4648 i F
RESOLUTION NO. 4,648
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, Series 1971-B, dated September 1 , 1971 ,
in the principal amount of $1 ,000 ,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
substantially the following contents:
NOTICE OF SALE
$1 ,000 ,000
CITY OF LITTLE ROCK, ARKANSAS
MUNICIPAL AIRPORT REVENUE BONDS, SERIES 1971-B,
DATED SEPTEMBER 1 , 1971
The City of Little Rock, Arkansas (the "City") hereby gives notice
that there will be sold on sealed bids at the time and place specified below
a proposed issue of $1 ,000 ,000 in principal amount of Municipal Airport
Revenue Bonds , Series 1971-B (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 financing the costs of com-
pleting certain improvements and facilities at the Municipal Airport, including
the construction of an air cargo building, paying expenses incidental there-
to and paying the expenses of using the bonds (the "Project")).
The bonds will be dated September 1 , 1971 and will bear interest at
the rate or rates accepted at the public sale, interest will be payable
semiannually on March 1 and September 1 of each year, commencing March 1 ,
1972, 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):
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YEAR AMOUNT
19 73 $16,000
19 74 17,000
1975 19,000
1976 21 ,000
19 77 23,000
1978 25,000
19 79 26 ,000
1980 __ 29 ,000
1981 31 ,000
_ 1982 33,000
1983— 35,000
1984 38,000
1985 40,000
1986 42,000
1987 45,000
1988 48,000
1989 50,000
1990 54,000
1991 59 ,000
1992 71 ,000
_ 1993 87,000
1994 94,000
1995 97,000
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
P Municipal Airport are pledged (being Municipal
Airport Revenue Bonds, dated May 1 , 1961 (the "1961 Bonds") , Municipal
Airport Revenue Bonds, Series 1966 , dated May 1 , 1966 (the "1966 Bonds")
and Municipal Airport Revenue Bonds, dated February 1 , 1971 (the "1971 Bonds"))
and the bonds of this issue, make the required deposit into the Depreciation
Fund and maintain all funds at the levels required by the authorizing
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ordinances and resolutions. In this regard, the lien, pledge and security of
the bonds are subordinate to the lien, pledge and security of the 1961 Bonds,
the 1966 Bonds and the 1971 Bonds.
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,
Eldredge & Clark, Little Rock, Arkansas, upon whose approving opinion the
bonds will be issued, will be paid by the City.
The bonds will be coupon bonds payable to bearer but subject to
registration as to principal or as to principal and interest. The bonds will
be in the denominations of $1 ,000 or $5,000, as the purchaser may elect.
Supplemental and dual coupons will not be permitted and the bonds
will not be subject to conversion.
NO bid oI less than par and a - ruPd i ntPrPCt tnwi 11 ha e tPrtai ned1_ 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. No rate of interest in excess of 8% per annum shall be designated,
and 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 City 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 fcr 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, September 1 , 1976
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or 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 , 19 76 or September 1 , 1976;
2-1/2%if redeemed March 1 , 1977 or September 1 , 1977;
2% if redeemed March 1 , 1978 or September 1 , 1978;
1-1/2%if redeemed March 1 , 1979 or September 1 , 1979;
1% if redeemed March 1 , 1980 or September 1 , 1980;
1/2% if redeemed March 1 , 1981 or September 1 , 1981;
No premium thereafter.
The City reserves the right to accept tenders of any bonds at any
time and, at its option, acquire any bonds so tendered at a price of not to
exceed par and accrued interest.
Sealed bids will be received until o'clock .m. , on the
September , 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 September 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 and must be accompanied by a
certified or cashier's check in the amount of $20 ,000 , 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. Delivery of the bonds will be in Little Rock, Arkansas,
within 45 days from the date of the acceptance of a bid. Delivery may be
had at a plac-e 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. Payment by the purchaser must be made in federal funds.
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Additional information may be obtained from Mr. E. jack Murphy,
Director of Finance, City Hall, Little Rock, Arkansas 72201 , or from Smith,
Williams, Friday, Eldredge & Clark, 1100 Boyle Building, Little Rock, Arkansas
72201 .
CITY OF LITTLE ROCK, ARKANSAS
By
Jack T. Meriwether, City Manager
Section 2. The Airport Commission is hereby authorized to sell
bonds of the $1 ,000 ,000 authorization in series if it determines that all of
the funds will not be needed at one time and such procedure would be in the
best interests of the City and the users of the Airport facilities. In the
event of such a determination there shall be appropriate changes in the form
of Notice of Sale heretofore approved in Section 1 hereof to reflect the details
of the bonds actually being sold (including an appropriate reduction in the
annual amounts of the maturity schedule) and there shall be included a pro-
vision reserving the right to subsequently sell and issue the remaining bonds
of the $1 ,000 ,000 authorization on a parity of security.
Section 3 . That the Notice shall be published at least one time
in a newspaper published in the City and of general circulation throughout
the State of Arkansas, and otherwise publish or distribute, 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 4. The City Manager shall request the Airport Commission
to meet and take action on the bids so any award of the sale of the bonds
will have the approval of the Airport Commission and the Board of Directors
of the City.
Section 5 . That this Resolution shall be in force immediately
upon and after its passage.
ADOPTED this 7th day of September 1971 .
APPROVED:
ATTEST: /
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Or4.#&
Mayor Ci lerk
(SEAL)
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