HomeMy WebLinkAbout10708ORDINANCE N0. 10,708
AN ORDINANCE PROVIDING FOR THE ISSUANCE OF CITY OF LITTLE
ROCK, ARKANSAS, LIBRARY IMPROVEMENT BONDS; LEVYING A TAX
SUFFICIENT TO PAY THE PRINCIPAL AND INTEREST OF SAID BONDS;
DESCRIBING OTHER MATTERS RELATING THERETO; DECLARING AN
EMERGENCY; AND FOR OTHER PURPOSES.
WHEREAS, by Ordinance No. 10591, passed and approved July 29,
1957, there was submitted to the qualified electors of the City of
Little Rock, Arkansas, the question of whether the City should issue
bonds to the amount of $1,295,000 for the purpose of constructing and
equipping an addition to the Little Rock Public Library and making
certain changes, alterations and modifications in the existing struc-
ture, said bonds to bear interest at a rate acceptable to the
governing body of the City at the time of their sale; and
WHEREAS, due notice of the election was given as required by
law and said election was duly held on November 5, 1957, at which
election 15,389 votes were cast for the issue of bonds and 5,022
votes were cast against the issue of bonds; and
WHEREAS, the result of the election was announced by the Mayor
by a proclamation issued on November 8, 1957, and duly published on
November 9, 1957, in The Arkansas Democrat, a newspaper having a
bona fide circulation in said City, and more than thirty days have
elapsed since then and no suit has been brought to challenge the
result as so proclaimed, and the proclamation is now conclusive; and
WHEREAS, after more than twenty days' advertisement in said
newspaper and advertisement on December 14, 1957, in The Bond Buyer,
a newspaper published in New York, New York, and having a nation-
wide circulation, the City of Little Rock at a public sale held
January 6, 1958, contracted to sell the bonds to W. H. Satterfield
& Company and Harrow Smith Company, both of Little Rock, Arkansas,
and The First National Bank in Dallas, Dallas, Texas, who submitted
the best and highest bid for said bonds, being a price of 100¢ on
the dollar face value plus accrued interest for bonds bearing interest
at the rate of 3.0307609% per annum; and
WHEREAS, the buyers of said bonds have elected to name The
First National Bank in Little Rock, Little Rock, Arkansas, as Trustee,
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and old bank and The First National City Bank of New York, New York
City, State of New York, as paying agents, and have elected to convert
the bonds to $1,408,.500 in bonds bearing interest and matuing as herein-
after set out, and have presented computations showing the cost of
maturing the bonds after conversion to be $545.21 less than the cost
of maturing the bonds according to the original schedule, that the
average maturity has not been shortened more than nine months,and the
average interest rate of the conversion is not more than three- fourths
of one per centum (3/4 of 1%) less than the interest rate of the bid
before conversion, which is within the terms of the sale notice; now,
therefore,
BE IT ORDAINED by the Board of Directors of the City of Little
Rock, Arkansas:
SECTION 1. That the sale of the bonds to W. H. Satterfield &
Company and Harrow Smith Company, both of Little Rock, Arkansas, and
The First National Bank in Dallas, Dallas, Texas, and the conversion
of the bonds to lower interest rates, are hereby approved and confirmed.
SECTION 2. That the Mayor and City Clerk are hereby authorized
and directed to execute the improvement bonds of this City dated as of
January 1, 1958, and maturing on February 1 of each year as follows:
YEAR
BOND NOS.
AMOUNT
(both
inclusive)
1961
1
to
55
$54,500
1962
56
to
ill
56,000
1963
112
to
169
58,000
1964
170
to
229
6o,000
1965
230
to
291
62,000
1966
1967
292
356
to
to
355
421
64,000
66,000
1968
422
to
488
67,000
1969
489
to
555
67,000
1970
556
to
623
68,000
1971
624
to
693
70,000
1972
694
to
765
72,000
1973
766
to
839
74,000
1974
84o
to
916
77,000
.1975
1976
917
998
to
to
997
1078
81,000
81,000
1977
1079
to
1160
82,000
1978
1161
to
1242
82,000
1979
1243
to
1325
83,000
1980
1326
to
14o9
84,000
All the bonds
shall be in
the
denomination
of $1000 each except
No. 55, which shall
be in the denomination
of $500.
