HomeMy WebLinkAbout19985ORDINANCE NO. 199985
AN ORDINANCE PROVIDING FOR THE ISSUANCE AND SALE OF A
SERIES OF LIBRARY CONSTRUCTION AND IMPROVEMENT BONDS
FOR THE PURPOSE OF FUNDING ACQUISITION, CONSTRUCTION
AND EQUIPPING OF LIBRARY CAPITAL IMPROVEMENT PROJECTS;
PLEDGING LIBRARY TAX REVENUES SUFFICIENT TO PAY THE
PRINCIPAL OF AND INTEREST ON THE BONDS; AUTHORIZING THE
EXECUTION AND DELIVERY OF A TRUST INDENTURE;
AUTHORIZING THE ACCOMPLISHMENT OF THE PROJECTS;
APPROVING AN OFFICIAL STATEMENT; PRESCRIBING OTHER
MATTERS RELATING THERETO; AND DECLARING AN
EMERGENCY.
WHEREAS, at the special election held December 11, 2007, there was submitted to the
voters of the City of Little Rock (the "City") the question of issuing bonds of the City (the
"Bonds ") in the maximum principal amount of $32,000,000 to (i) refund one or more
outstanding issues of capital improvement refunding bonds, and (ii) to finance the cost of
acquiring, constructing and equipping of land and additional capital improvements for public city
libraries owned and operated by the City and Central Arkansas Library System ( "CALS ") to be
payable from a new continuing annual ad valorem property tax to be levied at a continuing rate
of 1.0 mill on the dollar of the assessed valuation of taxable real and personal property within the
City; and
WHEREAS, the voters approved the issuance of the Bonds by a vote of 3,690 votes FOR
and 1,974 votes AGAINST; and
WHEREAS, the City and CALS have determined that it will be advantageous to
authorize the issuance of an initial series of Capital Improvement Bonds in the aggregate
principal amount of not to exceed $4,000,000 (the "Series 2008 Bonds "), and to defer the
issuance of the balance of the bonds approved by the voters until a later date; and
WHEREAS, the City and CALS intend to fund a portion of the following projects with
the proceeds of the Series 2008 Bonds:
(1) Construction, equipping and financing of the Arkansas Studies Institute;
(2) Acquisition, construction and equipping of a Children's Initiative Library;
(3) Acquisition, construction and equipping of a branch library in the Otter Creek
area of Little Rock;
(4) Collection development, computer upgrades and other equipment purchases;
(5) Miscellaneous small building improvements; repairs and construction
improvements, replacement /upgrading of equipment and furnishings; and
(6) Accomplishing other projects which CALS' Board of Directors deems
appropriate;
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(collectively, the "Project" or "Projects "); and
WHEREAS, the City and CALS have determined that it is not advantageous to refund
any outstanding issues of bonds and that no interest cost savings or other benefits may be
achieved from refunding outstanding bonds at this time; and
WHEREAS, the estimated costs of the Projects, including paying the interest on the
Bonds until collections of the Library Tax are available for that purpose, and paying costs of
issuing the Bonds will not exceed $4,000,000; and
WHEREAS, the Board of Directors will covenant to levy in 2008 for collection in 2009,
and covenants to levy in subsequent years, an ad valorem property tax at the rate of 1.0 mill on
the dollar of the assessed valuation of taxable real and personal property in the City together with
all penalties and interest payable with respect thereto (the "Library Tax ") to be used to pay debt
service on the Bonds; and
WHEREAS, the Board of Directors has previously levied for collecting a separate ad
valorem tax at the rate of 1.0 mill on the dollar of assessed valuation (the "Prior Tax ") which
Prior Tax was approved by the voters at the special election held on August 7, 2004 and which
Prior Tax is pledged to the payment of outstanding Bonds of the City; and
WHEREAS, the City will receive its allocable portion of the .5 % statewide sales and use
tax implemented pursuant to Amendment No. 79 to the Arkansas Constitution ( "Amendment
79 ") which is intended to offset any decrease in collections resulting from the homestead
exemption also implemented pursuant to Amendment 79 (the "Special Tax Collections "); and
WHEREAS, the City will covenant to pledge the Library tax and the Special Tax
Collections to pay the debt service on the Bonds; and
WHEREAS, in order to serve and fulfill the purposes for which it has been created and
to provide funds for the financing of the Projects, the City desires to adopt this Ordinance
authorizing the issuance and sale of the City of Little Rock Library Construction and
Improvement Bonds, Series 2008 in the aggregate principal amount of $4,000,000 and other
matters pertaining thereto.
NOW, THEREFORE, BE IT ORDAINED by the Board of Directors of the City of Little
Rock, Arkansas:
Section 1. The Projects shall be accomplished. The Mayor, City Clerk, and Director of
Finance and Treasurer are hereby authorized to take or cause to be taken all action necessary to
accomplish the acquisition, construction and equipping of the Projects and to execute all required
documents.
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Section 2. Under the authority of the Constitution and laws of the State of Arkansas,
including particularly Amendment No. 30 to the Constitution of the State of Arkansas, as
amended by Amendment No. 72 to the Arkansas Constitution, and Arkansas Code Annotated
§§14-142-201 through 222 (Act 920 of the Acts of Arkansas of 1993), the City of Little Rock,
Arkansas Library Construction and Improvement Bonds, Series 2008 are hereby authorized and
ordered issued in the total aggregate principal amount of not to exceed $4,000,000, for the term,
the maturities, and at the interest rates set forth in Exhibit "A" attached hereto and incorporated
herein by this reference. The Series 2008 Bonds shall not be general obligations of the City, but
shall be special obligations payable solely from the proceeds of the Library Tax, the Special Tax
Collections and other moneys, funds and amounts, more specifically identified in the Trust
Indenture (identified hereinafter). The City hereby pledges the Library Tax and the Special Tax
Collections to secure payment of the Series 2008 Bonds. No part of the Prior Tax is pledged to
the payment of the Series 2008 Bonds.
