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ORDINANCE NO. 12,117
AN ORDINANCE AUTIORIZING THE ISSUANCE OF CITY
OF LITTLE ROCK, ARKANSAS, GENERAL OBLIGATION
(PORT DEVELOPMENT) BONDS, SERIES 1968,UNDER THE
PROVISIONS OF AMENDMENT NO. 49 TO THE CON-
STITUTION OF THE STATE OF ARKANSAS; AUTHORIZING
THE ACQUIRING, CONSTRUCTING AND EQUIPPING OF,
IMPROVEMENTS DESCRIBED IN THE ORDINANCE; LEVYING
A TAX AND PROVIDING FOR THE PAYMENT OF THE BONDS;
PRESCRIBING OTHER MATTERS RELATING THERETO; AND
DECLARING AN EMERGENCY.
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WHEREAS, the Board of Directors of the City of Little Rock, Arkansas
(called "City "), by Ordinance No. 11,474, adopted and approved on the 16th
day of March, 1964, called a special election to be held on the 12th day of
May, 1964, for the electors to vote upon the question of issuing bonds under
the provisions of Amendment No. 49 to the Constitution of the State of Arkansas
in the principal amount of $4,300,000 for the purpose of securing and developing
industry consisting of the acquisition of lands, the development of the lands by
installing necessary utility lines and services, roads, streets, railways and
other necessary facilities for the utilization of the lands in the securing and
developing of industry; the constructing and equipping of necessary'port or
marine terminal facilities; and other improvements, facilities and expenditures
necessary or incidental to the full utilization, development and use of the lands,
improvements, facilities, developments and port or marine terminal facilities for
the securing and developing of industry (called the "improvements"); and
WHEREAS, due notice of the election was given as required by law, and
at the special election the electors approved the issuance of bonds in the principal
amount of $4,300,000; and
WHEREAS, the results of the election were proclaimed by the Mayor in
a Proclamation duly published on May 23, 1964; and
WHEREAS, the Board of Directors initially issued bonds in the principal
amount of $3,150,000 and now desires to issue the remaining bonds (there remain
$1,095,000 in principal amount that can be issued, since the bonds scheduled
for July 1, 1967 and July 1, 1968 have already matured) with the bonds of the
total authorized issue to rank on a parity of security; and
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WHEREAS, after due advertisement for the time and in the manner
provided by law, bonds in the principal amount of $1,095,000 were offered for
public sale, and at the sale an account headed by First National Bank of
Memphis, Memphis, Tennessee ( "purchaser "), bid and offered the price of par
and accrued interest for bonds bearing interest at the rates of 3 %, 4 %, 4 -1/4%
and 5% per annum, and this being the best bid, the bonds were sold to the pur-
chaser at said price;
NOW, THEREFORE, BE IT ORDAINED by the Board of Directors of the
City of Little Rock, Arkansas:
Section 1. That the sale of the $1,095,000 in principal amount of bonds
to the purchaser for the price set forth above be, and the same is hereby, approved
and confirmed.
Section 2. That the acquisition, construction and equipping of the
improvements be, and the same are hereby, authorized, directed, approved and
confirmed.
