ORD NO 08-2026 CITY OF VAN BUREN,ARKANSAS
ORDINANCE NO. 0'-2026
BE IT ENACTED BY THE CITY COUNCIL, FOR THE CITY OF VAN BUREN,
ARKANSAS,AN ORDINANCE TO BE ENTITLED:
AN ORDINANCE AUTHORIZING THE CONSTRUCTION
OF BETTERMENTS AND IMPROVEMENTS TO THE
SEWER FACILITIES OF THE CITY OF VAN BUREN,
ARKANSAS; AUTHORIZING THE ISSUANCE OF A
WATER AND SEWER REVENUE BOND IN THE
PRINCIPAL AMOUNT OF $3,435,000 FOR THE PURPOSE
OF FINANCING ALL OR A PORTION OF THE COST OF
CONSTRUCTION; PROVIDING FOR THE PAYMENT OF
THE PRINCIPAL OF AND INTEREST ON THE BOND;AND
PRESCRIBING OTHER MATTERS RELATING THERETO.
WHEREAS, the City of Van Buren,Arkansas(the"City")owns water and sewer facilities,which
are operated as a single, integrated municipal undertaking(the "System")under the
control of the Van Buren Municipal Utilities Commission (the "City
Commission"); and
WHEREAS, the City Council and the City Commission have determined that betterments and
improvements to the sewer facilities of the System (the "Improvements") are
necessary in order to make the services of the System adequate for the needs of the
City; and
WHEREAS, a preliminary report,general plans and estimates of cost for the Improvements have
been examined and approved by the City Council and a copy of such general plans
are on file at the offices of the City where they may be inspected by any interested
person; and
WHEREAS, in order to finance all or a portion of the costs of the Improvements, including bond
issuance costs and interest during construction,the City is making arrangements for
the sale of a bond in the principal amount of $3,435,000 to the Arkansas
Development Finance Authority,as purchaser(the "Bondholder"),at a price of par
for a bond bearing interest at the rate of 3%per annum pursuant to a Series 2026C
Bond Purchase Agreement(the "Agreement") among the City,the Bondholder and
the Arkansas Natural Resources Commission("ANRC"),which has been presented
to and is before this meeting; and
WHEREAS, the City Council has authorized, but not yet issued, its Water and Sewer Revenue
Bond, Series 2026A, in the principal amount of $2,300,000 (the "Series 2026A
Bond") to finance betterments and improvements to the water facilities of the
System; and
WHEREAS, the City Council has authorized, but not yet issued, its Water and Sewer Revenue
Bond, Series 2026B, in the principal amount of $3,750,000 (the "Series 2026B
Bond") to finance betterments and improvements to the water facilities of the
System; and
WHEREAS, the City Council anticipates that at the meeting at which this Ordinance is adopted
it will authorize its Water and Sewer Revenue Bond, Series 2026D, in the principal
amount of$4,430,000(the "Series 2026D Bond")to finance additional betterments
and improvements to the sewer facilities of the System; and
WHEREAS, the City has outstanding its Waterworks and Sewer Revenue Refunding Bonds,
Series 2016 (the "Senior Bonds"); and
WHEREAS, the City is authorized, under the provisions of Amendment No. 65 to the Arkansas
Constitution, Title 14, Chapter 234, Subchapter 2 of the Arkansas Code of 1987
Annotated(the "Code"), Title 14, Chapter 164, Subchapter 4 of the Code and Title
14, Chapter 235, Subchapter 2 of the Code (collectively, the "Authorizing
Legislation"),to issue and sell the bond; and
WHEREAS, the Bondholder may pledge the bond as collateral for the payment of its revolving
loan fund revenue bonds (the "ADFA Bonds"), which may be issued from time to
time,to the bank or trust company to be named as trustee for the ADFA Bonds(the
"ADFA Trustee"); and
WHEREAS, the City is required to pay to the Arkansas Development Finance Authority, as
servicer(the"Authority"),a servicing fee equal to 1%per annum of the outstanding
principal amount of the bond (the "Servicing Fee");
NOW, THEREFORE, BE IT ORDAINED AND ENACTED BY THE CITY
COUNCIL OF THE CITY OF VAN BUREN,ARKANSAS,THAT:
Section 1. The Improvements shall be accomplished and shall be a part of the System. The
Mayor and City Clerk are hereby authorized to take,or cause to be taken,all action
necessary to accomplish the Improvements and to execute all required contracts.
