Loading...
HomeMy WebLinkAbout10365ORDINANCE NO. 10,365 AN ORDINANCE PROVIDING FOR THE CONSTRUCTION OF EXTENSIONS, BETTERMENTS AND IMPROVEMENTS TO THE SEWER SYSTEM OF THE CITY OF LITTLE ROCK, ARKANSAS; PROVIDING FOR THE ISSUANCE OF SEWER REVENUE BONDS; PROVIDING FOR THE PAYMENT OF THE PRINCIPAL OF AND INTEREST ON THE BONDS; PRESCRIBING OTHER MATTERS RELATING THERETO; AND DECLARING AN EMERGENCY. WHEREAS certain extensions, betterments and improvements to the present Sewer System of the City of Little Rock, Arkansas are necessary in order to make said System adequate for the needs of the City and its inhabitants; and WHEREAS the Sewer Committee has had prepared by a duly quali- fied consulting engineer a detailed report, preliminary plans and estimates of cost of the needed extensions, betterments and improvements, which report, plans and estimates have been approved by the Sewer Com- mittee and recommended to the City Council; and WHEREAS a brief general description of the needed extensions, betterments and improvements is as follows: The construction of a f' new sewage treatment plant to be located north of the Fourche Levee; the construction of a new outfall trunk sewer which will roughly parallel the existing trunk sewer from the new sewage treatment plant to a point near Mabelvale Pike from whence the new sewer will run westerly and northwesterly along Rock Creek and Grassy Creek to a point approximately one thousand feet (1,0001) south of No. 10 Highway, the size of the new sewer to vary from eight inches (8 ") diameter at its upper end to sixty inches (60 ") diameter at the treatment plant; and the construction of necessary sub -mains to provide outlets for those portions of the City which cannot now reach the Sewer System by reason of topography. The estimated cost to the City of the project, including the acquisitioncF necessary rights of way, engineering expense, legal expense, and other necessary expenses incidental to the construction and to the issuance of bonds is $4,000,000; and WHEREAS the Council has determined that the new treatment plant is necessary for the welfare of the City and its inhabitants and z. F � � X� ORDINANCE NO. 10,365 AN ORDINANCE PROVIDING FOR THE CONSTRUCTION OF EXTENSIONS, BETTERMENTS AND IMPROVEMENTS TO THE SEWER SYSTEM OF THE CITY OF LITTLE ROCK, ARKANSAS; PROVIDING FOR THE ISSUANCE OF SEWER REVENUE BONDS; PROVIDING FOR THE PAYMENT OF THE PRINCIPAL OF AND INTEREST ON THE BONDS; PRESCRIBING OTHER MATTERS RELATING THERETO; AND DECLARING AN EMERGENCY. WHEREAS certain extensions, betterments and improvements to the present Sewer System of the City of Little Rock, Arkansas are necessary in order to make said System adequate for the needs of the City and its inhabitants; and WHEREAS the Sewer Committee has had prepared by a duly quali- fied consulting engineer a detailed report, preliminary plans and estimates of cost of the needed extensions, betterments and improvements, which report, plans and estimates have been approved by the Sewer Com- mittee and recommended to the City Council; and WHEREAS a brief general description of the needed extensions, betterments and improvements is as follows: The construction of a f' new sewage treatment plant to be located north of the Fourche Levee; the construction of a new outfall trunk sewer which will roughly parallel the existing trunk sewer from the new sewage treatment plant to a point near Mabelvale Pike from whence the new sewer will run westerly and northwesterly along Rock Creek and Grassy Creek to a point approximately one thousand feet (1,0001) south of No. 10 Highway, the size of the new sewer to vary from eight inches (8 ") diameter at its upper end to sixty inches (60 ") diameter at the treatment plant; and the construction of necessary sub -mains to provide outlets for those portions of the City which cannot now reach the Sewer System by reason of topography. The estimated cost to the City of the project, including the acquisitioncF necessary rights of way, engineering expense, legal expense, and other necessary expenses incidental to the construction and to the issuance of bonds is $4,000,000; and WHEREAS the Council has determined that the new treatment plant is necessary for the welfare of the City and its inhabitants and to abate an existing nuisance, as adjudged by the Chancery Court of Pulaski County, Arkansas, and the new trunk line and sub -mains are immediately needed in order to furnish necessary capacity and facili- ties for the present needs of the City and its inhabitants, and the construction is designed to take care of reasonably anticipated ex- pansion; and WHEREAS the City of Little Rock has an outstanding issue of Sewer Revenue Bonds, dated December 1, 1935 (hereinafter sometimes called "1935 Sewer Revenue Bonds "), and issued under Ordinance No. 5305 of the Ordinances of the City of Little Rock, Arkansas, the outstanding bonds of said issue maturing on December 1 of each year as follows: YEAR AMOUNT 1956 $35,000 1957 N 1958 4o,000 1959 4o,000 to abate an existing nuisance, as adjudged by the Chancery Court of Pulaski County, Arkansas, and the new trunk line and sub -mains are immediately needed in order to furnish necessary capacity and facili- ties for the present needs of the City and its inhabitants, and the construction is designed to take care of reasonably anticipated ex- pansion; and WHEREAS the City of Little Rock has an outstanding issue of Sewer Revenue Bonds, dated December 1, 1935 (hereinafter sometimes called "1935 Sewer Revenue Bonds "), and issued under Ordinance No. 5305 of the Ordinances of the City of Little Rock, Arkansas, the outstanding bonds of said issue maturing on December 1 of each year as follows: YEAR AMOUNT 1956 $35,000 1957 35,000 1958 4o,000 1959 4o,000 1960 40,000 1961 40,000 1962 5,000 1963 20,000 1964 4o,000 1965 45,000 which bonds are not callable for payment prior to maturity; and WHEREAS the City Council has heretofore by Ordinance No. 10,309 duly adopted and approved on the 8th day of October, 1956, fixed rates for sewer services which will be sufficient to pay the reasonable expenses of operation, maintenance and repair of the Sewer System, in- cluding the proposed extensions, betterments and improvements, to pay the principal of and interest on the outstanding 1935 Sewer Revenue Bonds and revenue bonds to provide for the proposed extensions, better- ments and improvements and to adequately provide for the depreciation of the Sewer System; and WHEREAS the City can obtain the necessary funds to construct J� the proposed extensions, betterments and improvements under the pro - visions of Act 132 of the Acts of the General Assembly of the State of Arkansas for the year 1933; and WHEREAS the City Council has determined that it would be in the best interest of the City and its inhabitants for the said ex- � I tensions, betterments and improvements to be constructed and that revenue bonds be issued to finance the same; NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Little Rock, Arkansas: Section 1. That the said extensions, betterments and improve- ments to the Sewer System be constructed. The said construction shall be under the control and supervision of, and all details in connection therewith shall be handled by, the heretofore created and presently existing Sewer Committee, and the Sewer Committee shall make all con- tracts or agreements necessary or incidental to the performance of its duties and the execution of its powers. It shall let all construction contracts pursuant to and in accordance with existing laws and shall require such performance bonds and insurance from the successful con- tractors as will fully insure the completion of the construction in accordance with the engineer's plans, specifications and estimates and as