3576 RESOLUTION NO . 3 ,576
A RESOLUTION APPROVING THE FORM AND CONTENTS
OF A NOTICE OF SALE OF CITY OF LITTLE ROCK, ARKANSAS
MUNICIPAL AIRPORT REVENUE BONDS , SERIES 1966;
DIRECTING THE PUBLICATION THEREOF; AND PRESCRIBING
OTHER MATTERS RELATING THERETO.
BE IT RESOLVED by the Board of Directors of the City of Little
Rock, Arkansas:
Section 1. That, pursuant to the provisions of Ordinance
No. 11 , 7145 , authorizing the issuance of Municipal Airport Revenue Bonds,
Series 1966 ,. dated May 1, 1966, in the principal amount of $1,400,000, the
Little Rock Municipal Airport Commission, for and on behalf of the City, is
authorized and directed to publish and otherwise distribute Notice of the public
sale of the bonds , in substantially the following form:
•
NOTICE OF BOND SALE
$1,400,000
CITY OF LITTLE ROCK, ARKANSAS MUNICIPAL
AIRPORT REVENUE BONDS , SERIES 1966,
DATED MAY 1, 1966
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 $1,400,000 in principal amount of Municipal
Airport Revenue Bonds, Series 1966 (called "bonds") . The bonds are being
issued pursuant to the Constitution and laws of the State of Arkansas , includ-
ing particularly Act No. 53 of the Acts of Arkansas of 1949, and pursuant to
an ordinance and resolution of the Board of Directors of the City and a resolution
of the Little Rock Municipal Airport Commission (called "Airport Commission") .
The bonds are being issued for the purpose of acquiring land and constructing
the improvements to the Municipal Airport, being generally described as follows:
extending and strengthening runways , constructing aprons , acquiring and instal-
ling electrical and lighting facilities , relocating navigation aids and relocating
roads and streets affected by the above work (being collectively referred to
herein as the "improvements") . The overall estimated cost of accomplishing
the improvements, paying all expenses and making all expenditures incidental
thereto and paying the expenses of authorizing and issuing the bonds is $2,800,000,
with the amount to be furnished by the City to be $1,400,000 and with the balance
to be obtained in the form of a grant from an agency of the government of the
United States of America.
The bonds will be dated May 1, 1966 and will bear interest at the rate
or rates accepted at the public sale, the interest will be payable semiannually
on May 1 and,November 1 of each year, commencing November 1, 1966, and
the bonds will mature annually on May 1 of each year as follows (but will be
subject to redemption prior to maturity as hereafter set forth):
•
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YEAR AMOUNT
1967 $29,000
1968 30,000
1969 31 ,000
1970 32 ,000
1971 33 ,000
1972 35,000
1973 36,000
1974 38,000
1975 39,000
1976 40,000
1977 _ 41 ,000
1978 42,000
1979 44,000
1980 46,000
1981 47,000
1982 70,000
1983 72,000
1984 75 ,000
1985 78,000
1986 82 ,000
1987 85 ,000
1988 88,000
1989 92,000
1990 96,000
1991 99,000
The bonds will not be general obligations of the City, but will be
special obligations payable solely from revenues derived from the operation of
the Municipal Airport and in this regard the City covenants that it will at all
times impose and collect such charges for the use of the Municipal Airport
and its facilities as will produce revenues sufficient to adequately provide
for the operation and maintenance expenses of the Municipal Airport, pay the
principal of and interest on all outstanding bonds to which revenues derived
from the operation of the Airport are pledged, being Municipal Airport Revenue
Bonds dated May 1, 1961 and the bonds of this issue and making the required
deposit into the Depreciation Fund, and maintaining all funds at the required
levels in order to comply with the provisions of Ordinance No. 11, 190 authorizing
the 19 61 Bonds and the ordinance authorizing the bonds now being sold. The bonds
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now being sold and the 1961 Bonds will rank on a parity of security and will be
payable equally and ratably from and secured equally and ratably, by a pledge
of revenues derived from the operation of the Municipal Airport.