Section 3. That under the authority of the Constitution and' laws of the
State of Arkansas, including particularly Amendment No. 49 to the Constitution of
the State of Arkansas, City of Little Rock, Arkansas General Obligation (Port
Development) Bonds, Series 1968, are hereby authorized and ordered issued in
the principal amount of $1 , 095, 000 for the purpose of financing the cost of ac-
quiring, constructing and equipping the improvements (with the improvements having
been heretofore referred to in the Whereas clauses of this Ordinance and having
been heretofore authorized in Section 2 of this Ordinance) . The bonds now being
issued are the remaining bonds of a total issue originally authorized in the
principal amount of $4,300,000 ($3, 150,000 have been heretofore issued) and all of
the bonds rank on a parity of security. References herein to the unqualified word
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"bonds" shall mean the bonds of the total authorized issue, regardless of
series, unless the context clearly indicates another meaning, references herein
to the bonds initially issued will be to the "Series 1964 Bonds," and references
herein to the bonds now being issued will be to the "Series 1968 Bonds." The
Series 1968 Bonds will be dated July 1, 1964, interest thereon will be payable
semiannually on January 1 and July 1 of each year (the first interest coupon to be
printed will be Coupon No. 8 due and payable January 1, 1969, and therefore, the
purchaser will pay accrued interest from July 1, 1968), and the Series 1968 Bonds
will mature annually on July 1 of each of the years 1969 to 1994, inclusive, as
set forth in the schedule appearing in Section 7 of this Ordinance, but the
principal thereof will be callable for payment prior to maturity as hereafter set
forth in the bond form appearing in Section 5 of this Ordinance. The Series 1968
Bonds shall be numbered consecutively from one (1) to one thousand. ninety -five
(1095) , inclusive, and shall be in the denomination of $1,000 each. The Series
1968 Bonds shall bear interest as follows: Bonds Nos. 1 to 442, inclusive, being
the bonds maturing in the years 1969 to 1981, inclusive, bear interest at the rate
of 5 % per annum; Bonds Nos. 443 to 866, inclusive, being the bonds maturing in
the years 1982 to 1990, inclusive, bear interest at the rate of 4 -1/4% per annum;
Bonds Nos. 867 to 921, inclusive, being the bonds maturing in the year 1991, bear
interest at the rate of 4% per annum; and Bonds Nos. 922 to 1095, inclusive, being
the bonds maturing in the years 1992 to 1994, inclusive, bear interest at the rate
of 3% per annum. The principal of and interest on the Series 1968 Bonds shall be
payable in lawful money of the United States of America upon presentation of the
bond or proper coupon at the principal office of First American National Bank, North
Little Rock, Arkansas (the "Paying Agent ") .
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Section 4. That the Series 1968 Bonds shall be executed on behalf of
the City by the Mayor and City Clerk and shall have impressed or printed thereon
the seal of the City, and the interest coupons shall be executed on behalf of the
City by the Mayor. The Series 1968 Bonds and the interest coupons may have the
facsimile signature of the Mayor lithographed or printed thereon, which signature
shall have the same force and effect as if he had personally signed each of said
bonds and each of said coupons, but the Series 1968 Bonds must be signed by the
manual signature of the City Clerk.
Section S. That the Series 1968 Bonds and the coupons attached thereto
(which coupons evidence the interest on the bonds) shall be in substantially the
following form:
UNITED STATES OF AMERICA
STATE OF ARKANSAS
COUNTY OF PULASKI
CITY OF LITTLE ROCK
% GENERAL OBLIGATION (PORT DEVELOPMENT) BOND
SERIES 1968
No.
KNOW ALL MEN BY THESE PRESENTS:
$1,000
' That the City of Little Rock, Pulaski County, Arkansas ("city"),
acknowledges itself to owe and, for value received, promises to pay to bearer
the sum of
ONE THOUSAND DOLLARS
in lawful money of the United States of America on the first day of July, 19_,
and to pay interest hereon at the rate of
per cent ( %) per annum from date semiannually on January 1 and July 1
of each year, upon presentation and surrender of the annexed coupons as they
severally become due. Both the principal of and interest on this bond are
hereby made payable at the principal office of First American National Bank,
North Little Rock, Arkansas.
This is one of a series of one thousand ninety -five (1095) bonds
aggregating One Million Ninety -Five Thousand Dollars ($1,095,000), dated
July 1, 1964, and numbered from one (1) to one thousand ninety -five (1095),
inclusive, all of like tenor and effect except as to number, rate of interest,
maturity and right of prior redemption (called "Series 1968 Bonds ") , being the
remaining part of a total authorized issue in the originally authorized principal
I
amount of $4,300,000 ($3,150,000 in principal amount having been previously
issued, designated "Series 1964 Bonds ") , and all the' bonds rank on a parity.