will fully protect the interests of the City and the holders of the Sewer Revenue Bonds authorized hereby and issued hereunder. Section 2. That under the authority of the Constitution and laws of the State of Arkansas, including particularly Act 132 of the Acts of Arkansas of 1933, City of Little Rock Sewer Revenue Bonds are hereby authorized and ordered sold in the principal amount of $4,000,000, the proceeds of the sale of which are necessary to provide suffi6`ient funds to pay the cost of constructing the said extensions, betterments and improvements to the Little Rock Sewer System, including the acquisi- tion of necessary rights of way, engineering, legal and other necessary expenses incidental to the construction and to the issuance of bonds, and six(6) months' interest on the bonds. The bonds shall be negotiable instruments payable to bearer with the interest on the bonds to be evi- denced by interest coupons and 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 The First National Bank in Little Rock, Little Rock, Arkansas, or if an alternate paying agent be designated by the purchaser pursuant to the right granted in the notice of sale of the bonds, at the option of the holder, at the office of the alternate paying agent so designated. The bonds shall be sold at public sale on auction bids, shall be dated December 1, 1956 with interest payable semi - annually on June 1 and December 1 of each year commencing June 1, 1957, the bonds offered for sale to mature on December 1 of each year as follows, but to be callable as hereinafter set forth, and to be sold with the privilege of conversion to an issue bearing a lower rate or rates of interest, said conversion, if any, to be in accordance with the Universal Bond Values Tables, upon such terms that the City receive no less and pay no more than it would receive and pay if the bonds were not converted, and the conversion to be sub- ject to the approval of the Sewer Committee and bond counsel employed by the Sewer Committee: YEAR AMOUNT 1957 $ 39,000 1958 37,000 1959 40,000 196o 44, 000 1961 47,000 1962 86,000 1963 74,000 196+ 58, 000 1965 57,000 1966 107,000 1967 112,000 1968 116,000 1969 121,000 1970 126,000 1971 132,000 1972 137,000 1973 143,000 1974 149, 000 1975 156,000 1976 163,000 1977 170,000 1978 177,000 1979 185,000 1980 192,000 1981 200,000 1982 209,000 1983 217,000 198+ 226, 000 1985 235,000 1986 245,000 r The Sewer Committee shall prepare the notice of the public sale of the bonds, shall publish such notice in such newspapers or other publications within and/or without the State of Arkansas as shall be selected by the Sewer Committee, and shall conduct the public sale at the time and place set forth in said notice. The purchaser may name the Trustee and an alternate Paying Agent, which designation or designa- tions shall be subject to the approval of the Sewer Committee. All expenses of the issue, including, without limitation, the publication expense, the expense of printing the bonds, the Trustee's fee for authenticating the bonds, and the fee of Mehaffy, Smith & Williams, bond counsel, Little Rock, Arkansas, upon whose approving opinion the bonds will be issued, will be paid by the City; and, in said notice, the Sewer Committee shall reserve the right to reject any and all bids. Section 3. That the action of the Sewer Committee in accept- ing a bid for the sale of the bonds and in approving the conversion, if any, of the bonds and the Trustee and Paying Agent named by the purchaser shall be submitted to the City Council for approval by reso- lution. The bonds, so far as possible, shall be in the denomination of $1,000 each, shall be numbered consecutively beginning with No. 1, and in its resolution the City Council shall set forth a schedule reflecting the maturity of the bonds in numerical order on December 1 of each of the years 1957 to 1986, inclusive, which schedule shall reflect the yearly principal maturities, the semi - annual interest requirements and the total requirements. Thereafter, the bonds of the issue so approved 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 said bonds 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 the coupons. The bonds, together with interest thereon, shall be payable solely out of the 1956 Sewer Revenue Bond Fund, as hereinafter set forth, and shall be a valid claim of the holders thereof only against such fund and the amount of revenue pledged to such fund, which amount of said revenue is hereby pledged and mortgaged for the equal and ratable payment of the bonds of this issue and shall be used for no other purpose than to pay the principal of and interest on said bonds and the Paying Agents fees, except as may be hereinafter specifically provided. The bonds and interest thereon shall not constitute an indebtedness of the City within any constitutional or statutory limitation. Section 4. That the bonds and coupons shall be in substantially the following form: 1 No. u UNITED STATES OF AMERICA STATE OF ARKANSAS COUNTY OF PULASKI CITY OF LITTLE ROCK _._._._% SEWER REVENUE BOND KNOW ALL MEN BY THESE PRESENTS: $ That the City of Little Rock, County of Pulaski, and State of Arkansas, acknowledges itself to owe and for value received hereby promises to pay to bearer solely from the special fund provided as hereinafter set forth the principal sum of DOLLARS in lawful money of the United States of America upon the first day of December, 19 , and to pay solely from said special fund interest hereon at the rate of per cent per annum from date, semi - annually on the first day of June and December in each year commencing June 1, 1957, upon presentation and surrender of the annexed coupons as they severally become due. Both principal and interest of this revenue bond are made payable at the office of The First National Bank in Little Rock, Little Rock, Arkansas, or, at the option of the holder, at the office of This bond is one of a series of revenue bonds aggregating Dollars ($ ), dated December 1, 1956, numbered from one (1) to inclusive, all of like tenor and effect, except as to number, denomina- tion, rate of interest and maturity, and are issued for the purpose of providing for the payment of the cost of constructing extensions, better- ments and improvements to the Sewer System of the City of Little Rock, Arkansas. This bond and the series of which it forms a part are issued I I pursuant to and in full compliance with the Constitution and laws of the State of Arkansas, including particularly Act 132 of the Acts of Arkansas of 1933, and pursuant to Ordinance No. of the City Council of the City of Little Rock, Arkansas, duly adopted and approved on the day of 1956, which ordinance sets forth specifically and in detail the pledges and covenants of the City for the payment of the principal of and interest on the bonds and to which reference may be had.for a detailed statement of said pledges and covenants. The bonds do not constitute an indebtedness of the City of Little Rock within any constitutional or statutory limita- tion. They are not general obligations of the City, but are special obligations payable solely from a fixed amount of the net revenues derived from the operation of the Sewer System, which amount shall be sufficient to pay the principal of and interest on the bonds as the same become due and payable. Said amount has been duly set aside and pledged as a special fund for that purpose and identified as the "1956 Sewer Revenue Bond Fund" created by said Ordinance No. , under which this bond is authorized to be issued. The City of Little Rock has outstanding certain Sewer Revenue Bonds, dated December 1, 1935, and issued under Ordinance No. 5305 of the Ordinances of the City of Little Rock, Arkansas, and the lien of the bonds of this issue upon the net revenues of the Sewer System shall be subject to the lien of the outstanding bonds of said December 1, 1935 issue until the principal of and interest on said outstanding bonds are paid, but thereafter the lien of the bonds of this issue shall constitute a first charge against the net revenues of the Sewer System (net revenues being gross revenues less the reasonable expenses of operation, repair and maintenance of the Sewer System). The City of Little Rock has established and has covenanted and agreed to maintain rates for sewer services which shall be sufficient at all times to provide for the payment of the reasonable expenses of operation, repair and maintenance of the Sewer System, for the payment of the principal of and interest on all outstanding Sewer Revenue Bonds, including the bonds of this issue as the same become due and payable, and to provide depreciation funds for necessary re- placements. Under the provisions of said Act 132 of 1933, a lien is fixed upon the land for any unpaid sewer charge, even though the use of the Sewer System is by a tenant or lessee instead of the owner, and pursuant thereto the Council has provided that suit will be brought to enforce the lien and to collect unpaid sewer charges. This bond is expressly made negotiable under Act 132 of the Acts of Arkansas of 1933 and is issued with, the intent that the laws of the State of Arkansas shall govern the construction thereof. The bonds of this issue shall be callable for payment prior to maturity in inverse numerical order at par and accrued interest on any interest paying date from the unexpended proceeds of the sale of the bonds not needed for the construction of the authorized betterments, improvements and extensions to the Sewer System and from surplus sewer revenue, as provided in said Ordinance No. On and after December 1, 1966, the bonds shall be callable in inverse numerical order at par and accrued interest on any interest paying date with funds from any source. Notice of the call for redemption shall be published once a week for two weeks 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, the first 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 provided funds for its payment are on deposit with the Paying Agent at that time. This bond shall not be valid until it shall have been authenticated by the certificate hereon duly signed by It is hereby certified, recited and declared that all acts, conditions and things required to exist, happen and be performed, pre- cedent 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 constitutional or statutory limita- tions; and that sufficient of the income and revenue which is deemed to be derived from the operation'of the Sewer System has been pledged to and will be set aside into said special fund for the payment of the principal of and interest on said bonds. IN WITNESS WHEREOF, the City of Little Rock, Arkansas by its City Council has caused this bond to be signed by the Mayor and City Clerk thereof and sealed with the corporate seal of said City, and has caused the coupons hereto attached to be executed by the facsimile signa- ture of said Mayor, all as of the first day of December, 1956. (SEAL) No. City Clerk CITY OF LITTLE ROCK, ARKANSAS By Mayor (Form of Coupon) June On the first day of December, 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, solely out of the fund specified in the bond to which this coupon is attached Dollars in lawful money of the United States of America at the office of being six (6) months' interest then due on its Sewer Revenue Bond, dated December 1, 1956, and numbered CITY OF LITTLE ROCK, ARKANSAS By Mayor On each bond shall appear the following CERTIFICATE hereby certifies that this is one of a series of bonds described herein aggregating $ numbered from 1 to inclusive, all of like tenor and effect except as to number, denomina- tion, rate of interest and maturity. By 1956 Section 5. (a) That the City covenants that it will continue in effect the present schedule of rates for sewer services and that the rates in such schedule will not be reduced except as hereinafter pro- vided in this section, which schedule was established by Ordinance No. 10,309, adopted by the City Council and approved on the 8th day of October, 1956, to which reference is hereby made for a statement of said schedule of rates, and the provisions of said ordinance No. 10,309 are incorporated herein as though fully set forth at this point. (b) That the City covenants and agrees with the holders of the bonds and coupons that said rates will produce a total revenue suf- ficient to pay the operation, repair and maintenance expenses of the Sewer System, to provide for the payment of the principal of and interest on all outstanding Sewer Revenue Bonds, including the bonds of this issue, as the same become due and payable, the Paying Agent's fees, and to provide adequate depreciation funds for necessary replacements to the Sewer System. And, the City covenants and agrees that said rates shall, from time to time when necessary, be increased to an amount sufficient to provide for said above set forth purposes. (c) That the City further covenants and agrees that said rates shall never be reduced, while any Sewer Revenue Bonds are out- standing, unless there is obtained from an independent certified public accountant a written opinion, based upon the number of customers appear- ing from the audit of the independent certified public accountant for the thelnext preceding fiscal year, that the proposed new rates will produce sufficient revenue to provide for the cost of operation, repair and depreciation of the Sewer System for the then next succeeding fiscal year and leave a balance equal to at least one hundred forty per cent (140%) of the maximum amount that will become due in any year for princi- pal, interest and service charges on all Sewer Revenue Bonds then out- standing. (d) That none of the facilities or services afforded by the Sewer System shall be furnished without a charge being made therefor. In the event that the City or any department, agency or instrumentality thereof shall avail itself of the facilities and services afforded by the Sewer System, the reasonable value of the service or facilities so afforded shall be charged against the City or such department, agency or instrumentality and shall be paid for as the charges therefor accrue. The revenues so received shall be deemed to be revenues derived from the operation of the Sewer System and shall be used and accounted for in the same manner as the other revenues derived from the operation of the Sewer System; provided, however, that nothing herein shall be con- strued as requiring the City or any department, agency or instrumentality thereof to avail itself of the facilities or services afforded by the Sewer System. Section 6. Nothing in this ordinance shall be construed to in any manner impair any rights of the holders of the said 1935 Sewer Revenue Bonds and the lien of the bonds herein authorized on the net revenues of the Sewer System shall be subject to the lien of the out- standing bonds of said December 1, 1935 issue as long as any of said bonds are outstanding and unpaid. But after the bonds of said December 1, 193Y issue are paid, the lien of the bonds of the issue herein authorized upon the revenues of the Sewer System shall constitute a first claim upon the net revenues of the System (net revenues being gross revenues less the reasonable expenses of operation, repair and maintenance of the Sewer System). As heretofore provided in the case of the December 1, 1935 Sewer Revenue Bonds, the City Treasurer shall be custodian of the revenues derived from the Sewer System, and the presently existing bond of such Treasurer for the faithful discharge of his duties as such