10388ORDINANICE -10. 10, 388
AN ORDINANCE AUTHORIZING THE ISSUANCE OF A $4,700,000 CITY
OF LITTLE ROCK WATERWORKS REVENUE PROMISSORY NOTE FOR THE
FURPOS% OF PROVIDING FUNDS IMMEDIATELY NEEDED FOR PRELIMI-
NARY EXPENSES IN CONN'sCTION WITH THE CONSTRUCTION OF A NEW
WATER SUPPLY LAKE ON BIG MAUMELLE RIV:R IN PULASKI COUNTY,
ARKANSAS; PRESCRIBING OTHER MATTERS RELATING THERETO; AND
DECLARING AN EMERGENCY.
WHEREAS, the Board of Commissioners operating the Little
Rock Municipal Water Works System has elected to construct a new
water supply lake, and appurtenances, on Big Maumelle River in Pulaski
County, Arkansas, estimated to cost in excess of $10,000,000, and to
finance the cost of said project by the sale of revenue bonds; and
WHEREAS, the City Council has heretofore increased the rates
for water, by Ordinance No. 9793, passed and approved on March 28,
1955, to the extent necessary to provide, after the allocation of
revenues required by law, for the payment of the principal of and
interest on the said revenue bonds proposed to be issued and to meet
all payment provisions required for the outstanding Water Revenue
4% Bonds dated February 1, 1936, and the outstanding 1 -3/4'. and 2%
Waterworks Improvement Bonds of 1952, dated November 1, 1952; and
WHEREAS, the City of Little Lsock has heretofore borrowed
the sum of $1,700,000 evidenced by its Waterworks Revenue Promissory
Note dated March 1, 1956, in favor of The First National Bank in
Little Rock, and has borrowed the additional sum of $1,000,000
evidenced by its Waterworks Revenue Promissory Note dated November 15,
1956, in favor of The First National Bank in Little Rock, said loans
being for the purpose of paying preliminary expenses incident to the
aforesaid construction project and for the purpose of paying construc-
tion costs of said project; and
WHEREAS, there is an immediate need for the additional sum
of $2,000,000 to continue said construction pending the sale of water
revenue bonds and these additional funds cannot be obtained except by
f l
refinancing the two aforesaid loans so as to provide for one loan
in the amount of $4,700,000; and
tiHEREAS, it has been determined that an interest rate of 4%
per annum on said $4,700,000 loan is the best that can be obtained
under present conditions and said funds are needed immediately in
order not to delay the construction of the aforesaid project; and
W11EREAS, The First National Bank in Little Rock, Little
Rock, Arkansas, has offered to purchase a revenue promissory note in
the amount of $4,700,000, at an interest rate of 4% per annum, pay-
able on or before June 1, 1957, as hereinafter set forth;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF LITTLE
ROCK, PULASKI COUNTY, 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 Arkansas
of 1933, as amended, the Mayor and City Clerk of the City of Little
Rock, be, and they are hereby, authorized and directed to execute a
revenue promissory note in the amount of $4,700,000, payable to "The
First National Bank in Little Rock, Trustee ", of Little Rock, Arkansas,
with interest thereon at the rate of 4% per annum from date until paid,
payable on or before June 1, 1957, to be dated February 8, 1957, and
to be in substantially the following form, to -wit:
WATERWORKS REVENUE PROMISSORY NOTE
$4,7003,000 Little Pock, Arkansas
February 8, 1957
The City of Little Pock, in the County of Pulaski, State of
Arkansas, for value received, hereby promises to pay to The First
National Bank in Little Pock, Trustee, of Little Pock, Arkansas, on
or before June 1, 1957, solely from revenues derived from the opera-
tion of the City's waterworks system and /or from the proceeds of the
sale by the City of Waterworks Revenue Bonds, the sum of Four Million
Seven Hundred Thousand and no /100 Dollars ($4,700,000.00), with
interest from date until paid at the rate of Four Per Cent (4 %) per
annum. Both principal and interest shall be payable at the office
of The First national Bank in Little Pock, Little Lock, 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 City Council of Little Rock and approved on
January , 1957, and does not constitute an indebtedness of the
City of Little Rock within any constitutional or statutory limitation.
The proceeds of this note shall be used solely for land
acquisition, engineering fees and other expenses in connection with
the construction of a new water supply lake for the City of Little
Pock, Arkansas, and for expenses preliminary to the issuance of revenue
bonds to finance said project. The proceeds of this note shall also
be used to retire the existing indebtedness of $2,700,000, with interest
thereon, evidenced by the City's 1aterworks Revenue Promissory mote
in the amount of $1,700,000, dated 1,iarch 1, 1956, in favor of The
First ational Bank in Little Rock, and the City's laterworks revenue
Promissory Tote in the amount of $1,060,000, dated November 15, 1956,
in favor of The First National Bank in Little Rock.
Any portion of the principal balance may be prepaid without
notice and without penalty on any business day.
It is hereby certified, recited and declared that all acts,
conditions and thin=s 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.
LN WITNESS jvIEREOF, the City of Little Rock, Arkansas, by
its City Council, has caused this note to be executed by the Hayor
and City Clerk thereof and its corporate seal affixed, all as of the
eighth day of February, 1957.
ATTEST:
(S AL}
City Clerk
CITY OF LITTLE ROCK, ARKANSAS
.0
Mayor
SECTION 2. That the said note and interest thereon shall
be payable solely out of the revenues derived by the City from the
operation of its waterworks system and /or from the proceeds of a sub-
sequent revenue bond issue, and the City hereby covenants and agrees
to so pay the principal of and interest on the note in strict conform-
ity 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, Arkansas, within any consti-
tutional or statutory limitation.
SECTION 3. That the proceeds of said note shall be paid
to the Board of Commissioners of the Little Rock Municipal Uater Works
and the proceeds shall be used solely for land acquisition, engineering
fees and other expenses in connection with the construction of a new
water supply lake for the City of Little Rock, Arkansas, and for
expenses preliminary to the issuance of revenue bonds to finance said
project. The proceeds of this note shall also be used to retire the
existing indebtedness of $2,700,000, with interest thereon, described
in the preamble hereof.
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
there is an immediate and urgent need for the additional water supply
and distribution facilities in order to adequately protect the life,
health, safety and property of the inhabitants of the City, and that
the proceeds of the note authorized by this ordinance are necessary
for that purpose. 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: January 7 ) 1957.
APPROVED:
City Clerk