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HomeMy WebLinkAbout10364r Y " S ORDINANCE NO. lo, 36th AN ORDINANCE AUTHORIZING THE CONSTRUCTION OF BETTER - MENTS AND IMPROVEMENTS OF THE EXISTING WATERWORKS SYSTEM OF THE CITY; AUTHORIZING THE ISSUANCE, UNDER f THE PROVISIONS OF ACT 131 OF THE ACTS OF THE GENERAL ASSEMBLY OF 1933, AS AMENDED (ARK. STATS. 919 -4201 ET SEQ.), OF WATER REVENUE BONDS OF THE CITY, PAYABLE SOLELY FROM WATER REVENUES, FOR THE PURPOSE OF .(i) PROVIDING FUNDS, WITH OTHER MONEYS AVAILABLE FOR SUCH PURPOSE, FOR PAYING AND REDEEMING ALL THE OUTSTAND- ING WATERWORKS IMPROVEMENT REVENUE BONDS OF 1952, IN- CLUDING THE PAYMENT OF THE INTEREST THEREON TO THE DATE OF SUCH REDEMPTION, AND (ii) PAYING THE COST OF SUCH BETTERMENTS AND IMPROVEMENTS; PROVIDING FOR THE ISSUANCE OF ADDITIONAL. WATER REVENUE BONDS OF THE CITY FOR PAYING THE COST OF ADDITIONAL BETTERMENTS AND IMPROVEMENTS; FIXING THE RATES FOR WATER TO BE FURNISHED; PROVIDING FOR THE EXECUTION AND DELIVERY OF A TRUST INDENTURE SECURING THE BONDS AND DEFINING THE RIGHTS OF THE BONDHOLDERS; FINDING AND DECLARING THE VALUE OF THE EXISTING WATERWORKS SYSTEM AND THE VALUE OF THE BETTERMENTS AND IMPROVEMENTS TO BE CON- STRUCTED; PROVIDING FOR THE CREATION OF CERTAIN FUNDS; AND DECLARING AN EMERGENCY. WHEREAS, The City of Little Rock, in Pulaski County, e Arkansas (hereinafter sometimes called the "City "), now owns and operates a waterworks system (hereinafter sometimes called the "existing waterworks system "), consisting of an impounding reservoir on Alum Fork in Saline County, Arkansas, a raw water transmission main, reservoirs, treatment and pumping plants, standpipes, water supply mains, h5tdrants, service connections, meters, machinery, equipment and other property appurtenant thereto, which is now supplying and distributing water in the City and adjacent territory; and aa��a5 WHEREAS, to provide funds for purc'eshing the waterworks system then serving the City and for constructing said impounding reservoir, transmission main and supply mains to connect said reservoir with said system, and other improvements, the City duly issued udder the authority of Act 131 of the Acts of the General Assembly ofr'1933; as, amended, its revenues bonds, payable solely fTorkwater r,Aveaiums, in the aggregate principal amount of Six Villi4.Five Hu dred�:Niri:ety }Thous4nd Dollars ($6,590,000), dated as of Fet' --a y 1, 1936, designated "Water Revenue 4% Bonds ", bear- ing;izterest, at., the rate of,'four per .centum (4 %) per annum, pay - abl semi -as ally to the lst:adays of February and August in each year, and maturing ;infan`n44l "7instalmeftts on February 1 in the years 1937 to 1976, inclusfve,,,without option of prior fredemption, and s all of said bonds were issued under and secured by an indenture, dated as of February 1, 1936, by and between the City and Guaranty Trust Company of New York, as trustee (hereinafter sometimes called the "1936 indenture "); and WHEREAS, the bonds of said issue which became due and payable in the years 1937 to 1956, inclusive, in the aggregate principal amount of $2,018,000, were paid at their respective maturities, leaving a balance outstanding of $4,572,000 bonds (here- inafter sometimes called the "1936 Indenture Bonds "); and WHEREAS, since the purchase of said system and the con- struction of said impounding reservoir, the City has expended large sums from the surplus revenues of said system for renewals, replace- ments, extensions, betterments and improvements and, for paying the cost of additional betterments and improvements, the City duly issued, under the authority of said Act 131, as amended, its revenue bonds, payable solely from water revenues, in the aggregate principal of One Million Fifty -six Thousand Two Hundred Dollars ($1,056,200), dated as of November 1, 1952, designated "Waterworks Improvement Revenue Bonds of 1952 ", maturing in annual instalments on November 1 in the years 1954 to 1973, inclusive, the bonds maturing in the years 1963 to 1968, inclusive, bearing interest at the rate of two per centum (2 %) per annum and the remaining bonds bearing interest at the rate of one and three - quarters per centum (1 -3/4 %) per annum, such interest being payable semi- annually on the 1st days of May and November in each year; and WHEREAS, the bonds of said issue which became due and pay- able in the years 1954 to 1956, inclusive, in the aggregate principal a- mount of $140,200, were paid at their respective maturities, and the bonds maturing in the year 1973, in the aggregate principal amount of $63,000 were called for redemption on May 1, 1956, leaving a balance outstanding of $853,000 bonds; and y, iHERSAS, by viittue of Act 131 of the Acts of the General Assembly of.1933, as amended, Ark. Stats. 