custodian shall continue in effect with reference to said revenues dur- ing the life of the bonds herein authorized. Section 7. That after the delivery of the bonds herein authorized, the Sewer System shall be continuously operated as a revenue producing undertaking. All moneys received by the Treasurer from the operation of the Sewer System shall be deposited by him in such de- pository or depositories as shall from time to time be designated by the Sewer Committee, provided that all such depositories shall hold membership in the Federal Deposit Insurance Corporation, and all deposits in any depository in excess of the amount insured by the Federal Deposit Insurance Corporation shall be secured by bonds or other direct or fully guaranteed obligations of the United States of America. Section 8. Sewer Fund. That all revenues derived from the operation of the Sewer System, including the herein authorized extensions, betterments and improvements after their completion, shall be paid into a special fund, which is hereby created and designated "Sewer Fund ". The revenues in the Sewer Fund are hereby pledged and shall be applied in the manner hereinafter set forth. Section 9. Operation and Maintenance Fund. That there shall be paid from the Sewer Fund into a special fund which is hereby created and designated "Sewer Operation and Maintenance Fund" on the first business day of each month while any Sewer Revenue Bonds of the City of Little Rock shall be outstanding, an amount sufficient to pay the reasonable monthly expenses of operation, repair and maintenance of the Sewer System for such month, and from which disbursements shall be made only for those purposes. Fixed annual charges, such as insurance premiums and the cost of major repair and maintenance expenses, may be computed and set up on an annual basis and one - twelfth (1112) of the amount thereof may be paid into the Sewer Operation and Maintenance Fund each - month. If in any month for any reason there shall be a failure to transfer and pay the required amount into said fund, the amount of any deficiency shall be added to the amount otherwise required to be trans- ferred and paid into said fund in the next succeeding month. If in any fiscal year, a surplus shall be accumulated in the Sewer Operation and Maintenance Fund over and above the amount which shall be necessary to defray the reasonable and necessary costs of operation, repair and main- tenance of the Sewer System during the remainder of the then current fiscal year and the next ensuing fiscal year, such surplus may be trans- ferred and deposited in the 1956 Sewer Revenue Bond Fund or the Sewer Depreciation Fund, as the Sewer Committee may designate; provided, how- ever, that any such transfer into the 1956 Sewer Revenue Bond Fund shall be in addition to all other payments required to be made into said fund. Section 10. 1935 Sewer Revenue Bond Fund. That after the monthly deposit into the Sewer Operation and Maintenance Fund shall have been made, there shall be transferred and paid from the Sewer Fund into the 1935 Sewer Revenue Bond Fund the sums required by Section 4(b) of Ordinance No. 5305 for the payment of the principal of and interest on the December 1, 1935 Sewer Revenue Bonds as the same become due, the Paying Agent's fees, and the maintenance of the required margin of safety. When the moneys held in the 1935 Sewer Revenue Bond Fund, in- cluding the margin for safety, shall be and remain sufficient to pay the principal of and interest on all of the December 1, 1935 Sewer Revenue Bonds then outstanding, and the Paying Agent's fees, there shall be no obligation to make any further payments into the said 1935 Sewer Revenue Bond Fund. Section 11. 1956 Sewer Revenue Bond Fund. (1) That after the monthly deposit in the Sewer Operation and Maintenance Fund shall have been made and as long as any of the December 1, 1935 Sewer Revenue Bonds are outstanding there shall have been paid into the 1935 Sewer Revenue Bond Fund the required amounts, there shall be paid from the Sewer Fund into a special fund which is hereby created and designated "1956 Sewer Revenue Bond Fund" the sums in the amounts and at the times hereinafter stated in sub - section (2) for the purpose of providing funds for the payment of the principal of and interest on the bonds herein authorized as they mature according to the schedule to be set out by the City Council in its resolution approving the sale and conversion, if any, of the bonds, as heretofore provided, and as a reserve for con- tingencies. (2) That there shall be paid from the Sewer Fund into the 1956 Sewer Revenue Bond Fund, beginning on the first business day of the month of February, 1957 and continuing on the first business day of each month thereafter until the amount in said 1956 Sewer Revenue Bond Fund is sufficient to pay all outstanding bonds, interest thereon, and the Paying Agent's fees, a sum equal to one -fifth (1/5) of the next installment of interest and one -tenth (1 /10) of the next in principal, and an amount sufficient to installment of Provide for the Paying Agents fees, on all outstanding bonds of the issue herein authorized• ' provided, however, that after there shall have been accumulated in said 1956 Revenue Bond Fund a sum as a reserve for contingencies equal to the maximum amount that will become due in any year thereafter for princi- p41 and interest of the bonds herein authorized, the monthly payments may be reduced to one -sixth (1/6) of the next installment of interest and one - twelfth (1/12) of the next installment of principal, and a sum sufficient to provide for the Paying Agent's fees. (3) That if the revenues of the Sewer System are insufficient to make the required payment on the first business day of the follow- ing month into the 1956 Sewer Revenue Bond Fund, then the amount of any such deficiency shall be added to the amount otherwise required to be paid into the 1956 Sewer Revenue Bond Fund on the first business day of the next month. (4) That if for any reason the funds in the 1956 Sewer Revenue Bond Fund shall at any time be insufficient to meet any interest and /or principal payment on the bonds of the issue herein authorized, the sums then held as a reserve for contingencies shall be used to the ex- tent necessary to make said interest and /or principal payments, but such reserve shall be reimbursed from the Sewer Fund before any of the moneys in the Sewer Fund shall be used for any other purpose, except for making the required payments into the Sewer Operation and Maintenance Fund, into the 1935 Sewer Revenue Bond Fund and into the 1956 Sewer Revenue Bond Fund. Said reserve for contingencies shall be continuously maintained in the amount above specified and shall be used solely as herein provided. (5) That when the moneys in the 1956 Sewer Revenue Bond Fund, including the reserve for contingencies, shall be and remain sufficient to pay the principal of and interest on all outstanding bonds, and the Paying Agent's fees, there shall be no obligation to make any further payments into the 1956 Sewer Revenue Bond Fund. (6) That all moneys in the 1956 Sewer Revenue Bond Fund shall be used solely for the payment of the principal of and interest on the bonds herein authorized and the Paying Agent's fees, except as herein specifically provided. If a surplus shall exist in the 1956 Sewer Revenue Bond Fund over and above the amount necessary to insure the prompt payment of the principal of and interest on the bonds as the same become due and the Paying Agent's fees and over and above the re- serve for contingencies, such surplus may be used, at the option of the Sewer Committee, for the purchase of any of the outstanding 1935 Sewer Revenue Bonds, in accordance with the provisions pertaining thereto in Ordinance No. 5305, for the payment of the principal of and interest on any bonds of the issue herein authorized that may be called for re- demption prior to maturity, or for the construction of extensions, betterments and improvements to the Sewer System. (7) That it shall be the duty of the City Treasurer to with- draw from the 1956 Sewer Revenue Bond Fund at least five (5) days be- fore the maturity date of any bonds or interest coupons issued hereunder and to deposit with the Paying Agent an amount equal to the amount of such bond or coupon for the sole purpose of paying the same, together with the Paying Agent's fee. Such deposit shall be at the sole risk of the City and shall not operate as a payment of the bonds or coupons until so applied. Section 12. Sewer Depreciation Fund. That after the re- quired payments into the Sewer Operation and Maintenance Fund, the 1935 Sewer Revenue Bond Fund and the 1956 Sewer Revenue Bond Fund have been made, there shall be paid from the Sewer Fund into a special fund designated "Sewer Depreciation Fund" on the first business day of the month of February, 1957, and on the first business day of each month thereafter while any Sewer Revenue Bonds shall be outstanding, 3% of the revenues of the Sewer System which remain after the required P" payment into the Sewer Operation and Maintenance Fund shall have been made. The moneys in the Sewer Depreciation Fund shall be used solely for the purpose of paying the cost of replacements made necessary by the depreciation of the Sewer System. If in any fiscal year a surplus shall be accumulated in the Sewer Depreciation Fund over and above the amount necessary to defray the cost of proper replacements during the then current fiscal year and the next ensuing fiscal year, such surplus may be transferred and paid into the 1956 Sewer Revenue Bond Fund; provided, however, that such payments into the 1956 Sewer Revenue Bond Fund shall be in addition to all other payments hereinbefore required to be made into the said 1956 Sewer Revenue Bond Fund. Section 13. That payments from the respective funds shall be made by check or voucher, signed by the City Treasurer and the Manager - Engineer of the Sewer System and drawn on the depository with which the moneys in said fund shall have been deposited, and each such check or voucher shall briefly specify the purpose of the expenditure. Section 14. That any surplus remaining in the Sewer Fund after making full provision for the other funds hereinabove provided for may be used, at the option of the Sewer Committee, for the purchase of any of the outstanding 1935 Sewer Revenue Bonds, in accordance with the provisions pertaining thereto in Ordinance No. 5305, for the pay- ment of the principal of and interest on any bonds of the issue herein authorized that may be called for redemption prior to maturity, or for the construction of extensions, betterments and improvements to the Sewer System. Section 15. That the City hereby agrees that all payments on the bonds, principal and interest, shall be paid only through the designated Paying Agent or Agents. All bonds paid or purchased either at or before maturity shall be cancelled when such payment or purchase is made, together with all unmatured coupons appertaining thereto, and held by the Manager- Engineer of the Sewer System and shall not be re- issued. All unpaid interest coupons maturing on or prior to the date of such payment or purchase shall continue to be payable to the re- spective bearers thereof. Section 16. That the Sewer System shall be operated on a fiscal year basis beginning January 1 of each year and ending December same 31 of the / €o .1-@ 4AS year. Section 17. That the bonds shall be callable for payment prior to maturity in inverse numerical order at par and accrued interest on any interest paying date from the unexpended proceeds of the sale of the bonds not needed for the construction of the authorized better- ments, improvements and extensions to the Sewer System and from surplus sewer revenues in the 1956 Sewer Revenue Bond Fund or the Sewer Fund as hereinabove defined and referred to. On and after December 1, 1966, the bonds 'shall be callable in inverse numerical order at par and accrued interest on any interest paying date with funds from any source. Notice of the call for redemption shall be published once a week for two weeks 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, the first 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 provided funds for its payment are on deposit with the Paying Agent at that time. Section 18. That as long as any of the bonds authorized hereby are outstanding, the City shall not issue or attempt to issue any bonds or obligations claimed to be entitled to a priority of lien on the revenues of the Sewer System over the lien securing the bonds of the issue herein authorized, including the herein authorized and any and all future extensions, betterments and improvements. However, nothing in this ordinance shall be construed to prevent the issuance by the City of additional bonds to finance or pay the cost of construct- ing any future extensions, betterments and improvements to the Sewer System; provided, the City shall not authorize or issue any such addi- tional bonds ranking on a parity with the outstanding bonds of this issue unless and until there shall have been procured and filed with the Trustee a statement by an independent certified public accountant not in the regular employ of the City reciting the opinion based upon neces- sary investigation that gross revenues derived from the operation of the Sewer System for the preceding fiscal year were sufficient in amount to provide for the annual cost of operation, repair, maintenance and depreciation of the Sewer System after the then contemplated extensions, betterments and improvements shall have been completed and placed iA operation, and to leave a balance equal to at least one hundred forty per cent (140%) of the maximum amount that will become due in any year for principal, interest and service charges on all Sewer Revenue Bonds then outstanding and the Sewer Revenue Bonds then proposed to be issued. Section 19. That it is covenanted and agreed by the City with the holders of the bonds, or any of them, that the City and the Sewer Committee will faithfully and punctually perform all duties with reference to the Sewer System required by the Constitution and laws of the State of Arkansas, including the charging and collecting of reasonable and sufficient rates lawfully established for services rendered by the Sewer System, the segregating of the revenues of the Sewer System as herein required and the applying of said revenues to the respective funds herein created and referred to. Section 20. That the City and the Sewer Committee covenant and agree that they will maintain the Sewer System in good condition and operate the same in an efficient manner and at reasonable cost. While any Sewer Revenue Bonds are outstanding, the City and the Sewer Committee agree that they will insure and at all times keep insured, in the amount of the actual value thereof, in a responsible insurance com- pany or companies authorized and qualified under the laws of the State of Arkansas to assume the risk thereof, all properties of the Sewer System against loss or damage thereto from fire, lightning, tornado, winds, riot, strike, civil commotion, malicious damage, explosion, and against loss or damage from any other causes customarily insured against by private companies engaged in a similar type of business. The in- surance policies are to be taken with companies approved by the Trustee, are to carry a clause making them payable to the Trustee as its interest may appear, and are either to be placed in the custody of the Trustee