
1,
1,
1,
1,
1,
1,
1972,
1973,
1974,
1975,
1976,
1977,
1978,
inclusive;
inclusive;
inc lusive;
inclusive,
inclusive;
inclusive;
inclusive;
Notice of the call for redemption shall be published by the
City Clerk or Finance Officer by one insertion not less than fifteen
(15) days before the date of such redemption in a daily newspaper pub-
lished in the City of Little Rock, Arkansas, and having a general
Page 10
circulation throughout the State of Arkansas, which notice shall give
the number and maturity of each bond being called, and after the date
fixed for redemption each bond so called shall cease to bear interest
provided funds for its payment are on deposit with the Paying Agent
at that time.
IT IS HEREBY CERTIFIED, RECITED AND DECLARED that all acts,
conditions and things required to exist, happen and be performed
precedent to and in the issuance of this bond have existed, have
happened and have been performed in due time, form and manner as re-
quired by law; that the indebtedness represented by this bond and the
issue of which it forms a part, does not exceed any constitutional or
statutory limitation; and that a tax sufficient to pay the bond has
been duly levied in accordance with said Amendment No. 13 to the
Constitution of the State of Arkansas and made payable annually until
all of the bonds and interest thereon have been fully paid and dis-
charged.
This bond shall not be valid until it shall have been authen-
ticated by the certificate hereon duly signed by Union National Bank
of Little Rock, Little Rock, Arkansas.
IN WITNESS WHEREOF, the City of Little Rock, Arkansas has
caused this bond to be executed by the facsimile signature of its
Mayor and to be signed by the City Clerk and attested with its cor-
porate seal, and has caused the coupons hereto attached to be authen-
ticated by the facsimile signature of its Mayor, all as of the first
day of August, 1965.
ATTEST
City Clerk
(SEAL)
CITY OF LITTLE ROCK, ARKANSAS
By:
Mayor
Page 11
t 14L
(FORM OF COUPON)
No. $
February,
On the first day of 19 the City of Little
August,
Rock, Pulaski County, Arkansas, unless the bond to which this coupon
ss attached is paid prior thereto, hereby promises to pay to bearer
DOLLARS
in lawful money of the United States of America at the office of
Worthen Bank & Trust Company, Little Rock, Arkansas, being six (6)
months' interest then due on its General Obligation Refunding and
Capital Improvement Bond, dated August 1, 1965, and numbered
CITY OF LITTLE ROCK, ARKANSAS
By:
Mayor
On each bond shall appear the following:
C E R T I F I C A T E
This is to certify that this is one of the one thousand six
hundred thirty -two (1,632) bonds of the issue mentioned and described
within.
Little Rock, Arkansas
, 1965
UNION NATIONAL BANK OF LITTLE ROCK
By:
Authorized Signature
Page 12
Section 5. That in order to pay the bonds as they mature
with interest thereon,there is hereby levied on all taxable personal
and real property within the City of Little Rock, Arkansas a tax of
3.75 mills on each dollar of assessed valuation to be collected with
the taxes collected in the year 1966, which tax of 3.75 mills on
each dollar of assessed valuation shall continue annually thereafter
until all of the bonds authorized hereby and interest thereon have
been paid in full, which will be sufficient to pay the principal of
and interest on said bonds as they mature, with more than five per
cent (5 %) added for unforeseen contingencies. The City covenants
and agrees that all revenues from said special tax shall be deposited
when received in a special fund which is hereby created and desig-
nated "1965 General Obligation Bond Sinking Fund" (hereinafter called
"Sinking Fund ") to be carried in such depository or depositories as
may be designated from time to time by the Board of Directors, and
shall be used solely for the payment of the principal of and interest
on the bonds, the Paying Agent's fees, and cost of redemption either
at maturity or at redemption prior to maturity, and that all revenues
derived from said special tax in excess of that amount sufficient to
insure the prompt payment of the principal of and interest on the
bonds must be used to call the bonds for payment prior to maturity
at the times and in the manner provided herein for call and payment
prior to maturity.
Section 6. That for the prompt payment of the bonds of this
issue with interest, the City of Little Rock, Arkansas hereby pledges
its full faith, credit and taxing power, including the tax levied
in Section 5.
Page 13
Section 7. That in order to pay the principal of and inter-
est on the bonds as they mature, there are hereby appropriated out
of the proceeds of the above referred to special tax, and if said
proceeds be not sufficient, then out of the general revenues of the
City, the sums necessary to promptly pay the principal of and inter-
est on the bonds as they mature according to the following scheduler
Page 14
YEAR
PRINCIPAL
INTEREST
TOTAL
February 1
August 1
1966
$1389840.00
$1382840.00
$2773680.00
1967
$156,000
138,840.00
135,876.00
430,716.00
1968
1621000
1352876.00
132,798.00
430,674.00
1969
365,000
1321798.00
1251863.00
623,661.00
1970
2352000
125,863.00
121,398.00
482,261.00
1971
245,000
1212398.00
1161743.00
4839141.00
1972
2552000
11611743.00
1113,898.00
483,641.00
1973
2602000
118,898.00
1061958.00
478,856.00
1974
2701000
106,958.00
1012828.00
4782786.00
1975
280,000
1012828.00
96,508.00
478,336.00
1976
2901000
962508.00
90,998.00
4772506.00
1977
300,000
902998.00
85,298.00
4761296.00
1978
310,000
852298.00
792408.00
4742706.00
1979
3201000
791408.00
732328.00
4722736.00
1980
3302000
73$28.00
672058.00
4705386.00
1981
3402,000
671058.00
602,598.00
4671656.00
1982
3552000
60,598.00
532853.00
469,451.00
1983
3652000
539853.00
462,918.00
4652771.00
1984
380,000
46,918.00
392698.00
4663616.00
1985
395,000
39,698.00
32,193.00
466,891.00
1986
40521000
32,193.00
25,105.50
4622298.50
1987
4202000
25,105.50
171755.50
4622861.00
1988
4352000
172755.50
102143.00
4622898.50
1989
4502000
103143.00
62093.00
4662236.00
1990
465,000
65093.00
12908.00
4732001.00
1991
2123,000
1,908.00
- - -
2132809.00
Page 15
c
Section 8. That the bonds of this issue shall be callable
for payment prior to maturity in accordance with the terms set
out in the face of the bond form in Section 4 of this Ordinance.