Section 3. In order to pay the principal of and interest on the Series 2008 Bonds as they
mature and are called for redemption prior to maturity, together with fees and costs incidental
thereto, there are hereby appropriated out of the proceeds of the Library Tax and the Special Tax
Collections, the sums necessary to pay the same in accordance with the schedule of principal and
interest attached hereto as Exhibit "A" and made a part hereof.
Section 4. The proceeds of the Series 2008 Bonds, together with investment earnings
thereon, shall be used (i) to finance the Projects; and (ii) to pay interest on the Series 2008 Bonds
until collections of the Library Tax become available to pay the interest on the Series 2008
Bonds; and (iii) to pay the costs of issuance of the Series 2008 Bonds. The Series 2008 Bonds,
will mature, bear interest and be subject to redemption in accordance with the provisions of the
Supplemental Indenture (identified hereinafter).
Section 5. All actions heretofore taken by the Mayor, City Clerk, and Director of
Finance and Treasurer in connection with the offering of the Series 2008 Bonds, including the
preparation and distribution of the Preliminary Official Statement, preparation of the Official
Statement, and preparation of this Ordinance (the "Authorizing Ordinance ") are hereby in all
respects ratified and approved. The Official Statement is deemed a final Official Statement for
purposes of the Securities and Exchange Commission Rule 15(c) 2 -12. The Official Statement of
the City in the form presented at this meeting with such changes, omissions, insertions and
revisions as the Mayor, City Clerk, and Director of Finance and Treasurer shall deem advisable
is hereby authorized and approved, and the Mayor shall sign and deliver such final Official
Statement to the Underwriter for distribution to the owners of the bonds and other interested
persons.
Section 6. The appointment of Metropolitan National Bank ( "Trustee ") as Trustee for
the Series 2008 Bonds is hereby approved.
Section 7. To prescribe the terms and conditions upon which the Series 2008 Bonds
authorized by the voters at the December 11, 2007 Special Election are to be executed, issued,
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accepted, held and secured, the Mayor is hereby authorized and directed to execute and
acknowledge a Trust Indenture between the City and the Trustee, and the City Clerk is hereby
authorized and directed to execute and acknowledge the Trust Indenture and to affix the seal of
the City thereto, and the Mayor and City Clerk are hereby authorized and directed to cause the
Trust Indenture to be accepted, executed and acknowledged by the Trustee. The Trust Indenture
is hereby approved in substantially the form submitted to this meeting with such changes as shall
be approved by such persons executing the document, their execution to constitute conclusive
evidence of such approval.
Section 8. The Mayor, the City Clerk, the City Director of Finance and Treasurer, and
CALS, for and on behalf of the City, are authorized and directed to do any and all things
necessary to effect the execution and delivery of the Trust Indenture, the performance of all
obligations of the City under the Trust Indenture, the issuance, execution, sale and delivery of
the Series 2008 Bonds, including the execution of a Bond Purchase Agreement between the City
and the Underwriter, and the performance of all acts of whatever nature necessary to effect and
carry out the authority conferred by this Ordinance. The Mayor, City Clerk, the City Director
of Finance and Treasurer, and CALS are further authorized and directed, for and on behalf of
the City, to execute all papers, documents, certificates and other instruments that may be
required for the carrying out of such authority or to evidence the exercise thereof.
Section 9. The appointments of Wright, Lindsey & Jennings LLP as Bond Counsel and
of Stephens Inc. as Underwriter, respectively, are hereby approved and ratified.
Section 10. It is hereby found and declared that an immediate need exists for the
accomplishment of the Projects in order to achieve the most cost effective financing for the
City's public libraries. It is, therefore, declared that an emergency exists. This Ordinance,
being necessary for the immediate preservation of the public peace, health and safety, shall take
effect and be in force from and after its passage.
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PASSED: July 1 , 2008
ATTEST:
NA�CY W66D,-CITY CLERK
APPROVED AS TO FORM:
THOMAS M. CARPENVER
CITY ATTORNEY
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APPROVED:
MARK STODOLA, MAYOR
*:4 111:31 II\
Series 2008 Bonds
Maturity
Principal
Interest
Yield or
March 1
Amount
Rate
Price
2010
$ 145,000
3.000%
3.000%
2.011
150,000
3.200
3.200
2012
155,000
3.400
3.400
2013
160,000
3.550
3.550
2014
165,000
3.700
3.700
2015
175,000
3.850
3.850
2016
180,000
4.000
4.000
2017
190,000
4.000
4.125
2018
195,000
4.125
4.250
2019
205,000
4.250
4.350
2020
210,000
4.350
4.450
2021
220,000
4.450
4.550
2022
230,000
4.500
4.600
2023
240,000
4.500
4.650
2024
250,000
4.625
4.700
2025
265,000
4.625
4.750
2026
275,000
4.700
4.800
2027
290,000
4.750
4.850
2028
300,000
4.750
4.875
(Accrued interest from August 1, 2008 to be added)
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