5305ORDINANC E NO.
AN ORDINANCE PROVIDING FOR THE PURCHASE
OF LAND, RIGHTS -OF -WAY FOR AND CONSTRUCTION
OF MPROVEMMTS TO SEWER SYSTEM FOR THE CITY
OF LITTLE ROCK, ARKANSAS; PROVIDING FOR THE
ISSUANCE OF REVENUE BONDS THEREFOR; FIXING
THE DETAILS I11 RESPECT OF SAID BONDS AND PRO-
VIDING FOR THE 11ETHOD OF PAYMENT THEREOF; AND
DECLARING AN MIERGENCY.
WHEREAS, the public interest and necessity require that
certain improvements be made to the sewer system operated by
the City of Little Rock, Arkansas; and
WHEREAS, the City Council of said City has caused to be
made by a duly qualified engineer plans and specifications for
such improvements, an estimate of the cost of the construction
of the same, an estimate of the revenues of such improvements,
all of which have been heretofore filed with the City Clerk, and
'WHEREAS such plans provide for the purchase of land,
rights -of -way for and construction of improvements to sewer sys-
tem, consisting of intercepting sewers, equalizing reservoir and
appurtenances and the purchase of land, rights --of -way and ease-
ments necessary or incidental thereto;
WHEREAS the City Council has examined and approved said
plans and estimates anal finds and declares that it is for the
best interest of said City that said improvements be constructed,
and said land, rights -of -way and easements be acquired;
WHEREAS said City is without funds with which to carry
out said plans, but from the proceeds of the bonds hereinafter
ordered to be issued (hereinafter called the "Bonds "), author-
ized by Act 132 of the Acts of the regular session of the General
Assembly of the State of Arkansas for the year 1933, together
with certain funds to be furnished by the United States of Amer-
ica, sufficient funds to do so can be provided;
NOW, THEREFORE, BE IT ORDAINED by the said City Council
of said City of Little Rock, Arkansas, as follows:
Section to The estimated cost of the construction of
said improvements to sewer system and the acquisition of land,
rights-of-way and easements in connection therewith is found
and declared to be the sum of One billion Six Hundred Forty
Thousand and no /100 Dollars ($1,640,000,00) ;
Section 20 The said improvements to sewer system (also
referred to as the "Works ") shall be constructed according to
the plans and specifications filed with the City Clerk, and ref-
erence to such plans and specifications is hereby made for a
more detailed description. Said construction and the custody,
operation and maintenance of the 'forks and the collection of rev-
enues therefrom for the service rendered thereby shall be effected
and supervised by a Sewer Committee composed of Mayor R.E.Overman,
H. T. "Wild' Terry, C. B. Ervin, Dan T. Snrick, J E McCook, Jr
and D. H. Daugherty.
The Council may remove any member of the Sewer Committee with or
without cause and may appoint substitute members in case of death,
removal or resignation. The terms of the construction of the Works,
so far as they are not set out in this ordinance, shall be fixed
by the Sewer Committee and it shall make all contracts or agree-
ments necessary or incidental to the performance of its duties
and the execution of its powers; provided that any contract rela-
ting to the financing of the construction herein provided for
shall be approved by the Council before the same shall be effect-
ive.
Section 3. None of the facilities or services afforded
by the 'forks shall be furnished without a reasonable charge being
made therefor. In the event that the City or any department,
agency or instrumentality thereof shall avail itself of the fa-
cilities or services afforded by the Works, the reasonable value
of the services or value of the services or facilities so afford-
ed shall be charged against the City or such department, agency
or instrumentality and shall be paid for as the charges therefor
accrue. The revenues so received shall be deemed to be revenues
derived from the operation of the fforks and shall be used and
accounted for in the same manner as any other revenues derived
from the operation of the Works. Provided, however, that noth-
ing herein shall be construed as requiring the City or any de-
partment, agency or instrumentality thereof to avail itself of
the facilities or services afforded by the Works.
