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10031ORDINANCE NO. 10,031 AN ORDINANCE AUTHORIZING THE ISSUANCE OF A $1,700000 CITY OF LITTLE ROCK WATERWORKS REVENUE PROMISSORY NOTE FOR THE PURPOSE OF PROVIDING FUNDS IMMEDIATELY NEEDED FOR PRELIMINARY EXPENSES IN CONNECTION WITH THE CONSTRUCTION OF A NEW WATER SUPPLY LASE ON BIG MAUMELLE RIVER 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; :.. 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 Bonds dated February 1, 1936, and the outstanding 1 -3 /k% and 2% Waterworks Improvement Revenue Bonds of 1952s dated November 1, 1952; and WHEREAS there is an immediate need for $1,700,000 to pay the cost of preliminary expenses incident to the aforesaid construction project, which amount can be obtained by the issuance of a revenue promissory note; and WHEREAS it has been determined that there would be a sub- stantial savings in interest expense by borrowing at this tame only the funds immediately needed; and WHEREAS The First National Bank in Little Rock, Little Reek, Arkansas, has offered to purchase a revenue promissory note in said amount at a rate of interest of Three Per Cent (3%) per annum, with the privilege being reserved for the withdrawal of the total princi- *6 , pal amount in installments and with a prepayment privilege, as here- inafter set forth; NOW, THEREFORE, BE IT ORDAINED by the City Council of Little Rock, Pulaski County, Arkansas: Section I. 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 1933s 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 revenue promissory note in the amount of X1,700,000, which amount may be'drawn in installments in multiples of $425,000 each, payable to The First National Bank in Little Rock, Little Rock, Arkansas, Trustee, with interest thereon at the rate of Three Per Cent (3 %) per annum, from date until paid, payable quarterly, the interest not to accrue upon any part of the principal until drawn, to be dated March 1, 1956, to be due on or before March 1, 1957, and to be in substantially the following form, to -wit: $1,700,00© WATERWORKS REVENUE PROMISSORY NOTE Little Rock, Arkansas March 1, 1956 The City of Little Rock, in the County of Pulaski, State of Arkansas, for value received, hereby promises to pay to The First National Bank in Little Rock, Little Rock, Arkansas, Trustee, on or before March 1, 1957s 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 Waterworks Revenue Bonds, the sum of One Million, Seven Hundred Thousand and no /100 Dollars ($1,700,000.00) with interest from date until paid at the rate of Three Per Cent (3 %) per annum, payable quarterly on June 1, 1956, September 1, 1956, December 1, 1956, and lurch 1, 1957. Both principal and interest shall be payable at the office of The First National Bank in Little Rock, Little Rock, Arkansas. This revenue promissory note is issued under the authority of the Constitution Act 321 of the Acts of Arkansas of 1933 duly adopted by the ne s s of the City of limitation, and laws of the State of Arkansas, particularly of Arkansas of 1955, amending Act 131 of the Acts as amended, and under Ordinance No. , City Council of Little Rock and approved on 1956, and does not constitute an indebted - Little Rock within any constitutional or statutory The City shall be entitled to draw upon the principal sum in multiples of Four Hundred Tkenty -Five Thousand and no /100 Dollars ($425,000.00) at any time during the term hereof, and interest shall be payable only upon the amount or amounts of the principal that have been drawn by the City from the date or dates of withdrawal. The City may make monthly interest deposits, but interest shall be applied only on the above set forth interest paying dates. 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 Rock, Arkansas, and for expenses preliminary to the issuance of revenue bonds to finance said project. Any portion of the principal balance may be prepaid with- out notice and without penalty on any business day. 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. IN WITNESS WHEREOF, the City of Little Rock, Arkansas, by its City Council, has caused this note to be executed by the Mayor and City Clerk thereof and its corporate seal affixed, all as of the first day of March, 1956. ATTEST: City Clark (SEAL) CITY OF LITTLE ROCK, ARKANSAS M 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 Water Works and shall be deposited in a special fund to be known as "Waterworks Revenue Promissory Note Pund ", 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. Section 40 That the provisions of this ordinance are sepa- rable, 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 . y. • I M the public peace, health and safety shall take effect and be in force from and after its passage. ATTEST: r" Passed: . February 6, , 1956. 9. A4.4f".e City Clerk APPROVED: