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HomeMy WebLinkAbout9747ORDINANCE N0. 9747 AN ORDINANCE AUTHORIZING THE CONSTRUCTION OF DEVELOPMENTS AND IMPROVEMENTS TO THE LITTLE ROCK MUNICIPAL AIRPORT; PROVIDING FOR THE ISSUANCE OF BONDS TO PAY THE COST THEREOF; LEVYING A TAX SUFFICIENT TO PAY THE PRINCIPAL OF AND I1V'TEREST ON THE BONDS; PRESCRIBING OTHER MATTERS RELATING THERETO; AND DECLARING AN EMERGENCY. WHEREAS, by Ordinance No. 9649 duly passed on September 27, 1954, there was submitted to the qualified electors of the City of Little Rock, Arkansas the question of whether the City should issue bonds in the amount of $300,000 for the purpose of developing and improving the Little Rock Municipal Airport, said bonds to bear interest at a rate not to exceed 2-21--% per annum; and WHEREAS, due notice of the election was given as required by law and the election was duly held on November 2, 1954, at which election 15,697 votes were cast for the issuance of bonds and 6,394 votes were cast against the issuance of bonds; and WHEREAS, after due advertisement for the time and in the manner required by law, the bonds were offered for sale on sealed bids at a meeting of the City Council in the Council Chambers at the City Hall at 8:00 ofclock p.m. on the 17th day of January, 1955, and at said sale Southern Securities Corporation and A. G. Edwards & Sons of Little Rock, Arkansas bid and offered the price of one hundred cents on the dollar and accrued interest to date of delivery, plus a premium of $20.00 for bonds bearing interest as follows: $142,000, being the bonds maturing in the years 1958 to 1961, inclusive, at 2 per annum and $158,000, being the bonds maturing in the years 1962 to 1965, inclusive, at 1-2% per annum, and this being the best bid said bonds were sold to Southern Securities Corporation and A. G. Edwards & Sons at that price; and WHEREAS, the purchasers of the bonds have elected to name Worthen Bank and Trust Company, Little Rock, Arkansas, Paying Agent NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LITTLE ROCK, ARKANSAS: ' r t Section 1. That under the authority of the Constitution and laws of the State of Arkansas, including particularly Amendment No. 13 to the Constitution of the State of Arkansas, City of Little Rock 2% and 1� General Obligation Municipal Airport Bonds are hereby authorized and ordered issued in the total principal amount of $300,000, the pro- ceeds of the sale of which are necessary to provide sufficient funds to pay the cost of developing and improving the Little Rock Municipal Airport, including other necessary expenses incidental thereto and to the issuance of the bonds. The bonds shall be numbered consecutively from 1 to 300, inclusive, and shall be in the denomination of $1,000 each. The bonds shall be dated January 31, 1955 and interest shall be payable semi - annually on February 1 and August 1 of each year com- mencing August 1, 1955. Bonds Nos. 1 to 1420 inclusive, shall bear interest at the rate of 2% per annum and Bonds Nos. 143 to 300, in- clusive, shall bear interest at the rate of 1-2% per annum. The principal and interest shall be payable in lawful money of the United States of America upon presentation of the bond or proper coupon at the office of Worthen Bank and Trust Company, Little Rock, Arkansas. The bonds shall mature on February 1 of each year as follows, but are callable as hereinafter set forth: YEAR BOND NOS. INTEREST RATE AMOUNT 1958 1 - 34 2% $ 34,000.00 1959 35 - 69 2% 35,000.00 1960 70 -105 2% 36,000.00 3.961 106 -142 2f 37,000.00 1962, 143 -180 if % 38,000.00 1963 181 -219 39,000.00 1964 220 -259 1 � 40,000.00 1965 260 -300 l2% 41,000.00 Section 2. That the bonds shall be executed on behalf of the City by the Mayor and City Clerk and shall have impressed thereon the seal of the City. Interest coupons attached to each of said bonds may have the facsimile signature of the Mayor of the City litho- graphed or printed thereon,which signature shall have the same force and effect as if he had personally signed each of said coupons. Section 3. That the bonds and coupons shall be in sub- stantially the following form: • . P UNITED STATES OF AMERICA STATE OF ARKANSAS COUNTY OF PULASKI CITY OF LITTLE ROCK GENERAL OBLIGATION MUNICIPAL AIRPORT BOND No. KNOW ALL MEN BY THESE PRESENTS: $1,000 That the City of Little