References herein to the unqualified word "bonds" shall mean the bonds of the
total authorized issue regardless of series and regardless of when sold and
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delivered. The bonds are being issued for the purpose of financing the cost
of securing and developing industry, consisting of the acquisition of lands;
the development of said lands by installing necessary utility lines and
services, roads, streets, railways and other necessary facilities for the
utilization of said lands in the securing and developing of industry; the con-
structing and equipping of necessary port or marine terminal facilities; and
other improvements, facilities and expenditures necessary or incidental to the
full utilization, development and use of said lands, improvements, facilities,
developments and port or marine terminal facilities for the securing and developing
of industry (the "improvements ") .
The bonds are issued pursuant to and in full compliance with the
Constitution and laws of the State of Arkansas, particularly Amendment No. 49
to the Constitution of the State of Arkansas, and pursuant to Ordinances of the
Board of Directors of the City and an election duly held at which the majority of
the legal voters of the City voting on the question voted in favor of the issuance
of the bonds. The bonds are general obligations of the City, payable from the
proceeds of a special 1.85 mill special tax on the dollar of the assessed valuation
of all taxable real and personal property in the City, levied under the authority
of Amendment No. 49 to the Constitution of the State of Arkansas, and the City
hereby pledges its full faith, credit and taxing power, including the 1.85 mill
special tax for the payment of the principal of and interest on the bonds. The
tax shall be collected annually as long as the bonds are outstanding and unpaid
unless the collection thereof, in whole or in part, is suspended. Provision has
been made in Ordinance No. , adopted and approved on the
day of
, 1968 (the "Authorizing Ordinance ") which authorizes
the Series 1968 Bonds, for the suspension and collection of all or a portion of
the special tax to the extent of available revenues from the improvements and
reference may be had to the provisions of the Authorizing Ordinance pertaining
to the suspension of collection and for the details concerning the nature and
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extent of the security and the rights and obligations of the City and the
bondholders. The bonds are not secured by a lien on the improvements and
are not secured by a pledge of any revenues derived from the improvements.
The City covenants that the entire proceeds derived from the special
tax at any time levied must be applied as and when available to the payment of
the principal of and interest on the bonds and that the entire amount of tax
collections over and above the amount necessary to insure the prompt payment
of the principal of and interest on all outstanding bonds of both series will be
applied on each interest paying date as and when available proportionately to
the redemption of the bonds of each series prior to maturity. And, it is under-
stood that this covenant to use surplus proceeds of the special tax for the
redemption of bonds will apply to any revenues from the improvements utilized
for the payment of bonds and which form the basis of the suspension of collection
of a portion of the special tax.
The Series 1968 Bonds will not be subject to redemption prior to maturity
from surplus proceeds of the sale of the Series 1968 Bonds. The Series 1968 Bonds
will be subject to redemption prior to maturity in inverse numerical order as follows:
From surplus tax collections or from funds available from the- operation of the
improvements at a price of the principal amount of the bonds being redeemed,
plus accrued interest to date of redemption on any interest payment date; from funds
from any other source on any interest payment date on and after July 1, 1977, 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 being redeemed as
follows:
3 -1/2%
if redeemed on July
1,
3%
if redeemed on July
1,
2 -1/2%
if redeemed on July
1 ,
2%
if redeemed on July
1,
1 -1/2%
if redeemed on July
1 ,
1%
if redeemed on July
1,
1/2%
if redeemed on July
1 ,
1977 or January
1,
1978;
1978 or January
1,
1979;
1979 or January
1,
1980;
1980 or January
1,
1981;
1981 or January
1,
1982;
1982 or January
1,
1983;
1983 or January
1 ,
1984;
No premium if redeemed thereafter.
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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, with the publication to be at least fifteen (15) days prior
to the redemption date, and after the date fixed for redemption each bond so
called shall cease to bear interest, providing funds for its payment are on deposit
with the Paying Agent at that time.
