19228ORDINANCE NO. 19 ► 2 2 8
AN ORDINANCE PROVIDING FOR THE ISSUANCE AND SALE OF A
SERIES OF LIBRARY CONSTRUCTION AND IMPROVEMENT BONDS
AND A SERIES OF LIBRARY REFUNDING BONDS FOR THE PURPOSE
OF FUNDING CONSTRUCTION AND CAPITAL II11PROVEMENT
PROJECTS AND REFUNDING OUTSTANDING LIBRARY
CONSTRUCTION AND IMPROVEMENT BONDS; PLEDGING TAX
REVENUES SUFFICIENT TO PAY THE PRINCIPAL OF AND
INTEREST ON THE BONDS; AUTHORIZING THE EXECUTION AND
DELIVERY OF SUPPLEMENTAL TRUST INDENTURES FOR EACH
SERIES OF BONDS; AUTHORIZING THE ACCOMPLISHMENT OF
THE REFUNDING AND THE PROJECTS; APPROVING AN OFFICIAL
STATEMENT; PRESCRIBING OTHER MATTERS RELATING
THERETO; AND DECLARING AN EMERGENCY.
WHEREAS, at the special election held August 17, 2004, there was submitted to the
voters of the City of Little Rock (the "City") the question of issuing bonds of the City (the
"Bonds ") in the maximum principal amount of $25,000,000 to (i) refund two outstanding issues
of capital improvement bonds, and (ii) to finance the cost of acquiring, constructing and
equipping additional capital improvements to the public libraries operated by the City and the
Central Arkansas Library System ( "CALS ") to be payable from a continuing annual ad valorem
property tax to be levied at a continuing rate of 1.0 mill on the dollar of the assessed valuation of
taxable real and personal property in the City; and
WHEREAS, the voters approved the issuance of the Bonds by a vote of 5,189 votes FOR
and 772 votes AGAINST; and
WHEREAS, the City and CALS intend to fund the following projects with the proceeds
of the Series 2004A Bonds:
(1) Completion of the fifth floor of the main branch of the Library;
(2) Acquisition of the Budget Office Building;
(3) Renovation of the Geyer and Adams Building;
(4) Acquisition of land for future expansion;
(5) Enhancing CALS collection of books, videos, etc.;
(6) Upgrading its computer system and acquiring other needed equipment; and
(7) Accomplishing other projects which CALS' Board of Directors deems
appropriate;
(collectively, the "Project" or "Projects"); and
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WHEREAS, the City intends to currently refund the City of Little Rock, Arkansas
Library Improvement and Refunding Bonds, Series 199913 which were issued in the original
principal amount of $9,175,000 (the "Series 1999 Bonds ") and to advance refund the City of
Little Rock, Arkansas Library Improvement Bonds, Series 2002 which were issued in the
original principal amount of $9,500,000 (the "Series 2002 Bonds ") from proceeds of the Series
2004B Bonds; and
WHEREAS, the estimated costs of the projects and Refunding, including costs of issuing
the Bonds will not exceed $25,000,000; and
WHEREAS, the Board of Directors has covenanted to levy in 2004 for collection in
2005, and covenants to levy in subsequent years, an ad valorem property tax at the rate of 1.0
mill on the dollar of the assessed valuation of taxable real and personal property in the City
together with all penalties and interest payable with respect thereto (the "Library Tax ") to be
used to pay debt service on the Bonds; and
WHEREAS, the City will receive its allocable portion of the .5 % statewide sales and use
tax implemented pursuant to Amendment No. 79 to the Arkansas Constitution ( "Amendment
79 ") which is intended to offset any decrease in collections resulting from the homestead
exemption also implemented pursuant to Amendment 79 (the "Special Tax Collections ");
WHEREAS, the City will covenant to pledge the debt service on the Bonds;
WHEREAS, the Bonds shall be on a parity of security with one another; and
WHEREAS, in order to serve and fulfill the purposes for which it has been created and
to provide funds for the financing of the Refunding and the Projects, the City desires to adopt
this Ordinance authorizing the issuance and sale of the City of Little Rock Library Construction
and Improvement Bonds, Series 2004A (the "Series 2004A Bonds") in the aggregate principal
amount of $15,845,000 and the City of Little Rock, Arkansas Library Refunding Bonds, Series
2004B in the aggregate principal amount of $9,155,000 (the "Series 2004B Bonds ", which
together with the Series 2004A Bonds are referred to herein as the "Bonds") and other matters
pertaining thereto.