9 19 -4201 et seq. (here- inafter sometimes called the "Revenue Bond Act "), the City Council -2- c is authorize& and empowered to issue revenue bonds of the City to pay the cost of betterments and improvements to the existing water- works system and to find and declare the value of the existing water- works system and the value of the betterments and improvements to be constructed and, under the provisions of the Revenue Bond Act, the revenues derived from the entire system when such betterments and improvements are completed shall be divided according to such values and so much of the revenues as is in proportion to the value of such betterments and improvements as against the value of the previously existing plant as so determined shall be set aside and used solely and only for the purpose of paying the revenue bonds issued for such betterments and improvements, together with costs of the operation and the depreciation - thereof, and such revenues shall be deemed to be the income derived exclusively from such betterments and im- provements; and WHEREAS, the City Council has found and declared that the value of the existing waterworks system (excluding the betterments and improvements financed by the Waterworks Improvement Revenue Bonds of 1952) is Eleven Million Seven Hundred Fifteen Thousand Dollars ($11,715,000), and that the value of the betterments and improvements to be constructed from the proceeds of the bonds to be i issued initially under the provisions of the indenture authorized i i by this Ordinance (hereinafter sometimes called the "Trust Indenture ") i (including the betterments and improvements financed by said Water- works Improvement. Revenue Bonds of 1952 all of which are to be P aid and redeemed from the proceeds of said bonds and other moneys avail- able for such purpose) will be the face value of said bonds, and i ,I that the value of any betterments and improvements to be constructed from the proceeds of the bonds of any series hereafter issued under i the provisions of said indenture for paying the cost thereof will be I the face.value of the bonds so issued; and WHERFrAS,'all of said outstanding Waterworks Improvement: Revenue Bonds of 1952 are subject to redemption prior to their hrespectjve maturities, at the option of the City, in whole on any �interest,'paymemt date on and after November 1, 1957 from any moneys -3- ;f ,F a I that may be made available for such purpose at par and accrued in- terest, and, in order to effect the financing of necessary better- ments and improvements, it is necessary for the City to provide for the payment and redemption of the outstanding Waterworks Improvement Revenue Bonds of 1952; and WHEREAS, the construction of the following betterments and improvements (hereinafter sometimes called the "Water Improve- ments") of the existing waterworks system is necessary to provide the City and its inhabitants with uninterrupted water supply and to preserve the health, safety and property of the inhabitants of the City: and an impounding reservoir on the Big Maumelle River in Pulaski County, Arkansas, a pumping plant, treatments facilities, a raw water transmission main and other property and improvements appurtenant thereto; WHEREAS, the Waterworks Commission of the City has caused its engineers to make estimates of the cost of constructing the Water Improvements and of the date of completion of such construction and, according to such estimates, the cost of the Water Improvements will be Eight Million Seven Hundred Sixteen Thousand Two Hundred Seventy Dollars ($8,716,270) and the date of completion will be February 1, 1958; and WHEREAS, in the event of a substantial increase in the number of the inhabitants of the City or of an expansion in the cor- porate limits of the City, it will be necessary to construct addi- tional betterments and improvements of the existing waterworks system (said system, together with the Water Improvements described above and all additional betterments and improvements thereof and all renewals and replacements, being hereinafter sometimes collectively called the "Waterworks System "), and, to provide for financing the cost of any such additional betterments or improvements, it is necessary to make Me s provision for the issuance of additional revenue bonds on a parity with the bonds initially issued under the provisions of the Trust Indenture; now, therefore, BE IT ORDAINED by the City Council of The City of Little Rock, Arkansas: Section 1. The construction of the Water Improvements is hereby authorized and for the purpose of (i) providing funds, with other moneys available for such purpose, for paying and redeeming all the outstanding Waterworks Improvement Revenue Bonds of 1952, including the payment of the interest thereon to the date of such redemption, and (ii) paying the cost of the Water Improvements, in- cluding interest on the bonds to a date six (6) months subsequent to the estimated date of completion, there shall be issued, under the authority of the Revenue Bond Act, revenue bonds of the City in the aggregate principal amount of Nine Million Five Hundred Eighty -Five Thousand Dollars ($9,585,000). Said bonds shall be designated "Water Revenue Bonds (Series 1956)", shall be dated as of the 1st day of August, 1956, and shall be stated to mature (in numerical order, lowest numbers first) on the 1st day of February in the following years and in the following amounts, respectively: Year of Principal, Maturity Amount 1960 $ 97,000 1961 98,000 1962 101,000 1963 102,000 1964 104,000 1965 106,000 1966 107,000 1967 109,000 1968 111,000 1969 114,000 1970 118,000 1971 123,000 1972 127,000 1973 132,000 1974 135,000 Year of Principal Maturity Amount 1975 $135,000 1976 143,000 1977 458,000 1978 545,000 1979 564,000 1980 584,000 1981 604,000 1982 626,000 1983 648,000 1984 670,000 1985 694,000 1986 718,000 1987 743,000 1988 769,000 Not less than Five Hundred Thirty -two Thousand Dollars ($532,000) in aggregate principal amount of said bonds shall bear interest at a rate or rates not exceeding one and theee- quarters per centum (1 -3/4%) per annum andznot less than Three Hundred Twenty -one Thousand Dollars ($321,000) in aggregate principal amount -5- - ,_.,... of said bonds shall bear interest at a rate or rates not exceeding two per centum (2 %) per annum said amounts and rates of interest being the respective amounts of, and the rates of interest borne by, the outstanding Water Improvements Revenue Bonds of 1952 which are to be paid and redeemed from the proceeds of said Water Revenue Bonds (Series 1956). The remaining bonds of said Series shall bear inter- est at a rate or rates not exceeding five per centum (5%) per annum. The interest on said bonds to the respective maturities thereof is payable semi- annually on the 1st days of February and August in each year. Section 2. Both the principal,of and the interest on the bonds shall be payable in any coin or currency of the United States of America which, at the respective dates of payment thereof, is legal tender for the payment of public and private debts. The prin- cipal of the bonds, unless registered, and the interest on bonds not registered as to both principal and interest shall be payable at The First National Bank in Little Rock, Little Rock, Arkansas, or, at the option of the holder, at the principal office of Guaranty Trust Company of New York, in the Borough of Manhattan, City and State of New York (herein sometimes called the "Paying Agents "). Payment of the interest on the bonds to the respective maturities thereof shall be made only upon presentation and surrender of the coupons, if any, representing such interest as the same respectively fall due; or, if any bond shall be registered as to both principal and interest, payment of such interest on any interest payment date shall be made to the person appearing on the bond registration books of the City as the registered owner thereof, such interest to be paid by check or draft mailed to the registered owner at his address as it appears on such registration books. The principal of any bond registered as to prin- cipal alone or as to both principal and interest shall be payable as the same falls due upon the presentation and surrender thereof at the principal office of the trustee under the Trust Indenture (here- • inafter sometimes called the "Trustee "). Section 3. Said bonds shall be in the denomination of One Thousand Dollars ($1,000) each, numbered consecutively from 1 upwards. The bonds shall be signed by the Mayor and the City Clerk, and sealed with the corporate seal of the City. The in erest cou- pons attached to the bonds shall be executed with the facsimile sig- natures of the Mayor and the City Clerk. The bonds and the interest coupons to be attached thereto, the certificate of authentication by the Trustee, and the provisions for registration and reconversion to be endorsed on such bonds, shall be, respectively, substantially in the forms set forth in the Trust Indenture. Section 4. The bonds may be registered as to principal alone and also as to both principal and interest and, if registered as to both principal and interest, may be reconverted into coupon bonds, in accordance with the provisions endorsed thereon and subject to the terms and conditions set forth in the Trust Indenture. Section 5. The bonds at the time outstanding which mature after February 1, 1964 may be redeemed prior to their respective maturities, at the option of the City, from any moneys that may be made available for such purpose, either in whole, on any date not earlier than February 1, 1964, or in part, in the inverse order of their maturities, -4on any interest payment date not earlier than February 1, 1964 at the principal amount of the bonds to be re- deemed, together with the interest accrued thereon to the date fixed for redemption, plus a premium of 5% of such principal amount if re- deemed on or prior to February 1, 1968, 4% if redeemed thereafter and on or prior to February 1, 1972, 3% if redeemed thereafter and on or prior to February 1, 1976, 