Section 4e The Treasurer of the City shall be the cus-
todian of the revenues derived from the Works and shall give
bond for the faithful discharge of his duties as such custodian
(such bond to be fixed and approved by this Council). The Treas-
urer of the City shall deposit all the revenues of the Works
into a separate fund, to be administered as follows:
(a) Operation and Maintenance. An amount suf-
ficient to pay the reasonable and necess-
ary expenses of operation, repair and
maintenance shall be deducted from the
monthly revenues as they accrue and shall
be used to pay such expenses;
(b) Bond Fund. All the revenues remaining after
the payment set forth in sub - paragraph (a)
shall constitute the net revenues of the
Works and shall be paid at quarterly inter-
vals and as otherwise collected into a Bond
Fund to provide for the payment of the
interest on and the principal of the Bonds
as and when the same become due; the necess-
ary fiscal agency charges for making such
payments, and a margin for safety. Such mar-
gin, together with any unused surplus of the
same carried forward from the preceding fis-
cal year, shall equal ten per centum of all
other amounts required to be paid into the
Bond Fund under the provisions of this Sec-
tion. Any deficiency in the amount required
to be paid into the Bond Fund in any quar-
ter shall be added to the amount otherwise
required to be paid into such fund in the
following quarter.
(c) Surrolus. In the event that a surplus remains
after the requirements of sub- paragraphs (a)
and (b) have been met, the City may use such
surplus or any part thereof in its discretion
to provide a fund for extensions, betterments
and additions to the Works, or to purchase
any of the Bonds outstanding at not exceed-
ing par and accrued interest if such Bonds
are available on the open market, provided
that an amount reasonably sufficient for
operation, repair and maintenance and for
depreciation for an ensuing period of not
less than twelve months has first been re-
served. All Bonds purchased shall forthwith
be cancelled and shall not again be issued.
All moneys held in said Bond Fund shall be deposited in a bank
which is a member of the Federal Reserve System and in which de-
posits are insured by the Federal Deposit Insurance Corporation.
Section 5. So long as any of the Bonds are outstand-
ing the Works shall be operated upon a fiscal year basis. The
first fiscal year shall commence upon the first day of November,
1936 (the estimated date of completion of the construction here-
in provided for), and shall end one year thereafter.
Section 6, Revenue bonds of the City (herein called
Bonds) shall be issued in the total amount of One Mullion and
Thirty Seven Thousand and no /100 ($1,037,000,00) Dollars, which
amount, together with funds to be furnished by the United States
Government, is necessary to provide sufficient funds to pay all
costs of the herein described contemplated construction, in-
cluding engineering, legal, and other necessary expenses, to-
gether with interest to a period six months after the estimated
date of completion of the construction; said Bonds, each to be
designed "Sewer Revenue Bond", shall be dated December 1, 1935,
shall be in the denomination of One Thousand Dollars ($1,000.00)
each, shall be numbered from 1 to 1,037, both inclusive, and
shall mature in numerical order on December 1st, in each of the
years and in the amounts as follows:
Year
Amount
Year
Amount
1937
$120000,00
1953
$35,000.00
1938
15,000.00
1954
35,000.00
1939
20tOOQ.00
1955
35,000.00
1940
20,000,00
1956
35,000.00
1941
20,000,00
1957
351000.00
1942
200000.00
1958
40,000.00
1943
20,000.00
1959
409000.00
1944
25,000.00
1960
40,000,00
1945
25,000,00
1961
45,000.00
1946
25,000.00
1962
45,000.00
1947
25,000,00
1963
45,000.00
1948
30,000.00
1964
45,000.00
1949
30,000.00
1965
45,000.00
1950
30,000.00
1966
45,000.00
1951
309000.00
1967
45,000.00
1952
35,000100
1968
45,000.00
The Bonds shall bear interest at the rate of four per centum (4 %)
per annum, payable on June 1, 1936 and semi - annually thereafter
on the first days of June and December in each year, shall be
signed by the Mayor and sealed with the corporate seal of the
City and attested by the City Clerk: of the City, and the inter-
est upon the Bonds shall be evidenced by coupons thereto attached,
such coupons to be signed by said Mayor and said City Clete by
their facsimile signatures; and said Mayor and said City Clerk
shall by the execution of the Bonds: adopt as and for their own
proper signatures their respective facsimile signatures appear-
ing on said coupons. The Bonds and coupons shall be payable
in such funds as at the time of the respective payments are legal
tender for the payment of debts due the United States of America
at the office of the City Treasurer in Little Rock, Arkansas,
or, at the option of the holder at The Chase National Bank, of
the City of New York, in the Borough of Manhattan, City and
State of New York.