The bonds shall
bear interest payable semi- annually
from January
1, 1958, until paid,
at the following rates per annum: Nos. 1 to 488, inclusive, at 3%;
Nos. 2489 to 916, both inclusive, at 3 1/4%; and Nos. 917 to 12409,
both inclusive, at 1 1/2 %; and they shall be callable as hereinafter
set out.
SECTION 3. Said bonds shall be in substantially the following
f orm :
UNITED STATES OF AMERICA
STATE OF ARKANSAS
COUNTY OF PULASKI
CITY OF LITTLE ROCK
` Library Improvement Bond
No.
KNOW ALL MEN BY THESE PRESENTS:
$
That the City of Little Rock, in the County of Pulaski, State
of Arkansas, acknowledges itself to owe and, for value received,
promises to pay to bearer the sum of
DOLLARS
on the first day of February, 19 , with interest thereon from
January 1, 1958, at the rate of per centum (,)
per annum until paid, interest payable semi- annually on the Mrst day
of February and August of each year, commencing August 1, 1958, on
presentation and surrender of the annsxed coupons as they severally
mature. Both principal and interest on this bond shall be payable in
any coin or currency which on the respective dates of payment is legal
tender for the payment of debts due the United States of America, at
the office of The First National Bank in Little Rock, Little Rock,
Arkansas, or, at the option of the holder, at The First National City
Bank of New York, City of New York, State of New York (herein col-
lectively called the "Bank of Payment ") .
This bond is one of a series of bonds aggregating One Million
Four Hundred Eight Thousand Five Hundred Dollars ($1,2408,500), all
of like tenor and effect except as to number, denomination, interest
rate, and maturity, numbered from One (1) to One Thousand Foni,,Hulidred Nine
(11409), inclusive, issued for the purpose of constructing and equipping
an addition to the Little Rock Public Library and making certain
changes, alterations and modifications in the existing structure, and
the City hereby warrants and covenants that in the issuing of this
bond it has proceeded in accordance with the provisions of Amendment
No. 13 to the Constitution of the State of Arkansas, and in accordance
with the laws of said State, under ordinances of the Board of Directors
of said City and in pursuance of an election duly held at which the
majority of the legal voters of said City voting on the question voted
in favor of the issue of said bonds; that all conditions, acts, and
things required to exist, to be performed, and to happen precedent to
and in the issuance of this bond do exist, have been performed, and
have happened in due time, form and manner as required by law, and
particularly by said Amendment No. 13; that a tax sufficient to pay
the bonds aforesaid has been levied in accordance with said consti-
tutional amendment and made payable annually until all of said bonds
and interest thereon have been fully paid and discharged; and that
the indebtedness represented by this bond and the issue ct which it
forms a part does not exceed any constitutional or statutory limita-
tion. For the prompt payment of this bond and the interest thereon,
the said City of Little Rock hereby pledges its full faith, credit,
and taxing power, including the special tax authorized to be levied
by said amendment to the Constitution for the payment of this bond
and other bonds of this series.
The City has agreed that out of the revenue derived from the
special tax which it has levied and which is authorized by Amendment
No. 13 to the Constitution of the State of Arkansas, it will first
set up a reserve of an amount sufficient to pay the principal and
interest due the following year, and that any surplus after that
reserve has been set up must be used to call the bonds of this issue
for payment prior to maturity in inverse numerical order at par and
accrued interest on each following February 1 on and after February 1,
1961.
The bonds of this issue are callable for payment prior to
maturity in inverse numerical order, on any interest paying date on
and after February 1, 1961, as follows: From surplus tax collections,
other
at par and accrued interest; from funds from any /source, at a premium
of five per centum (5f). In the event the City shall call bonds for
payment prior to maturity, it shall publish notice of such call once
a week for two weeks in some newspaper of general circulation through-
out the State of Arkansas, the first publication to be not less than
fifteen days prior to the date fixed for redemption, the notice to
give the number and maturity of each bond being called. all bonds so
called shall cease to bear interest after the date fixed for their
redemption, provided the funds for their payment are on deposit with
the Bank of Payment at that time.
This bond shall not be valid until authenticated by the certift-
cate hereon of The First National Bank in Little Rock, 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 at-
tested it with its corporate seal, and has caused the coupons hereto
attached to be authenticated by the facsimile signature of its Hayor,
a s of the first day of January, 1958.