Rock in the County of Pulaski and State of Arkansas acknowledges itself to owe and for value received promises to pay to bearer the sum of ONE THOUSAND DOLLARS in lawful money of the United States of America on the first day of February, 19 , and to pay interest hereon at the rate of per cent (_�) per annum from date, semi- annually on February 1 and August 1 of each year, commencing August 1, 1955, upon presentation and surrender of the annexed coupons as they severally become due. Both principal and interest of this bond are hereby made payable at Worthen Bank and Trust Company, Little Rock, Arkansas. This is one of a series of three hundred (300) bonds, aggre- gating Three Hundred Thousand Dollars ($300,000), dated January 31, 1955, and numbered from one (1) to three hundred (300), inclusive, all of like tenor and effect except as to number, rate of interest and maturity, and the bonds are issued for the purpose of developing and improving the Little Rock Municipal Airport. This bond and the series of which it forms a part are issued pursuant to and in full compliance with the Constitution and laws of the State of Arkansas, particularly Amendment No. 13 to the Constitution of the State of Arkansas and pursuant to ordinances of the City Council of said City and an election duly held at which the majority of the legal voters of said City voting on the question voted in favor of the issuance of the bonds. This bond and the series of which it forms a part are general obligations of the City of Little Rock, Arkansas, payable from the proceeds of a seven - tenths (7/10) of a mill special tax levied by the City Council under the authority of Amendment No. 13 to the Constitution of the State of Arkansas,and the City of Little • • f Rock hereby pledges its full faith, credit and taxing power, including the said seven - tenths of a mill special tax, for the payment of this bond and the series of which it forms a part. The City has agreed that surplus revenues derived from the said special tax levied for this bond issue in excess of the amount required to insure the prompt payment of the principal of and interest on the bonds as they mature must be used to call the bonds of this issue for payment prior to maturity at the times and in the manner pro- vided herein for call and payment prior to maturity. The bonds of this issue shall be callable for payment prior to maturity in inverse numerical order at par and accrued interest from surplus tax collections on any interest paying date on and after February 1, 1958, and from funds from any source on any interest pay- ing date on and after February 1, 1960. Notice of the call for re- demption shall be published once a week for two (2) weeks in a news- paper 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. IT IS HEREBY CERTIFIED, RECITED AND DECLARED that all acts, conditions and things required to exist, happen and be performed, under the Constitution and laws of the State of Arkansas, particularly Amendment No. 13 to the Constitution of the State of Arkansas, precedent to and in the issuance of this bond have existed, have happened and have been performed in due time, form and manner as required by law; that the indebtedness represented by this bond and the issue of which it forms a part, does not exceed any constitutional or statutory limitation; and that a tax sufficient to pay the bond has been duly levied in accordance with said Amendment No. 13 to the Constitution of the State of Arkansas and made payable annually until all of the bonds and interest thereon have been fully paid and discharged. This bond shall not be valid until it shall have been authenticated by the certificate hereon duly signed by Worthen Bank and Trust Company, Little Rock, Arkansas. IN WITNESS WHEREOF, the City of Little Rock, Arkansas has executed this bond by the hands of its Mayor and City Clerk and attested it with its corporate seal and has caused the coupons hereto attached to be authenticated by the facsimile signature of its Mayor, all as of the 31st day of January, 1955• CITY OF LITTLE ROCK, ARKANSAS By Mayor ATTEST: City Clerk (SEAL) (FORM OF COUPON) No. February On the first day of August, 19 the City of Little Rock, Pulaski County, Arkansas, unless the bond to which this coupon is attached is paid prior thereto, hereby promises to pay to bearer