or satisfactory evidence of said insurance shall be filed with the Trustee. In the event of loss, the proceeds of such insurance shall be applied solely toward the reconstruction, replacement or repair of the System, and in such event the City and the Sewer Committee will, with reasonable promptness, cause to be commenced and completed the reconstruction, replacement and repair work. If such proceeds are more than sufficient for such purposes, the balance remaining shall be de- posited to the credit of the Sewer Fund and if such proceeds shall be insufficient for such purposes, the deficiency shall be supplied, first, from moneys in the Sewer Depreciation Fund, and second, from moneys in the Sewer Operation and Maintenance Fund, and third, from available moneys in the Sewer Fund. Nothing herein shall be construed as re- quiring the City to expend any funds for operation and maintenance of the Sewer System or for premiums on its insurance which are derived from sources other than the operation of the Sewer System, but nothing herein shall be construed as preventing the City from doing so. Section 21. That the City and the Sewer Committee covenant and agree that so long as any Sewer Revenue Bonds are outstanding, that they will not mortgage, pledge or otherwise encumber the Sewer System, or any part thereof or any revenues derived from the operation thereof, except as herein specifically provided, and will not sell, lease or otherwise dispose of any substantial portion of the same. Section 22. That the Sewer Committee shall keep or cause to be kept proper books of accounts and records (separate from all other records and accounts of the City) in which complete and correct entries shall be made of all transactions relating to the construction of the herein authorized extensions, betterments and improvements and relating to the operation of the Sewer System and its revenues. And such books shall be available for inspection by the holders of any of the bonds at reasonable times and under reasonable circumstances. The City and the Sewer Committee agree to have these records audited by an independent certified public accountant at least once each year, and a copy of the audit shall be delivered to the Trustee and to any bondholder who shall have placed his name and address on file with the Sewer Committee for that purpose. In the event the City and the Sewer Committee fail or refuse to make the audit, the Trustee may, and upon request of the holders of not less than ten per cent (10%) in principal amount of the Sewer Revenue Bonds then outstanding shall, have the audit made, and the cost thereof shall be charged against the Sewer Operation and Maintenance Fund. In addition, at least once in each three (3) months during the construction of the herein authorized extensions, betterments and im- provements, the City and the Sewer Committee shall cause an audit to be made by a certified public accountant covering all moneys pertaining to the construction fund (hereinafter created and referred to), and the security held therefor and any investments thereof, and all disburse- ments made pursuant to requisitions filed by the Manager- Engineer of the Sewer System, and copies of such audit shall be furnished to the Trustee and furnished to any bondholder who shall have filed his name and address with the Sewer Committee for that purpose. Section 23. That the owner or owners of all improved property lying within the area that will be served by the Sewer System, after the proposed extensions, betterments and improvements have been completed, are hereby directed and required, upon written request from the Sewer Committee, to connect all toilet and waste water facilities of such im- proved property with the Sewer System; and the owners of property that is improved after the completion of the proposed extensions, betterments and improvements to the Sewer System shall, upon written request of the Sewer Committee, immediately connect the toilet and waste water facili- ties of such property with the Sewer System. The required notice by the Sewer Committee shall be given at least thirty (30) days prior to the final date for connection, and if any property owner shall fail to make such connection after having been so requested in writing, the City and the Sewer Committee hereby covenant -and agree to institute appropriate proceedings in a court of competent jurisdiction to compel such connec- tion. Furthermore, any property owner who fails or refuses to connect his improved property with the Sewer System after having been so re- quested by the Sewer Committee shall be guilty of a misdemeanor and upon conviction shall be fined in any sum not less than $2.00 and not more than $10.00, and each day's failure or refusal after the expiration of the time fixed in the notice to make the connection shall be a separate offense; provided, however, that the provisions hereof per- taining to a misdemeanor shall be effective only in the event that the City Health Officer, or other duly designated individual or board, has found and declared that such failure on the part of any particular property owner constitutes a hazard to the public health and safety of the City and its inhabitants. Section 24. (a) That the City and the Sewer Committee covenant and agree that the holders of the Sewer Revenue Bonds shall have the protection of the provisions of Section 13 of Act 132 of the Acts of Arkansas of 1933 (Ark. Stats. 19- 4113), and that the City and the Sewer Committee will diligently proceed to enforce the lien of unpaid sewer charges against the premises served by the Sewer System and to collect the amount due together with the penalty and expenses authorized by said Act 132. And, if the City shall fail to proceed within thirty (30) days after written request shall have been filed by the Trustee, the Trustee may, and upon the written request of the holders of not less than ten per cent (10%) in principal amount of the Sewer Revenue Bonds then outstanding shall, proceed to enforce said lien in accordance with and pursuant to the authorization of said Act 132. (b) That if there be any default in the payment of the principal of or interest on any Sewer Revenue Bond, or if the City de- faults in any Sewer Revenue Bond fund requirement or in the performance of any of the other covenants contained and set forth in this ordinance, the Trustee may, and upon the written request of the holders of not less than ten per cent (10%) in principal amount of Sewer Revenue Bonds then outstanding shall, by proper suit compel the performance of the duties of the officials of the City and of the Sewer Committee as set forth in said Act 132 of the Acts of Arkansas of 1933. And, in the case of a default in the payment of the principal of and interest on any of the outstanding Sewer Revenue Bonds, the Trustee may, and upon the written request of holders of not less than ten per cent (10%) in principal amount of the Sewer Revenue Bonds then outstanding shall, apply in a proper action to a court of competent jurisdiction for the appointment of a receiver to administer the Sewer System on behalf of the City and the bondholders with power to charge and collect (or by mandatory injunction or otherwise to cause to be charged and collected) rates sufficient to provide for the payment of the expenses of operation, repair and maintenance and to pay any bonds and interest outstanding and to apply the revenue in conformity with the provisions of said Act 132 and with this ordinance. When all defaults in principal and interest payments have been cured, the custody and operation of the Sewer System shall revert to the City and the Sewer Committee. (c) No holder of any of the outstanding Sewer Revenue Bonds shall have any right to institute any suit, action, mandamus