IT IS HEREBY CERTIFIED, RECITED AND DECLARED that all acts,
conditions and things required to exist, happen and be performed under the
Constitution and laws of the State of Arkansas, particularly Amendment No. 49
to the Constitution of the State of Arkansas, precedent to and in the issuance
of the bonds 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
does not exceed any constitutional or statutory limitations; and that a tax sufficient
to pay the principal of and interest on the bonds has been levied in accordance
with the provisions of Amendment No. 49 to the Constitution of the State of
Arkansas and made payable annually until all of the principal of and interest on
the bonds are fully paid and discharged, subject to the suspension of the collection
thereof referred to above.
This bond shall not be valid until it shall have been authenticated by
the Certificate hereon duly signed by First American National Bank, North Little
Rock, Arkansas.
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IN WITNESS WHEREOF, the City of Little Rock, Pulaski County, Arkansas,
has caused the bonds and coupons to be executed by the facsimile signature of
the Mayor and has caused the bonds to be executed by the manual signature of
the City Clerk, and has caused the seal of the City to be affixed or printed on
the bonds, all as of the first day of July, 1964.
ATTEST:
(SEAL)
City Clerk
CITY OF LITTLE ROCK, ARKANSAS
By Facsimile Signature)
Mayor
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(Form of Coupon)
No.
h
January
On the first day of July 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
D OL LARS
in lawful money of the United States of America at the principal office of
First American National Bank, North Little Rock, Arkansas,
being six (6) months' interest then due on its General Obligation (Port Development)
Bond issued under Amendment No. 49 to the Constitution of the State of Arkansas,
dated July 1, 1964, and numbered
CITY OF LITTLE ROCK, ARKANSAS
By (Facsimile Signature)
Mayor
On each bond shall appear the following:
CERTIFICATE
This is to certify that this is one of the bonds of the series mentioned
and described within, designated Series 1968.
FIRST AMERICAN NATIONAL BANK
North Little Rock, Arkansas
By
(Authorized Signature)
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Section 6. That all bonds of the total authorized issue, including
without limitation, the Series 1968 Bonds authorized hereby, shall constitute
general obligations of the City to the payment of the principal of and interest on
which the City hereby pledges its full faith, credit and taxing power, including
a 1.85 mill special tax on each dollar of the assessed valuation of all taxable
real and personal property within the City, which special tax shall be collected
with the taxes collected in the year 1969 and annually thereafter until all of the
principal of and interest on the bonds are paid in full or until adequate provision
is made for their payment, unless the collection thereof is suspended as here-
after set forth. In the Ordinance authorizing the Series 1964 Bonds there was
pledged a 1.35 mill special tax, and provision was made for additional levies
which would produce revenues in an amount approximating 120% of the average
annual principal and interest requirements of all bonds outstanding. It is hereby
found that the revenues produced by the 1.85 mill special tax, which is hereby
levied, will produce revenues approximating 120% of the average annual principal
and interest requirements of the bonds outstanding. All special taxes levied for
the bonds of the total authorized issue, are and shall be pledged to the payment
of the principal of and interest on all of the bonds of the total authorized issue,
regardless of the series. The bonds are not secured by a lien on the improvements
and are not secured by a pledge of any revenues derived from the improvements.
However, the City reserves the right, at its option, to use all or any portion of
available revenues derived from the improvements for application to the payment
of the principal of and interest on the bonds, at maturity or at redemption prior to
maturity (which will be herein referred to as "available project revenues" or
"available revenues ") . The said special tax shall be collected in the full amount
of 1.85 mills in the years 1969 through 1978, but thereafter collection may be
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suspended, in whole or in part, as follows: The County Clerk is hereby directed
to extend the said tax for collection each year unless he receives, on or before
November 15 of the year immediately preceding the year in which the said taxes
are to be collected, a certificate signed. by the Mayor of the City and an authorized
officer of each bank that is Paying Agent for any series of bonds of the total authorized
issue then outstanding, that the collection of all or a specified portion of the special
tax is to be suspended for the next calendar year. In this regard, it is understood
that the Mayor and the authorized officer or officers of the Paying Agent bank or
banks, in determining the action to be taken by them concerning said certificate,
shall be guided solely by the amount of available revenues actually on deposit in
the Bond Fund (hereafter identified) and the collection may be suspended, if requested
by the City (evidenced by a Resolution of the Board of Directors of the City) only to
the extent that there be available for the year for which the suspension is applicable
from tax proceeds to be collected from any unsuspended portion of the tax and
from the available revenues on hand, as aforesaid, not less than 120% of the
average annual principal and interest requirements of all bonds outstanding.
