HomeMy WebLinkAbout9051ORDINANCE N0. 9051
AN ORDINANCE PROVIDING FOR THE ISSUANCE OF AMID CONFIRMING
THE SALE OF WATER REVENUE BONDS FOR THE PURPOSE OF MAKING
IMPROVEMENTS AND EXTENSIONS TO THE WATERWORKS SYSTEM SERVING
THE CITY OF LITTLE ROCK, ARKANSAS; PROVIDING FUNDS FOR THE
PAYMENT OF THE PRINCIPAL AND INTEREST ON SAID BONDS; FIXING
MINIMUM RATES FOR WATER; AND DECLARING AN EMERGENCY.
WHEREAS, the City of Little Rock, Arkansas, owns and operates
its present waterworks system and has outstanding a balance of
$5,125,000 of an issue of 4% water revenue bonds dated February 1,
1936, which are not callable for payment prior to maturity; and
WHEREAS, Section 11 of Article V of the Trust Indenture secur-
ing said bond issue authorizes the City, while any of the February 1,
1936, bonds are outstanding, to issue additional bonds under the pro-
visions of Section 10 of Act 131 of the Acts of the General Assembly
of the State of Arkansas for the year 1933, as amended; and
WHEREAS, the Board of Waterworks Commissioners in charge of the
management and operation of the waterworks system has petitioned the
City Council to authorize the issuance of 1,000,000 in water revenue
bonds for the purpose of providing additional capacity for both the
supply and distribution of water, and the City Council, by a resolu-
tion duly adopted on the 13th day of October, 1952, authorized the
Commissioners to advertise the sale of the proposed issue of bonds,
and proceeding under that authority, the Commissioners published notice
of the sale of the bonds in the Arkansas Gazette, a newspaper published
and having a bona fide circulation in Pulaski County, Arkansas, and in
The Weekly and The Daily Bond Buyer, published in New York City; and
on November 6, 1952, in accordance with the terms and conditions set
out in the notice of sale., sealed 'bids for the bonds were publicly
opened and read, and the Commissioners found that the bid of W. R.
Stephens Investment Company, Inc. and T. J. Raney & Sons, for the
bonds at a price of $1,000,000, plus accrued interest at the time of
actual delivery of the bonds and plus a premium of $3,998.46, for
bonds bearing interest at the rate of 2.25% and 2.50% per annum was the
best bid submitted, that it resulted in the lowest net interest cost
to the City, was at a price allowed by law, and was made by a respon-
sible bidder who complied with all the terms of the sale, and therefore
the Commissioners awarded the sale of the bonds to the said W. R.
Stephens Investment Company, Inc. and T. J. Raney & Sons, subject to
the approval of this City Council; and
WHEREAS, the successful bidder has elected to exercise the option
to convert the bonds from $1,000,000 in bonds bearing interest at the
rate of 2.25 and 2.50% per annum to $1,056,200 in bonds of which
$735,200 shall bear interest at the rate of 1.75% and $321,000 at the
rate of 2.00% per annum, and has presented to this Council respective
computations of the cost of maturing the bonds according to the
interest rate submitted in the bid and according to the interest rates
in the converted schedule, which show that the conversion satisfies
all of the requirements for conversion set out in the notice of sale;
and
WHEREAS, the successful bidder is now ready to accept delivery of
the bonds as soon as the City shall be authorized to deliver them; now,
therefore,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LITTLE ROCK,
PULASKI COUNTY, ARKANSAS:
SECTION 1. That the Council hereby finds and declares that there
is immediate need f or the betterment and improvement of the waterworks
system, and that a brief description of the betterments and improvements
to be constructed in order to provide better flow and pressure condi-
tions in various sections of the City is: the installation of approx-
imately three miles of 42 -inch rare water transmission line, duplicating
and in the same right -of -way as the existing 39 -inch line; the making
of miscellaneous additions to the water lines in the filter plant
grounds, including valves and instruments; the installation of approx-
imately one mile of 30 -inch pipe; the installation of approximately
one mile of 20 -inch pipe; and the installation of approximately two
and three - tenths miles of 16 -inch pipe. (These betterments and improve-
ments are sometimes hereinafter termed the "Improvements", and the
collective waterworks system, including the present system and the new
betterments and improvements, is sometimes hereinafter termed the
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System°.) The estimated cost of the Improvements is $1,000,000,
which includes interest during construction and for a period of six
months after the completion of construction.