The bonds together with interest thereon shall be
payable only out of the Bond Fund as hereinbefore defined and
shall be a valid claim of the holder thereof only against the
Bond Fund, and the amount of the revenues pledged to said
fund, which amount of said revenues is hereby pledged for the
equal and ratable payment of the Bonds and shall be used for
no other purpose than to pay the principal and interest of
the Bonds as the same become due and payable.
Section 8. That said Bonds and coupons be in sub-
stantially the following form:
No.
(FORM, OF BOND)
UNITED STATES OF 121ERICA
STATE OF ARKANSAS
COUNTY OF PULASKI
CITY OF LITTLE ROCK
SEWER REVENUE BONID
$1,000000
KNOW ALL AEI BY THESE PRESENTS, That the City of
Little Rock, in the County of Pulaski, State of Arkansas, hereby
acknowledges itself to owe and, for value received, promises to
pay to bearer, or, if registered as to principal, to the regis-
tered holder hereof as hereinafter stated, the sum of
ONE THOUSAND DOLLARS
($1,000,00) on the first dray of December, 19 , with interest
at the rate of four per centum (4 /o) per annum, payable on June
1, 1936 and semi - annually thereafter on the first days of June
and December in each year, upon presentation and surrender of
the annexed coupons, as they severally become due. Both princi-
pal hereof and interest hereon shall be payable in such funds
as at the time of the respective payments are legal tender for
the payment of debts due the United States of America, at the
office of the City Treasurer in Little Rock, Arkansas, or, at
the option of the holder, at The Chase National Bank of the
City of New York, in the Borough of Manhattan, City and State of
New York.
This bond is issued for the purpose of providing for
the payment of the cost of construction of improvements (herein
called the "Works ") to sewer system and the acquisition of land,
rights -of -way and easements therefor.
This bond is issued in accordance with the provisions
of Act 132 of the regular session of the General Lssembly of the
State of Arkansas for the year 1933, and does not constitute an
indebtedness of said City within any constitutional or statutory
limitation, and is payable solely from the entire revenues of the
Works remaining after deduction of the reasonable monthly expense
of operation, repairs and maintenance. Said net revenues have
been set aside and pledged as a special fund for that purpose
an;d identified as the "Bond Fund", created by the Crdinance under
which this bond is authorized to be issued. There has heretofore
been established by said City and said City hereby covenants
and agrees that it will maintain, just and equitable rates or
charges for the use of and the service rendered by the 'Works
sufficient in each year for the pavement of the proper and reason-
able expenses of operation, repair, replacements and maintenance
of the Works and for the establishment of a sufficient sinking
fund to meet the principal of and interest on this bond as the
same become due. It is provided in said last mentioned ordiname
that such rates or charges stall be paid by each landowner whose
premises are connected with, and use the Works by or through any
part of the sewer system of the City, or whose premises in any
way use or are served by the Works, which rates or charges if
not paid when due shall constitute a lien upon the premises served
by the Works, and shall be collected as provided by law.
This bond is transferable by delivery, unless regis-
tered as to principal at the office of the City Clerk of said
City, and such registration noted hereon by such Clerk. After
such registration, upon delivery to said Clerk of a written in-
strument of transfer executed by the registered holder or by his
attorney thereunto duly authorized, this bond may be transferred,
and such transfer shall be similarly noted hereon. No transfer
hereof shall be valid unless so made,, but this bond may be
discharged from registration by being in like manner trans
to bearer, and thereupon transferability (erred
Y Y delivery shall be
restored and this bond may again from time to time be registered
ste
or transferred to bearer as before. NO such registration g red
affect. then shall
of the coupons appertaining hereto,
which shall continue to be transferable by delivery merely .,
shall remain payable to bearer. Y nd
IT IS HEREBY CERTIFIED, RECITED, AND DECLARED that
all acts, conditions and things required to exist, happen, a
be performed p � nd
precedent to and in the issuance of this bond have
existed, have happened, and have been performed in due time
form and manner, as required b �
Y law, and that sufficient of the
income and revenue to be derived from the operation of the W
has been pledged to and will be set aside into said special
orks
fund for the a
Payment of the principal and interest of this bond.