NOW, THEREFORE, BE IT ORDAINED by the Board of Directors of the City of Little
Rock, Arkansas:
Section I. The Projects and Refunding shall be accomplished. The Mayor, City Clerk,
and Director of Finance and Treasurer are hereby authorized to take or cause to be taken all
action necessary to accomplish the Refunding and the acquisition, construction and equipping of
the Projects and to execute all required documents.
Section 2. Under the authority of the Constitution and laws of the State of Arkansas,
including particularly Amendment No. 30 to the Constitution of the State of Arkansas, as
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amended by Amendment No. 72 to the Arkansas Constitution, and Arkansas Code Annotated
§ §14- 142 -201 through 222 (Act 920 of the Acts of Arkansas of 1993), the City of Little Rock,
Arkansas Library Construction and Improvement Bonds, Series 2004A, and the City of Little
Rock, Arkansas Library Refunding Bonds, Series 2004B, are hereby authorized and ordered
issued in the total aggregate principal amount of not to exceed $25,000,000, for the term and at
the interest rates set forth in Exhibit "A" attached hereto and incorporated herein by this
reference. The Bonds shall not be general obligations of the City, but shall be special obligations
payable solely from the proceeds of the Library Tax, the Special Tax Collections and other
moneys, funds and amounts, more specifically identified in the Master Trust Indenture, as
supplemented and amended, and the Supplemental Indentures (identified hereinafter). The City
hereby pledges the Library Tax and the Special Tax Collections to secure payment of the Bonds.
Section 4. In order to pay the principal of and interest on the Bonds as they mature and
are called for redemption prior to maturity, together with fees and costs incidental thereto, there
are hereby appropriated out of the proceeds of the Library Tax and the Special Tax Collections,
the sums necessary to pay the same in accordance with the schedule of principal and interest
attached hereto as Exhibit "A" and made a part hereof.
Section 4. The proceeds of the Series 2004A Bonds, together with investment earnings
thereon, shall be used (i) to finance the Projects; and (ii) to pay the costs of issuance of the Series
2004A Bonds. The proceeds of the Series 2004B Bonds, together with investment earnings
thereon, shall be used (i) to currently refund the Series 1999 Bonds and to advance refund the
Series 2002 Bonds; and (ii) to pay the costs of issuance of the Series 2004B Bonds. The-Bonds,
will mature, bear interest and be subject to redemption in accordance with the provisions of the
Supplemental Indenture (identified hereinafter). The Bonds will be issued on a parity of security
with one another, and with such additional bonds, if any, to be issued under the Master Trust
Indenture (identified hereinafter).
Section 54. All actions heretofore taken by the Mayor, City Clerk, and Director of
Finance and Treasurer in connection with the offering of the Bonds, including the preparation
and distribution of the Preliminary Official Statement, preparation of the Official Statement, and
preparation of this Ordinance (the "Authorizing Ordinance") are hereby in all respects ratified
and approved. The Official Statement is deemed a final Official Statement for purposes of the
Securities and Exchange Commission Rule 15(c) 2 -12. The Official Statement of the City in the
form presented at this meeting with such changes, omissions, insertions and revisions as the
Mayor, City Clerk, and Director of Finance and Treasurer shall deem advisable is hereby
authorized and approved, and the Director of Finance and Treasurer shall sign and deliver such
final Official Statement to the Underwriter for distribution to the owners of the bonds and other
interested persons.
Section 6. The appointment of Metropolitan National Bank ( "Escrow Trustee ") as
Escrow Trustee for the Series 1999 Bonds and the Series 2002 Bonds is hereby approved.
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Section 7. To prescribe the terms and conditions upon which the Bonds authorized by
the voters at the August 17, 2004 Special Election are to be executed, issued, accepted, held and
secured, the Mayor is hereby authorized and directed to execute and acknowledge a Master Trust
Indenture between the City and the Trustee, and the City Clerk is hereby authorized and directed
to execute and acknowledge the Master Trust Indenture and to affix the seal of the City thereto,
and the Mayor and City Clerk are hereby authorized and directed to cause the Master Trust
Indenture to be accepted, executed and acknowledged by the Trustee, the Master Trust Indenture
is hereby approved in substantially the form submitted to this meeting.