The Improvements shall be accomplished under the control of the City
Commission.
Section 2. The sale to the Bondholder of up to $3,435,000 in principal amount of a bond from
the City at a price of par for a bond bearing interest at the rate of 3%per annum and
otherwise subject to the terms and provisions hereafter in this Ordinance set forth
in detail is hereby approved and the bond is hereby sold to the Bondholder. The
Mayor is hereby authorized and directed to execute and deliver the Agreement on
behalf of the City and to take all action required on the part of the City to fulfill its
obligations under the Agreement. The Agreement is hereby approved in
substantially the form submitted to this meeting with such changes as may be
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approved by the Mayor, his execution to constitute complete evidence of such
approval.
Section 3. The City Council hereby finds and declares that the period of usefulness of the
System after completion of the Improvements will be more than 25 years,which is
longer than the term of the bond.
Section 4. Under the authority of the Constitution and laws of the State of Arkansas (the
"State"), including particularly the Authorizing Legislation and applicable
decisions of the Supreme Court of the State,including particularly City of Harrison
v. Braswell, 209 Ark. 1094, 194 S.W.2d 12 (1946),a City of Van Buren,Arkansas
Water and Sewer Revenue Bond, Series 2026C (the "bond") is hereby authorized
and ordered issued in the principal amount of$3,435,000, the proceeds of the sale
of which will be used to finance all or a portion of the costs of the Improvements,
pay expenses incidental thereto,pay interest during construction and pay expenses
of issuing the bond.
The bond shall bear interest at the rate of 3%per annum based upon a 360-day year
of twelve consecutive 30-day months. The bond shall be dated the date of delivery
to the Bondholder. Interest shall be payable on the first day of each month after the
bond is issued. Commencing on February 1, 2029, principal shall be payable in
monthly installments as set forth in Exhibit A to the Agreement which is structured
for the bond to be repaid in equal amortized monthly installments of principal and
interest over a 20 year period with the final payment due on January 1, 2049.
The bond will be registered as to both principal and interest, payable to the
Bondholder, or registered assigns, as set forth hereinafter in the bond form, and
shall be numbered R-1.
Payment of principal and interest shall be by check or draft to the Bondholder at its
address shown on the bond registration books of the City which shall be maintained
by the City Clerk as Bond Registrar, without presentation or surrender of the bond
(except upon final payment) and such payments shall discharge the obligation of
the City to the extent thereof. The City Clerk shall keep a payment record and make
proper notations thereon of all payments of principal and interest.
Payment of principal and interest shall be in any coin or currency of the United
States of America which, as at the time of payment, shall be legal tender for the
payment of debts due the United States of America. When the principal of and
interest on the bond have been fully paid, it shall be canceled and delivered to the
City Clerk.
Section 5. The bond shall be executed on behalf of the City by the Mayor and City Clerk and
shall have impressed thereon the seal of the City. The bond is not a general
obligation of the City but is a special obligation, the principal of and interest on
which, and Servicing Fee in connection therewith, are secured by a pledge of and
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are payable from revenues derived from the System ("Revenues"). The pledge of
Revenues in favor of the bond is (a)subordinate to the pledge of Revenues in favor
of the Senior Bonds and (b)on a parity with the pledge of Revenues in favor of the
Series 2026A Bond, the Series 2026B Bond and the Series 2026D Bond
(collectively, the "Parity Bonds"). The bond and interest thereon shall not
constitute an indebtedness of the City within any constitutional or statutory
limitation.
Section 6. The bond shall be in substantially the following form and the Mayor and City Clerk
are hereby authorized and directed to make all the recitals contained therein:
(form of single registered bond)
(To be typewritten)
UNITED STATES OF AMERICA
STATE OF ARKANSAS
COUNTY OF CRAWFORD
CITY OF VAN BUREN
3%WATER AND SEWER REVENUE BOND,
SERIES 2026C
No. R-1 $3,435,000
KNOW ALL MEN BY THESE PRESENTS:
That the City of Van Buren, Crawford County, Arkansas (the "City"), for value
received, hereby acknowledges itself to owe and promises to pay to the Arkansas Development
Finance Authority, or registered assigns, solely from the special fund provided as hereinafter set
forth,the principal sum of
THREE MILLION FOUR HUNDRED THIRTY-FIVE
THOUSAND DOLLARS
(or the total principal amount outstanding as reflected
by the Record of Payment of Advances attached hereto)
with interest on the unpaid balance of the total principal amount at the rate of 3%per annum from
the date of each advance. The principal and interest shall be payable in such coin or currency of
the United States of America as at the time of payment shall be legal tender for the payment of
debts due the United States of America.