2% if redeemed thereafter and on or prior to February 1, 1980, 1% if redeemed thereafter and on or prior to February 1, 1984, and without premium if redeemed thereafter. If less than all of the bonds of any one maturity shall be called for redemption, the particular bonds to be redeemed shall be selected by lot as provided in the Trust Indenture. Any such redemption,either in whole or in part, shall be made upon at least thirty (30) days' prior notice by publication and otherwise as provided in the Trust Inden- ture, and shall be made in the manner and under the terms and condi- tions provided in the Trust Indenture. Section 6. For the purpose of fixing and declaring the terms and conditions upon which water revenue bonds are to be issued, authenticated, delivered, secured and accepted by all persons who -7- A shall from time to time be or become holders thereof, and in order to secure the payment of all the bonds at any time issued and outstand- ing under the Trust Indenture and the interest thereon according to their tenor, purport and effect, and in order to secure the performance and observance of all the covenants, agreements and conditions contained in said bonds and in said Trust Indenture, and for the equal and proportionate benefit and security of all and singular the present and future holders of the bonds and in- terest coupons issued and to be issued under said Trust Indenture, the City pledges to the Trustee the revenues of the Waterworks Sys- tem to the extent provided in the Trust Indenture as security for the payment of the bonds and /the interest thereon and as security for the satisfaction of any other obligation assumed by it in connection with such bonds, and the Mayor and the City Clerk are hereby authorized and directed to execute under the corporate seal of the City and to deliver an indenture (herein sometimes called the "Trust Indenture ") by and between the City and The Chase Manhattan Bank, as trustee, in substantially the form hereinafter set forthin full. Section 7. A special fund is hereby created and desig- nated "Little Rock Water Improvements Construction Fund" (herein- after sometimes called the "Construction Fund1°), to the credit of which such deposits shall be made as are required by the provisions of the Trust Indenture. The moneys so deposited to the credit of the Construction Fund shall be held in trust and applied to the pay- meet of the cost of the Water Improvements in the manner and subject to the provisions set forth in the Trust Indenture. Section 8. The present schedule of rates for water furn- ished by the Waterworks System, which schedule was established by Ordinance No. 9793, passed and enacted by the City Council on March 28, 1955, and approved by the voters of the City at an election held on November 8, 1955, and is set forth in Article V of the Trust Indenture, shall be continued in effect and shall not be reduced except as provided in said Article V of the Trust Indenture. Section 9.' All Revenues (as'defined in the Trust Inden- , t4re) .cif tt e:iWat�r or ks S3"tem hall ;be collected by the City and -8- s i ' � t deposited as received with a Depositary or Depositaries (as defined in the Trust Indenture) to the credit of the special fund created by Section 5 of Article III of the 1936 indenture and designated ''Water Fund ". All moneys in the Water Fund shall be held in trust and applied as provided in said Article V of the Trust Indenture. Section 10. Two special accounts are hereby created and designated 111936 Indenture Revenue. Account" and ''1956 Indenture Revenue Account ". It shall be the duty of the City Treasurer on first business day of each month after the completion of the Water Improvements and continuing until all of the revenues bonds dated February 1, 1936 and called the "1936 Indenture Bonds" shall have been paid, to transfer from the Water Fund to the 1936 Inden- ture Revenue Account that percentage of the Revenues in the preced- ing month which is applicable to the 1936 Indenture Bonds and to transfer to the credit of the 1956 Indenture Revenue Account the balance of such revenues. As used in the Trust Indenture the words "percentage of the Revenues which is applicable to the 1936 Inden- ture Bonds" for any particular period shall mean the percentage ob- tained by dividing the sum of Eleven Million Seven Hundred Fifteen Thousand Dollars ($11,715,000), said sum representing the value of the existing waterworks system of the City excluding the betterments and improvements financed by the Waterworks Improvement Revenue Bonds of 1952, as found and declared by the City Council and recited in the preambles of this Ordinance, by the total of (i) said sum and ,(ii) the aggregate principal amount of all bonds issued under the provisions of Section 208 of the Trust Indenture and (iii), after the completion of the Additional Improvements for which the bonds of any series shall have been issued under the provisions of Section 