SECTION 2. That the Council hereby re- affirms its approval of
the petition of the Board of Waterworks Commissioners of the City of
Little Rock (sometimes hereinafter called the "Commissioners) for
the issuance of water revenue bonds, and determines that the better-
ments and improvements should be made in accordance with said petition,
and the Council further finds and declares that the period of useful-
ness of the System is more than forty years, which is longer than the
term of the proposed revenue bonds.
SECTION 3. That the Council does hereby approve and confirm the
sale of the $1,0000000 in 2.25 and 2.50% water revenue bonds at a
price of $1,000,000, plus accrued interest and a premium of 3,998.46,
to W. R. Stephens Investment Company, Inc. and T. J. Raney & Sons .of
Little Rock, Arkansas, and, having examined the computations, the
Council does hereby approve the conversion of said bond issue to
$1,056,200 in bonds bearing interest at the rates of 1.75 and 2.00%
as hereinafter set out.
SECTION 4. That the Council does hereby find and declare that
the value of the now existing system is $10, 000, 000, and that the value
of the Improvements proposed to be constructed and added to the present
system is $1,000,000, or a total value of $11,000,000 when the Improve-
ments are completed, and therefore one - eleventh of the total gross
revenues after the Improvements are completed shall be deemed to be
income derived exclusively from the Improvements and shall be set aside
and used solely and only for the purpose of paying the revenue bonds
issued to pay for the Improvements, together with the cost of the
operation, maintenance and depreciation of the Improvements.
SECTION 5. That under the authority of the General Statutes of
the State of Arkansas, and particularly Act 131 of the Acts of the
General Assembly of the State of Arkansas for the year 1933, as amended
(sometimes hereinafter termed
"Act 131,
as amended'),
water revenue
bonds of the City be issued to
provide
funds to pay
the cost of the
Improvements, including engineering, legal and other necessary expenses
and interest on the bonds during the period of construction which is
r .; r
estimated to be six months.
SECTION 6. That the bonds be designated "City of Little Rock,
Arkansas, 1 3/4% and 2% Waterworks Improvement Revenue Bonds of 1952 ",
be dated as of November 1, 1952, be numbered from 1 to 1057, inclusive,
be in the denomination of $1000 each, except bond number 47 which shall
be in the amount of $200, and mature in numerical order on the first
day of November of each year as follows:
YEAR PRINCIPAL RATE NUMBERS
(all nc usive )
1953
1954
46,200
1 3/40
1 to
47
1955
47.,000
1 3/4%
48 t o
94
1956
47,000
1 3/4%
95 to
141
1957
48,000
1 3/4%
142 to
189
1958
48,000
1 3/4O
190 to
237
1959
49,9000
1 3/4%
238 to 286
1960
49$000
1 3/4%
287 to
335
1961
50, 000
1 3/4`0
336 to
385
1962
50,000
1 3/4°0
386 to
435
1963
51,000
2%
436 to
486
1964
52,000
2%
487 to
538
1965
53,000
2%
539 to
591
1966
540000
2%
592 to
645
1967
55,000
2%
646 to
700
1968
56,000
2%
701 to
756
1969
57,000
1 3/4%-
757 to
813
1970
59,000
1 3/40
814 to
872
1971
60,000
1 3/4%
873 to
932
1972
62,000
1 3/40
933 to
994
1973
63,000
1 3/4%
995 to
1057.
That
the bonds shall bear
interest payable
semi - annually,
beginning
May 1, 1953s according to the
above schedule of
maturities.
That
the bonds be signed
by the Mayor and City Clerk and
sealed
with the corporate seal of the
City, and that the interest upon
the
bonds be evidenced by coupons
thereto attached,
the coupons to
be signed
by said Mayor by his facsimile
signature; that
said Mayor shall
by the
execution
of the bonds adopt as and f or his own
proper signature his
facsimile
signature appearing
on said coupons;
that the bonds
and cou-
pons be payable in such funds
as at the time of
the respective
payments
are legal
tender for the payment of debts due the United States of
America,
at the office of the
Peoples National
Bank of Little
Rock,
Arkansas.
That the bonds, together with interest thereon, shall be payable
solely out of the 1952 Water Revenue Bonds Fund, as set up and defined
in Section 11 of this ordinance, and shall be a valid claim of the
holder thereof only against said Fund and the amount of the revenues
pledged to said Fund, which amount of said revenues is hereby mortgaged
and pledged for the equal and ratable payment of the bonds herein
authorized and shall be used for no other purpose than to pay the
principal of and interest on said bonds.
