HomeMy WebLinkAbout10893ORDINANCE NO. 10,893
AN ORDINANCE AUTHORIZING THE ISSUANCE OF BONDS
FOR THE SEVERAL DIFFERENT PURPOSES LISTED
THEREIN; IEVYING A TAX SUFFICIENT TO-PAY THE
PRINCIPAL OF AND INTEREST ON THE BONDS; PRE-
SCRIBING OTHER MATTERS RELATING THERETO; AND
DECLARING AN EMERGENCY.
WHEREAS the City of Little Rock, Arkansas is a city of
the first class; and
WHEREAS by Ordinance No. 10,852 duly passed by the Board
of Directors and approved on the 22nd day of September, 1958, there
was submitted to the qualified electors of the City of Little Rock,
Arkansas the question of the issuance of bonds in the following
amounts for the following purposes:
$1,800,000 for the acquisition of rights -of -way
for construction of public streets,
alleys, and boulevards;
$1,350,000 for the construction of, widening, or
straightening of streets, alleys and
boulevards;
$ 600,000 for the purchase, development and im-
provement of public parks and flying
fields;
$1,000,000 for the purchase of sites for, con -
struction of, and equipment of city
hall, auditorium, and prison; and
$ 200,000 for buildings for the housing of fire-
fighting apparatus;
with the provision that in the event bonds for more than one purpose
were approved the bonds approved for any one purpose might be issued
separately or might be combined with bonds approved for any other
purpose or purposes into one or more issues; and
WHEREAS due notice of the election was given as required
by law and the election was duly held on the 4th day of November,
1958, at which election the electors approved the issuance of bonds
for each of said purposes; and
WHEREAS the results of the election were announced by the
Mayor by a Proclamation duly published as required by law in a
newspaper of bona fide circulation in the City of Little Rock, Arkansas;
and
uo� -�
Page 2
WHEREAS the Board of Directors determined to sell
$3,300,000 in aggregate principal amount of said total authorized
issue of $4,950,000, the bonds initially being issued for the follow-
ing purposes:
$1,500,000 for the acquisition of rights-of-way
for construction of public streets,
alleys, and boulevards;
• $ 850,000 for the construction of, widening, or
straightening of streets, alleys and
boulevards;
$ 400,000 for the purchase, development and im-
provement of public parks and flying
fields;
$ 400,000 for the purchase of sites for, con-
struction of, and equipment of city
hall, auditorium, and prison; and
$ 150,000 for buildings for the housing of fire-
fighting apparatus; and
WHEREAS bonds in said aggregate principal amount of
$3,300,000 for said above set forth purposes were duly advertised
for sale, with a reservation by the City of the right to issue,
at such time or times as it might elect, the.remaining $1,650,000
of said total authorized issue approved by the electors at the
November 4, 1958 election on a parity of security with said initial
issue of bonds, with the bonds being offered for sale dated Decem-
ber 1, 1958, the interest thereon payable semi - annually on January
1 and July 1 of each year and with the bonds maturing on January 1
in each of the years 1962 to 1986, inclusive, all as specified in
the notice of sale; and
WHEREAS said sale was duly held pursuant to advertisement
on the 7th day of January, 1959, and at said sale Stephens, Inc.
and T. J. Raney & Sons, both of Little Rock, Arkansas, bid and
offered the price of par and accrued interest for bonds bearing
interest at the rate of 3.48276% per annum, and this being the best
bid for said bonds, the bonds were sold to the said Stephens, Inc.
and T. J. Raney & Sons for said price; and
Page 3
WHEREAS the said notice of sale permitted the purchaser
to designate not more than three interest rates provided that the
total interest cost of the interest rates so designated did not
exceed the rate of 3.48276% per annum with the rates to be in
multiples of 1/4 of 1% and with no single rate exceeding 5% and
with not more than one interest rate to be specified in any one
year; and
WHEREAS pursuant to the privilege set forth in the notice
of sale to so designate three interest rates, the purchasers have
designated a rate of 3 3/4%, for the bonds maturing in the years
1962 to 1984, inclusive, 31% for the bonds maturing in the year
1985 and 1% for the bonds maturing in the year 1986; and
WHEREAS the Board of Directors has examined the maturity
schedule of bonds bearing interest at the rate of 3.482769 per
annum and the maturity schedule of bonds bearing interest at the
above set forth rates designated by the purchasers and finds that
the total interest cost of the rates designated by the purchasers
is $2.13 less than the total interest cost of bonds bearing interest
at 3.48276% per annum, so that said designations by the purchasers
are proper and are within the terms of the notice of sale;
NOW, THEREFORE, BE IT ORDAINED by the Board of Directors
of the City of Little Rock, Arkansas:
Section 1. That the sale of $3,300,000 of 3.48276% bonds
to Stephens, Inc. and T. J. Raney & Sons, both of Little Rock,
Arkansas, at a price of par and accrued interest and the designations
by said purchasers of interest rates of 3 3/4%, 3i% and 1% for the
years set forth above be, and the same are hereby, approved and
confirmed.