Based thereon, the Mayor and the authorized officer or officers of the Paying Agent
bank or banks shall decide how much of the special tax is to be collected and
shall certify to the County Clerk whether the entire special tax is to be collected
or, if not, the portion thereof that is to be collected, or that no portion thereof is
to be collected. The County Clerk shall be entitled to rely upon said certificate
and shall act in accordance therewith. All proceeds derived from the collections
of the special tax referred to above and all available revenues which the City elects
to apply to the payment of the principal of and interest on the bonds shall be
deposited, as, if and when received, into a special fund in the name of the City
designated "Port Bond Retirement Fund" (sometimes called the "Bond Fund "),
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which fund shall be maintained in a bank to be selected from time to time by
the City but which is a member of the Federal Deposit Insurance Corporation,
and all moneys in the Bond Fund shall be used solely for the payment of the
principal of, interest on and Paying Agent's fees in connection with the bonds
at maturity and at redemption prior to maturity. As set forth in the face of the
bond form, the City covenants that all moneys in the Bond Fund over and above
the amount necessary to insure the prompt payment of the principal of and
interest on all outstanding bonds of the total authorized issue as the same become
due will be applied on each interest paying date as and when available pro-
portionately to the redemption of the bonds of each series prior to maturity
(that is, that proportionate amount of said surplus that the original principal
amount of the bonds of each series bears to the total original principal amount
of both series as to which any bonds are outstanding at the time, must be applied
to the redemption of the bonds of the particular series) .
Section 7.' That the moneys on deposit in the Bond Fund are hereby
appropriated to pay the principal of and interest on the bonds as they mature, and
if said moneys be not sufficient for that purpose, then there are hereby appropriated
out of the general revenues of the City the sums necessary to pay the principal of
and interest on the bonds as they mature, with the amounts therein in excess of
that necessary to insure the prompt paymeiit of the principal of and interest on the
bonds as they mature being hereby appropriated to the redemption of bonds prior to
maturity. The Series 1968 Bonds mature according to the following schedule:
G
YEAR
1969
1970
1971
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
BOND NOS.
1 - 28
29 - 57
58 - 87
88 "118
119 150
151 - 183
184 - 217
218 - , 252
253 - 288
289 - 325
326 - 363
364 - 402
403 - 442
443 - 484
485 - 527
528 - 571
572 - 616
617 - 663
664 - 712
713 - 762
763 - 813
814 - 866
867 - 921
922 - 977
978-- 1035
1036 - 1095
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PRINCIPAL INTEREST
TANUARY 1 TULY 1
$ 28,000
29,000
30,000
31,000
32,000
33,000
34,000
35,000
36,000
37,000
38,000
39,000
40,000
42,000
43,000
44,000
45,000
47,000
49,000
50,000
51,000
53,000
55;004
55,OOa
58,000
60,000
$23,770.00
23,070.00
22,345.00
21,595.00
20,820.00
20,020.00
19,195.00
18,345.00
17,470.00
16,570.00
15,645.00
14,695.00
13,720.00
12,720.00
11,827.50
10,913.75
9,978.75
9,022.50
8,023.75
6,982.50
5,920.00
4,836.25
3,710.00
2,610.00
1,770.00
900.00
$23,770.00
23,070.00
22,345.00
21,595.00
20,820.00
20,020.00
19,195.00
18,345.00
17,470.00
16,570.00
15,645.00
14,695.00
13,720.00
12,720.00
11,827.50
10,913.75
9,978.75
9,022.50
8,023.75
6,982.50
5,920.00
4,836.25
3;710.00
2,610.00
1,770.00
900.00
TOTAL
$75,540.00
75,140.00
74,690.00
74,190.00
73,640.00
73,040.00
72,390.00
71,690.00
70,940.00
70,140.00
69,290.00
68,390.00
67,440.00
67,440.00
66,655.00
65,827.50
64,957.50
65,045.00
65,047.50
63,965.00
62,840.00
62,672.50
62,420.00
61,220.00
61,540.00
61,800.00
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Section 8. That the bonds of this issue shall be callable for payment
as set forth in the face of the bond form in Section 5.