IN WITNESS T'�, the City Y Of Little Rock, Flrkansas,
by its City Council, has caused this bond to be signed by the
Mayor thereof and sealed with the corporate seal of said City
and attested by its City Clerk caused the coupons hereto
attached to be authenticated by the facsimile signatures of
said Mayor and City Clerk, all as of the first day of December
1935.
,TTEST:
( S E A L )
Y er
CITY OF LITTLE ROCK, ARKAJIsA,S
BY
ay-or
(- FOMIL' OF COUPON)
rind
$20.00
On the first day of , 19 , City of
Little hock, Pulaski County, Arkansas, promises to pay to bearer,
out of the funds specified in the bond to which this coupon apper-
tains, at the office of the City Treasurer in Little Rock, Arkansas,
or, at the option of the holder, at The Chase National Bank of the
City of New York, in the Borough of Manhattan, City and State of
New York, in such funds as at the time of payment hereof are legal
tender for the payment of debts due The United States of America,
the sum. of
T'i'JENTY ($20.00) DOLLARS
being interest then due on its Sewer Revenue Bond No. dated
the first day of December, 1935,
ATTEST
CITY OF LITTLE ROCK, ARKANSAS
BY
ayor
City er
(The signaturess of the Mayor and City Clerk
on the coupons may be lithographed or en-
graved).
Section 9. The Mayor is hereby authorized to adver-
tise notice of public sale of all or any amount of said bonds, such
notice to be advertised by two insertions in some newspaper published
in the City of Little Rock, Arkansas. The form of such notice shall
be prepared by the Mayor and the bonds shall be sold to the highest
and best bidder, the right to reject any and all bids being reserved.
After the bonds have been executed as herein provided, they shall be
sold and delivered to the purchaser,whose bid is accepted at the said
public sele, all at one time or in blocks from time to time at a
Price or prices approved by the Sewer Committee and City Council,
and the proceeds received therefrom shall be used solely for the
payment of construction costs of the ;Forks, and costs of land, rights -
of -way and easements, including engineering, legal, and other necess-
ary expenses and for payment of interest on the Bonds to a date six
months subsequent to completion of construction.
Section 10. There has heretofore /been established
by Ordinanc e No. 5304- adopted by the q 14y I;OuY« l t on
I�Arwuaw -YO ` 1936 , just and equitable rates or charges
for the use of and the service rendered by the Works to be
paid by each landowner 41ose premises are connected with, and
use, the (forks by or through any part of the sewer system of
the Works, or whose premises in any way use or are served by
the Works (excepting vacant, unoccupied property not actually
using the forks) . Said ordinance provides that such rates or
charges shall be sufficient in each year for the payment of
the proper and reasonable expenses of operation, repair, re-
placements and maintenance of the Works and for the payment of
the sums required to be paid into a sinking fund to meet the
principal of and interest on revenue bonds issued to pay the
cost of the Works. So long as the bonds herein authorized to
be issued are outstanding and unpaid, the provisions of said
ordinance shall remain unchanged.
Section 11. Nothing in this ordinance shall be con-
strued to prevent the issuance by the City of additional bonds
Payable from the revenues of the Works to finance or pay the
cost of constructing any extensions, betterments, or additions
to the Works. Provide4, however, that the City shall not author-
ize or issue any such additional bonds so long as any of the
Bonds are outstanding, unless the gross revenues derived from
the Works for the fiscal year then next preceding shall have
been sufficient to provide for all costs of operation, repair
and mainten.alce of the Works and leave a balance equal to at
least one hundred twenty per centum (1207.2) of the aggregate of:
(a) Principal and interest payments for such year on all Bonds
then outstanding and the fiscal agency charges therefor;
(b) One year's interest on the total issue of such additional
bonds then proposed to be issued; and (c) An amount of principal
of such additional bonds for one year computed by dividing the
total amount of such issue by the number of years to the final
maturity date of such bonds.
Section 12. It is covenanted and agreed by the City
with the holder or holders of the Bonds, or any of them, that
it will faithfully and punctually perform all duties with ref-
erence to the Works required by the Constitution and Statutes
of the State of Arkansas, including charging and collecting
reasonable and sufficient rates lawfully established for ser-
vices rendered by the Works, segregating the revenues of the
Works end applying it to the respective funds herein created.
