2317 RESOLUTION NO. 2317
A RESOLUTION AUTHORIZING NOTICE OF SALE OF $1,650,000
OF GENERAL OBLIGATION VARIOUS PURPOSE BONDS BY THE
CITY OF LITTLE ROCK, ARKANSAS
BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE CITY OF
LITTLE ROCK, ARKANSAS:
SECTION 1. That the City Clerk of this City be required to
publish in some newspaper published in the City of Little Rock,
Arkansas, and having a bona fide circulation therein and, at her
election, in such other financial journal or journals as she may
select, the following notice, which shall be published once a week
until the day fixed for the sale, the first publication to be at
least twenty (20) days before said date:
NOTICE OF SALE BY THE CITY OF
LITTLE ROCK, ARKANSAS, OF
$1, 650,000 OF GENERAL OBLIGATION
VARIOUS PURPOSE BONDS
1 . NOTICE IS HEREBY GIVEN that on the 4th day of May, 1959,
the City of Little Rock, Arkansas, will sell for cash, on sealed
bids, at o' clock .M. , Central Standard Time , in the
Board of Directors Chamber at the City Hall in the City of Little
Rock, Arkansas, One Million Six Hundred Fifty Thousand Dollars
($1 , 650,000) principal amount of General Obligation Negotiable
Coupon Bonds (being the balance of an authorized issue of $4,950,000
of bonds) , being issued under authority of Amendment 13 to the
Constitution of the State of Arkansas, for the following purposes:
$300,000 for the acquisition of right-of-way for
construction of public streets, alleys, and boulevards;
$500,000 for the construction of, widening, or straighten-
ing of streets, alleys and boulevards;
$200,000 for the purchase, development and improvement
of public parks and flying fields;
$600,000 for the purchase of sites for, construction of,
and equipment of City Hall, Auditorium and Prison;
$ 50,000 for buildings for the housing of fire-fighting
apparatus.
The bonds were approved by the electors of the City at the
general election held November 4, 1958, by a majority of more than
five for to one against the issues.
2. The bonds will be dated December 1, 1958, and the interest
will be payable semiannually on January 1 and July 1 of each year.
The bonds will mature on January 1 of each year as follows, but
shall be callable for payment prior to maturity in accordance with
provisions pertaining thereto hereinafter set forth:
Year Amount Year Amount Year Amount
1962 $46, 000 1970 $57,000 1978 $73 , 000
1963 46, 000 1971 59,000 1979 75,000
1964 48, 000 1972 61,000 1980 77,000
1965 49,000 1973 63 ,000 1981 79, 000
1966 51, 000 1974 64,000 1982 82,000
1967 52,000 1975 67,000 1983 84,000
1968 54, 000 1976 69, 000 1984 87,000
1969 56,000 1977 70, 000 1985 90,000
1986 91, 000
3 . The bonds will be sold upon sealed bids. Award, if made,
will be to the bidder offering the lowest interest cost to the City,
the interest cost to be determined by computing the aggregate amount
of interest at the rate bid and deducting therefrom the amount of
any premium offered . The successful bidder will be permitted to
designate not more than three interest rates, provided that the
total interest cost of the interest rate or rates so designated
does not exceed the interest cost upon which the sale was awarded
to it, and all rates shall be in multiples of one—fourth (1/4) of
one per cent (1%) and not exceeding five per cent (5%) , and not
more than one interest rate may be specified in any one year.
The purchaser will have the option of naming the paying agent and
another bank to authenticate the bonds, or may name one bank for
both, but a Little Rock bank must either be the one named or one
of the two named . The City will make delivery of the bonds within
sixty days after the successful bidder designates the name of the
paying agent and the bank to authenticate the bonds, and specifies
the interest rates, if more than one .
4. The bonds shall not be subject to conversion .
—2—
5. The bonds shall be callable at the option of the City in
inverse numerical order on any interest paying date from surplus
tax collections at par and accrued interest, and after January 1,
1965, with funds from any source at the following prices plus
accrued interest: July 1, 1965, to and including January 1, 1966,
at 104 cents on the dollar, and reducing 1/2 of 1% each year there-
after to a par call after January 1, 19 74. Notice of call shall
be published by the City Clerk by one insertion not less than
fifteen ( 15) days before the date of such redemption in a daily
newspaper published in the City of Little Rock, Arkansas, and
having a general circulation throughout the State of Arkansas.
The City agrees that any call for payment of any bonds of the
54,950,000 total authorized issue will be proportionately divided
( to the nearest whole bond) between the $3,300,000 bonds already
issued and this balance of $1,650,000.
6. The authorized issue of bonds in the amount of $4,950,000
is secured by a pledge of 1.55 mills on the dollar of the assessed
valuation of all taxable real and personal property in the City of
Little Rock collected with the taxes payable in 1959, and by a
pledge of 3.25 mills on the dollar collected with taxes payable in.
1960 and continuing annually thereafter until all of the said bonds
and interest thereon have been paid in full. All tax collections
in excess of the amount required to service all of the S4,950,000 bonds
and provide a reserve of S87,500 for both issues will be used to call
the bonds for prior payment. The assessed valuation of all taxable
real and personal property in Little Rock, Arkansas, for the year
1958, the latest assessment of record, is $112,802,121.
7. These bonds will be designated " 1958 General Obligation.
Improvement Bond, Series B," to distinguish them from the bonds
in the amount of $3,300,000 (of the total authorized issue
-3-
of 54,9.50,000) which have been issued and sold, but all bonds are
on a parity as to security for their payment from the revenws
derived from the special tax pledged therefor and all remedies for
the enforcement of payment of both principal and interest.
8. The City will pay the cost of the printing of the
bonds, will furnish without cost to the buyer the unqualified
approving opinion of Mehaffy, Smith & Williams; Rose, Meek, House,
Barron & Nash; and Townsend & Townsend, bond counsel, all of Little
Rock, Arkansas, and will pay the cost of authenticating the bonds.
9. Each bidder must file a certified or cashier' s check
in the amount of $33,000 on a bank that is a member of the Federal
Deposit Insurance Corporation, payable to the City, to be kept as
liquidated damages if the bidder is awarded the sale of the bonds
and fails to complete the purchase. Checks of unsuccessful bidders
will be returned promptly. The City will pay no interest on. good
faith checks.
10. Sealed bids in envelopes addressed to the City of
Little Rock and marked "Proposal for General Obligation Various
Purpose Bonds" will be received at the office of W. C . Knoop, Mayor
City Hall, Little Rock, Arkansas, up to o' clock .M.
May 4, 1959.
11. The City reserves the right to reject any and all
bids. No contingent provisions may be included in a bid.
For further information address the undersigned.
GIVEN this day of April, 1959.
CITY_ OF LITTLE ROCK, ARKANSAS
By:
noop
Mayor
Attest:
Pau ine G. Beeson
City Clerk
-4-
SECTION 2 . 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 sale of the bonds, notice of sale of which is herein provided,
in order to protect the health, lives and property of the inhabi-
tants of the City of Little Rock, Arkansas. It is, therefore,
declared that an emergency exists and this resolution, being
necessary for the preservation of public peace , health and
safety, shall take effect and be in force immediately upon and
after its adoption.
ADOPTED: April 6 , 1959.
APPROVED:
ay or
ATTEST:
) CAAk.‘ - ";)),e--t•S.r1.-‘)
City Clerk