3219 RESOLUTION No. 3 ,219
A RESOLUTION FIXING THE TIME AND DATE FOR THE
PUBLIC SALE OF WATER REVENUE BONDS , SERIES C;
AUTHORIZING AND DIRECTING PUBLICATION OF NOTICE
OF SALE IN SUBSTANTIALLY THE FORM APPROVED BY
THIS RESOLUTION; AND PRESCRIBING OTHER MATTERS
RELATING THERETO.
WHEREAS the Waterworks Commission has requested the
City of Little Rock, Arkansas (called "City") to proceed with
the sale and delivery of $4,800, 000 in principal amount of
Water Revenue Bonds , Series C, in order to obtain immediately
needed funds for financing improvements to the Waterworks System;
NOW, THEREFORE, BE IT RESOLVED by the Board of Directors
of the City of Little Rock, Arkansas:
Section 1 . That the sale of $4,800,000 in principal
amount of Water Revenue Bonds , Series C, is hereby authorized
and directed to be held at 2 : 00 p.m. CST on October 21, 1964
and the City Manager be , and he is hereby, authorized and directed
to publish notice of said sale in The Bond Buyer and in such
other publications as he determines to be in the best interests
of the City with said notice, which is made a part hereof, to
be in substantially the following form:
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NOTICE OF SALE
$4,800,000
CITY OF LITTLE ROCK, ARKANSAS WATER REVENUE BONDS
SERIES C
The City of Little Rock, Arkansas (called "City") hereby
gives notice that there will be sold on sealed bids at the time
and place specified below a proposed issue of $4,800,000 Water
Revenue Bonds, Series C (called "Series C Bonds") .
The Series C Bonds will be dated August 1, 1964, interest
thereon will be payable semiannually on February 1 and August 1
of each year, commencing February 1, 1965 and the bonds will
mature on February 1 of each year as follows :
YEAR AMOUNT
1966 $95, 000
1967 95,000
1968 100, 000
1969 105, 000
1970 110,000
1971 110,000
1972 115, 000
1973 120, 000
1974 125, 000
1975 125, 000
1976 130, 000
1977 135,000
1978 140, 000
1979 145, 000
1980 150,000
1981 155, 000
1982 160, 000
1983 165, 000
1984 175, 000
1985 180,000
1986 185,000
1987 190, 000
1988 200, 000
1989 205, 000
1990 210, 000
1991 220, 000
1992 225, 000
1993 235,000
1994 245, 000
1995 250,000
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The Series C Bonds will be issued under and secured by and
entitled to the protection given by a Trust Indenture dated
February 1, 1964, duly executed and delivered by and between the
City and Morgan Guaranty Trust Company of New York, Trustee,
(herein called "Indenture") which Indenture contains provisions
with respect to the custody and application of the proceeds of
the Series C Bonds , the collection and distribution of revenues,
the nature and extent of the security, and the rights, duties and
obligations of the City and the Trustee and the rights of the
holders and registered owners of the Series C Bonds . The Series
C Bonds will rank on a parity of security with Series A Bonds in
the aggregate principal amount of $3, 165,000, dated February 1,
1964 and heretofore issued and delivered, and Series B Bonds in
the aggregate principal amount of $9, 797, 000, dated February 1,
1964, and heretofore issued and delivered, with all of said out-
standing bonds being equally and ratably secured by the said Indenture,
except as to the provisions thereof pertaining to the establishing
and maintaining of a Debt Service Reserve for the Series A Bonds,
which is to be maintained and used exclusively therefor, and the
priority of call on available revenues to reimburse said Debt
Service Reserve for the Series A Bonds in the event of expenditures
therefrom, all as specified in detail in the Indenture.