Section 2. That under the authority of the Constitution
and laws of the State of Arkansas, including particularly Amendment
No. 13 to the Constitution of the State of Arkansas, City of Little
Rock General Obligation Improvement Bonds are hereby authorized
and ordered issued in the total principal amount of $3,300,OG3for
Page 4
the following purposes:
$1,500,000 for the acquisition of rights-of-way
for construction of public streets,
alleys and boulevards;
$ 850,000 for the construction of, widening, or
straightening of streets, alleys and
boulevards;
$ 400,000 for the purchase, development and im-
provement of public parks and flying
fields;
$ 400,000 for the purchase of sites for, con-
struction of, and equipment of city ,
hall, auditorium, and prison; and
$ 150,000 for buildings for the housing of fire-
fighting apparatus; and
the principal amount of the bond issue includes necessary expenses
incidental to the completion of the authorized purposes and to the
issuance of bonds and includes an amount sufficient to pay interest
on the bonds until tax collections are available. As provided in
the official ballot and as authorized under the Constitution and
laws of the State of Arkansas, the City has elected to combine
bonds for the various purposes into one issue. The bonds shall be
dated December 1, 1958 and the interest thereon shall be payable
semi - annually on January 1 and July 1 of each year commencing
July 1, 1959. The bonds shall mature on January 1 in each of the
years 1962 to 1986, inclusive, as hereinafter set forth. The
principal of and interest on the bonds shall be payable in lawful
money of the United States of America upon presentation of the bond
or proper coupon at the office of Worthen Bank & Trust Company,
Little Rock, Arkansas.
Section 3. That the bonds presently being issued are
part of a total authorized issue
the electors at said November 4,
serves the right to issue, at su,
the remaining $1,650,000 of said
$4,950,000 on parity of security
and issued hereunder.
of $4,950,000 of bonds approved by
1958 election, and the City re-
;h time or times as it may elect,
total authorized issue of
with the bonds herein authorized
Page 5
Section 4. That the bonds shall be executed on behalf of
the City by the Mayor and City Clerk and shall have impressed
thereon the seal of the City. Interest coupons attached to each
of the bonds may have the facsimile signature of the Mayor of the
City lithographed or printed thereon, which signature shall have
the same force and effect as if he had personally signed each of
said coupons.
Section 5. That the bonds and coupons shall be in sub-
stantially the following form:
Page 6
UNITED STATES OF AMERICA
..STATE OF ARKANSAS.
COUNTY OF PULAS KI
CITY OF LITTLE ROCK
GENERAL.OBLIGATION_IMPROVFXM BOND
No,
KNOW ALL MEN BY THESE PF&SENTS:
$1,000.00
That the City of Little Rock in the County of Pulaski and
State of Arkansas acknowledges itself to owe and for value received
hereby 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 January, 19 and to pay interest hereon at the rate of
per cent (____%) per annum from date, semi - annually on
January 1 and July 1 of each year, upon presentation and surrender
of the annexed coupons as they severally become due.
Both principal and interest of this bond are hereby made
payable at Worthen Bank & Trust Company, Little Rock, Arkansas.
This is one of a series of three thousand, three hundred
(3,300) bonds, aggregating Three Million, Three Hundred Thousand
Dollars ($3,300,000), dated December 1, 1958, and numbered from
one (1) to three thousand, three hundred (3,300), inclusive, all
of like tenor and effect except as to number, rate of interest and
maturity, and the bonds are issued for the following purposes:
For the acquisition of rights-of-way for
construction of public streets, alleys,
and boulevards;
For the construction of, widening, or
straightening of streets, alleys and
boulevards;
For the purchase, development and improve-
ment of public parks and flying fields;
For the purchase of sites for, construction
of, and equipment of city hall, auditorium,
and prison; and
For buildings for the housing of fire - fighting
apparatus.
