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HomeMy WebLinkAbout10310ORDINANCE NO. 10., 310 AN ORDINANCE AUTHORIZING THE ISSUANCE OF A $1,000,000 CITY OF LITTLE ROCK WATERWORKS REVENUE PROMISSORY NOTE FOR THE PURPOSE OF PROVIDING FUNDS IMMEDIATELY NEEDED FOR PRELIMI- NARY EXPENSES IN CONNECTION WITH TIE CONSTRUCTION OF A NEW WATER SUPPLY LAKE ON BIG MAUMELLE RIVER IN PULASKI COUNTY 3,' ARKANSAS; PRESCRIBING OTHER MATTERS RELATING THERETO; AND DECLARING AN EMERGENCY. WHEREAS, the Board of Commissioners operating the Little Rock Municipal Water Works System has elected to construct a new water supply lake, and appurtenances, on Big Maumelle River in Pulaski County, Arkansas, estimated to cost in excess of $10,000,000, and to finance the cost of said project by the sale of revenue bonds; and WHEREAS, the City Council has heretofore increased the rates for water, by Ordinance No. 9793, passed and approved on March 28, 1955, to the extent necessary to provide, after the allocation of revenues required by law, for the payment of the principal of and interest on the said revenue bonds proposed to be issued and to meet all payment provisions required for the outstanding Water Revenue 4% Bonds dated February 1, 1936, and the outstanding 1 -3/4% and 2% Waterworks Improvement Bonds of 1952, dated November 1, 1952; and WHEREAS, the Board of Commissioners has heretofore borrowed the sum of $1,700,000, evidenced by its Waterworks Revenue Promissory Note dated March 1, 1956, and there is an immediate need for an addi- tional $1,000,000 to pay the cost of preliminary expenses incident to the aforesaid construction project, which additional amount can be obtained by the issuance of a revenue promissory note; and WHEREAS, it has been determined that there would be a sub- stantial savings in interest expense by borrowing at this time only the funds immediately needed; and WHEREAS, the receipt of proceeds from the proposed bond sale will be delayed for some time; and WHEREAS, The First National Bank in Little Rock, Little Rock, Arkansas, has offered to purchase a revenue promissory note in said amount at a rate of interest of Three Per Cent (370) per annum, with the privilege being reserved for the withdrawal of the total principal amount in installments and with a prepayment privilege, as hereinafter set forth; NOW, THEREFORE, BE IT ORDAINED BY TI13 CITY COUNCIL OF LITTLE ROCK, PULASKI COUNTY, ARKANSAS: SECTION 1. That under the authority of the Constitution and laws of the State of Arkansas, including particularly Act 321 of the Acts of Arkansas of 1955, amending Act 131 of the Acts of Arkansas of 1933, as amended, the Mayor and City Clerk of the City of Little Rock, Arkansas, be, and they are hereby, authorized and directed to execute a revenue promissory note in the amount of $1,000,000, which amount may be drawn in installments in multiples of $500,000 each, payable to The First National Bank in Little Rock, Little Rock, Arkansas, Trustee, with interest thereon at the rate of Three Per Cent (370) per annum, from date until paid, payable quarterly, the interest not to accrue upon any part of the principal until drawn, to be dated November 15, 1956, to be due on or before November 15, 1957, and to be in substan- tially the following form, to -wit: WATERWORKS REVENUE PROMISSORY NOTE $1,000,000 Little Rock, Arkansas November 15, 1956 The City of Little Rock, in the County of Pulaski, State of Arkansas, for value received, hereby promises to pay to The First National Bank in Little Rock, Little Rock, Arkansas, Trustee, on or before November 15, 1957, solely from revenues derived from the oper- ation of the City's waterworks system and /or from the proceeds of the sale by the City of Waterworks Revenue Bonds, the sum of One Million and no /100 Dollars ($1,000,000.00) with interest from date until paid at the rate of Three Per Cent (3%) per annum, payable quarterly on February 15, 1957, May 15, 1957, August 15, 1957, and November 15, 1957. Both principal and interest shall be payable at the office of The First National Bank in Little Rock, Little Rock, Arkansas. This revenue promissory note is issued under the authority of the Constitution and laws of the State of Arkansas, particularly Act 321 of the Acts of Arkansas of 1955, amending Act 131 of the Acts of Arkansas of 1933, as amended, and