4517 < A
RESOLUTION NO. 4,517
A RESOLUTION AUTHORIZING THE SALE OF CITY OF
LITTLE ROCK, ARKANSAS MUNICIPAL AIRPORT REVENUE
BONDS; APPROVING THE FORM AND CONTENTS OF A
NOTICE OF SALE AND 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 the public sale of City of Little Rock, Arkansas
Municipal Airport Revenue Bonds, dated February 1 , 1971 , in the principal
amount of $2, 700 ,000 , is hereby authorized, and the City Manager is
hereby authorized and directed to publish and otherwise distribute a Notice
of Sale of the bonds , in substantially the following form and with sub-
stantially the following contents:
•
NOTICE OF SALE
$2, 700 ,000
CITY OF LITTLE ROCK, ARKANSAS
MUNICIPAL AIRPORT REVENUE BONDS,
DATED FEBRUARY I , 1971
The City of Little Rock, Arkansas (the "City") hereby gives notice
that there wLU be sold on sealed bids at the time and place specified below
a proposed issue of $2 ,700,000 in principal amount of Municipal Airport
Revenue Bonds (the "bonds") . The bonds are being issued pursuant to the
Constitution and laws of the State of Arkansas, including particularly Act
No. 53 of the Acts of Arkansas of 1949 , as amended, and pursuant to
necessary authorizing action of the Board of Directors of the City and of
the Little Rock Municipal Airport Commission (the "Airport Commission") .
The bonds are being issued for the purpose of furnishing permanent financing
of a portion of the cost (the balance of the cost will be paid from funds de-
rived from a grant and from other sources) of constructing improvements to
the Municipal Airport, being generally described as follows: Constructing
and equipping a new terminal building, ramp construction and lighting, run-
way and taxiway construction and lighting, relocation of some existing
facilities, necessary incidental work and expenses pertaining thereto (the
"improvements") .
The bonds will be dated March 1 , 1971 and will bear interest at
the rate or rates accepted at the public sale, the interest will be payable
semiannually on March 1 and September 1 of each year, commencing September 1 ,
1971 , and the bonds will mature annually on March. 1 of each year as follows
(but will be subject to redemption prior to maturity as hereinafter set forth:
Page 2
YEAR AMOUNT
1972 $ 49 ,000
1973 52 ,000
1974 56 ,000
1975 59 ,000
1976 62 ,000
1977 66 ,000
1978 70 ,000
1979 74,000
1980 78,000
1981 83 ,000
1982 89 ,000
1983 94,000
1984 100 ,000
1985 105,000
1986 111 ,000
1987 118,000
1988 126 ,000
1989 133,000
1990 141 ,000
1991 149 ,000
1992 196 ,000
1993 259 ,000
1994 275 ,000
1995 155,000
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 Municipal Airport are pledged (being Municipal
Airport Revenue Bonds, dated May 1 , 1961 (the " 1961 Bonds") , and Municipal
Airport Revenue Bonds, Series 1966 , dated May 1 , 1966 (the "1966 Bonds"))
and the bonds of this issue, make the required deposit into the Depreciation
Fund, and maintaining all funds at the levels required by the authorizing
ordinances and resolutions. The bonds will rank on a parity of security with
the 1961 Bonds and the 1966 Bonds.
Page 3
The purchaser may name the 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.
Supplemental and dual coupons will not be permitted and the bonds
will not be subject to conversion.
No bid of less than par and accrued interest will be entertained. Not
more than five different interest rates may be designated (not including repeated
rates) , but all rates with maturities to which applicable must be set forth in
the bid. The difference between the highest and lowest rate must not exceed
2%. The bonds of each maturity must bear interest from date to maturity
at the same rate. The award, if any, shall be to the bidder whose bid results
in the lowest net interest cost to the City to be determined by computing the
interest from date to maturity of the bonds at the rates bid and deducting there-
from the amount of any premium. The Airport Commission reserves the right
to reject any or all bids. Any bid which reflects a--net interest cost in excess
of an interest cost which would result from a bid of par and accrued interest
for bonds bearing interest at the rate of 6% per annum will be rejected.
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 March 1 , 1981
on any interest payment date thereafter, from funds from any 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 of the principal amount
being redeemed as follows:
3% if redeemed March 1 , 1981 or September 1 , 1981;
2-1/2% if redeemed March 1 , 1982 or September 1 , 1982;
2% if redeemed March 1 , 1983 or September 1 , 1983;
1-1/2% if redeemed March 1 , 1984 or September 1 , 1984;
1% if redeemed March 1 , 1985 or September 1 , 1985;
1/2% if redeemed March 1 , 1986 or September 1 , 1986;
No premium thereafter.
Page 4
Sealed bids will be received until 2:30 o'clock _.m. , on
March 10 , 1971
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,
dated February 1 , 1971 " and addressed to Mr. Jack T. Meriwether, City
Manager, City Hall, Little Rock, Arkansas. The bids will be opened at that
time in the Board of Directors Room, City Hall, Little Rock, Arkansas. Each
bid must be submitted on the Official Bid Form, must be accompanied by a
certified or cashier' s check in the amount of $54,000 , and payable to the
order of the City to be kept as liquidated damages in the event a bidder is
awarded the sale of the bonds and fails to complete the purchase. Checks of
unsuccessful bidders will be promptly returned and the City will not pay interest
on good faith checks. The bonds are being sold pursuant to the direction of the
Board of Directors of the City. Delivery of the bonds will be in Little Rock,
Arkansas, within 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.
Additional information may be obtained from Mr. jack Murphy,
Director of Finance, City Hall, Little Rock, Arkansas 72201 , or from Smith,
Williams, Friday & Bowen, 1100 Boyle Building, Little Rock, Arkansas.
CITY OF LITTLE ROCK, ARKANSAS
By
Jack T. Meriwether, City Manager
,' t I
Section 2 . That the Notice shall be published at least one time in
a newspaper of general circulation in the City and otherwise publish or dis-
tribute, along with pertinent information concerning the City and the Municipal
Airport, as the City' s Director of Finance, Mr. E. Jack Murphy, shall deem
necessary or desirable to obtain the most favorable bidding at the public
sale.
Section 3 . That this Resolution shall be in force immediately
upon and after its passage.
ADOPTED this 15th day of February , 1971 .
APPROVED:
ATTEST:
liN<‘? )-zi-j / 0
4 / Mayor
City C�1erk
(SEAL)