Page 7
This bond and the series of which it forms a part are
issued pursuant to and in full compliance with the Constitution
and laws of the State of Arkansas, particularly Amendment No. 13
to the Constitution of the State of Arkansas and pursuant to ordi-
nances and resolutions of the Board of Directors of the City of
Little Rock and an election duly held, at which a majority of the
legal voters of said City voting on the question voted in favor
of the issuance of the bonds. This bond and the series of which
it forms a part are general obligations of the City of Little Rock,
Arkansas, payable from the proceeds of a special tax levied by
the Board of Directors under the authority of Amendment No. 13 to
the Constitution of the State of Arkansas, and the City of Little
Rock, Arkansas hereby pledges its full faith, credit and taxing
power, including the said special tax, for the payment of this
bond and the series of which it forms a part. The special tax
pledged to these bonds is as follows: 1.55 mills on the dollar of
the assessed valuation of all taxable real and personal property
in the City collected with the taxes payable in 1959 and 3.25 mills
on the dollar of the assessed valuation of all taxable real and
personal property in the City collected with the taxes payable in
1960 and continuing annually thereafter until all of the bonds and
interest thereon have been paid in full. The bonds presently being
issued are part of a total authorized issue of $4,950,000 of bonds
and the City reserves the right to issue, at such time or times as
it may elect, the remaining $1,650,000 of bonds of said total
authorized issue of $4,950,000 on a parity of security with this
bond and the series of which it forms a part.
The City has covenanted and agreed that all revenues de-
rived from said special tax in excess of the amount necessary to
provide a reserve of $87,500 and to insure the prompt payment of
the principal of and interest on the bonds as they mature, and the
Paying Agent's fees, must be used to call the bonds for payment prior
M. V�
to maturity at the times and in the manner provided herein for call
and payment prior to maturity.
The bonds will be callable for payment prior to maturity
in inverse numerical order on any interest paying date from sur-
plus tax collections at par and accrued interest. They will be
callable after January 1, 1965 with funds from any source on any in-
terest paying date at the following prices plus accrued interest:
July 1, 1965 to and including January 1, 1966 at 1040 on the dollar;
July 1, 1966 to and including January 1, 1967 at 1032¢ on the dollar;
July 1, 1967 to and including January 1, 1968 at 103¢ on the dollar;
July 1, 1968 to and including January 1, 1969 at 1022¢ on the dollar;
July 1, 1969 to and including January 1, 1970 at 102¢ on the dollar;
July 1, 1970 to and including January 1, 1971 at 1012¢ on the dollar;
July 1, 1971 to and including January 1, 1972 at 101¢ on the dollar;
July 1, 1972 to and including January 1, 1973 at 1002¢ on the dollar;
July 11 1973 and any interest paying date thereafter at par.
Notice of the call for redemption shall be published by the City
Clerk or Finance Officer by one insertion not less than fifteen (15)
days before the date of such redemption in a daily newspaper pub-
lished in the City of Little Rock, Arkansas and having a general
circulation throughout the State of Arkansas, which notice shall
give the number and maturity of each bond being called, and after
the date fixed for redemption each bond so called shall cease to
bear interest provided funds for its payment are on deposit with
the Paying Agent at that time.
IT IS IMY CERTIFIED, RECITED AND DECLARED that all
acts, conditions and things required to exist, happen and be per-
formed, under the Constitution and laws of the State of Arkansas,
particularly Amendment No. 13 to the Constitution of.the State of
Arkansas, 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 this bond
and the issue of which it forms a part, does not exceed any con-
stitutional or statutory limitation; and that a tax sufficient to
Page 9
pay the bond has been duly levied in accordance with said Amendment
No. 13 to the Constitution of the State of Arkansas and made pay-
able annually until all of the bonds and interest thereon have
been fully paid and discharged.
This bond shall not be valid until it shall have been
authenticated by the certificate hereon duly signed by Worthen
Bank & Trust Company, Little Rock, Arkansas.
IN WITNESS WHEREOF, the City of Little Rock, Arkansas
has executed this bond by the hands of its Mayor and City Clerk and
attested it with its corporate seal and has caused the coupons hereto
attached to be authenticated by the facsimile signature of its
Mayor, all as of the first day of December, 1958.