Interest on the unpaid balance of the total principal amount shall be payable on
1,202_and on the first day of each month thereafter. Principal shall be payable in
installments on February 1, 2029 and on the first day of each month thereafter until the unpaid
principal is paid in full as shown on Exhibit A attached hereto.
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Payments of the principal and interest installments due hereon shall be made,except
for final payment,without presentation and surrender of this bond,directly to the registered owner
at his address shown on the bond registration book of the City maintained by the City Clerk as
Bond Registrar, and such payments shall fully discharge the obligation of the City to the extent of
the payments so made.
This bond is issued to finance all or a portion of the costs of constructing
betterments and improvements to the sewer facilities of the water and sewer system of the City
(the "System"),to pay interest during construction and to pay costs of authorizing and issuing this
bond, and is issued pursuant to and in full compliance with the Constitution and laws of the State
of Arkansas (the "State"), including particularly Title 14, Chapter 234, Subchapter 2, Title 14,
Chapter 164, Subchapter 4,and Title 14,Chapter 235, Subchapter 2,of the Arkansas Code of 1987
Annotated and applicable decisions of the Supreme Court of Arkansas, including particularly Cy
of Harrison v. Braswell, 209 Ark. 1094, 194 S.W.2d 12 (1946), and pursuant to Ordinance No.
of the City, duly adopted and approved on the 26th day of January, 2026 (the
"Authorizing Ordinance"). Reference is hereby made to the Authorizing Ordinance for the details
of the nature and extent of the security and of the rights and obligations of the City and the
registered owner of this bond.
This bond may be assigned with the written approval of the Arkansas Natural
Resources Commission ("ANRC") and in order to effect such assignment the assignor shall
promptly notify the City Clerk by registered mail, and the assignee shall surrender this bond along
with a written approval of ANRC to the City Clerk for transfer on the registration records. Every
assignee shall take this bond subject to all payments and prepayments of principal and interest (as
reflected by the Payment Record maintained by the City Clerk),prior to such surrender for transfer.
This bond may be prepaid at the option of the City from funds from any source, in
whole but not in part, at any time on and after April 15, 2036, at a prepayment price equal to the
principal amount outstanding, plus accrued interest and Servicing Fee (as defined in the
Authorizing Ordinance) to the prepayment date. Notice shall be given of such prepayment to the
owner of this bond or registered assigns at least 90 days prior to the prepayment date. Such notice
shall be in writing mailed to the address of the owner of this bond or registered assigns at the
address as reflected on the bond registration books of the City Clerk.
This bond does not constitute an indebtedness of the City within any constitutional
or statutory limitation or provision, and the taxing power of the City is not pledged to the payment
of the principal of or interest on this bond. This bond is a special obligation of the City payable
solely from the revenues derived from operation of the System ("Revenues"). In this regard, the
pledge of Revenues in favor of this bond is (a) subordinate to the pledge of Revenues in favor of
the City's Waterworks and Sewer Revenue Refunding Bonds, Series 2016 and(b)on a parity with
the pledge of Revenues in favor of the City's Water and Sewer Revenue Bond, Series 2026A, the
City's Water and Sewer Revenue Bond, Series 2026B and the City's Water and Sewer Revenue
Bond, Series 2026D. A sufficient amount of Revenues to pay principal and interest has been duly
set aside and pledged as a special fund for that purpose, identified as the "ADFA Bond Fund," in
the Authorizing Ordinance. The City has fixed and has covenanted and agreed to maintain rates
for use of the System which shall be sufficient at all times to at least provide for the payment of
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the reasonable expenses of operation and maintenance of the System, provide for the payment of
the principal of and interest on all the outstanding bonds to which Revenues are pledged as the
same become due, to establish and maintain debt service reserves and to provide a depreciation
fund, all as set forth in the Authorizing Ordinance.
