HomeMy WebLinkAbout2254 RESOLUTION NO. 2254
A RESOLUTION AUTHORIZING THE PUBLICATION OF THE NOTICE
OF SALE OF $3 , 300,000 AD VALOREM IMPROVEMENT BONDS DATED
DECEMBER 1, 1958 .
WHEREAS, the electors of Little Rock voting at the general
election held on November 4, 1958, voted by overwhelming majorities
in favor of bond issues under Amendment No. 13 to the Constitution
of the State of Arkansas for all five of the purposes submitted at
said election, and the result thereof has been duly certified to
the City Clerk by the Pulaski County Board of Election Commissioners;
and
WHEREAS, under the terms of Ordinance No . 10, 582 submitting
the question of these five purposes and the ballot at which they
were voted upon, the City reserved the right to issue the bonds for
separate purposes in one issue ; and
WHEREAS, it is the finding of the Board of Directors of the
City of Little Rock that at this time , because of the limitation on
bond issues by municipalities fixed by Section 1 of Act No. 93 of
the Acts of the General Assembly of the State of Arkansas for the
year 1927 (Section 13-1207, Ark. Stats. 1947) , the City can sell
only $3 , 300,000 of the total authorized bond issues, and the Board
determines that it is now to the best interests of the City to sell
the following parts of the authorized bonds, to-wit:
$1 , 500,000 for the acquisition of right-of-way for con-
struction of public streets, alleys, and boulevards;
850,000 for the construction of, widening, or straightening
of streets, alleys and boulevards;
400,000 for the purchase, development and improvement of
public parks and flying fields;
400 ,000 for the purchase of sites for, construction of, and
equipment of City Hall , Auditorium and Prison;
150, 000 for buildings for the housing of fire-fighting
apparatus;
now, therefore,
BE IT RESOLVED by the Board of Directors of the City of Little
Rock, Arkansas:
SECTION 1 . That Resolution No . 2249, adopted by the Board of
Directors on November 10, 1958 , be and the same is hereby repealed .
SECTION 2 . That the Mayor and City Clerk be and they are hereby
authorized and directed to publish as required by the terms of said
Amendment notice of a public sale for the bonds to be issued, in
substantially the following form:
NOTICE OF BOND SALE OF THE
CITY OF LITTLE ROCK, ARKANSAS
$3 , 300 , 000 GENERAL OBLIGATION VARIOUS PURPOSE BONDS
Notice is hereby given that on the 12th day of December, 1958,
the City of Little Rock, Arkansas , will sell for cash on auction bids
at 2:30 o ' clock p.m. Central Standard Time, in the Board of Directors
Chamber at the City Hall in the City of Little Rock, Arkansas, Three
Million Three Hundred Thousand Dollars ($3 ,300,000) principal amount
of General Obligation Negotiable Coupon Bonds (being a part of an
authorized issue of $4, 950,000 of bonds) , being issued under authority
of Amendment No. 13 to the Constitution of the State of Arkansas, for
the following purposes:
$1, 500,000 for the acquisition of right-of way for con-
struction of public streets, alleys, and boulevards;
850, 000 for the construction of, widening, or straightening
of streets, alleys and boulevards;
400,000 for the purchase, development and improvement of
public parks and flying fields;
400,000 for the purchase of sites for, construction of, and
equipment of City Hall , Auditorium and Prison;
150,000 for buildings for the housing of fire-fighting
apparatus.
The bonds were approved by the electors of the City at the
general election held November 4, 1958, by a majority of more than
five for to one against the issues.
1 . The bonds will be dated December 1 , 1958, and the interest
will be payable semi-annually on January 1 and July 1 of each year.
