6572 •
RESOLUTION NO.
6 ,572
A RESOLUTION APPROVING THE SALE OF SEWER
REVENUE BONDS; APPROVING THE DESIGNATION OF
THE TRUSTEE AND PAYING AGENT; APPROVING THE
FORM OF THE BONDS ; SETTING FORTH THE
DETAILS OF THE MATURITY SCHEDULE OF THE
BONDS ; AUTHORIZING THE USE OF THE OFFICIAL
STATEMENT BY THE UNDERWRITERS; PRESCRIBING
OTHER MATTERS RELATING THERETO AND
DECLARING AN EMERGENCY.
WHEREAS by Ordinance No. 13 , 983 of the ordinances of the
City of Little Rock , Arkansas (called "City" ) , passed and
approved on the 17th day of February , 1981 , there were
authorized and ordered sold Sewer Revenue Bonds in the total
principal amount of $6 , 500,000 , with the Bonds to be dated May
1 , 1981 , to bear interest at the rate or rates fixed in the bid
accepted at the sale , with the interest to be payable
semiannually on May 1 and November 1 of each year commencing
November 1 , 1981 , and with the Bonds to mature on May 1 in each
of the years 1982 to 1996 , inclusive; and
WHEREAS pursuant to the authority conferred by Ordinance
No . 13 , 983 , the Sewer Committee of the City caused to be
prepared a Notice of Sale of the Bonds , a copy of which has
been examined by the Board of Directors and filed with the City
Clerk , and after due publication and extensive dissemination of
the Notice and pertinent information pertaining to the Bonds,
the public sale was held upon April 15 , 1981 ; and
WHEREAS at said sale the best bid was that of Merrill
Lynch White Weld Capital Markets Group; Powell & Satterfield,
Inc . ; Smith Barney, Harris Upham & Co. , Incorporated; Kidder,
Peabody & Co . , Incorporated; Rauscher Pierce Refsnes , Inc . ;
Shearson Loeb Rhodes , Inc . ; Rotan Mosle , Inc . and Underwood,
Neuhaus & Co . , Incorporated, all as set forth in detail in
Resolution No . 6554 of the resolutions of the City, duly
adopted on April 15 , 1981 ; and
WHEREAS as authorized by Ordinance No. 13 ,983 and by the
Notice of Sale, the purchasers have designated Worthen Bank &
Trust Company , N.A. , Little Rock , Arkansas , as Trustee and
Paying Agent;
NOW, THEREFORE, be it resolved by the Board of Directors
of the City of Little Rock, Arkansas :
Section 1 . That the above referred to and described
Notice of Sale, a copy of which is on file with the City Clerk,
and the publication of same be , and the same are hereby,
approved and confirmed.
Section 2 . That the sale of $6 , 500 ,000 of Sewer Revenue
Bonds to the purchasers set forth above be, and the same is
hereby, approved and confirmed.
Section 3 . That pursuant to the designation of the
purchasers , Worthen Bank & Trust Company , N . A. , Little Rock,
Arkansas , is hereby named Trustee and Paying Agent of said
Sewer Revenue Bonds .
Section 4 . That the form of the Bonds as authorized by
Ordinance No . 13 , 983 is hereby approved in final form and
according to the bond form attached hereto as Exhibit A and
made a part of this Resolution.
Section a. That there are hereby authorized and ordered
issued bonds of the City of Little Rock, Arkansas , in the
aggregate principal amount of $6 ,500 ,000 to be designated "City
of Little Rock , Arkansas Sewer Revenue Bonds , Series 1981 " .
The Bonds shall be dated May 1 , 1981 , shall be numbered
consecutively from 1 to 1 ,300 , inclusive and interest shall be
payable semiannually on May 1 and November 1 of each year
commencing November 1 , 1981 as follows:
Year Bond Nos. Interest Year Bond Nos. Interest
1982 1-39 9 .90% 1990 460-547 9.40%
1983 40-82 10 .00% 1991 548-644 9.60%
1984 83-130 10.00% 1992 645-751 9.75%
1985 131-183 9.70% 1993 752-870 9. 90%
1986 184-242 8.60% 1994 871-1001 10 .00%
1987 243-307 8. 80% 1995 1002-1145 10 .00%
1988 308-379 9. 00% 1996 1146-1300 10.00%
1989 380-459 9.20%
The Bonds shall be in the denomination of $5 , 000 each, and
shall mature on May 1 in each of the years 1982 to 1996 ,
inclusive , as hereafter set forth, but are callable for payment
prior to maturity as provided in Ordinance No . 13 ,983 and in
the face of the Bonds.