SECTION 7. That said bonds and coupons shall be in substantially
the f oll owing f orm :
UNITED STATES OF AMERICA
STATE OF ARKANSAS
COUNTY OF PULASKI
CITY OF LITTLE ROCK
l 3/4%
2% Waterworks Improvement Revenue Bond of 1952
No.
KNOW ALL MEN BY THESE PRESENTS:
4 1000
That the City of Little Rock, in the County of Pulaski, State of
Arkansas, for value received, hereby promises to pay to bearer, solely
from the special fund provided therefor as hereinafter set forth, the
sum of
ONE THOUSAND DOLLARS
on the first day of November, 19 , with interest thereon from date
until paid at the rate of
per centum ( 9)
per annum, payable on May 1, 1953, and semi - annually thereafter on the
first day of May and November of each year, upon presentation and sur-
render of the annexed coupons as they severally become due. Both
principal hereof and interest hereon shall be payable in such funds as
at the time of the respective payments are legal tender for the payment
of debts due the United States of America, at the office of The Peoples
National Bank of Little Rock, Arkansas.
This bond is one of a series of bonds aggregating One Million
Fifty -six Thousand Two Hundred Dollars ($1,056,200.00), all of like
tenor and effect except as to number, interest rate and maturity, dated
as of November 1, 1952, numbered from 1 to 1057, both inclusive, and is
issued for the purpose of providing additional means for both the supply
and distribution of water, in order to increase the capacity of the
municipal waterworks system (hereinafter called the "System ") serving
the City of Little Rock.
This bond and the series of which it forms a part are issued pur-
suant to and in accordance with the provisions of the laws and
Constitution of the State of Arkansas, particularly Act 131 of the Acts
of the General Assembly of the State of Arkansas for the year 1933, as
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amended, and do not constitute an indebtedness of said City of Little
Rock within any constitutional or statutory limitation. Said bonds
are payable solely from a fixed amount of the gross revenues from the
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 "1952 Water Revenue Bonds Fund", created by
Ordinance No. , duly adopted by the City Council of said City
of Little Rock on November , 1952; and in said ordinance, said
City of Little Rock has covenanted and agreed to maintain rates for
water services which shall be sufficient at all times to provide for
the creation of separate depreciation funds for necessary replacements
to said System, to provide for the payment of the reasonable expense
of operation and maintenance of said System, and to provide for the
payment each year into the 1952 Water Fund, created by the said
Ordinance No. , of a sum not less than 150% of the total
principal and interest payments required for that respective year for
the bonds of this series.
This bond is expressly made negotiable by the statutes under which
it is issued, and is issued with the intent that the laws of the State
of Arkansas shall govern the construction thereof. By virtue of the
provisions of said Act 131, as amended, there is hereby granted and
created a statutory mortgage lien upon the betterments and improvements
to the waterworks system, in favor of the holders, and each of them, of
each of the bonds and each coupon thereon, which lien will continue
until the payment in full of the principal of and interest on said
bonds.
The bonds of this issue are callable for payment prior to maturity
in inverse numerical order at par and accrued interest, as follows: If
.paid with surplus revenues derived from the operation of the System, on
any interest paying date; if paid with funds derived from any source, on
any interest paying date on and after November 1, 1957. In the event a
call is made, the City shall publish notice of such call for redemption
once a week for two weeks in some newspaper of general circulation
throughout the State of Arkansas and published in the City of Little
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Rock, Arkansas, giving the number and maturity of each bond being
called, the first publication to be at least thirty days prior to the
date fixed for redemption; and after the date fixed for redemption,
each bond so called will 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 conditions,
acts and things required to exist, to be performed, and to happen
precedent to and in the issuance of this bond have existed, have been
performed and have happened in due time, form and manner as required
by law, and that the indebtedness represented by this band and the
issue of which it forms a part does not exceed any constitutional or
statutory limitation, and that sufficient of the income and revenues
which is deemed to be derived from the operation of said 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.
This bond shall not be valid until it shall have been authenti-
cated by the certificate hereon, duly signed by the City Clerk of the
City of Little Rock, Arkansas.
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
signature of said Mayor, all as of the first day of November, 1952,
(Seal)
Attest:
City Clerk
No.
CITY OF LITTLE ROCK, ARKANSAS
n
(Form of Coupon)
Mayor
4
May
On the first day of November, 19-_,_, the City of Little Rock,
Arkansas, unless the bond to which this coupon is attached is sooner
cal3a d for payment, promises to pay to bearer the sum of
DOLLARS, solely out of the fund specified in the bond to
which this coupon appertains, in the office of the Peoples National Bank
of Little Rock, Arkansas, in such funds as at the time of payment hereof
are legal tender for the payment of debts due the United States of
- 7 -
America, being interest then due on its % Waterworks
Improvement Revenue Bond of 1952, dated November 1, 1952, and numbered
CITY OF LITTLE ROCK, ARKANSAS
By
Mayor
(All coupons shall be for six months interest. The Mayor's signa-
ture on the coupons may be lithographed or engraved.)