The purchaser may name the bank to be Trustee and Paying Agent. The
City reserves the right to designate an Alternate Paying Agent at its option.
All expenses , including, without limitation, the fee of Smith, Williams , Friday
& Bowen, Little Rock, Arkansas , upon whose approving opinion the bonds will
be issued, will be paid by the City.
The bonds will not be subject to conversion and neither supplemental
nor dual coupons will be permitted. Up to four interest rates may be specified
(not including repeated rates) but all rates with the maturities to which appli-
cable must be set forth in the bid. The bonds of each maturity must bear interest
from date to maturity and at the same rate. No rate higher than five per cent
(5%) per annum may be specified and the difference between the highest and
lowest rate must not exceed one and one-half per cent (1 1/2%) . The award,
if made , will be to the bidder whose bid results in the lowest net interest
cost, with such cost to be determined by computing the total amount of interest,
at the rates bid, from date to maturity, and deducting therefrom the amount
of any premium bid. No bid of less than par and accrued interest will be enter-
tained.
The bonds will be subject to redemption prior to maturity in whole or in
part, at the option of the City, in inverse numerical order, on any interest pay-
ment date on and after May 1, 1971, as follows: (1) from surplus revenues derived
from the operation of the Municipal Airport at a price of the principal amount of
the bonds being redeemed plus accrued interest; (2) from funds from any other
source at a price of the principal amount of the bonds being redeemed plus
accrued interest to the date of redemption and plus a premium as follows:
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2 1/2% if redeemed May 1, 1971 or November 1, 1971;
2% if redeemed May 1, 1972 or November 1, 1972;
1 1/2% if redeemed May 1, 1973 or November 1, 1973;
1% if redeemed May 1, 1974 or November 1, 1974;
1/2% if redeemed May 1, 1975 or November 1, 1975;
No premium thereafter.
Sealed bids will be received until 2:30 o'clock P .m. , CST, on
JUNE 15 , 1966
and each bid shall be enclosed in a sealed envelope marked on the outside
"Proposal for City of Little Rock, Arkansas Municipal Airport Revenue Bonds,
Series 1966, dated May 1, 1966" and addressed to Mr. R. M. Crisp, Sr. ,
Airport Manager, c/o City Manager's Office, City Hall, Little Rock, Arkansas .
The bids will be opened at that time at a meeting of the Airport Commission in
the Board of Directors Room, City Hall, Little Rock, Arkansas .
All bidders must file a certified or cashier's check in the amount of
$28,000 payable to the City to 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 . The Airport Commission reserves the right to reject any or
all bids. The bonds are being sold by the Airport Commission pursuant to the
direction of the Board of Directors of the City. Delivery of the bonds will be
in Little Rock, Arkansas within forty-five (45) days from the date of the acceptance
of the best bid. Delivery may be had at a place other than Little Rock, Arkansas
if requested by the successful bidder, but delivery at any other place will be
at the expense of the successful bidder who makes such request.
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Additional information may be obtained from Mr. Jack Murphy,
Director of Finance, City Hall, Little Rock, Arkansas or from Smith,
Williams, Friday & Bowen, 11th Floor Boyle Building, Little Rock, Arkansas .
CITY OF LITTLE ROCK, ARKANSAS
By
R. M. Crisp, Sr.
Airport Manager
on behalf of the Little Rock Municipal
Airport Commission
•
•
Section 2 . That the Airport Manager shall publish said Notice
at least one time in a newspaper of general circulation in the City and shall
otherwise give such notice and distribute such information concerning the
public sale of said bonds as he and the City's Director of Finance, Mr.
Jack Murphy, shall determine necessary or desirable to obtain the most attractive
bidding at the public sale .
Section 3 . That this Resolution shall be in force immediately
upon and after its passage .
ADOPTED this 16th day of May, 1966.
APPROVED:
Mayor /
ATTEST:
City Clerk
(SEAL)