Section_6 . That as provided in Ordinance No. 13 ,983 , the
principal of and interest on the Bonds shall be paid from funds
in the 1981 Sewer Revenue Bond Fund as they mature according to
the following schedule:
INTEREST
YEAR DUE MAY 1 RATE MAY 1 NOVEMBER 1 TOTAL
1981 --- --- ---- $313 ,833 .75 $313 ,833 .75
1982 $195 ,000 9.90% $313 ,833 .75 304 ,181 .25 813 ,015 .00
1983 215 ,000 10 .00% 304 ,181 .25 293 , 431 .25 812,612.50
1984 240 ,000 10 .00% 293 ,431 .25 281 ,431 .25 814 ,862 .50
1985 265 ,000 9 .70% 281 ,431 .25 268, 578.75 815 ,010.00
1986 295 ,000 8.60% 268,578.75 255 ,893 .75 819,472 .50
1987 325 ,000 8.80% 255 ,893 .75 241 ,593 .75 822 ,487 .50
1988 360 ,000 9. 00% 241 ,593 .75 225 ,393 .75 826 ,987 .50
1989 400 ,000 9.20% 225,393 .75 206 ,993 .75 832 ,387 .50
1990 440 ,000 9.40% 206 ,993 .75 186 ,313 .75 833 ,307 .50
1991 485 ,000 9 .60% 186 ,313 .75 163 ,033 .75 834 ,347 .50
1992 535 ,000 9 .75% 163 ,033 .75 136 ,952.50 834,986 .25
1993 595 ,000 9 . 90% 136 ,952.50 107 , 500.00 839,452.50
1994 655 ,000 10 .00% 107 ,500 .00 74 ,750 .00 837 ,250.00
1995 720 ,000 10 .00% 74 ,750 .00 38,750 .00 833 ,500.00
1996 775 ,000 10 .00% 38,750 .00 ---- 813 ,750 .00
Section_7 . That the purchasers of the Bonds be and they
are hereby authorized to use the Official Statement of the City
in connection with the public offering of the Bonds for sale.
Section $. That this Resolution is adopted pursuant to
the authority conferred by Ordinance No . 13 , 983 of the
ordinances of the City of Little Rock, Arkansas , and said
Ordinance No . 13 , 983 , together with and as amended and
supplemented by this Resolution, shall continue in full force
and effect.
Section 2. That the provisions of this Resolution are
hereby declared to be separable and if a section, phrase or
provision shall be declared invalid, such declaration shall not
affect the validity of the remainder of the Resolution.
Section la. That it is hereby ascertained and declared
that the improvements must be accomplished as soon as possible
in order to alleviate immediate hazards to the health, safety
and welfare of the City , its inhabitants and their property,
and that the improvements can be accomplished only by the
issuance of the Bonds . It is , therefore , declared that an
emergency exists and this Resolution being necessary for the
immediate preservation of the public peace, health and safety
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shall take effect and be enforced from and after its passage.
ADOPTED May 5, 1981 .
APPROVED:
/ /
Mayor
ATTEST:
City C
UNITED STATES OF AMERICA
STATE OF ARKANSAS
COUNTY OF PULASKI
CITY OF LITTLE ROCK
SEWER REVENUE BOND
SERIES 1981
NO. $5 ,000
KNOW ALL MEN BY THESE PRESENTS:
That the City of Little Rock, County of Pulaski, State of
Arkansas ( the "City" ) , acknowledges itself to owe and , for
value received, hereby promises to pay bearer, or if this Bond
be registered , to the registered owner hereof , solely from the
special fund provided as hereafter set forth, the principal sum
of
FIVE THOUSAND DOLLARS
in such coin or currency as shall be legal tender for the
payment of debts due the United States of America on the first
day of May , 19__, and to pay solely from the special fund
interest hereon at the rate of percent ( %) per
annum, from date, semiannually on May 1 and November 1 of each
year , commencing November 1 , 1981 , upon presentation and
surrender of the annexed coupons as they severally become due.
Both principal and interest of this Bond are payable at the
principal office of Worthen Bank & Trust Company, N.A. (the
"Trustee" and "Paying Agent") .