On the back of said bonds is to appear the following:
CERTIFICATE
This is one of the 1057 bonds aggregating $1,05622002 described
within.
City-Glerk of the City o itte
Rock, Arkansas
Little Rock, Arkansas
SECTION 8. That the following monthly minimum rates be fixed as
the rates to be charged for water to be furnished by the waterworks
system both before and after the completion of the Improvements, which
the Council finds are reasonable and the necessary minimum rates to be
charged., to -wit:
Metered Service
Subject to the meter minima and penalties hereinafter set out, the
following rates, shall apply to all measured water service, except that
supplied the City of Little Rock.
Per 100
Cubic Feet
For the first 13,300 cubic feet per month, or less
23.5 cents
For the next 20,000 cubic feet per month, or any part
thereof
20.0 cents
For the next 32,000 cubic feet per month, or any part
thereof
15.0 cents
For the next 58,000 cubic feet per month, or any part
thereof
11.5 cents
For the excess of any quantity over 123,300 cubic
feet per month
6.75 cents
NOTE: One cubic foot of water is equivalent to 72 gallons
weighing 621
pounds avoirdupois.
All water used by the City of Little Rock and not included in the
rater furnished under the Public Fire Service Clause hereof
shall be
metered and paid for at the rate of 6.75 cents per hundred
cubic feet,
and shall not be subject to the meter minima.
ME:0
Meter Minima.
For 1 inch meter (5/8 -inch thread) 94 cents per month, except
for residences occupied by one family having one water fixture only,
the.minimum charge for water service shall be 71 cents per month.
For meters larger than i -inch (5/8 -inch thread) the minimum
charges for water service shall be proportional to the area of the
size of the meter, based on a minimum of 94 cents per month for
inch meter (5/8 -inch thread).
The size of the meter shall be commensurate with the use of
water, and shall be determined by the Water Commission.
Private Fire Service
Private fire service connections for private
premises outside
the
City limits shall pay the following fire service
charges:
Automatic Sprinkler System - 1000 heads or less
$27.50
yr.
subject to a minimum charge of
per
(All additional heads at 2 3/4 cents each)
Fire connection, Minimum charge
27.50
per
yr.
Private Fire Hydrants each
Standpipe openings lLinch diameter, each
35.00
7.50
per
per
yr.
yr.
Standpipe, , openings 1l -inch diameter, (or smaller)
each
5.00
per
yr.
Standpipe, openings 2 -inch diameter, each
12.50
per
yr.
Standpipe, openings 2w -inch diameter, each
25.00
per
yr.
Public Fire Service
The City of Little Rock shall pay to the Little Rock Municipal
Water Works for privilege of taking water from fire hydrants for the
prevention and extinguishment of fires, and that reasonably necessary
for the flushing of streets and sewers, testing fire hydrants, and
the practice of the City firemen, a fire hydrant rental of $23.33 per
hydrant per year.
Billing
All bills shall be computed and rendered monthly.
All annual rates for public fire service shall be payable in
twelve equal monthly installments by the City of Little Rock on or
before the 20th day of each month for service furnished in the preeed-
ing month.
Penalty gad Discontinuance of Service
Where water bills are not paid before the 20th day following the
original date of billing, a 10% penalty shall be added to the original
bill. If the bills are not paid within thirty days from rendition,
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services shall be discontinued, and the prelises shall be disconnected
from the water system.
The Council further finds and declares that such rates as above
set forth will produce a total revenue sufficient to pay the total
operation, maintenance, and expenses of the waterworks system as so
improved and provide for the payment of the bonds herein authorized to
be issued, both principal and interest, as they mature, and to create
the funds herein provided. Such rates shall not be reduced until all
bonds herein authorized and interest thereon have been paid in full,
and shall when necessary be increased so as to provide for the pay-
ment each year into the 1952 Water Fund of a sum not less than 150%
of the total principal and interest payments required for that respec-
tive year for the bonds of this issue.