Section 9. That the Treasurer of the City, or the chief finance officer
of the City having custody of the moneys in the Bond Fund, shall withdraw
from the Bond Fund and'make available to the Paying Agent a sufficient time prior
to the maturity or redemption date of any bonds or interest coupons an amount equal
to the amount necessary for the maturity or redemption of the bonds, principal and
interest, for the sole purpose of paying the same, together with the amount
necessary to provide for the Paying Agent's fees. This instruction to the Treasurer
or chief finance officer, as aforesaid, is irrevocable and may be enforced by
mandamus.
Section 10. That First American National Bank, North
Little Rock, Arkansas, is hereby designated as Paying Agent for the Series 1968
Bonds. The holders of a majority in principal amount of the outstanding Series
1968 Bonds at any time may by an instrument duly executed and recorded in the
office of the City Clerk appoint a new Paying Agent who shall have all the powers
of the original Paying Agent, and the Paying Agent herein named may resign at any
time upon ten (10) days notice in writing mailed to the City Clerk. In the event
of a vacancy in the office of Paying Agent and the failure of the holders of a
majority in principal amount of the outstanding Series 1968 Bonds to take the
necessary action to appoint a new Paying Agent within thirty (30) days after such
vacancy occurs, the City shall forthwith designate a new Paying Agent.
Section 11 . That if default is made and continues for thirty (30) days
in the payment of any interest coupon, the holder of the bond to which it is
attached may declare the same immediately due and payable, and the failure of
the holder to exercise this option upon any default shall not be a waiver of his
right to exercise the option upon any subsequent default.
Section 12. That when the Series 1968 Bonds have been executed and
sealed, they shall be delivered to First American National Bank, North
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Little Rock, Arkansas, which shall authenticate them and deliver them to the
purchaser upon receipt of the purchase price of $1 , 095, 000, plus accrued
interest from July 1, 1968, to the date of delivery (called "total sale proceeds ") .
The total sale proceeds shall be disbursed by said Bank as follows:
1 . The amount of the accrued interest shall be deposited in the
Bond Fund.
2. The balance of the total sale proceeds shall be deposited into a
special fund in the name of the City designated "Port Bond Construction
Fund" (sometimes called the "Construction Fund "), which Construction Fund
shall be maintained in a bank to be selected from time to time by the City, but
which is a member of the Federal Deposit Insurance Corporation, and all moneys
in the Construction Fund shall be used solely for the payment of the cost of
acquiring, constructing and equipping the improvements, paying necessary
expenses incidental thereto, and paying the expenses of the issuance of the
bonds. The City may invest and reinvest the moneys on deposit in the
Construction Fund in any securities constituting authorized investments for
municipal funds under the laws of the State of Arkansas having maturity dates,
or subject to redemption by the holder, on or before the dates the moneys so in-
vested will be needed for the purposes for which said moneys may be expended.
Section 13. That the provisions of this Ordinance are hereby declared
to be separable, and in the event any action, provision or part thereof shall be
held to be invalid, such invalidity shall not affect the remainder of the Ordinance.
Section 14. That all Ordinances and parts thereof in conflict herewith
are hereby repealed to the extent of such conflict.
Section 15. That there is hereby found and declared to be an immediate
need for the improvements so that the welfare of the City and its inhabitants be
protected by receipt of the public benefits to flow from the improvements and that
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the improvements can be accomplished only by the issuance of the bonds
authorized hereby. It is, therefore, declared that an emergency exists and this
Ordinance being necessary for the preservation of the public health, safety and
welfare shall be in force and take effect immediately upon and after its passage.
PASSED: August 19 , 1968.
ATTEST
City Clerk
PPP