Section 9. That the Treasurer or Finance Officer of the City
of Little Rock, Arkansas is hereby ordered and directed to place
on deposit with Worthen Bank & Trust Company, Little Rock, Arkansas,
the Paying Agent, at least five (5) days before the maturity date
of any bond or interest coupon issued hereunder, an amount from the
funds herein appropriated equal to the amount of such bonds or cou-
pons, for the sole purpose of paying the same, together with the
customary paying agent's fee. This instruction to the Treasurer
and Finance Officer is irrevocable and may be enforced by mandamus.
Section 10. That Worthen Bank & Trust Company, Little
Rock, Arkansas, is designated as Paying Agent and Union National
Bank of Little Rock to authenticate the bonds. The holders of a
majority in value of the outstanding bonds at any time may by an
instrument duly executed and recorded in the office of the City
Clerk appoint a new paying agent, who shall have all of the powers
of the paying agent originally named, and the Paying Agent herein
named may resign at any time upon ten (10) days' notice in writing
mailed to the City Clerk. In the event of a vacancy in the office
of paying agent and the failure of the holders of a majority in
value of the outstanding bonds to take the necessary action to
appoint a new paying agent within thirty (30) days after such
vacancy occurs, the City shall forthwith designate a new paying
agent.
Page 16
Section 11. That if default is made and continue for
thirty (30) days in the payment of any interest coupon, the holder
of the bond to which it is attached may declare the same immediately
due and payable, and the failure of the holder to exercise this
option upon any default shall not be a waiver of his right to exer-
cise the option upon any subsequent default.
Section 12. That when the bonds herein authorized have
been executed by the City Clerk and the seal of the City impressed
as herein provided, they shall be delivered to Union National Bank
of Little Rock, Little Rock, Arkansas, which shall authenticate
and deliver them to the said purchasers, or order, upon payment
in cash of the purchase price of $8,000,000 plus a premium of $2,960.00
and accrued interest from August 1, 1965 to date of delivery.
(1) From the proceeds of the sale of the bonds, there
shall be deposited in the Sinking Fund the accrued interest,
(2) Sufficient of the proceeds of the purchase price
shall be deposited with Worthen Bank & Trust Company, in trust,
secured as its other trust funds are secured,and used by it solely
for the payment in full of principal of and interest on the said
$3,075,000 of General Obligation and Improvement Bonds of the City
dated December 1, 1958, or the remaining unpaid balance thereof,
together with all costs in calling the said bonds and all paying
agent's charges in connection therewith, said bonds to be called for
prior payment on the first available date after the delivery of the
bonds herein authorized to be issued.
(3) The balance of the proceeds shall be deposited in
an account designated "1965 General Obligation Improvement Construction
Page 17
r
Fund" (hereinafter called "Construction Fund ") and shall be used
solely for the purposes hereinabove specified, for necessary ex-
penses incidental thereto, and for the expenses of the issuance of
the bonds. The City expressly reserves the right to direct the
depository or depositories in which said moneys are deposited to
invest the moneys at any time and from time to time in Certificates
of Deposit or in direct obligations of, or obligations the prin-
cipal of and interest on which are guaranteed by, the United States
of America. The City reserves the right to invest at any time and
from time to time in Certificates of Deposit or in direct obligations
of, or obligations the principal of and interest on which are
guaranteed by, the United States of America any moneys in the Sink-
ing Fund held as a reserve for contingencies. Interest earned by
investments of either the Sinking Fund or the Construction Fund may
be used by the City for any municipal purpose.
Section 13. That the terms of this ordinance shall con-
stitute a contract between the City of Little Rock, Arkansas and
the holder or holders of the bonds and no variation or change in
the undertakings herein set forth shall be made while any of these
bonds are outstanding and the holder of any bonds may at any time
for and on his own behalf or for and on behalf of all bondholders
enforce the obligations of the City by a proper suit for that pur-
pose.
Section 14. That the provisions of this ordinance are
separable and in the event that any section or part hereof shall
be held to be invalid, such invalidity shall not affect the remainder
of this ordinance.
Page 18
Section 15. That all ordinances and resolutions and parts
thereof in conflict herewith are hereby repealed to the extent of
such conflict.
Section 16. That this ordinance shall not create any
right of any character and no right of any character shall arise
under or pursuant to it until the bonds authorized by this ordi-
nance shall be issued and delivered.
Section 17. That it is hereby ascertained and declared
that there is an immediate and urgent need for the construction or
acquisition of the various municipal projects to be financed by
the issuance of the bonds above referred to in order to protect the
health, lives and property of the inhabitants of the City QfLittle
Rock, Arkansas. It is, therefore, declared that an emergency exists
and this ordinance, being necessary for the preservation of public
peace, health and safety, shall take effect and be in force immedi-
ately upon and after its adoption.
PASSED: October 27 , 1965.
ATTEST:
City Clerk
APPROVED:
Page 19