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HomeMy WebLinkAbout5725 ,y . RESOLUTION NO. 5,725 A RESOLUTION AUTHORIZING NOTICE OF SALE OF $15 .000 .000 .00 OF GENERAL OBLIGATION BONDS OF THE CITY OF LITTLE ROCK, ARKANSAS BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE CITY OF LITTLE ROCK, ARKANSAS : Section 1. That the Director-of Finance of the City of Little Rock, Arkansas publish in some newspaper published in the City of Little Rock, Arkansas , and having a bona fide cir- culation therein and, at his election, in such other financial journal or journals as he may select, a Notice in substantially the following form, which shall be published once a week until the day fixed for the sale, the first publication to be at least twenty (20) days before said date: I 4 i NOTICE OF SALE $15, 000, 000 CITY OF LITTLE ROCK, ARKANSAS GENERAL OBLIGATION IMPROVEMENT BONDS DATED FEBRUARY 1, 1977 The City of Little Rock, Arkansas (the "City") hereby gives notice that there will be sold on sealed bids at the time and place specified below $15 , 000, 000 in principal amount of General Obligation Improvement Bonds, dated February 1, 1977 , being issued under the provisions of Amendment No. 13 to the Constitution of the State of Arkansas (the "Bonds") . The Bonds were approved by the electors of the City at a duly called and held election on the 21st day of September, 1976. The Bonds will bear interest at the rate or rates accepted by the City, which interest will be payable semiannually on February 1 and August 1 of each year, commencing August 1, 1977 (the first coupon printed will be Coupon No. 2 due February 1, 1978) , and the Bonds will mature annually on February 1 of each year as fol- lows, but shall be subject to redemption prior to maturity as here- inafter set forth: -2- YEAR AMOUNT 1980 $ 750 , 000 1981 390 , 000 1982 415,000 1983 440 , 000 1984 465, 000 1985 495, 000 1986 525, 000 1987 555, 000 1988 585,000 1989 620, 000 1990 660, 000 1991 695 , 000 1992 740, 000 1993 780 , 000 1994 830, 000 1995 880,000 ' 1996 930, 000 1997 985 , 000 1998 1, 045, 000 1999 1, 105, 000 2000 1,110, 000 The Bonds will be general obligations of the City, to the payment of which the City will pledge its full faith, credit and taxing power, including a continuing annual tax of 3. 75 mills on the dollar of the assessed valuation of the taxable property in the City (the "Special Tax" ) . The Special Tax has been levied and will be collected annually until the principal of, interest on and Trustee ' s and Paying Agent' s fees in connection with the Bonds are paid or provision made therefor. The assessed valuation of the taxable real and personal property in the City for the year 1976 , the latest assessment of record, is $374 ,657 ,844 . The Bonds will not be subject to redemption prior to maturity prior to February 1, 1988, but will be subject to redemption prior to maturity on any interest payment date on and after February 1, 1988, in inverse numerical order, as follows : 1. The Bonds shall be subject to mandatory redemption from surplus collections of the Special Tax (being collections over and above the amount necessary to insure the prompt payment of principal of, interest on and Trustee 's and Paying Agent' s fees in connection with the Bonds, and to establish and maintain a debt service reserve equal to the maximum annual principal and interest requirements on the Bonds) , at a redemption price equal to the principal amount of the Bonds being redeemed plus accrued interest to date of redemption. The City covenants to apply all surplus collections of the Special -3- Tax, as and to the extent available, to such mandatory redemption on each interest payment date on and after February 1, 1988. 2. The Bonds may be redeemed from funds from any other source, at the option of the City, at a redemption price equal to the principal - amount of the Bonds being redeemed plus accrued interest to date of redemption plus a premium of the principal amount being redeemed, as follows: 2% if redeemed February 1, 1988 , or August 1, 1988; 1-1/2% if redeemed February 1, 1989 , or August 1 , 1989 ; 1% if redeemed February 1, 1990 , or August 1, 1990 ; 1/2% if redeemed February 1,. 