SECTION 9. 1952 CONSTRUCTION FUND. A fund is hereby declared to
be created and designated '1952 Construction Fund" (sometimes herein-
after called "Construction Fund "), into which there shall be placed
the proceeds of all bonds issued hereunder after deducting the sums
provided for in Section 31 of this ordinance. Said funds shall be used
f cr the payment of the cost of construction of the new improvements and
all engineering, legal and other expenses necessary or incidental to
such construction. Said funds may be deposited in one or more banks,
each of which shall be a member of the Federal Deposit Insurance Cor-
poration, but each depository shall be required to give security for
that part of the deposit which exceeds the amount guaranteed by the FDIC,
said security to be either a surety bond executed by a corporation
authorized to do business in Arkansas, or the escrow deposit of bonds
issued by or wholly guaranteed by the United States of America. Pay-
ments out of the Construction Fund, except for the fees of engineers
and attorneys and expenses in connection with the bond issue.. shall be
made only upon engineers' estimates. In the event that any funds
remain in the Construction Fund after the completion of the Improvements,
such balance shall be immediately transferred to the Bond Fund.
SECTION 10. 1952 WATER FUND. After completion of the Improvements,
one - eleventh of the gross revenues of the entire system shall be trans-
ferred into a fund which is hereby created and designated "1952 Water
- 10 -
Fund ", and shall be deemed and at all times shall be treated as and
is hereby declared to be the revenues derived exclusively from the
Improvements. Such revenues so deposited in the 1952 Water Fund are
hereby pledged and shall be applied first to the payment of all bonds
issued hereunder and secured hereby and the interest thereon, and then
to the depreciation of the Improvements and the operation and main-
tenance of the same in the manner hereinafter provided.
SECTION 11. 1952 WATER REVENUE BONDS FUND. (a) There shall be
paid by the City Treasurer from the 1952 Water Fund into a fund which
is hereby created and designated "1952 Water Revenue Bonds Fund"
(hereinafter termed "Bond Fund "),
in
the
amounts
and
at the times here-
inafter stated in subsection (b),
for
the
purpose
of
providing funds
for the payment of the principal of and interest on the bonds as they
mature according to the following schedule and as a reserve for contin-
gencies:
Interest
YEAR
PRINCIPAL
RATE
MAY 1
NOVEMBER 1
TOTAL
1953
9,643.00
9,643.00
19,286.00
1954
46,200
1
3/4%
9,643.00
9,643.00
65,486.00
195-5
47,000
1
3/4%
9,238.75
90238.75
65,477.50_
1956
47,000
1
3/4%
8,827.50
8,827.50
64,655.00
1957
48,000
1
3/4%
8,416.25
8,416.25
64,832.50
1958
48,000
1
3/4%
7,996.25
7,996.25
63,992.50
1959
49,000
1
3/4%
7,576.25
7,576.25
64,152.50
1960
49,000
1
3/4%
7,147.50
7,147.50
63,295.00
1961
50,000
1/3/4%
6,718.75
6,718.75
63,437.50
1962
50,000
1
3/4%
60281.25
6,281.25
629562.50
1963
51,000
2%
50843.75
5,843.75
62,687.50
1964
52,000
2%
5,333.75
5,333.75
62,667.50
1965
53,000
2%
4,813.75
4,813.75
629627.50
1966
54,000
2%
4,283.75
4,283.75
62,567.50
1967
55,000
2%
3,743.75
3,743.75
62,487.50
1968
56,000
2%
3,193.75
3,193.75
621,387.50
1969
57,000
1
3/4%
29633.75
2,633.75
62,267.50
1970
59,000
1
3/4%
2,135.00
2,135.00
63,270.00
1971
60,000
1
3/4%
1,618.75
1,618.75
63,237.50
1972
62,000
1
3/4%
1,093.75
1,093.75
64,187.50
1973
63,000
1
3/4%
551.25
551.25
64,102.50
$11,0560200 $1162733.50 $1162733.50 +102890667.00
(b) On and after the completion of the Improvements, there shall
be paid by the City Treasurer from the 1952 Water Fund into the Bond
Fund, beginning on the first business day of the month after the comple-
tion of the Improvements and continuing on the first busines s day of
each month thereafter until all the bonds with interest issued under.
this ordinance have been paid in full or provision made for such pay-
ment, a sum equal to one -fifth of the next installment of interest and
— 11 —
one -tenth of the next installment of principal of the bonds and the
paying agent's fees; provided, however, that when in any fiscal year
no principal or interest of the bonds of this issue is in default and
the surplus amount in said Bond Fund formed by the excess monthly
interest and principal payments herein required equals or exceeds
65,000, the amount so payable each month into said fund shall equal
one -sixth of the next installment of interest and one - twelfth of the
next installment of principal and the paying agent's fees.