CITY OF LITTIE ROCK, ARKANSAS
By
Mayor
ATTEST:
City Clerk
(SEAL)
Page 10
(Form of Coupon)
No.
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
DOLLARS
in lawful money of the United States of America at the office of
Worthen Bank & Trust Company, Little Rock, Arkansas, being six (6)
months' interest then due on its General Obligation Improvement
Bond, dated December 1, 1958 and numbered
CITY OF LITTLE ROCK, ARKANSAS
By
Mayor
On each bond shall appear the following
CERTIFICATE
This is to certify that this is one of the three thousand,
three hundred (3,300) bonds of the issue mentioned and described
within.
WORTHEN BANK & TRUST COMPANY
LITTLE ROCK., ARKANSAS
By
AutHorized Signature
Little Rock, Arkansas
1959
Page 11
Section 6. That in order to pay the bonds as they mature
with interest thereon, there is hereby levied on all taxable per-
sonal and real property within the City of Little Rock, Arkansas a
tax of 1.55 mills on each dollar of assessed valuation to be col-
lected with the taxes collected in the year 1959 and a tax of 3.25
mills on each dollar of assessed valuation to be collected with
the taxes collected in the year 1960, which tax of 3.25 mills on
each dollar of assessed valuation shall continue annually there-
after until all of the bonds authorized hereby (or bonds issued
on a parity with these bonds pursuant to the reservation herein
made pertaining thereto). and interest thereon have been paid in full,
which will be sufficient to pay the principal of and interest on
said bonds as they mature, with more than five per cent (5f) added
for unforeseen contingencies. The City covenants and agrees that
all revenues from said special tax shall be deposited when received
in a special fund which is hereby created and designated "1958
General Obligation Bond Sinking Fund" (hereinafter called "Sinking
Fund ") to be carried in such depository or depositories as may be
designated from time to time by the Board of Directors, and shall be
used solely for the payment of the principal of and interest on the
bonds, the Paying Agents fees, and cost of redemption either at
maturity or at redemption prior to maturity, and that all revenues
derived from said special tax in excess of that amount sufficient
to provide a reserve of $87,500.00 and to insure the prompt payment
of the principal of and interest on the bonds must be used to call
the bonds for payment prior to maturity at the times and in the
manner provided herein for call and payment prior to maturity.
Section 7. That for the prompt payment of the bonds of
this issue with interest, the City of Little Rock, Arkansas hereby
pledges its full faith, credit and taxing power, including the
tax levied in Section 6.
Section 8. That in order to pay the principal of and
Page 12
interest on the bonds as they mature, there are hereby appropriated
out of the proceeds of the above referred to special tax, and if
said proceeds be not sufficient, then out of the general revenues
of the City, the sums necessary to promptly pay the principal of
and interest on the bonds as they mature according to the follow-
ing schedule:
YEAR
BOND
NOS.
PRINCIPAL
INTEREST
JANUARY 1 JULY 1
TOTAL
1959
$ 69,020.00
$ 69,020.00
1960
$ 59,16o.00
59,160.00
118,320.00
1961
1 59,160.00
59,160.00
118,320.00
1962
1963
1
92
- 91
- 184
$ 910000
93,000
59,160.00
57,453.75
57,453.75
55,710.00
207,613.75
206$163.75
1964
1965
185
280
- 279
- 377
95,000
98,000
55,710.00
53,928.75
53,928.75
52,091.25
204,638.75
204,020.00
1966
1967
378
4 9
- 4 8
- 582
101,000
lo4,000
52,091.25
50,197.50
48,2+7.50
50,1997.50
48,2+7.50
46,222.50
203,288.75
202,445.00
202,470.00
1968
583
- 690
108,000
1969
691
- 801
111,000
46,222.50
44,141.25
201,363.75
1970
802
- 915
114,000
44,141.25
42,003.75
200,145.00
1971
916
-1033
li% 000
42,003.75
39,791.25
199,795.00
1972
1034
-1154
121,000
39,791.25
37,522.50
198,313.75
1973
1155
-1279
125,000
37,522.50
35,178.75
197,701.25
1974
1280
-1409
130,000
35,178.75
32,741.25
197,920.00
1975
1410
-1542
133,000
32,741.25
30,247.50
195,988.75
1976
1543
-1679
137,000
30,247.50
27,678.75
1941926.25
1977
1680
-1821
142,000
27,678.75
25,016.25
194,695.00
1978
1822
-1967
146,000
25,016.25
22,278.75
93,25.