or other Proceeding in equity or in law for the protection or enforcement of any right under this ordinance or under said Act 132 unless such holder previously shall have givalto the Trustee written notice of the default on account of which such suit, action or proceeding is to be taken, and unless the holders of not less than ten per cent (10%) in principal amount of the Sewer Revenue Bonds then outstanding shall have made written request of the Trustee after the right to exercise such powers or right of action, as the case may be, shall have accrued, and shall have afforded the Trustee a reasonable opportunity either to proceed to exercise the powers herein granted or granted by said Act 132 or by the laws of the State of Arkansas, or to institute such action, suit or proceeding in its name, and unless, also, there shall have been offered to the Trustee reasonable security and indemnity against the costs, expenses and liabilities to be incurred therein or thereby and the Trustee shall have refused or neglected to comply with such request within a reasonable time, and such notification, request and offer of indemnity are hereby declared in every such case, at the option of the Trustee, to be conditions precedent to the execution of the powers and trusts of this ordinance or to any other remedy hereunder. It is under- stood and intended that no one or more holders of the bonds hereby secured shall have any right in any manner whatever by his or their action to-affect, disturb or prejudice the security of this ordinance, or to enforce any right hereunder except in the manner herein provided, that all proceedings at law or in equity shall be instituted, had and maintained in the manner herein provided and for the benefit of all holders of the outstanding bonds and coupons, and that any individual rights of action or other right given to one or more of such holders by law are restricted by this ordinance to the rights and remedies herein provided. (d) That all rights of action under this ordinance or under any of the bonds secured hereby, enforcible by the Trustee, may be enforced by it without the possession of any of the bonds or coupons appertaining thereto, and any such suit, action or proceeding in- stituted by the Trustee shall be brought in its name for the benefit of all the holders of such bonds and coupons, subject to the provisions of this ordinance. (e) That no remedy herein conferred upon or reserved to the Trustee or to the holders of the bonds is intended to be exclusive of any other remedy or remedies herein provided, and each and every such remedy shall be cumulative and shall be in addition to every other remedy given hereunder. (f) That no delay or omission of the Trustee or of any holders of the bonds to exercise any right or power accrued upon any default shall impair any such right or power or shall be construed to be a waiver of any such default or an acquiescence therein; and every power and remedy given by this ordinance to the Trustee and to the holders of the bonds, respectively, may be exercised from time to time and as often as may be deemed expedient. (g) That the Trustee may, and upon the written request of the holders of not less than ten per cent (10%) in principal amount of Sewer Revenue Bonds then outstanding shall, waive any default which shall have been remedied before the entry of final judgment or decree in any suit, action or proceeding instituted under the provisions of this ordinance or before the completion of the enforcement of any other remedy, but no such waiver shall extend to or affect any other existing or any subsequent default or defaults or impair any rights or remedies consequent thereon. Section 25. That the Trustee shall only be responsible for the exercise of good faith and reasonable prudence in the execution of its trust. The recitals in this ordinance and in the face of the bonds are the recitals of the City and not of the Trustee. The Trustee shall not be required to take any action as Trustee unless it shall have been requested to do so in writing by the holders of not less than ten per cent (10%) in principal amount of the Sewer Revenue Bonds then out- standing and shall have been offered reasonable security and indemnity against the costs, expenses and liabilities to be incurred therein or thereby. The Trustee may resign at any time by ten (10) days' notice in writing to the Sewer Committee and the majority in value of the holders of the outstanding Sewer Revenue Bonds at any time, with or without cause, may remove the Trustee. In the event of a vacancy in the office of Trustee, either by resignation or by removal, the majority in value of the holders of the outstanding Sewer Revenue Bonds may appoint a new Trustee, such appointment to be evidenced by a written instrument or instruments filed with the Sewer Committee and the City. Clerk. If the majority in value of the holders of the outstanding Sewer Revenue Bonds shall fail to fill a vacancy within thirty (30) days after the same shall occur, then the Sewer Committee shall forthwith designate a new Trustee by a written instrument filed in the office of the City Clerk. The original Trustee and any successor Trustee shall file a written acceptance and agreement to execute the trust imposed upon it or them by this ordinance, but only upon the terms and conditions set forth in this ordinance and subject to the provisions of this ordinance, to all of which the respective holders of the bonds agree. Such written acceptance shall be filed with the Sewer Committee and with the City Clerk and a copy thereof shall be placed in the bond transcript. Any successor Trustee shall have all the powers herein granted to the original Trustee. Section 26. (a) That when the bonds herein authorized to be issued have been executed by the Mayor and City Clerk and the seal of the City impressed as herein provided, they shall be delivered to the Trustee which shall authenticate them and deliver them to the purchaser upon payment in cash to the Trustee of the purchase price thereof and accrued interest from December 1, 1956 to the date of delivery and with reference to the purchaser and the purchase price the Trustee may rely upon a letter of instructions signed by the Mayor and City Clerk. (b) From the proceeds of the sale of the bonds the Trustee shall remit an amount sufficient to pay the first six (6) months' interest on the bonds and the Paying Agent's fees to the City Treasurer, and the Treasurer shall deposit said amount in the 1956 Sewer Revenue Bond Fund. The Trustee shall remit the remaining balance of the pro- ceeds of the sale of the bonds to the City Treasurer and the City Treasurer shall deposit said amount in a trust fund to be designated "Construction Fund" with a depository designated by the Sewer Committee. This depository, as in the case of the other depositories of the City, must hold membership in the Federal Deposit Insurance Corporation and the moneys in the trust fund shall be continuously secured by bonds or other direct or fully guaranteed obligations of the United States of America. (c) The moneys in the Construction Fund shall be disbursed solely in payment of the cost of the construction of the herein authorized extensions, betterments and improvements to the Sewer System, including the acquisition of necessary rights of way, engineering, legal and other necessary expenses incidental to the construction and to the issuance of the Sewer Revenue Bonds. For each disbursement there shall be pre- pared a requisition signed by the City Treasurer and the Manager - Engineer of the Sewer System stating in respect of each such payment: which requisition shall be accompanied by a certificate signed by the The item number of the payment, W The name of the person, firm or