(c) If the portion of the revenues herein allocated to the
Improvements is insufficient in any month to make the required payment
on the first day of the following month into the Bond Fund, then the
amount of any deficiency in the payment made shall be added to the
amount otherwise required to be paid into the Bond Fund on the first
day of the next month. The $65,000 derived from the excess monthly
interest and principal payments shall be held in said Bond Fund as a
reserve for contingencies and used solely as herein provided; provided,
however, that when the moneys held in the Bond Fund, including the
reserve for contingencies, shall be and remain sufficient to pay the
principal of and interest on all the bonds then outstanding, the City
shall not be obliged to make any further payments into the Bond Fund.
If for any reason the Commissioners shall fail at any time to make any
of such payments into the Bond Fund, any sums then held as a reserve
for contingencies shall be used to the extent necessary in the payment
of the interest on and the principal of the bends., but such reserve shall
be reimbursed from the 1952 Water Fund out of the first available moneys
in said 1952 Water Fund after making the payments hereinabove required
to be made. All moneys in the Bond Fund shall be used solely for the
purpose of paying the interest on and the principal of the bonds issued
under this ordinance and the paying agent's fees. The reserve may be
invested in bends issued by the United States Government and maturing
in not over ten years from date of purchase.
(d) If a surplus shall exist in the Bond Fund over and above the
amount required f or making all principal and interest payments during
the current fiscal year on account of the bonds issued under this
ordinance and then outstanding, and to make the required monthly pay-
- 12
ments to the reserve for contingencies, such surplus must be used to
call outstanding bonds for payment prior to maturity; provided, the
City shall not be required nor authorized to call bonds for partial
payment*
SECTION 12. It shall be the duty of the City Treasurer to with-
draw from the Bond Fund at least ten days before the maturity date of
any bond or interest coupon 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 f s
fee of one - eighth of one percent on principal and one - fourth of one
percent on interest; provided, the minimum fee shall be one dollar.
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 13. 1952 WATERWORKS SYSTEM DEPRECIATION FUND. There shall
be paid by the City Treasurer from the 1952 Water Fund into a fund which
is hereby created and designated 1952 Waterworks System Depreciation
Fund" (hereinafter termed "Depreciation Fund"), on the first day of each
month following the completion of the Improvements, two per centum (2,%)
of the gross revenues going to the 1952 Water Fund. Moneys in the
Depreciation Fund shall be used solely for the purpose of paying the
cost of replacements made necessary by the depreciation of the Improve-
ments.
If any surplus shall be accumulated in the Depreciation Fund over
and above the amount which shall be necessary to defray the cost of
the probable replacements during the then current fiscal year and next
ensuing fiscal year, and which in the judgment of the Council and the
Commissioners is not needed for replacements, such surplus or excess
must be transferred by the City Treasurer and paid into the Bond Fund;
provided, however, that such transfer or payment into the Bond Fund
shall be in addition to all other payments hereinabove required to be
made into said Bond Fund.
SECTION 14. 1952 WATERWORKS SYSTEM OPERATION AND MAINTENANCE
FUND. There shall be paid by the City Treasurer from the 1952 Water
Fund into a fund which is hereby created and designated "1952 Waterworks
System Operation and Maintenance Fund" (hereinafter termed "Operation
Fund ") on the first day of each month following the canpletion of the
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Improvements, sufficient money to pay all the operating expenses and
to make reasonable provision for maintenance of the Improvements.
Moneys in the Operation Fund shall be used solely for the purpose of
paying the cost of operation and maintenance of the Improvements.
If any surplus shall be accumulated in the Operation Fund over
and above the amount which shall be necessary to defray the cost of
maintaining and operating the Improvements during the remainder of the
then current fiscal year and the next ensuing fiscal year, such surplus
or excess must be transferred by the City Treasurer and paid into the
Bond Fund; provided, however, that such transfer or payment into the
Bond Fund shall be in addition to all other payments hereinabove
required to be made into said Bond Fund.
SECTION 15. Any surplus that may remain in the 1952 Water Fund
after making the payments to the funds hereinabove set out shall be
used solely for the calling of bonds for payment prior to maturity,
and for that purpose shall be transferred to the Bond Fund.
SECTION 16. Nothing herein shall be construed in such a mariner
as to impair the obligation of the City under its Trust Indenture
executed March 31, 19360 by and between the City of Little Rock and the
Guaranty Trust Company of New York, securing the payment of the princi-
pal and interest of the City's water revenue bond issue dated February
1, 1936.