The Series C Bonds will not be general obligations of the
City, but will be special obligations secured by a pledge of and
payable from gross revenues derived from the operation of the
Waterworks System. In this regard, the Series C Bonds are being
issued for accomplishing Waterworks improvements, referred to in
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the Indenture, and all conditions of the Indenture for the
issuance of the Series C Bonds on a parity of security with the
outstanding Series A Bonds and Series B Bonds , as aforesaid, have
been, or, by the date of the delivery of the Series C Bonds , will
have been fully complied with. The Trustee and Paying Agent will
be Morgan Guaranty Trust Company of New York, Borough of Manhattan,
City and State of New York, and the Alternate Paying Agent will be
Union National Bank of Little Rock, Little Rock, Arkansas . All
expenses of the issue, including without limitation, the fee of
the Trustee for authenticating the bonds , the cost of printing
the bonds and the fee of Smith, Williams , Friday & Bowen, Bond
Counsel, Little Rock, Arkansas, upon whose approving opinion the
bonds will be issued, will be paid by the City.
The low bid will be the bid that results in the lowest
net interest cost to the City to be determined by computing the
aggregate interest cost to the City at the rate or rates bid from
the date of the bonds to maturity and deducting therefrom any
premium specified in the bid. Up to four different interest rates
may be specified (this limitation shall not be applicable to the
repeating of the same interest rate for different maturities) but
all rates with maturities to which applicable must be set forth
in the bid. The difference between the highest designated interest
rate and the lowest designated interest rate must not exceed 2 l/270.
Supplemental coupons will not be permitted and the bonds may not
be converted. No contingent provisions may be included in any
bid. No bid of less than par and accrued interest will be
entertained. The City expressly reserves the right to reject
any and all bids .
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The Series C Bonds will be non-callable prior to February 1,
1973 . On and after February 1, 1973 the Series C Bonds will be
callable for payment prior to maturity, at the option of the City,
on any interest paying date from funds from any source at a price
of the principal amount of the bonds being redeemed plus accrued
interest to date of redemption and plus a premium as follows:
57 if redeemed February 1, 1973 or August 1, 1973
41% if redeemed February 1, 1974 or August 1, 1974
4% if redeemed February 1, 1975 or August 1, 1975
32% if redeemed February 1, 1976 or August 1, 1976
3% if redeemed February 1, 1977 or August 1, 1977
22% if redeemed February 1, 1978 or August 1, 1978
2% if redeemed February 1, 1979 or August 1, 1979
11% if redeemed February 1, 1980 or August 1, 1980
1% if redeemed February 1, 1981 or August 1, 1981
1% if redeemed February 1, 1982 or August 1, 1982
No premium if redeemed thereafter.
Sealed bids will be received until 2 :00 o'clock p.m. , CST
on October 21 , 1964 and each bid shall be enclosed in
a sealed envelope,marked on the outside "Proposal for City of
Little Rock, Arkansas Water Revenue Bonds of 1964, Series C" and
addressed to Mr. Ancil Douthit, City Manager, City Hall, Little
Rock, Arkansas . The bids will be opened at said time on said date
in the regular meeting place of the Board of Directors in the City
Hall, Little Rock, Arkansas . All bidders must file with their
bid a certified or cashier ' s check in the amount of $96,000 payable
to the City of Little Rock, Arkansas, which will be retained as
liquidated damages if a bidder is awarded the sale of the bonds
and fails to complete the purchase, otherwise to be applied to the
purchase price of the bonds at the delivery thereof. Checks of
unsuccessful bidders will be promptly returned. Interest will
not be paid on good faith checks . Additional information may be
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obtained from E. Jack Murphy, Director of Finance, City Hall,
Little Rock, Arkansas, or to Messrs . Smith, Williams, Friday &
Bowen, 11th Floor, Boyle Building, Little Rock, Arkansas .
CITY OF LITTLE ROCK, ARKANSAS
By
City Manager
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Section 2 . That the City Manager be, and he is hereby
authorized, to take, or cause to be taken, such action as he shall
determine to be in the best interests of the City in connection
with giving notice to prospective bidders and distributing infor-
mation necessary or desirable in obtaining the best possible bid.
Section 3 . That this resolution shall be in full force
and effect from and after its adoption.
ADOPTED October 5 , 1964.
APPROVED:
Mayor
ATTEST:
City Clerk
(SEAL)
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