(Seal)
Attest:
City Clerk
No.
CITY OF LITTLE ROCK, ARKANSAS
By
Mayor
(Form of Coupon)
On the first day of FAurMy, 19 , unless the bond to which
this coupon is attached is paid prior thereto, the City of Little Rock,
Arkansas, promises to pay to bearer DOLLARS in any
coin or currency which on the date of payment is legal tender for the
payment of debts due the United States of America, at the office of
The First National Bank in Little Rock, Little Rock, Arkansas, or, at
the option of the holder, at The First National City Bank of New York,
City of New York, State of New York, being six months' interest then
due on its Library Improvement Bond dated January 1, 1958, and
numbered
CITY OF LITTLE ROCK, ARKANSAS
By
Ma yor
(The first coupon shall be for seven months' interest, from
January 1, 1958. The signature of the Mayor on the coupons may be
lithographed or engraved.)
Each bond shall be authenticated by The First Natknal Bank in
Little Rock, Little Rock, Arkansas, as follows:
TRUSTEE'S CERTIFICATE
This is to certify that this bond is one of the series of 1409
Library Improvement Bonds described within, aggregating $1,408,500.
THE FIRST NATIONAL BANK IN LITTLE ROCK,
LITTLE ROCK,.ARKANSAS, Trustee
By
Authorized Signature
Little Rock, Arkansas
SECTION 4. The Mayor and City Clerk are hereby authorized and
directed, when they have executed said bonds and have had them duly
certified, to deliver them to the purchaser upon receipt of the full
purchase price, and the proceeds of said bonds shall be used for no
purpose except the purposes for which voted.
SECTION 5. In order to pay the said bonds as they mature, with
interest thereon, a tax of three- fourths (3/4) of one mill on each
dollar of assessed valuation of all taxable property within the City
has been levied to be collected in the year 1958 and there is hereby
levied upon all taxable real and personal property within the City of
Little Rock, Arkansas, a tax of one and one - fourth (1 1/4) mills on
each dollar of assessed valuation, beginning with the taxes collected
in the year 1959 and continuing annually as long thereafter as may be
necessary in order to pay the bonds and interest authorized by this
ordinance, being a sum sufficient to meet said bonds and interest as
they mature, with five per centum added for unforeseen contingencies;
and the City Clerk is directed to transmit a copy of this ordinance to
the County Clerk of ?�Ilaski County, Arkansas, to the end that said tax
may be extended on the tax books of said county and collected along
with the other taxes until said bonds and interest thereon are paid
in full. The City agrees that all of the revenues from the special
tax shall be put in a separate fund known as the "Bond and Interest
Fund" and shall be used solely for the payment of the bonds and interest
of this issue, as set out in this ordinance. Any surplus from year to
year must be used to call bonds of this issue for payment prior to
maturity in inverse numerical order, except that the City will not
be required or permitted to call any bond for partial payment.
SECTION 6. In order to pay said bonds with interest thereon as
they mature, there are hereby appropriated out of the proceeds of the
tax hereinabove described, and if such proceeds be not sufficient,
then out of the general revenues of the City, the sums necessary to
meet payments of principal and interest as they mature, to -wit:
RATE YEAR
PRINCIPAL
INTEREST
TOTAL
Feb. 1 of
February 1 &
August 1
each year
of each
year
1 %58
$
$
$20,959.17
$20,959.17
1959
17,965.00
17,965.00
35,930.00
1960
17,065.00
17,965.00
J5,930.00
3% 1961
54,500.00
17,965.00
17,147.50
89,612.50
1962
56,000.o0
17,147.50
16,307.50
89,455.00
1963
58,000.00
16,307.50
15,437.50
89,745.00
1964
60,000.00
15,437.50
14,537.50
89,975.00
" 1965
62,000.00
14,537.50
13,607.50
90,145.00
1966
64,000.00
13,607.50
12,647.50
90,255.00
1067
66,000.00
12,647.50
11,657.50
90,305.00
1068
67,000.00
11,657.50
lo,652.50
89,310.00
3 1/4% 1969
67,000.00
1o,652.50
01563.75
87,216.25
1070
68,000.00
9,563.75
8,458.75
86,022.50
1071
70,000.00
8,458.75
7,321.25
85,780.00
1072
72,000.00
7,321.25
6,151.25
85,472.50
1973
74,000.00
6,1 1.25
4,948.75
85,100.00
1974
77,000.00
4,98.75
3,697.50
85,646.25
1 112% 1975
81;900.00
3;697050
3,090.00
87,787.50
1976
81,000.00
3,090.00
2,482.50
86,572.50
1977
82,000.00
2,482.50
1,867.50
86,350.00
1078
82,000.00
1,867.50
1,252.50
85,120.00
11,179
83,000.00
1,252.50
630.00
84,882.50
108c
84,000.0o
630.00
- - - - --
84,630.90
These amounts shall be
proportionately
reduced if
any bonds are
called for payment prior to
maturity.