1991, or August 1, 1991; _ No premium if redeemed thereafter. The purchaser may name the Trustee and the Paying Agent for the Bonds. If the Paying Agent is not a bank with its principal office in Little Rock, Arkansas, the purchaser will be required to name a bank with its principal office in Little Rock, Arkansas, as Alternate Paying Agent. The expenses of the authorization and issuance of the Bonds, except as provided in the next paragraph, including the cost of printing the Bonds, the Trustee ' s fee for authenticating the Bonds, and the fee of Friday, Eldredge & Clark; Rose, Nash, Williamson, Carroll, Clay & Giroir; and Wright, Lindsey & Jennings; Bond Counsel, Little Rock, Arkansas, upon whose approving opinion the Bonds will be issued, will be paid by the City. The approving opinion will be printed on the Bonds. It is anticipated that CUSIP identification numbers will be printed on the Bonds, but neither the failure to print such number on any bond nor any error with respect thereto shall constitute cause for a failure or refusal by the purchaser thereof to accept delivery and pay for the Bonds in accordance with the terms of the Purchase Contract. All expenses in relation to the printing of CUSIP numbers on the Bonds shall be paid for by the City; provided, however, that the CUSIP Service Bureau charge for the assignment of such numbers shall be the responsibility of and shall be paid for by the purchaser. -4- The Bonds will not be subject to conversion and neither sup- plemental nor dual coupons will be permitted. All Bonds will be issued in the denomination of $5,000 . Bidders shall specify the interest rate or rates. Bidders may specify an unlimited number of interest rates; however, the Bonds of each maturity must bear interest from date to maturity and at the same rate. The difference between the highest and lowest rate must not exceed 1-1/2% . The award, if made, will be to the bidder whose bid results in the lowest net interest cost, with the net interest cost to be determined by computing the total amount of interest, at the rates bid, from August 1, 1977 to maturity and deducting therefrom the amount of any premium bid. No bid of less than par and accrued interest will be entertained. All bids must be submitted on the Official Bid Form. Sealed bids will be received until 2: 00 p.m. , local time, on July 27, 1977 and each bid shall be enclosed in a sealed envelope marked on the outside "Proposal for $15, 000, 000 City of Little Rock, Arkansas , General Obligation Refunding and Improvement Bonds, dated February 1, 1977" and addressed to Mr. E. Jack Murphy, Director of Finance, City Hall, Little Rock, Arkansas. The bids will be opened at that time and on that date in the chambers of the Board of Directors, City Hall, Little Rock, Arkansas . Each bid must be accompanied by a certified or cashier' s check in the amount of $300, 000 , payable to the order of the City, to be applied as a partial payment for the Bonds or kept as liquidated damages in the event a bidder is awarded the sale of the Bonds and fails to complete the pur- chase. Checks of unsuccessful bidders will be promptly returned and the City will not pay interest on good faith checks . The City reserves the right to reject any and all bids . Delivery will be made to the successful bidder within a period of not to ex- ceed 60 days after the date of acceptance of the bid. Delivery will be at Little Rock, Arkansas, or at any other place requested by the -5- purchaser, but if at any place other than Little Rock, Arkansas, expenses incurred by the City in delivering the Bonds must be paid by the purchaser. The City will furnish to the successful bidder an appropriate certificate of the officials of the City that no litigation is then pending, or, to the knowledge of such officials threatened, to re- strain or enjoin the issuance or delivery of the Bonds or the levy or collection of taxes to pay the Bonds or the interest thereon, or questioning the validity or legality -of the statutes or proceedings under which the Bonds are issued. Additional information, including copies of the Official Statement and Official Bid Form, may be obtained from Mr. E. Jack Murphy, Director of Finance, City Hall, Little Rock, Arkansas 72201. Dated , 1977 . CITY OF LITTLE ROCK, ARKANSAS By Section 2 . That the Director of Finance prepare, publish and disseminate a prospectus descriptive of the said bonds and the City of Little Rock to accompany the said Notice of Sale for distribution among financial institutions and take such other action as he may deem desirable or advisable to assure the most favorable market for the sale of the said bonds . Section 3. That it is hereby ascertained and declared that there is an immediate and urgent need for the construction or acquisition of the various municipal projects to be financed through the issuance of the General Obligation Bonds of the City in order to promote and protect the health, safety and welfare of the City and its inhabitants; that in order to do so it is necessary to refund the outstanding general obligation bonds of the City; that only by the adoption of this Resolution and giving it immediate effect can these purposes be accomplished expeditiously and effectively. IT IS, r THEREFORE, declared that an emergency exists and this Resolution, being necessary for the immediate preservation of the public health, safety, and welfare, shall take effect and be in force immediately upon and after its passage. ADOPTED: June 7 , 1977 . APPROVED: Qoz‘tc14 Mayor ATTEST: i Page 2