Section 8. To prescribe the terms and conditions upon which the Series 2004A Bonds
are to be executed, issued, accepted, held and secured, the Mayor is hereby authorized and
directed to execute and acknowledge a Supplemental Trust Indenture (the "2004A Supplemental
Trust Indenture ") between the City and the Trustee, and the City Clerk is hereby authorized and
directed to execute and acknowledge the 2004A Supplemental Trust Indenture and to affix the
seal of the City thereto, and the Mayor and City Clerk are hereby authorized and directed to
cause the 2004A Supplemental Trust Indenture to be accepted, executed and acknowledged by
the Trustee. The 2004A Supplemental Trust Indenture is hereby approved in substantially the
form submitted to this meeting with such changes as shall be approved by such persons executing
the document, their execution to constitute conclusive evidence of such approval.
Section 9. To prescribe the terms and conditions upon which the Series 2004B Bonds are
to be executed, issued, accepted, held and secured, the Mayor is hereby authorized and directed
to execute and acknowledge a Supplemental Trust Indenture (the "2004B Supplemental Trust
Indenture ") between the City and the Trustee, and the City Clerk is hereby authorized and
directed to execute and acknowledge the 2004B Supplemental Trust Indenture and to affix the
seal of the City thereto, and the Mayor and City Clerk are hereby authorized and directed to
cause the 2004B Supplemental Trust Indenture to be accepted, executed and acknowledged by
the Trustee. The 2004B Supplemental Trust Indenture is hereby approved in substantially the
form submitted to this meeting with such changes as shall be approved by such persons executing
the document, their execution to constitute conclusive evidence of such approval.
Section 10. The Mayor, the City Clerk, the City Director of Finance and Treasurer, and
CALS, for and on behalf of the City, are authorized and directed to do any and all things
necessary to effect the execution and delivery of the Master Trust Indenture, the 2004A
Supplement Trust Indenture, and the 2004B Supplemental Trust Indenture, the performance of
all obligations of the City under the Master Trust Indenture, the 2004A Supplemental Trust
Indenture and the 2004B Supplemental Trust Indenture, the issuance, execution, sale and
delivery of the Bonds, including the execution of a Bond Purchase Agreement between the City
and the Underwriters, and the performance of all acts of whatever nature necessary to effect and
carry out the authority conferred by this Ordinance. The Mayor, City Clerk, the City Director
of Finance and Treasurer, and CALS are further authorized and directed, for and on behalf of
the City, to execute all papers, documents, certificates and other instruments that may be
required for the carrying out of such authority or to evidence the exercise thereof.
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Section 11. The appointments of Wright, Lindsey & Jennings LLP as Bond Counsel and
of Stephens Inc. as Underwriter, respectively, are hereby approved and ratified.
Section 12. It is hereby found and declared that an immediate need exists for the
Refunding and the accomplishment of the Projects in order to achieve the most cost effective
financing for the City's public libraries. It is, therefore, declared that an emergency exists. 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: November 1, 2004
ATTEST:
APPROVED:
CdA
fftANCY WOOD, CITY CLERK J MAYOR ,
APPROVED AS TO FORM:
THOMAS M. CARPENTER
CITY ATTORNEY
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EXHIBIT A
MATURITY SCHEDULE
Series 2004B
Maturity
Series 2004A Bonds
Interest
(Marc-h-11
Maturity
Principal
Interest
arch 1
Amount
Rate
2014
$ 470,000.00
3.625%
2015
1,255,000.00
4.500%
201.6.
1,310,000.00
4.500%
2017
1,370,000.00
4.500%
2018
1,435,000.00
4.500%
2019
1,500,000.00
4.125%
2020
1,560,000.00
4.125%
2021
1,625,000.00
4.250%
2022
1,700,000.00
4.250%
2023
1,770,000.00
4.250%
2024
1,850,000.00
4.350%
MATURITY SCHEDULE
Series 2004B
Maturity
Principal
Interest
(Marc-h-11
Amount
Rate
2005
$ 280,000.00
2.000%
2006
920,000.00
2.000%
2007
940,000.00
2.200%
2008
960,000.00
2.500%
2009
990,000.00
2.750%
2010
1,015,000.00
3.000%
2011
1,055,000.00
4.500%
2012
1,105,000.00
4.500%
2013
1,155,000.00
4.500%
2014
735,000.00
3.625%
(Accrued interest from December 1, 2004 to be added)
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