HomeMy WebLinkAbout13345ORDINANCE NO. 13,345
AN ORDINANCE AUTHORIZING THE PUBLIC SALE OF
AIRPORT REVENUE BONDS IN THE PRINCIPAL AMOUNT
OF $500,000; AND DECLARING AN EMERGENCY.
BE IT ORDAINED BY THE BOARD OF DIRECTORS OF THE CITY OF
LITTLE ROCK, ARKANSAS:
Section 1. That the Director of Finance of the City of
Little Rock, Arkansas publish in some newspaper published in the
City of Little Rock, Arkansas, and having a bona fide circulation
therein and, at his election, in such other financial journal or
journals as he may select, a Notice in substantially the following
form, which shall be published once a week until the date fixed
for the sale, the first publication to be at least twenty (20)
days before said date:
S
NOTICE OF SALE
$500,000
CITY OF LITTLE ROCK, ARKANSAS
MUNICIPAL AIRPORT REVENUE BONDS
DATED NOVEMBER 1, 1977
The City of Little Rock, Arkansas (the "City ") hereby
gives notice that sealed bids will be received at the time and place
specified below on $500,000 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 Act No. 175 of the Acts of Arkansas of 1959 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 constructing airport loading ramps.
The bonds will be dated November 1, 1977, and will bear
interest at the rate or rates accepted at the public sale, interest
will be payable semiannually on May 1 and November 1 of each year,
commencing May 1, 1978, and the bonds will mature annually on
November 1 of each year as follows:
YEAR
AMOUNT
1978
$40,000
1979
40,000
1980
45,000
1981
45,000
1982
501000
1983
50,000
1984
55,000
1985
55,000
1986
60,000
1987
60,000
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 expenses sufficient to adequately provide for the
t
operation and maintenance expenses of the Municipal Airport, pay
the principal of and interest on all outstanding bonds to which
revenues derived from operation of the Municipal Airport are pledged
(being Municipal Airport Revenue Bonds, Series 1966, dated May 1,
1966, Municipal Airport Revenue Bonds, dated March 1, 1971, Municipal
Airport Revenue Refunding Bonds, dated March 1, 1975 and Airport
Revenue Bonds, Series 19760 dated March 1, 1976 (the "Outstanding
Issues ") and the bonds of this issue and any additional outstanding
bonds), make the required deposit into the Depreciation Fund and
maintain all funds at the levels required by the authorizing ordinances
and resolutions. In this regard, the lien, pledge and security
interest in airport revenues in favor of the bonds will be on a parity
with the lien, pledge and security in favor of the Outstanding Issues.
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 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 denomination 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 of less than par and accured interest will be
entertained. All bonds of the same maturity must bear interest
at the same rate. Bidders may specify an unlimited number of rates
but the difference between the highest and lowest rate must not
exceed 1 -1/2%. The bonds of each maturity must bear interest from
date to maturity at the same rate. The award, if any, shall be made
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 therefrom the amount of
any premium bid. The City reserves the right to reject any or all
bids.
The bonds shall not be subject to redemption prior to
maturity.
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 2:00 o'clock p.m. on
October 26, 1977
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 November 1, 1977" and addressed to
Mr. E. Jack Murphy, Director of Finance, 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 $10,000, payable
to the order of the City to be kept as liquidated damages in the
event a bidder is awarded the same 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 will be delivered to the purchaser within forty -five (45)
days after the sale. Delivery shall be in the City of Little Rock,
Arkansas, or, at the expense of the purchaser, at another location
selected by the purchaser. The purchaser will be furnished the
unqualified approving opinion of the law firm of Friday, Eldredge
& Clark, Little Rock, Arkansas. Payment by the purchaser must be
made in federal funds.
Additional information may be obtained from Mr. E. Jack
Murphy, Director of Finance, City Hall, Little Rock, Arkansas 722011
or from Friday, Eldredge & Clark, The First National Building, Twentith
Floor, Little Rock, Arkansas 72201.
CITY OF LITTLE ROCK, ARKANSAS
By
E. Jack Murphy
Director of Finance
Section 2. That the Director of Finance prepare, publish
and disseminate a prospectus descriptive of the bonds and the City
of Little Rock to accompany the Notice of Sale for distribution
among financial institutions and take such other action as he may
deem desirable or advisable to assure the most favorable market
for the sale of the bonds.
Section 3. That it is hereby ascertained and declared
that there is an immediate and urgent need for the construction of
the project to be financed through the issuance of the Airport
Revenue Bonds of the City in order to promote and protect the health,
safety and welfare of the City and its inhabitants; that only by
the adoption of this Ordinance and giving it immediate effect can
these purposes be accomplished expeditiously and effectively. IT
IS, THEREFORE, declared that an emergency exists and this Ordinance,
being necessary for the immediate preservation of the public health,
safety, and welfare, shall take effect and be in force immediately
upon and after its passage.
ADOPTED: September 20, 1977.
APPROVED:
ATTEST:
Mayo
city clerk
(SEAL)