This Bond is part of an issue of Sewer Revenue Bonds (the
"Bonds " ) aggregating Six Million Five Hundred Thousand Dollars
( $6 , 500 , 000 ) , numbered consecutively from one (1 ) to one
thousand three hundred (1 , 300) , inclusive , all of like tenor
and effect except as to number, denomination, rate of interest,
maturity and right of prior redemption, and are issued for the
purpose of financing the cost to the City of constructing
extensions, betterments and improvements to the Sewer System of
the City.
The Bonds of this issue are issued pursuant to and in full
compliance with the Constitution and laws of the State of
Arkansas , particularly Act 132 of the Acts of the General
EXHIBIT A
Assembly of Arkansas for the year 1933 , as amended, ( "Act 132" )
and .Irsuant to an ordinance of the Board of Directors of the
City , duly adopted and approved , as supplemented by a
resolution of the Board of Directors of the City, duly adopted
and approved , ( being Ordinance No. 13 ,983 adopted and approved
on the 17th day of February, 1981 and Resolution No. ,
adopted and approved on the day , 1981 ,
( collectively referred to herein as the " Authorizing
Ordinance" ) and do not constitute an indebtedness of the City
within any constitutional or statutory limitation.
There are presently outstanding Sewer Revenue Bonds of an
issue dated February 1 , 1966 issued under the authority of
Ordinance No . 11 , 695 of the Ordinances of the City ( herein
called the "1966 Bonds " ) and there are presently outstanding
Pollution Control Revenue Bonds issued by the Department of
Pollution Control and Ecology of the State of Arkansas, dated
June 1 , 1972 which are secured by a pledge of revenues of the
Sewer System derived from a Water Quality Control Charge levied
by the City by Ordinance No . 12 ,632 ( herein called the "1972
Bonds") .
The Bonds of this issue are not general obligations of the
City, but are special obligations payable solely from revenues
derived from the operation of the Sewer System , an amount of
which sufficient to pay the principal of, premium, if any, and
interest on the Bonds , which rank on a parity with the 1966
Bonds and the 1972 Bonds is to be set aside in a special fund
identified as the 1981 Sewer Revenue Bond Fund. Reference is
made to the Authorizing Ordinance for a detailed statement of
the nature and extent of security ( the flow of Sewer Revenue
Funds is first to an Operation and Maintenance Fund, second to
the Sewer Revenue Bond Fund securing the 1966 Bonds , to the
Department Bond Fund Securing the 1972 Bonds and to the 1981
Sewer Revenue Bond Fund securing the Bonds of this issue , third
to a Reserve Fund created to secure the Bonds , and fourth to a
Depreciation Fund) , the rights and obligations of the City, the
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Trustee , the holders and registered owners of the Bonds and the
ter and conditions upon which the Bonds are issued ,
including , without limitation the covenant of the City to
maintain rates for sewer service which shall be sufficient to
produce revenues adequate for the payment of the expenses of
operation and maintenance of the Sewer System, to provide for
the payment of the principal of , premium, if any, and interest
on the Bonds , the 1966 Bonds and the 1972 Bonds , as the same
become due , Paying Agent ' s fees , and to make the required
deposit into the Depreciation Fund. The Bonds are issued on a
parity of security with the 1966 Bonds and the 1972 Bonds .
Under the provisions of Act 132 , a lien is fixed upon the land
for any unpaid sewer charge , even though the use of the Sewer
System is by a tenant or lessee instead of the owner , and
pursuant thereto the Board of Directors has directed that suit
will be brought to enforce the lien and to collect unpaid sewer
charges.
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 as follows : (1 ) From the unexpended proceeds
of the sale of the Bonds not needed for paying the cost to the
City of the construction work , at a price of the principal
amount of the Bonds being redeemed plus accrued interest to the
date of redemption on any interest payment date on and after
May 1 , 1984 ; and ( 2) from funds from any other source on any
interest payment date on and after May 1 , 1990 at a price of
the principal amount of the Bonds being redeemed plus accrued
interest to the date of redemption.