IT IS HEREBY CERTIFIED, RECITED AND DECLARED that all acts,
conditions and things required by the Constitution and statutes of the State to exist,happen and be
performed precedent to and in the issuance of this bond do exist, have happened and have been
performed in regular and due time, form and manner as required by law; that this bond does not
exceed any constitutional or statutory limitation of indebtedness;and that provision has been made
for the payment of the principal of and interest on this bond, as provided in the Authorizing
Ordinance.
IN WITNESS WHEREOF, the City of Van Buren,Arkansas has caused this bond
to be executed in its name by its or and City C� rl thereunto duly authorized,and its corporate
seal to be affixed, all as of the.w day of 2026.
CITY O AN UREN, ARKANSAS
By
ATTEST: Mayor
OC
City e(SEAL) [A Registration Certificate and Record of Paymentof Advances shall be attached to the bond along with an
Exhibit A setting forth the monthly principal amounts to be paid.]
Section 7. The rates charged for services of the System heretofore fixed by ordinances of the
City and the conditions,rights and obligations pertaining thereto,as set out in these
ordinances, are hereby ratified, confirmed and continued.
The City covenants and agrees that the rates established will produce gross
Revenues at least sufficient to pay monthly operation, maintenance and funded
depreciation expenses of the System, pay the principal of and interest on all
outstanding obligations to which Revenues are pledged ("System Obligations"), as
the same become due, pay any financing, servicing and administrative fees in
connection therewith as the same become due,and create and maintain any required
debt service reserves and depreciation funds ("Required Payments"). The City
covenants always to maintain rates (including increases as necessary) which will
provide for the Required Payments. The rates currently in effect for sewer service
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shall not be reduced without the prior written consent of ANRC and the
Bondholder.
Section 8. The Treasurer of the City shall be the statutory custodian of the Revenues.
However, the Revenues shall be collected, held and disbursed by the City
Commission. Each employee of the City holding Revenues shall give bond for the
faithful discharge of his or her duties in such amount as approved by the City
Council. All Revenues shall be deposited in such depository or depositories for the
City as may be lawfully designated from time to time by the City; provided that
each depository must hold membership in the Federal Deposit Insurance
Corporation("FDIC"). All deposits shall be in the name of the City and shall be so
designated as to indicate the particular fund to which Revenues belong. Any
deposit in excess of the amount insured by the FDIC shall be secured by
Government Obligations (as defined herein)unless invested as herein authorized.
Section 9. The City covenants that it will operate the System or cause the System to be
operated as a revenue producing undertaking and will not sell or lease the same,or
any substantial portion thereof, without the prior written approval of the
Bondholder and ANRC;provided,however,that nothing herein shall be construed
to prohibit the City from making such dispositions of properties of the System and
such replacements and substitutions for properties of the System as shall be
necessary or incidental to the efficient operation of the System as a revenue-
producing undertaking.
Section 10. All Revenues shall be deposited into a special fund hereby created and designated
"Water and Sewer Revenue Fund" (the "Revenue Fund"). Moneys in the Revenue
Fund shall be applied to the payment of the expenses of operation and maintenance
of the System,to the payment of the principal of and interest on outstanding System
Obligations, to the establishment and maintenance of any required debt service
reserves and to the providing of any required depreciation fund.
Section 11. There shall first be paid from the Revenue Fund into a special fund hereby created
and designated "Water and Sewer Operation and Maintenance Fund" (the
"Operation and Maintenance Fund"), on or before the first day of each month, an
amount sufficient to pay the reasonable and necessary expenses of operation,repair,
maintenance and the insuring of the System for such month(excluding debt service
payments) and from which disbursements shall be made only for those purposes.
Fixed annual charges,such as insurance premiums and the cost of major repair and
maintenance expenses may be computed and set up on an annual basis and one-
twelfth (1/12) of the amount thereof may be paid into the Operation and
Maintenance Fund each month.
If, in any month, for any reason there shall be a failure to transfer and pay the
required amount into the Operation and Maintenance Fund, the amount of any
deficiency shall be added to the amount otherwise required to be transferred and
paid into the Operation and Maintenance Fund in the next succeeding month. If in
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any fiscal year a surplus shall be accumulated in the Operation and Maintenance
Fund over and above the amount estimated to be necessary to defray the reasonable
and necessary cost of operation, repair, maintenance and insuring of the System
during the remainder of the then current fiscal year and the next ensuing fiscal year,
such surplus may be transferred into the Revenue Fund.