SECTION
7. The Treasurer or the Finance
Officer
of the City of
Little Rock is hereby ordered and directed to remit to the Bank of
Payment not less than five days before the date of each interest payment
the amount of interest, or principal and interest, due on said date,
together with the paying charges, which shall be 1/8 of if on principal
and 5¢ per coupon. This instruction is irrevocable and may be enforced
by mandamus.
SECTION 8. The City agrees to deposit the proceeds of the sale
as follows: The accrued interest shall be paid into the Bond and
Interest Fund, as hereinabove defined, and the balance received from
the sale of the bonds shall be deposited in a separate fund to be known
as the "Construction Fund," to be used solely for the payment of the
cost of construction plus the expenses of the bond issue, except that
the City agrees to set aside sufficient funds from the Construction
Fund to meet interest requirements until tax revenues become available,
but as soon as possible this money shall be repaid to the Construction
Fund.
SECTION 9. Both the Bond and Interest Fund and the Construction
Fund shall be deposited in one or more banks holding membership in the
Federal Deposit Insu3mce Corporation. Vouchers upon either fund must
be signed by two duly authorized persons. The City agrees to require
from each depository bang security for all of the deposit over the
$10,000 insured by said FDIC, and such security shall be either in the
form of a corporate surety bond or in the form of government bonds
escrowed with some other bank, with the right of the depository bank
to withdraw bonds from the escrow as the Construction Fund is withdrawn
by the City. During construction, the City may invest any surplus
funds in short -term bonds or notes of the United States.
SECTION 10. If default is made and continues for thirty 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 11. The bonds of this issue shall be callable for
payment prior to maturity according to the terms set out in the face
thereof.
SECTION 12. The First National Bank in Little Rock, Little Rock,
Arkansas, is designated as Trustee, authorized to act for and on behalf
of the bondholders, but it shall be responsible only for wilful wrong
in the execution of its trust, and the recitals of fact contained
herein and in the bonds themselves (except the recitals in the Trustee's
Certificate) are statements made by the City and not by the Trustee.
The Trustee shall not be required to take notice of any default or to
take any action hereunder until it shall have been notified in writing
of said default and indemnified to its satisfaction against any loss,
expense or cost that it may incur by taking action. 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 Trustee, who shall have all of the powers of the Trustee
originally named, and the Trustee herein named may resign at any time
upon ten days' notice in writing mailed to the City Clerk.
SECTION 13. The terms of this ordinance shall constitute a
contract between the City of Little Rock and the holders of the bonds
herein authorized, and no variation or change in the undertakings
herein set out shall be made while any of these bonds are outstanding,
without the written consent of the holders of all bonds then out-
standing. The holder of any bond may at any time, for and on his own
behalf, or the Trustee may, for and on behalf of all the bondholders,
enforce the obligations of the City by a proper suit for that purpose.
SECTION 14. The provisions of this ordinance are separable,
and in the event that any section or part of section shall be held
to be invalid, such invalidity shall not affect the remainder of the
ordinance.
SECTION 15. It is hereby ascertained and declared that because
of the national bond market, there is an immediate and urgent need
to deliver the bonds of this issue as soon as possible in order to
protect the City's contract with the buyers of the bonds and to advance
the construction of the improvement to meet the cultural and educa-
tional needs of the citizens of the City; therefore, an emergency
exists and this ordinance is necessary for the preservation of the
public peace, health and safety, and shall be in force and take effect
immediately upon and after its passage.
Passed: January 13 , 1958.
APPROVED:
/e_ e10_4�
Attest: Mayor
Ac ti City Cle k