209 of the Trust Indenture, the aggregate principal amount of the bonds of such Series. Section 11. It shall be the duty of the City Treasurer on the first business day of each month after the delivery of bonds un- der the provisions of Section 208 of the Trust Indenture and con- tinuing until and including the -first business day of the month in which the completion of the Water Improvements -shall occur, to with - = r ,; draw - ,`from 'the, Water Fund an amount equal to the entire amount de- ..' -9- posited to the credit of the Water Fund in the preceding month, and on the first business day of each month after the completion of the Water Improvements and continuing until all of the 1936 Indenture Bonds shall have been paid, to withdraw from the 1936 Indenture Revenue Account the entire amount transferred on said day to the credit of said Account, and to deposit the sum so withdrawn to the credit of the following Funds in the following order: (a) to the credit of the special fund created by Section 6 of Article.III of the 1936 indenture and desig- nated "Water Revenue Bonds Fund ", an amount equal to one- sixth (1/6) of the amount of interest payable on the in- 1936 terest payment date next succeeding on all XM Indenture Bonds then outstanding and an amount equal to one - twelfth (1/12) of the amount of principal of said bonds which will mature on the first day of February next succeed- ing; (b) to the credit of the special fund created by Section 8 of Article III of the 1936 indenture and designated "Water System Depreciation Fund ", an amount equal to five per centum (5 %) of the balance remaining after making the deposit under clause (a) above; and (c) to the credit of the special fund created by Section 9 of Article III of the 1936 indenture and designated "Water System Operation and Maintenance Fund ", the balance remaining after making the deposits under clauses (a) and (b) above. If the moneys deposited to the credit of the Water Revenue Bonds Fund under the provisions of said clause (a) in any month shall be less than the required amount, then the amount of any deficiency in any such deposit shall be added to the amount other- wise required to be deposited in each month thereafter until such time as all such deficiencies shall have been made up. Section'12. A special .fund is hereby created and desig- nated; "1956 Indenture Bonds. Interrest atnd;Sinking Fund" (herein some- times`: called 'the "Simkingll*und" js gThere aref,,hereby created in the t'4 Sintin Find t ree separate agcougnts desigiated"'Bond Service .Account ", ¢ -10- "Reserve Account" and "Redemption.Account ", respectively. The moneys in each of said Accounts shall be held in trust and applied as pro- vided in the Trust Indenture with regard to each such Account. It shall be the duty of the City Treasurer on the first business day of each month after the completion of the Water Im- provements and continuing until all of the 1936 Indenture Bonds shall have been paid to withdraw from the 1956 Indenture Revenue Account the entire amount transferred on said day to the credit of said Account, and after all of the 1936 Indenture Bonds shall have been paid to withdraw from the Water Fund an amount equal to the entire amount of the Revenues deposited to the credit of said Fund in the preceding month, and to deposit the sum so withdrawn to the credit of the following Accounts or Funds in the following order: 4 (a) to the credit of the Bond Service Account, an amount equal to one -sixth (1/6) of the amount of in- terest payable on the interest payment date next succeed- ing on all bonds of each Series issued under the pro- visions of the Trust Indenture and then outstanding;,.pre- vided, however, that the amount so deposited under the provisions of this clause (a) on account of the bonds issued under the provisions of Section 208 and the bonds of any Series issued under the provisions of Section 209 of the Trust Indenture on the first business day of each month between the date of completion of the Water Improve- ments, or the Additional Improvements for which the bonds of such Series are issued under the provisions of said Section 209, and the second interest payment date follow- ing such completion shall be that amount which when multi- plied by the number of such deposits will equal the amount required for paying the interest payable on such bonds on such second interest payment date, and the amount so de- posited under the provisions of this clause (a) on account of the revonue refunding bonds of any Series issue- d,under the provisions of Sect *'on 210 of the Trust A Ind tune ion. they :first? bt%sfness ,day., of ,eagh mgnth betiieen } the date of delivery of the VQnds'of such Series and the s ? "Reserve Account" and "Redemption.Account ", respectively. The moneys in each of said Accounts shall be held in trust and applied as pro- vided in the Trust Indenture with regard to each such Account. It shall be the duty of