Notice of the call for redemption shall be published one
time in a newspaper published in the City of Little Rock,
Arkansas , and having a general circulation throughout the State
of Arkansas , giving the number and maturity of each Bond being
called, the publication to be at least fifteen (15) days prior
to the redemption date . After the date fixed for redemption,
each Bond so called shall cease to bear interest, providing
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funds for its payment are on deposit with the Paying Agent at
tha time . In addition , notice shall be given by first class
mail to the registered owner of any Bond registered as to
principal at the address of such owner reflected on the books
of the Bond Registrar , and if all outstanding Bonds shall be
registered as to principal , then notice by first class mail to
the registered owners thereof as aforesaid shall be sufficient
and it shall not be necessary to publish notice of the
redemption.
This Bond may be registered as to principal alone and may
be discharged from such registration in the manner, with the
effect and subject to the terms and conditions endorsed hereon.
Subject to the provisions of registration endorsed hereon ,
nothing contained in this Bond or in the Authorizing Ordinance
shall affect or impair the negotiability of this Bond and this
Bond shall be deemed a negotiable instrument under the laws of
the State of Arkansas and is issued with the intent that the
laws of the State of Arkansas will govern its construction.
IT IS HEREBY CERTIFIED, RECITED AND DECLARED that all acts,
conditions and things required to exist , happen and to be
performed precedent to and in the issuance of this Bond, have
existed, have happened and have been performed in due time ,
form and manner , as required by law ; that the indebtedness
represented by the Bonds of this issue does not exceed any
constitutional or statutory limitation ; and that sufficient
revenues have been pledged to and will be set aside into the
1981 Sewer Revenue Bond Fund , referred to above , for the
payment of the principal of , premium , if any, and interest on
the Bonds of this issue .
This Bond shall not be valid until the Certificate of
Authentication hereon shall have been signed by the Trustee.
IN WITNESS WHEREOF, the City of Little Rock, Arkansas, by
its Board of Directors , has caused this Bond to be signed by
the Mayor and City Clerk thereof (with either the manual or
facsimile signature of the Mayor but with the manual signature
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of the City Clerk) and sealed with the seal of the City, and
has aused the interest coupons attached to be signed by the
facsimile signature of the Mayor , all as of the first day of
May, 1981 .
CITY OF LITTLE ROCK, ARKANSAS
By
Mayor
ATTEST:
City Clerk
(SEAL)
5
(Form of Coupon)
$ ---
No.
May
On the first day of November , 19 , the City of Little
Rock , Pulaski County, Arkansas , unless the Bond to which this
coupon is attached is paid prior thereto, hereby promises to
pay to bearer , solely out of the special fund specified in the
Bond to which this coupon is attached,
DOLLARS
in such coin or currency as shall be legal tender for the
payment of debts due the United States of America at the
principal office of Worthen Bank & Trust Company, N.A. , Little
Rock , Arkansas , being six (6) months ' interest then due on its
Sewer Revenue Bond , Series 1981 , dated May 1 , 1981 , and
numbered
CITY OF LITTLE ROCK, ARKANSAS
BY
Mayor
(On each bond shall appear the following: )
CERTIFICATE OF AUTHENTICATION
This is one of the Bonds of the issue of Sewer Revenue
Bonds , Series 1981 , of the City of Little Rock, Arkansas, dated
May 1 , 1981 , and aggregating $6 , 500 , 000 in principal amount
described in the Bond to which this certificate is attached.
WORTHEN BANK & TRUST COMPANY, N.A. ,
TRUSTEE
By — ---
(Authorized Signature)
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PROVISIONS FOR REGISTRATION AND RECONVERSION
•
phis Bond may be registered as to principal alone on books
of the City , kept by the Trustee as bond registrar , upon
presentation hereof to the bond registrar , which shall make
mention of such registration in the registration blank below,
and this Bond may thereafter be transferred only upon an
assignment duly executed by the registered owner or his
attorney or legal representative in such form as shall be
satisfactory to the bond registrar, such transfer to be made on
such books and endorsed hereon by the bond registrar . Such
transfer may be to bearer and thereafter transferability by
delivery shall be restored , but this Bond shall again be
subject to successive registrations and transfers as before.
The principal of this Bond, if registered, unless registered to
bearer , shall be payable only to or upon the order of the
registered owner or his legal representative. Notwithstanding
the registration of this Bond as to principal , the coupons
shall remain payable to bearer and shall continue to be
transferable by delivery. Payment to the bearer of the coupons
shall fully discharge the City in respect to the interest
therein mentioned whether or not this Bond be registered as to
principal and whether or not any such coupons be overdue.
Date of Name of Signature of
Registration Registered Owner Bond Registrar
1
1
1
1
1
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