SECTION 17. No additional bonds payable from any part of the 1952
Water Fund as set up in Section 10 of this ordinance may be issued by
the Board of Waterworks Commissioners of the City of Little Rock or by
the City of Little Rock, but the City further covenants and agrees that
if at any time while any of the bonds issued hereunder shall be out-
standing it shall issue additional water revenue bonds under the
provisions of Section 10 of said Act 131, as amended, to construct
betterments or improvements to the waterworks system, the rates for
water shall be increased, if necessary, so that the revenues of the
waterworks system remaining after setting aside the proportion thereof
applicable to the payment of the additional revenue bonds issued for
such improvements and betterments and to the cost of operation and
depreciation thereof shall be sufficient to make the payments required
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to be made under Sections 6, 8 and 9 of Article III of said Trust
Indenture and to be made under Sections 8, 10, 11, 13 and 14 of this
ordinance, respectively.
SECTION 18. None of the facilities or services afforded by the
System shall be furnished without a reasonable charge being made
therefor. In the event that the City or any department, agency or
instrumentality thereof shall avail itself of the facilities or
services afforded by the System, the rates set out in Section 8 of this
ordinance, or as such rates may be later amended, 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 from the City shall be deemed to be revenues derived from the
operation of the System; provided, however, that nothing herein shall
be construed as requiring the City or any department, agency or instru-
mentality thereof to avail itself of the facilities or services
afforded by the System.
SECTION 19. The City will maintain the System in good condition
and operate the same in an efficient manner and at a reasonable cost.
So long as any of the bonds are outstanding, the City agrees to main-
tain fire, lightning and tornado insurance on the System in an amount
which normally would be carried by a private company engaged in a
similar type of business. In the event of loss, the proceeds of such
insurance are to be applied solely toward the reconstruction, replace-
ment or repair of the System. In such event the City will, with
reasonable promptness, cause to be commenced and completed the recon-
struction, replacement and repairs. Nothing herein shall be construed
as requiring the City to expend any funds for premiums on its insurance
on the System which are derived from sources other than the operation
of the System.
SECTION 20. The City Treasurer shall be the custodian of the
revenues derived from the System and, as such custodian, shall give
bond with a corporate surety. Such bond shall be in an amount not less
than $50,000.
SECTION 21. All revenues from the System shall be deposited in
such depository or depositories as may be lawfully designated from time
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to time, subject, however, to the giving of security by each deposi-
tory as now or as hereafter may be required, and provided each such
depository shall hold membership in the Federal Deposit Insurance
Corporation. All deposits shall be made in the name of the City and
be so designated as to indicate the particular fund to which the
revenues belong. Payments from each fund set out in this ordinance
shall be made by check or voucher signed by the City Treasurer and one
or more employees of the Commissioners and drawn on the depository in
which the moneys in said fund shall have been deposited.
SECTION 22. The bonds, together with interest thereon, are not
general obligations of the City nor do they constitute an indebtedness
of the City within the meaning of any constitutional or statutory pro-
vision or limitation, but shall be payable solely out of the Bond Fund
and shall be a valid claim of the holders thereof only against said
Fund, and the amount of the revenues pledged to said Fund, which Fund
is hereby pledged for the equal and ratable payment of the bonds issued
by authority of this ordinance and shall be used for no other purpose
than to pay the principal and interest of the bonds.
SECTION 23. The System shall be operated upon a fiscal ye ar basis,
beginning January lst of each year and ending and including the follow-
ing December 31st,
SECTION 24. It is covenanted and agreed by the City with the
holder or holders of the bonds, or any of them, that it will faithfully
and punctually perform all duties with reference to the System required
by the Constitution and statutes of the State of Arkansas, including the
making and collecting of reasonable and sufficient rates lawfully
established for services rendered by the System and applying the revenues
therefrom to the respective funds herein created.
SECTION 25. So long as any of the bonds are outstanding, the City
will not mortgage, pledge or otherwise encumber the System or any part
thereof or any revenues therefrom, except as herein provided, and will
not sell, lease or otherwise dispose of any substantial portion of the
same. The obligations of the City set out in this ordinance, the pledge
of revenues and the Cityts agreement not to mortgage, pledge or other-
wise encumber the System, except as provided under Act 131, as amended,
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shall be made a matter of public record by having a certified copy
of this ordinance recorded as a mortgage in the office of the Circuit
Clerk and Ex- officio Recorder of Pulaski County, Arkansas.
SECTION 26. The City will keep proper books of records and
accounts (separate from all other records and accounts) in which
complete and correct entries shall be made of any transactions relat-
ing to the entire water system. The City agrees to have these records
audited by an independent certified public accountant at least once a
year, and it shall furnish the paying agent a copy of this audit.