the City Treasurer on the first business day of each month after the completion of the Water Im- provements and continuing until all of the 1936 Indenture Bonds shall have been paid to withdraw from the 1956 Indenture Revenue Account the entire amount transferred on said day to the credit of said Account, and after all of the 1936 Indenture Bonds shall have been paid to withdraw from the Water Fund an amount equal to the entire amount of the Revenues deposited to the credit of said Fund in the preceding month, and to deposit the sum so withdrawn to the credit of the following Accounts or Funds in the following order: 4 (a) to the credit of the Bond Service Account, an amount equal to one -sixth (1/6) of the amount of in- terest payable on the interest payment date next succeed- ing on all bonds of each Series issued under the pro- visions of the Trust Indenture and then outstanding;,.pre- vided, however, that the amount so deposited under the provisions of this clause (a) on account of the bonds issued under the provisions of Section 208 and the bonds of any Series issued under the provisions of Section 209 of the Trust Indenture on the first business day of each month between the date of completion of the Water Improve- ments, or the Additional Improvements for which the bonds of such Series are issued under the provisions of said Section 209, and the second interest payment date follow- ing such completion shall be that amount which when multi- plied by the number of such deposits will equal the amount required for paying the interest payable on such bonds on such second interest payment date, and the amount so de- posited under the provisions of this clause (a) on account of the revonue refunding bonds of any Series issue- d,under the provisions of Sect *'on 210 of the Trust A Ind tune ion. they :first? bt%sfness ,day., of ,eagh mgnth betiieen } the date of delivery of the VQnds'of such Series and the 1 i r II" be that amount which when multiplied by the number of such deposits will be equal to the amount required (over and above the amount of accrued interest paid on such bonds and deposited to the credit of the Bond Service Account) for paying the interest payable on such bonds on such in- terest payment date; and provided, further, that no such deposit shall be made under the provisions of this clause (a) on account of the bonds of'any Series issued under the provisions of Section 209 of the Trust Indenture until after the completion of the Additional Improvements for which the bonds of such series are issued; (b) to the credit of the Bond Service Account, an amount equal to one -twe4h (1/12) of the amount of the principal of the /bonds of each Series issued under the pro- visions of the Trust Indenture which are stated to mature on the next succeeding February 1; provided, however, that no such deposit shall be made under the provisions of this clause (b) on account of the bonds of any such Series until the twelfth month immediately preceding the first stated maturity of the bonds of such Series; and provided, further, that no such deposit shall be made under the provisions of this clause (b) on account of the bonds of any Series issued under the provisions of Section 209 of the Trust Indenture until after the completion of the Additional Improvements for which the bonds of such'Series are issued; (c) to the credit of the Reserve Account, an amount equal to ten per centum (10 %) of the respective amounts which are required to be deposited to the credit of the Bond Service Account under the provisions of clauses (a) and (b) of this Section; provided, however, that no`l such deposit under this "clause (c) shall be made in any month if the amount then to the credit of the Reserve Account shall be equal to the maximum amount of,`thei:Principal and Iliterest Requiroments (as de- fined in the Trust Indenture) f6'r any stibsequent fiscal. -12- II" be that amount which when multiplied by the number of such deposits will be equal to the amount required (over and above the amount of accrued interest paid on such bonds and deposited to the credit of the Bond Service Account) for paying the interest payable on such bonds on such in- terest payment date; and provided, further, that no such deposit shall be made under the provisions of this clause (a) on account of the bonds of'any Series issued under the provisions of Section 209 of the Trust Indenture until after the completion of the Additional Improvements for which the bonds of such series are issued; (b) to the credit of the Bond Service Account, an amount equal to one -twe4h (1/12) of the amount of the principal of the /bonds of each Series issued under the pro- visions of the Trust Indenture which are stated to mature on the next succeeding February 1; provided, however, that no such deposit shall be made under the provisions of this clause (b) on account of the bonds of any such Series until the twelfth month immediately preceding