Section 13. The City will maintain the Jorks in
good condition and operate the same in an efficient manner and
at a reasonable cost. So long as any of the Bonds are outstand-
ing the City agrees to maintain insurance on the Jorks for the
benefit of Bondholders of a kind and in an amount which normally
would be carried by private companies engaged in a similar type
of business. Nothing in this ordinance shall be construed as
requiring the City to expend any funds which are derived from
sources other than the operation of the viorks but nothing herein
shall be construed as preventing the City from doing so.
Section 14. So long as any of the Bonds are out-
standing, the City will not mortgage, pledge or otherwise encum-
ber the `corks or any part thereof, or any revenues therefrom
(except as hereinabove provided, and will not sell, lease or
otherwise dispose of any substantial portion of the same.
Section 15. The City will keep proper books of record
and accounts (separate from all other records and accounts) in
which complete and correct entries shall be made of all transac-
tions.relating to the Works. The City will furnish to any holder
or purchaser of any of the Bonds at the time outstanding at the
written request of such holder or purchaser, not more than thirty
days after the close of each six months' fiscal period, complete
operating and income statements of the Works in reasonable detail
covering such six months' period, and, not more than sixty days
after the close of each fiscal year, complete financial state-
ments of the City and the uiorks, including the existing system,
covering such fiscal year, certified by the City auditors, or
independent auditors if requested by holders of twenty -five per
centum (25 %) of outstanding bonds.
Section 16, Any purchaser of twenty -five per centum
(25 %) in aggregate principal amount of the Bonds at the time
then outstanding or any holder or holders of twenty -five per
centum (25%¢) of said amount of outstanding Bonds shall have the
right at all reasonable times to inspect the Works and all re-
cords, accounts and data of the City relating thereto.
Section 17, The City further covenants and agrees
that if default is made in the payment of any Bond or coupon or
if the City fails to meet any Bond Fund requirement, the holder
of such Bond may declare such Bond immediately due and payable,
and such Bond shall thereupon be immediately due and payable
and in default.
Section 18, If there be any default in the payment
of either the interest on or principal of any of the Bonds, the
holder or holders of any of the Bonds may by proper suit compel
the performance of the duties of the officials of the City, as
set forth in said Act 132 of the regular session of the General
Assembly of Arkansas for the year 1933. If there be default in
the payment of the principal of or interest on the Bonds any
court having jurisdiction in any proper action may appoint a re-
ceiver to administer the System on behalf of the City and the
holders of the Bonds, with power to discharge and collect (or,
by mandatory injunction or otherwise, to cause to be charged
and collected) rates sufficient to provide for the payment of
the Bonds and interest thereon and for the payment of the opera-
ting expenses and to apply the income and revenues in conformity
with said Act and this ordinance.
Section 19, To the end that a record of the pledge
of the revenues and the agreement not to mortgage the Works, set
out in this ordinance, may be preserved, the City Clerk be and
is hereby authorized to file with the Ex- officio Recorder of
Pulaski County, &'rkansas, a certified copy of this ordinance,
acknowledged in the form required for deeds and mortgages, with
the directions that the same be recorded in the office of said
County Recorder as in the case of deeds and mortgages.
Section 20. All ordinances or parts of ordinances
in cc nflict herewith are hereby repealed.
Section 21. It is ascertained and declared that the
lack of improvements to the sewer system for the needs of
Little Rock, Arkansas, endangers the health and safety of the
inhabitants of said City; that by reason of the present con-
ditions many citizens of the City are out of work and the con-
struction herein provided would furnish work for a large number
of men and thereby add to the peace and happiness of the City.
It is, therefore, declared that an emergency exists, that this
ordinance is necessary for the immediate preservation of the
public peace, health and safety, and that this ordinance shall
take effect and be in force from and after its passage.
PASSED: APPROVED:
1934. (Signed)
Mayor
( S E A L )
ATTEST
C y W.L er
X X x x X
Recorded this day of , 193 .
( S E A L )
City Clerk
On motion and unanimous vote, the meeting adjourned.
City Clerk
( S E A L )