under Ordinance No. , duly adopted by the City Council of Little Rock and approved on October , 1956, and does not constitute an indebtedness of the City of Little Rock within any constitutional or statutory limitation. It shall rank on a parity with that certain Waterworks Revenue Prom- issory Note dated March 1, 1956, in the principal amount of $1,700,000, heretofore issued by the City of Little Rock, Arkansas, under Ordinance No. 10,031, and shall be secured equally and ratably by and payable from the revenues pledged to the said March 1, 1956, note. The City shall be entitled to draw upon the principal sum in multiples of Five Hundred Thousand and no /100 Dollars ($500,000.00) at any time during the term hereof, and interest shall be payable only upon the amount or amounts of the principal that have been drawn by the City from the date or dates of withdrawal. The City may make monthly interest deposits, but interest shall be applied only on the above set forth interest paying dates. The proceeds of this note shall be used solely for land acquisition, engineering fees and other expenses in connection with the construction of a new water supply lake for the City of Little Rock, Arkansas, and for expenses preliminary to the issuance of revenue bonds to finance said project. Any portion of the principal balance may be prepaid without notice and without penalty on any business day. It is hereby certified, recited and declared that all acts, conditions and things required to exist, to be performed and to happen precedent to and in the issuance of this note have existed, have been performed and have happened in due time, form and manner as required by law. IN WITNESS WHEREOF, the City of Little Rock, Arkansas, by its City Council, has caused this note to be executed by the Mayor and City Clerk thereof and its corporate seal affixed, all as of the fifteenth day of November, 1956. ATTEST: ( SEAL) City Clerk CITY OF LITTLE ROCK, ARKANSAS By Mayor SECTION 2. That the said note and interest thereon shall be payable solely out of the revenues derived by the City from the opera- tion of its waterworks system and /or from the proceeds of a subsequent revenue bond issue, and the City hereby covenants and agrees to so pay the principal of and interest on the note in strict conformity with the terms thereof. The note is a special obligation payable solely from the above described sources and shall not constitute an indebted- ness of the City of Little Rock, Arkansas, within any constitutional or statutory limitation. It shall rank on a parity with that certain Waterworks Revenue Promissory Note dated March 1, 1956, in the princi- pal amount of $1,700,000, heretofore issued by the City of Little Rock, .Arkansas, under Ordinance No. 10,031, and shall be secured equally and ratably by and payable from the revenues pledged to the said March 1, 1956, note. SECTION 3. That the proceeds of said note shall be paid to the Board of Commissioners of the Little Rock Municipal Water Works and shall be deposited in one or more depositary banks located in the City of Little Rock, Arkansas, in a special fund in each such bank to be known as "Waterworks Revenue Promissory Note Fund ", and the pro- ceeds shall be used solely for land acquisition, engineering fees and other expenses in connection with the construction of a new water supply lake for the City of Little Rock, Arkansas, and for expenses preliminary to the issuance of revenue bonds to finance said project. SECTION 4. That the provisions of this ordinance are separable, and if any provision shall for any reason be held illegal or invalid, it shall not affect the validity of the remainder of the ordinance. SECTION 5. That all ordinances and resolutions in conflict herewith are hereby repealed to the extent of such conflict. SECTION 6. That it is hereby ascertained and declared that there is an immediate and urgent need for the additional water supply and distribution facilities in order to adequately protect the life, health, safety and property of the inhabitants of the City, and that the proceeds of the note authorized by this ordinance are necessary for that purpose. It is, therefore, declared that an emergency exists and 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. PASSED: October -&-, 1956. APPROVED: ATTEST: 0, RAI'l, Mayor City Clerk .