Dollars in lawful money of the United States of America at the office of Worthen Bank and Trust Company, Little Rock, Arkansas, being six (6) months' interest then due on its General Obligation Municipal Airport Bond, dated January 31, 1955, and numbered CITY OF LITTLE ROCK, ARKANSAS By Mayor On each bond shall appear the following CERTIFICATE This is to certify that this is one of the three hundred (300) bonds of the issue mentioned and described within. WORTHEN BANK AND TRUST COMPANY LITTLE ROCK, ARKANSAS Little Rock, Arkansas - By , 1955 SECTION 4. That in order to pay the bonds as they mature, with interest thereon, there is hereby levied upon all taxable real and personal property within the City of Little Rock, Arkansas, a tax of seven - tenths (710) of a mill on each dollar of assessed valuation, beginning with the taxes collected in the year 1955 and continuing through the year 1965 and as long thereafter as may be necessary to pay the principal of and interest on the bonds authorized by this ordinance, being a sum sufficient to pay the principal of and interest on the bonds as they mature, with more than five per cent (5 %) added for unforeseen contingencies} and the City Clerk is directed to trans- mit a certified copy of this section of this ordinance to the County Clerk of Pulaski County, Arkansas to the end that said tax may be ex- tended on the tax books of said County and collected annually along with the other taxes until the bonds and interest thereon are paid in full. Surplus revenues derived from the said special tax levy for this bond issue in excess of the amount required to insure the prompt payment of the principal of and interest on the bonds as they mature must be used to call the bonds of this issue for payment prior to maturity at the times and in the manner provided herein for call and payment prior to maturity. SECTION 5. That for the prompt payment of the bonds of this issue with interest, the City of Little Rock, Arkansas hereby pledges its full faith, credit and taxing power, including the tax levied in Section 4. SECTION 6. That in order to pay the principal of and interest on said bonds as they mature, there are hereby appropriated out of the proceeds of the tax herein levied, and if such proceeds be not sufficient then out bf the general revenues of the City, the following sums: Section 7. That the bonds of this issue shall be callable for payment prior to maturity in accordance with the terms set out in the face of the bond form in Section 3 of this ordinance. Section 8. That the Treasurer of the City of Little Rock, Arkansas is hereby ordered and directed to deposit with Worthen Bank and Trust Company, Little Rock, Arkansas, the paying agent, at least five (5) days before the maturity date of any bond or interest coupon issued hereunder, an amount from the funds herein appropriated equal to the amount of such bonds or coupons for the sole purpose of paying the same, together with the paying agent's fee of twelve and one -half cents (12-J¢) for each One Hundred Dollars ($100) par value of bonds and a fee of five cents (5¢) per coupon, provided that the minimum paying charge shall be One Dollar ($1.00). Such deposit shall be at the risk of the City and shall not operate as a payment of the bonds or coupons until so applied. This instruction to the Treasurer is irrevocable and may be enforced by mandamus. Section 9. That Worthen Bank and Trust Company, Little Rock, Arkansas, is designated as paying agent. The holders of a majority in value of the outstanding bonds at any time may by an in- strument duly executed and recorded in the office of the City Clerk appoint a new paying agent, who shall have all of the powers of the paying agent originally named, and the paying agent herein named may resign at any time upon ten (10) days' notice in writing mailed to the City Clerk. Section 10. That if default is made and continues for thirty INTEREST YEAR BOND NOS. PRINCIPAL FEBRUARY AUGUST TOTAL 1955 $ 2,605.00 $ 2,605.00 1956 $ 2,605.00 21605.00 5,210.00 1957 2,605.00 2,605.00 5,210.00 1958 1 - 34 $ 34,000 2,605.00 2,265.00 38,870.00 1959 35 - 69 35,000 2,265.00 1,915.00 39,180-00 1960 70 -105 36,000 1,915.00 1,555.00 39,470.00 1961 lo6 -142 37,000 1,555.00 1,185.00 39,740.00 1962 143 -180 3$,000 1,185.00 900.00 40,085.00 1963 181 -219 39,000 900.00 607.50 