Section 12. (a) After making the required payments into the Operation and Maintenance Fund
and after making the required monthly payment into the bond fund for the Senior
Bonds, there shall be paid from the Revenue Fund, contemporaneously with the
required payment into the bond funds for the Parity Bonds, into an account of the
City in a special fund to be created by the Bondholder and designated "Series
2026C" (the "ADFA Bond Fund") for the purpose of paying the principal of and
interest on the bond the amounts specified in (b)below.
(b) There shall be deposited from moneys in the Revenue Fund or, at the
direction of the City, from proceeds of the bond, into the ADFA Bond Fund on the
first day of each month after the bond is issued and on the first day of each month
thereafter until January 1, 2029, the interest due on the bond on such dates.
Commencing on the first day of each month thereafter, there shall be deposited
from moneys in the Revenue Fund into the ADFA Bond Fund an amount equal to
the principal of and interest on the bond due on such date. Moneys in the ADFA
Bond Fund shall be used to pay the principal of and interest on the bond when due.
(c) When the moneys held in the ADFA Bond Fund shall be and remain
sufficient to pay in full the principal of and interest on the bond,the City shall not
be obligated to make any further payments into the ADFA Bond Fund.
(d) The bond shall be specifically secured by a pledge of all Revenues required
to be placed into the ADFA Bond Fund. This pledge in favor of the bond is hereby
irrevocably made according to the terms of this Ordinance, and the City and its
officers and employees shall execute, perform and carry out the terms thereof in
strict conformity with the provisions of this Ordinance.
Section 13. After making the payments and deposits described in Sections 11 and 12 hereof,
there shall be paid from the Revenue Fund the Servicing Fee to the Authority. The
Servicing Fee shall be payable on each date interest on the bond is due and shall be
calculated on the same basis as interest on the bond. The payment of the Servicing
Fee is expressly made subordinate to the payment of the principal of and interest
on the bond.
Section 14. So long as the bond is outstanding,the Issuer shall maintain a fund hereby created
and designated as the "Revolving Loan Depreciation Reserve Fund" (the
"Depreciation Fund"). After making the payments and deposits described in
Sections 11, 12 and 13 hereof, there shall be deposited into the Depreciation Fund
an amount equal to (i) 6% of gross monthly Revenues or (ii) such other amount
required by State law. Once the Depreciation Fund reaches an amount equal to
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$1,391,500 (the "Required Level'), the City shall not be required to make further
deposits into the Depreciation Fund;provided,however,that monthly deposits must
resume if the Depreciation Fund drops below the Required Level, until such time
as the Required Level is again reached. Moneys in the Depreciation Fund may be
used for replacement or repairs to the System or for other purposes approved by
ANRC. Funds may only be withdrawn from the Depreciation Fund with the prior
written consent of ANRC.
Section 15. Any surplus in the Revenue Fund,after making full provision for the payments and
deposits described above,may be used, at the option of the City,for the redemption
of the bond or other System Obligations prior to maturity in accordance with their
terms, for extensions, betterments and improvements to the System, or for other
lawful purposes.
Section 16. The principal and interest installments shall be prepayable prior to maturity as
provided in the bond form in Section 6 hereof.
Section 17. The City shall assure that (i) not in excess of 10% of the proceeds of the bond is
used for Private Business Use if, in addition, the payment of more than 10%of the
principal or 10% of the interest due on the bond during the term thereof is, under
the terms of the bond or any underlying arrangement, directly or indirectly secured
by any interest in property used or to be used for a Private Business Use or in
payments in respect of property used or to be used for a Private Business Use or is
to be derived from payments, whether or not to the City, in respect of property or
borrowed moneys used or to be used for a Private Business Use; and(ii)that, in the
event that both(A)in excess of 5%of the proceeds of the bond are used for a Private
Business Use, and (B) an amount in excess of 5% of the principal or 5% of the
interest due on the bond during the term thereof is, under the terms of the bond or
any underlying arrangement, directly or indirectly, secured by any interest in
property used or to be used for said Private Business Use or in payments in respect
of property used or to be used for said Private Business Use or is to be derived from
payments, whether or not to the City, in respect of property or borrowed money
used or to be used for said Private Business Use, then said excess over said 5%of
proceeds of the bond used for a Private Business Use shall be used for a Private
Business Use related to the governmental use of the Improvements.