l9
1968
-2117
150,000
22,278.75
19,466.25
191,745-00
Z9
190
2118
-2272
155,000
19,466.25
16,560.00
191,026.25
1981
2273
-2431
159,000
16,560.00
13,578.75
189,138.75
1982
2432
-2594
163,000
13,578.75
10,522.50
187,101.25
1983
2595
-2763
169,000
10,522.50
7,353.75
186,876.25
1984
2764
-2938
175,000
7,353.75
4,072.50
186,426.25
1985
2939
-3119
181,000
4,072.50
905.00
185,977.50
1986
3120
-3300
181,000
905.00
181,905.00
Section 9. That the bonds of this issue shall be call-
able for payment prior to maturity in accordance with the terms
set out in the face of the bond form in Section 5 of this ordinance.
Section 10. That the Treasurer or Finance Officer of the
City of Little Rock, Arkansas is hereby ordered and directed to
place on deposit with Worthen Bank & Trust Company, Little Rock,
Arkansas, the Paying Agent, at least five (5) days before the maturity
date of any bond or interest coupon issued hereunder, an amount from
the funds herein appropriated equal to the amount of such bonds or
Page 13
coupons, for the sole purpose of paying the same, together with
the customary paying agent's fee. This instruction to the
Treasurer and Finance Officer is irrevocable and may be enforced
by mandamus.
Section 11. That Worthen Bank & Trust Company, Little
Rock, Arkansas, is designated as Paying Agent. The holders of a
majority in value of the outstanding 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 of the powers
of the paying agent originally named, 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
value of the outstanding 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 12. 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 exer-
cise the option upon any subsequent default.
Section 13. That when the bonds herein authorized have
been executed by the Mayor and City Clerk and the seal of the City
impressed as herein provided, they shall be delivered to Worthen Bank
& Trust Company, Little Rock, Arkansas, which shall authenticate
them and deliver them to the said purchasers, or order, upon payment
in cash of the purchase price of $3,300,000 plus accrued interest
from December 1, 1958 to date of delivery. From the proceeds of the
sale of the bonds, there shall be deposited in the Sinking Fund the
accrued interest. The balance of the proceeds shall be deposited
in an account designated "1958 General Obligation Improvement Con-
Page 14
struction Fund (hereinafter called "Construction Fund ") and shall
be used solely for the purposes hereinabove specified, for neces-
sary expenses incidental thereto, and for the expenses of the issuance
of the bonds. The City expressly reserves the right to direct the
depository or depositories in which said moneys are deposited to
invest the moneys at any time and from time to time in direct
obligations of, or obligations the principal of and interest on
which are guaranteed by, the United States of America. The City
reserves the right to invest at any time and from time to time in
direct obligations of, or obligations the principal of and interest
on which are guaranteed by, the United States of America any moneys
in the Sinking Fund held as a reserve for contingencies. Interest
earned by investments of either the Sinking Fund or the Construction
Fund may be used by the City for any municipal purpose.
Section 14. That the terms of this ordinance shall con-
stitute a contract between the City of Little Rock, Arkansas and
the holder or holders of the bonds and no variation or change in
the undertakings herein set forth shall be made while any of these
bonds are outstanding and the holder of any bonds may at any time
for and on his own behalf or for and on behalf of all bondholders
enforce the obligations of the City by a proper suit for that purpose.
Section 15. That the provisions of this ordinance are
separable and in the event that any section or part hereof shall be
held to be invalid, such invalidity shall not affect the remainder
of this ordinance.
(Section 16. That all ordinances and resolutions and parts
thereof in conflict herewith are hereby repealed to the extent of
such conflict.
Section 17. That this ordinance shall not create any
right of any character and no right of any character shall arise
under or pursuant to it until the bonds authorized by this ordi-
nance shall be issued and delivered.
Page 15
Section 18. That it is hereby ascertained and declared
that there is an immediate and urgent need for the construction or
acquisition of the various municipal projects to be financed by
the issuance of the bonds above referred to in order to protect the
health, lives and property of the inhabitants of the City of Little
Rock, Arkansas. It is, therefore, declared that an emergency exists
and this ordinance, being necessary for the preservation of public
peace, health and safety, shall take effect and be in force immedi-
ately upon and after its adoption.
APPROVED: January 19, 1959 .
ATTEST:
dom 4-
c
city ulerx
APPROVED:
`• e #
Mayor