The bonds will mature on January 1 of each year as follows, but shall
be callable for payment prior to maturity in accordance with pro-
visions pertaining thereto hereinafter set forth:
YEAR AMOUNT
1962 $ 91 ,000
1963 93 ,000
1964 95,000
1965 98,000
1966 101 ,000
1967 104,000
1968 108,000
1969 111 ,000
1970 114,000
1971 118,000
1972 121, 000
1973 125 ,000
1974 130,000
1975 133, 000
1976 137,000
1977 142,000
1978 146,000
1979 150, 000
1980 155,000
1981 159,000
1982 163 ,000
1983 169,000
1984 175 ,000
1985 181, 000
1986 181 ,000
2 . The bonds will be sold upon auction bids. Award, if made ,
will be to the bidder offering the lowest interest cost to the City,
the interest cost to be determined by computing the aggregate amount
of interest at the rate bid and deducting therefrom the amount of any
premium offered. The successful bidder will be permitted to designate
not more than three interest rates, provided that the total interest
cost of the interest rate or rates so designated does not exceed the
interest cost upon which the sale was awarded to him, and all rates
shall be in multiples of one-fourth (1/4) of one per cent (1%) and not
exceeding five per cent (5%) , and not more than one interest rate may
be specified in any one year . The City will make delivery of the
bonds within sixty days after the successful bidder designates the
name of the paying agent and the bank to authenticate the bonds, and
specifies the interest rates, if more than one .
3 . The bonds shall not be subject to conversion.
4. The bonds shall be callable at the option of the City in
inverse numerical order on any interest paying date from surplus
tax collections at par and accrued interest, and after January 1 ,
1965 , with funds from any source at the following prices plus accrued
interest: January 1 , 1965, to and including January 1 , 1966, at 104
cents on the dollar, and reducing 1/2 of 1% each year thereafter to
a par call after January 1, 1974. Notice of call shall be published
'1 ``_. /_)
by the City Clerk by one insertion not less than try (40) days
before the date of such redemption in a daily newspaper published in
the City of Little Rock, Arkansas, and having a general circulation
throughout the State of Arkansas.
5. The authorized issue of bonds in the amount of $4,950,000
will be secured by a pledge of 1 .55mills on the dollar of the assessed
valuation of all taxable real and personal property in the City of
Little Rock collected with the taxes payable in 1959 , and by a pledge
=—
of .i.am,0-5 mills on the dollar collected with the taxes payable in 1960
and continuing annually thereafter until all of the said bonds and
interest thereon have been paid in full . All tax collections in
excess of the amount required to service the bonds and provide a
reserve of $87, 500 will be used to call the bonds for prior payment.
The assessed valuation of all taxable real and personal property in
Little Rock, Arkansas , for the year 1958, the latest assessment of
record, is $107 , 602,187 .
6. The City reserves the right to issue, at such time or
times as it may elect, $1 , 650,000 of bonds (being the remaining
portion of the said authorized issue of $4, 950,000 of bonds) on a
parity of security with the bonds herein offered for sale .
7 . The purchaser may name the paying agent and the bank to
authenticate the bonds, and will be required to pay the following
expenses of the issue : the printing and authenticating of the bonds,
and the fee of Mehaffy, Smith & Williams; Rose , Meek, House , Barron
& Nash; and Townsend & Townsend, bond counsel , all of Little Rock,
Arkansas, upon whose approving opinion the bonds will be issued .
Information on the amount of the legal expenses may be obtained from
Mr. Dean Dauley, City Manager, City Hall, Little Rock, Arkansas.
8. Each bidder must file a certified or cashier ' s check in the
amount of $66,000 on a bank that is a member of the Federal Deposit
Insurance Corporation, payable to the City, to be kept as liquidated
damages if the bidder is awarded the sale of the bonds and fails to
complete the purchase . Checks of unsuccessful bidders will be
returned promptly. The City will pay no interest on good faith
checks and reserves the right to reject any and all bids .
For further information, address the undersigned.
GIVEN this day of November, 1958.
CITY OF LITTLE ROCK, ARKANSAS
By
Mayor
Attest:
City Clerk
SECTION 3 . It is hereby determined and declared that there
is immediate need for the public purposes for which the bonds were
authorized, in order to protect the health and safety of the inhabi-
tants of the City of Little Rock; therefore, an emergency exists and
this resolution, being necessary for the preservation of the public
peace, health and safety, shall take effect and be in force from
and after its passage .
ADOPTED: November 17, 1958
ATTEST: APPROVED:
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Mf- ;
City Clerk •r