4o,507.50 1964 220 -259 4o,000 607.50 307.50 40,915.00 1965 260 -300 41,000 307.50 412307.50 Section 7. That the bonds of this issue shall be callable for payment prior to maturity in accordance with the terms set out in the face of the bond form in Section 3 of this ordinance. Section 8. That the Treasurer of the City of Little Rock, Arkansas is hereby ordered and directed to deposit with Worthen Bank and Trust Company, Little Rock, Arkansas, the paying agent, at least five (5) days before the maturity date of any bond or interest coupon issued hereunder, an amount from the funds herein appropriated equal to the amount of such bonds or coupons for the sole purpose of paying the same, together with the paying agent's fee of twelve and one -half cents (12-J¢) for each One Hundred Dollars ($100) par value of bonds and a fee of five cents (5¢) per coupon, provided that the minimum paying charge shall be One Dollar ($1.00). Such deposit shall be at the risk of the City and shall not operate as a payment of the bonds or coupons until so applied. This instruction to the Treasurer is irrevocable and may be enforced by mandamus. Section 9. That Worthen Bank and Trust Company, Little Rock, Arkansas, is designated as paying agent. The holders of a majority in value of the outstanding bonds at any time may by an in- strument duly executed and recorded in the office of the City Clerk appoint a new paying agent, who shall have all of the powers of the paying agent originally named, and the paying agent herein named may resign at any time upon ten (10) days' notice in writing mailed to the City Clerk. Section 10. That if default is made and continues for thirty (30) days in the payment of any interest coupon, the holder of the bond to which it is attached may declare the same immediately due and payable, and the failure of the holder to exercise this option upon any default shall not be a waiver of his right to exercise the option upon any subsequent default. Section 11. That when the bonds herein authorized to be executed have been executed by the Mayor and the City Clerk and the seal of the City impressed as herein provided, they shall be delivered to Worthen Bank and Trust Company, Little Rock, Arkansas, which shall authenticate them and deliver them to Southern Securities Corporation and A. G. Edwards & Sons, or their order, upon payment in cash of the purchase price of $300,000 plus the premium of $20.00 and accrued interest to the date of delivery. The proceeds of the purchase price shall be used for no other purpose than the developing and improving of the Little Rock Municipal Airport, and for the expenses of the issuance of the bonds. Section 12. That the terms of this ordinance shall con- stitute a contract between the City of Little Rock, Arkansas and the holder or holders of the bonds and no variation or change in the under- takings herein set forth shall be made while any of these bonds are outstanding and the holder of any bonds may at any time for and on his own behalf or for and on behalf of all bondholders enforce the obliga- tions of the City by a proper suit for that purpose. Section 13. That the provisions of this ordinance are separable and in the event that any section or part hereof shall be held to be invalid, such invalidity shall not affect the remainder of this ordinance. Section 14. That all ordinances and parts of ordinances in conflict herewith are hereby repealed. Section 15. That this ordinance shall not create any right of any character and no right of any character shall arise under or pursuant to it until the bonds authorized by this ordinance shall be issued and delivered. Section 16. That it is hereby ascertained and declared that the present facilities of the Little Rock Municipal Airport are wholly inadequate and that there is an immediate and urgent need for the development and improvement of the Municipal Airport in order to pro- tect the welfare and property of the inhabitants of the City, and that only by the issuance of the bonds above referred to can adequate facilities be made available. It is, therefore, declared that an emergency exists and this ordinance being necessary for the preserva- tion of the public peace, health and safety shall be in force and take effect immediately on and after its passage. PASSED January 31 , 1955, APPROVED: Mayor