corporation to whom payment is due, (3) The amount to be paid, and (4) The purpose by general classification for which the obligation to be paid was incurred; which requisition shall be accompanied by a certificate signed by the Manager- Engineer of the Sewer System certifying: (1) That obligations in the stated amounts have been incurred by the City and that each item thereof is a proper charge against the Construction Fund and ha not been paid, (2) That t ere has not been filed with or served upon the Sewer Committee notice of any lien, right to lien, attachment upon, or claim affecting the right to receive payment of any of the moneys payable to any of the persons, firms or corpora- tions named in such requisition, which has not been released or will not be released simul- taneously with the payment of such obligation, and (3) That such requisition contains no item representing payment on account of any retained percentage which the City is at the date of such certificate en- titled to retain; and in the case of all construction expenses over which the Consulting Engineer shall exercise supervision (which shall include all expenses except engineering fees, legal fees, or expenses pertaining to the issuance of the Sewer Revenue Bonds), said requisition shall be accom- panied by a certificate signed by the Consulting Engineer certifying his approval thereof. One copy of said requisition with accompanying certificates shall be filed with the depository or depositories with whom the Construction Fund is deposited, one copy shall be filed with the Manager- Engineer of the Sewer System and one copy shall be filed with the City Treasurer. Upon receipt of each requisition the said depository shall issue its check upon the Construction Fund payable to the person, firm or corporation designated in the requisition. (d) When the construction of the herein authorized extensions, betterments and improvements to the Sewer System shall have been com- pleted, this fact shall be evidenced by the filing with the Trustee and with the depository or depositories in which the Construction Fund is deposited of., a certificate signed by the City Treasurer and the Manager- Engineer of the Sewer System, which certificate shall state the date of such completion and shall state that all obligations which are payable from the Construction Fund have been discharged. The certificate shall be accompanied by an opinion of an attorney selected by the Sewer Committee stating that the City has acquired title to all property, lands, rights of way, easements and other interests in lands necessary for the operation of the extensions, betterments and improvements to the Sewer System, free from all liens or encumbrances except liens, encumbrances or other defects of title which do not have a materially adverse effect upon the City's right to use such properties for the purposes intended, or which have been adequately guarded against by a bond or other form of indemnity, that there are no uncancelled mechanic's liens, laborerts, contractor's, or materialmen's liens on the extensions, betterments and improvements to the Sewer System on file in any public office where the same should be filed in order to be valid liens and that, in the opinion of said attorney, the time within which such liens can be filed has expired. Any remaining balance in the Construction Fund may be used by the City for the calling of the bonds of the issue herein authorized for payment prior to maturity or may be transferred to the Sewer Fund as shall be directed by the Sewer Committee. Upon receipt of the above described certificate and opinion of the attorney selected by the Sewer Committee, the depository or depositories with which the Construction Fund is deposited, shall pay or transfer any remaining balance therein pursuant to the written direction or check signed by the City Treasurer and the Manager - Engineer of the Sewer System. Section 27. (a) That moneys held for the credit of the Construction Fund shall, as nearly as may be practicable, be continuously invested and reinvested by the Sewer Committee in direct obligations of, or obligations, the principal of and interest on which, are unconditionally guaranteed by, the United States Government, which shall mature, or which shall be subject to redemption by the holder thereof at the option of such holder not later than six (6) months after the date of such investment. (b) Moneys held for the credit of the reserve for contin- gencies in the 1956 Sewer Revenue Bond Fund shall be continuously in- vested and reinvested by the Sewer Committee in direct obligations of, or obligations, the principal of and interest on which, are unconditionally guaranteed by, the United States Government, which shall mature, or which shall be subject to redemption by the holder thereof, at the option of such holder, not later than twenty -four (24) months after the date of such investment. (c) Moneys held for the credit of any other Sewer System Fund may, at the option of the Sewer Committee, be invested and reinvested by the Sewer Committee in direct obligations of, or obligations, the principal of and interest on which, are unconditionally guaranteed by, the United States Government, which shall mature, or which shall be subject to redemption by the holder thereof, at the option of such holder, not later than the date or dates when the moneys held for the credit of the particular fund will be required for the purposes intended. (d) Obligations so purchased as an investment of moneys in any such fund shall be placed in the custody of the City Treasurer and shall be deemed at all times to be a part of such fund and the interest accruing thereon and any profit realized from such investment shall be credited to such fund, and any loss resulting from such in- vestment shall be charged to such fund. Section 28. That in the event the office of Mayor, City Clerk, City Treasurer, Manager- Engineer of the Sewer System, City Council, or attorney for the Sewer Committee shall be abolished, or any two or more of such offices shall be merged or consolidated, or in the event the duties of a particular office shall be transferred to another office or officer, or in the event of a vacancy in any such office by reason of death, resignation, removal from office or otherwise, or in the event any such officer shall become incapable of performing the duties of his office by reason of sickness, absence from the City or otherwise, all powers conferred and all obligations and duties imposed upon such office or officer shall be performed by the office or officer succeeding to the principal functions thereof, or by the office or officer upon whom such powers, obligations and duties shall be imposed by law. Section 29. That this ordinance shall not create any right of any kind and no right of any kind shall arise hereunder pursuant to it until the bonds authorized by this ordinance shall be issued and delivered. Section 30. That the provisions of this ordinance are hereby declared to be separable and if any provision shall for any reason be held illegal or invalid, such holding shall not affect the validity of the remainder of the ordinance. Section 31. That all ordinances and parts of ordinances in conflict herewith are hereby repealed to the extent of such conflict. Section 32. That it is hereby ascertained and declared that the lack of adequate sewer facilities to serve the City of Little Rock constitutes an immediate hazard to the life, health and welfare of the inhabitants of the City, and that the needed extensions, betterments and improvements can be constructed only by the issuance of the revenue bonds authorized herein. 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: November 26, 1956 . ATTEST: City Clerk FOR WOMPOWWOMiA