SECTION 27. If there be any default in the payment of either the
principal of or interest on any of the bonds, the holder or holders of
any of the bonds may enforce any mortgage lien granted by statute and
may by proper suit compel the performance of the duties of the officials
of the City, as set forth in the statutes authorizing the bonds. If
there be default in the payment of the principal of or interest on the
bonds or if the City shall fail to keep any other obligation which it
herein assumes, and such default shall continue for thirty days there-
after, any court having jurisdiction in any proper action, which may be
instituted by the holder of a bond in default, may appoint a receiver
to administer the System on behalf of the City, with power to charge
and collect rates sufficient to provide for the expenses of the
receivership, the payment of the bonds and interest thereon and for
the payment of the operating expenses, and to apply the income and
revenues in conformity with said statutes and this ordinance providing
for the issuance of said bonds, but when all defaults are cured, the
receivership shall be ended and the management and control of the
System restored to the City.
SECTION 28. The City further covenants and agrees that if default
is made in the payment of any bond or coupon, or if the City fails to
meet any sinking fund requirements, the holder of such bond may declare
that band immediately due and payable and in default, and any bond-
holder for himself may institute suit to enforce the pledge lien herein
granted. The failure to exercise this option upon any default shall
not be a waiver of the right to exercise it upon any subsequent default.
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SECTION 29. The bonds authorized hereby shall be callable for
payment before maturity according to the terms set out in the band
form.
SECTION 30. The City hereby agrees to make all payments on bonds
and interest only through the designated paying agent. All bonds paid
or purchased, either at or before maturity, shall be canceled when such
payment or purchase is made, together with all unmatured coupons apper-
taining thereto, shall be returned to the City and shall not be
reissued. All unpaid interest ' coupons maturing on or prior to the date
of such payment or purchase shall continue to be payable to the respec-
tive bearers thereof.
SECTION 31. The Mayor and the City Clerk are hereby authorized to
execute and deliver the bonds upon receipt of full payment therefor
according to the contract of purchase. The money received for accrued
interest and an amount equivalent to interest on the bonds for a period
of six months, plus the paying agent's fees, shall be placed in the Bond
Fund.
SECTION 32. It is hereby declared that the provisions of this
ordinance are separable, and if any provision of this ordinance shall
for any reason be held illegal or invalid, it shall not affect the
validity of the remainder of the ordinance.
SECTION 33. It is hereby declared that the provisions of this
ordinance constitute a contract by and between the City and the holders
of the bonds and interest coupons issued by authority hereof; and after
the bonds have been issued and paid for, the terms of said provisions
shall not be changed except with the written consent of the holders of
all bonds and coupons then outstanding.
SECTION 34. The City Clerk is hereby directed to publish for one
time in the Arkansas Gazette, which is hereby found and declared to be
a newspaper published and having a bona fide circulation in the City
of Little Rock, Arkansas, this ordinance, preceded by a notice in sub-
stantially the following form:
N O T I C E
Notice is hereby given that the City Council of the City
of Little Rock, Arkansas, has adopted the ordinance herein-
after set out, and that the City contemplates the issuance
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of the bends described in said ordinance, and that any
person interested may appear before the City Council on
the day of , 1952, at
o'clock P.M., at the usual place of meeting in the City
Hall, and present protests. At such hearing, all objec-
tions and suggestions will be heard and the City Council
will take such action as it shall deem proper in the
premises.
GIVEN by order of the City Council, this day
of , 1952.
City Clerk
SECTION 35. The City Council hereby finds and declares that there
is an immediate and urgent need f or additional capacity for both the
supply and distribution of water in order to safeguard the lives, health
and property of the citizens of the City of Little- Rock, Arkansas;
therefore, 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:
Attest
November 10 , 1952.
Approved:
Mayor
CERT IF I C A T
S 0 ARKANSAS) :
COUNTY PULASKI) ss.
CITY OF MIT'LE K)
I, H. C. GRk M, duly elect ; qualiflpd and acting City Cl k
withi and for the ty a esaid o ereby cerli�y that the above d
forego ng is a true erfect aample copy of a \ordinance passed
and ena ted by the bit Cou f the Ci of Little` Rock, Arkansas, t
a regula meeting of sa d ouneil ld on a day of Novembe
1952, at a City Hall said City, whi \ meeting quorum as pro-
vided by la was p ent nd voted the n.
IN TES ONY WHEREOF, have hereunto s �,my hand nd seal of
office this day f November, 1952.
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