HomeMy WebLinkAbout5211ORDINANCE NO. L 1
AN ORDINANCE AUTHORIZING THE ISSUANCE OF
WARRANTS TO OBTAIN FUNDS FOR THE ORDINARY OP-
ERATING EXPENSES Or THE CITY OF LITTLE ROCK,
ARKANSAS, FOR THE MONTHS OF JANUARY AND FEBRUARY,
1935, PROVIDING FOR AN ASSIGNMENT OF THE UNCOLLECTED
PROPERTY TAX AS SECURITY FOR THE PAY'ME'NT OF SUCH
WARRANTS, PROVIDING FOR THE PAYMENT OF SUCH WARRANTS,
AND FOR OTHER PURPOSES.
WHEREAS, the City of Little Rock is now without
funds with which to pay its ordinary and necessary operating
expenses incurred subsequent to January 1, 1935; and
17HEREAS, it is necessary that arrangements be made
immediately to provide funds with which to pay such expenses
for the months of January and February, 1935, in order to
preserve, maintain and operate the City government: Therefore
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
LITTLE ROCK:
SECTION 1. That the Mayor and the City Clerk be,
and they are hereby authorized and directed to issue warrants
payable to the City Treasurer, or order, to meet payrolls
of the City of Little Rock,due upon the dates specified
and in the following sums:
Payroll due January 19, 19350 $8,376.33
Payroll due February 5, 1935, 81447.36
Payroll due February 14,1935, 71176.31
Total - 00.00
Said warrants shall be made due and payable on or
before May 2, 1935, and shall bear no interest whatever.
SECTION 2. The City Treasurer is hereby authorized
and directed, immediately upon the execution of said warrants,
to negotiate and sell same at par. It is hereby ascertained
and declared that the payrolls referred to in Section 1 hereof
constitute only the necessary and ordinary operating expenses
of the City of Little Rock incurred subsequent to January
12 1935; and the City of Little Rock hereby covenants and
agrees with the purchaser or purchasers of said warrants
that the proceeds of same will be applied to the payment of
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such expenses, and for no other purpose.
SECTION 3. To secure the payment of said
warrants and to provide funds out of which said warrants
shall be paid, the revenues collected and received by
the City of Little Rock during the year 1935 from the
five mill ad valorem tax collections extended upon the
tax books of Pulaski County for collection during the
year 1935, are hereby pledged, set aside,and shall be
separately held for the payment of _,aid warrants, and
for no other purposes. To that end, upon the sale of
said warrants, the Mayor and City Clerk are hereby
authorized and directed to execute in the name and in
behalf of the City of Little Rock a written instrument
of assignment duly acknowledged, by the terms of which
the revenues aforesaid shall be pledged and assigned to
the purchaser or purchasers of said warrants, or to a
trustee designated by them, as security for the repayment
of said warrants; and said assignment, when executed and
acknowledged, shall be recorded on the real estate mort-
gage record in the office of the Recorder of Deeds, of
Pulaski County, Arkansas, and a certified copy thereof
shall be delivered by the purchaser or purchasers of said
warrants, or by the designated trustee to the Collector
of Pulaski County, Arkansas. Thereupon, as said taxes
are collected, the Collector of Pulaski County may pay
same over, less his commission, to such purchaser, pur-
chasers or trustee, upon surrender to the Collector of
tre warrant or warrants secured by the said assignment,
hich said warrant or warrants shall be accepted by the
City of Little Rock as the equivalent of money in its
settlement with. the Collector. It shall be the duty of
the person or persons receiving said money from the Col-
lector to acknowledge payment of the sum so paid by
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noting same on the margin of the record where said assign-
ment shall be recorded, or by a separate duly acknowledged
instrument. If, when the Collector makes settlement for
such taxes, a sufficient sum has not been collected to
pay in full such warrant or warrants, the balance of
funds so assigned which may then be on hand shall be paid
over by the Collector to the assignee and credited thereon,
such payment to be shown of record as above specified, and
the unpaid balance shall constitute a lien upon the as-
signed taxes by the County Clerk, and shall at all times
constitute a general obligation of the City of Little
Rock, payable from any fund not appropriated by law to
some other exclusive purpose.
SECTION 4. The assignment of taxes provided
for in Section 3 hereof shall be without prejudice to the
rights of warrant holders to use municipal warrants in
payment of municipal taxes; and no warrant shall be issued
by the City of Little Rock from and after the passage of
this ordinance in excess of an aggregate amount capable of
being paid out of the funds derived from the sale of the
warrants as provided for, and out of revenues of the City
of Little Rock arising from any other source than the
general municipal property tax, until the warrants secured
by said assignment shall have been repaid in full; and
the assignment provided for by this ordinance shall so
stipulate.
SECTION 5. The holder or holders of said war-
rants, or any one of same, may enforce the provisions of
this ordinance by mandamus, or by any other remedy provided
by law.
SECTION 6. It is hereby ascertained and declared
that the aggregate amount of the warrants to be issued
pursuant to the provisions of this ordinance does not exceed
the revenue of the City of Little Rock from all sources
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for the current fiscal year during which said warrants
are issued.
SECTION 7. It is hereby ascertained and de-
clared that the amount of City taxes of the City of
Little Rock extended on the taxbooks of Pulaski County
for collection during the year 1935 is in excess of the
sum, of X1502000.00.
SECTION 8. Should any officer of the City of
Little Rock fail or refuse to comply with the provisions
of this ordinance, or violate any of the provisions of
same, such officer shall be deemed guilty of a mis-
demeanor, and,upon conviction, shall be fined in any
sum not to exceed $500.00, and may be removed from office.
SECTION 9. The provisions of this ordinance
are hereby declared severable, and the invalidity of any
section thereof shall not affect the validity of antr
other provisions of this ordinance.
SECTION 10. It is hereby ascertained and de-
clared that the failure of the 'City of Little Rock to
meet its ordinary and necessary operating expenses has
created a state of uncertainty and confusion among the
officers and employees of the various departments of said
City to the extent that the performance of their duties
is seriously jeopardized and impaired, and the peace,health
and safety of the City of Little Rock is thereby endangered;
therefore an emergency is hereby declared to exist, and
this ordinance shall take effect and be in full force from
and after its passage.
Passed: Febru,7.ry 13, 1535
Attest•
City Clerk.
Approved:
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