the first stated maturity of the bonds of such Series; and provided, further, that no such deposit shall be made under the provisions of this clause (b) on account of the bonds of any Series issued under the provisions of Section 209 of the Trust Indenture until after the completion of the Additional Improvements for which the bonds of such'Series are issued; (c) to the credit of the Reserve Account, an amount equal to ten per centum (10 %) of the respective amounts which are required to be deposited to the credit of the Bond Service Account under the provisions of clauses (a) and (b) of this Section; provided, however, that no`l such deposit under this "clause (c) shall be made in any month if the amount then to the credit of the Reserve Account shall be equal to the maximum amount of,`thei:Principal and Iliterest Requiroments (as de- fined in the Trust Indenture) f6'r any stibsequent fiscal. -12- r year on account of the bonds of each Series issued un- der the provisions of the Trust Indenture and then out- standing or in excess of such amount as may be required to make the amount then to the credit of the Reserve Account equal to such maximum requirement; (d) to the credit of the Water System Depre- ciation Fund, an amount equal,to five per centum (5 %) of the balance remaining after making the deposits un- der clauses (a), (b) and (c) above; and (e) to the credit of the Water System Opera- tion and Maintenance Fund, the balance remaining after making the deposits under clauses (a), (b), '(c) and (d) above. If the moneys deposited to the credit of the Bond Service Account or the Reserve Account under the provisions of said clauses (a), (b) or (c) in any month shall be less than the required amount, then the amount of any deficiency in any such deposit shall be added to the amount otherwise required to be deposited in each month there- after /until such time as all such deficiencies shall have been made up. Section 13. In certain events, on the conditions, in the manner and with the effect set forth in the Trust Indenture, the principal of all the bonds issued under the Trust Indenture, and then outstanding may become or may be declared due and payable before the stated maturities thereof, together with the interest accrued thereon; provided, however, that such declaration and its consequences may be rescinded and annulled upon the performance of the conditions specified in Section 803 of the Trust Indenture. Section 14. A statutory mortgage lien upon the Water- works System shall exist in favor of the holders of the bonds issued under the 1936 indenture and under the Trust Indenture and then outstanding, and may be enforced as provided by said inden- tures and by the Revenue Bond Act. Section 15. The officers,:agents and employees of the City and ofthe Trustee are hereby authorized and 'directed to do -13- all the acts and things required of them by the bonds and the Trust Indenture for the-full, punctual and complete performance of all of i the terms, covenants, provisions, and agreements contained in the bonds and the Trust Indenture. i "5ect of "I6. The "Tratt Indenture authorized by and rem ferred to in Section 6 of this Ordinance shall be in substantially the following form: -14- AT Section 17. This Ordinance shall be published once in the Arkansas Democrat ,a newspaper published and of general circulation in the City of Little Rock, with a notice attached thereto and signed by the Mayor in substantially the following form: NOTICE TO ALL PERSONS CONCERNED: NOTICE IS HEREBY GIVEN that the foregoing Ordinance has been adopted, that the City of Little Rock, Arkansas, contemplates the issuance of the $9,585,000 Water Revenue Bonds (Series 1956) described in said Ordinance, and that any person interested may appear before the City Council upon the 17 day of Dec embep 1956, at $ o'clock ?.M., at its usual place of meeting in the City Hall in the City of Little Rock, and present protests. At such hearing all objections and suggestions will be heard and the City Council will take such action as it shall deem proper in the premises. Woodrow W. Mann Mayor of The City of Little Rock, Arkansas Section 18. All ordinances and parts of ordinances in conflict herewith are hereby repealed. Section 19. It is hereby declared that an emergency exist_ and that this ordinance is necessary for the immediate preservation of the public peace_ health and safety, for the following reasons the construction of the Water Improvements is necessary to provide the City and its inhabitants with uninterrupted water supply to preserve the health, safety and property of the inhabitants of the City, and there is urgent public need for an additional supply of water for the inhabitants and the industries within the City which are increasing at a rapid rate. This ordinance shall, therefore, take effect from and after its passage. PASSED: November 26 ,1956 Attest: 00A A�d� City Clerk -15- Approved: Mayor ....z ice/ l