HomeMy WebLinkAbout200872009017619 Received: 3/19/2009 9:46:29 AM
Recorded: 03/19/2009 11:25:01 AM Filed &
Recorded in Official Records of PAT O'BRIEN,
PULASKI COUNTY CIRCUIT /COUNTY CLERK
Fees $40.00
ORDINANCE NO. 20087
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 previously determined that it would 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 approved Ordinance No. 19,985 on July 1, 2008, which authorized
the issuance of the Series 2008 Bonds and the Series 2008 Bonds were sold and the proceeds
therefor delivered to the City on August 7, 2008; and
WHEREAS, the City and CALS have determined that it would be advantageous to
authorize the issuance of the balance of the bonds authorized by the voters at the December 11,
2007 special election in the principal amount of not to exceed $28,000 000 (the "Series 2009
Bonds "); 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 City and CALS intend to fund a portion of the following projects Aith,thl • .,,
proceeds of the Series 2009 Bonds: ; ,•4�N lRCGi -,,,,
mil." ,.' � •_I-
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(1) Build and equip a library at Otter Creek;
(2) Purchase land, build, and equip a children's library in mid -town Little Rock;
(3) Expand the Main Library and provide additional equipment for the building;
(4) Acquisition of additional land near Main Campus for future use;
(5) Minor construction projects and equipment purchases for other Little Rock branch
libraries; and
(6) Purchase books, audio visual material, and computer equipment and other library -
related equipment for the system;
(collectively, the "Project" or "Projects "); and
WHEREAS, the estimated costs of the Projects, including paying the interest on the Series
2009 Bonds until collections of the Library Tax are available for that purpose, and paying costs of
issuing the Bonds will not exceed $28,000,000; and
WHEREAS, the Board of Directors will covenant to levy in 2009 for collection in 2010,
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 other than the Series 2008 Bonds and
the Bonds; 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 the Series 2008 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 Bonds, Series 2009 in the
aggregate principal amount of $28,000,000 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
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accomplish the acquisition, construction and equipping of the Projects and to execute all required
documents.
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 2009 are hereby authorized and ordered issued in the
total aggregate principal amount of not to exceed $28,000,000, 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 2009 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 2009 Bonds and the Series 2008 Bonds. No part of the Prior Tax is pledged
to the payment of the Series 2008 Bonds or the Series 2009 Bonds.
Section 3. In order to pay the principal of and interest on the Series 2009 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 2009 Bonds, together with investment earnings
thereon, shall be used (i) to finance the Projects; and (ii) to pay interest on the Series 2009 Bonds
until collections of the Library Tax become available to pay the interest on the Series 2009 Bonds;
and (iii) to pay the costs of issuance of the Series 2009 Bonds. The Series 2009 Bonds, will
mature, bear interest and be subject to redemption in accordance with the provisions of the
Supplemental Indenture (identified hereinafter).
Section S. All actions heretofore taken by the Mayor, City Clerk, and Director of Finance
and Treasurer in connection with the offering of the Series 2009 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 2009 Bonds is hereby approved.
Section 7 To prescribe the terms and conditions upon which the Series 2009 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 Series 2009 Supplemental Trust Indenture between the City and the Trustee, and
the City Clerk is hereby authorized and directed to execute and acknowledge the Series 2009
Supplemental 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 Series 2009 Supplemental 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 Series 2009 Supplemental Trust Indenture, the
performance of all obligations of the City under the Series 2009 Supplemental Trust Indenture, the
issuance, execution, sale and delivery of the Series 2009 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: -03-6!2
ATTEST:
Na rk y Woodj/City Clerk
APPROVED AS TO FORM:
Thomas M. Carpenter
City Attorney
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EXHIBIT A
Series 2009 Bonds
Maturity
Principal
Interest
March 1
Amount
Rate
2010
$1,045,000.00
3.000%
2011
1,075,000.00
3.000%
2012
1,110,000.00
3.000%
2013
1,140,000.00
3.000%
2014
1,175,000.00
3.000%
2015
1,210,000.00
3.000%
2016
1,255,000.00
4.000%
2017
1,305,000.00
4.000%
2018
1,360,000.00
4.000%
2019
1,415,000.00
4.000%
2020
1,475,000.00
4.000%
2021
1,535,000.00
4.000%
2022
1,600,000.00
4.250%
2023
1,670,000.00
4.375%
2024
1,745,000.00
4.600%
2025
1,830,000.00
4.700%
2026
1,920,000.00
4.800%
2027
2,015,000.00
5.000%
2028
2,120,000.00
5.000%
(Accrued interest from April 1, 2009 to be added)
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