The City shall assure that not in excess of 5%of the proceeds of the bond are used,
directly or indirectly,to make or finance a loan to persons other than state or local
governmental units.
As used in this Section, "Private Business Use" means use directly or indirectly in
a trade or business carried on by a natural person or in any activity carried on by a
person other than a natural person, excluding, however, use by a state or local
governmental unit and use as a member of the general public.
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Section 18. (a) The City may issue additional bonds senior to the lien on Revenues in favor of
the bond to finance or pay the cost of constructing extensions, betterments and
improvements to the System or to refund other outstanding System Obligations if
there shall have been procured and filed with the City Clerk and the Bondholder a
statement by a certified public accountant not in the regular employ of the City
("Accountant")reciting the opinion that(i)the Net Revenues (Net Revenues being
gross Revenues less operation and maintenance expenses,but not including interest
and depreciation) for the fiscal year preceding the year in which such additional
bonds are to be issued were not less than 120%of the maximum annual debt service
requirements (including principal, interest and servicing and administrative fees)
on all outstanding System Obligations and the bonds then proposed to be issued or
(ii) the Net Revenues for the fiscal year succeeding the year in which such
additional bonds are to be issued are projected to be sufficient in amount,taking in
consideration any enacted increase in Revenues, to be not less than 120% of the
maximum annual debt service requirements (including principal, interest and
servicing and administrative fees) on all outstanding System Obligations and the
bonds then proposed to be issued.
(b) The City may issue additional bonds on a parity with the lien on Revenues
in favor of the bond to finance or pay the cost of constructing extensions,
betterments and improvements to the System or to refund other outstanding System
Obligations if there shall have been procured and filed with the City Clerk and the
Bondholder a statement by an Accountant reciting the opinion that (i) the Net
Revenues for the fiscal year preceding the year in which such additional bonds are
to be issued were not less than 110% of the maximum annual debt service
requirements (including principal, interest and servicing and administrative fees)
on all outstanding System Obligations and the bonds then proposed to be issued or
(ii) the Net Revenues for the fiscal year succeeding the year in which such
additional bonds are to be issued are projected to be sufficient in amount,taking in
consideration any enacted increase in Revenues, to be not less than 110% of the
maximum annual debt service requirements (including principal, interest and
servicing and administrative fees) on all outstanding System Obligations and the
bonds then proposed to be issued.
(c) The additional bonds,the issuance of which is restricted and conditioned by
this Section, shall not be deemed to mean bonds the security and source of payment
of which are subordinate and subject to the priority of the bond and such additional
bonds may be issued without complying with the terms and conditions of this
Section.
Section 19. It is covenanted and agreed by the City with the Bondholder and ANRC that it will
faithfully and punctually perform all duties with reference to the System required
by the Constitution and laws of the State and by this Ordinance, including,without
limitation, the making and collecting of reasonable and sufficient rates lawfully
established for services rendered by the System, segregating Revenues and
applying them to the respective funds maintained pursuant to this Ordinance.
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The City covenants and agrees that the Bondholder shall have the protection of all
the provisions of the Authorizing Legislation, and that the City will diligently
proceed to enforce those provisions to the end of the Bondholder realizing fully
upon its security. And, if the City shall fail to proceed within 30 days after written
request shall have been filed by the Bondholder, the Bondholder may proceed to
enforce all such provisions.
If there be any default in the payment of the principal of or interest on the bond, or
if the City defaults in any ADFA Bond Fund requirement or in the performance of
any of the other covenants contained in this Ordinance, the Bondholder may, by
proper suit, compel the performance of the duties of the officials of the City under
the laws of the State. In the case of a default in the payment of the principal of and
interest on the bond, the Bondholder may apply in a proper action to a court of
competent jurisdiction for the appointment of a receiver to administer the System
on behalf of the City and the Bondholder with power to charge and collect (or by
mandatory injunction or otherwise to cause to be charged and collected) rates
sufficient to provide for the payment of the expenses of operation, repair and
maintenance and to pay the bond and interest outstanding and to apply Revenues in
conformity with this Ordinance. When all defaults in principal and interest
payments have been cured, the custody and operation of the System shall revert to
the City. No remedy herein conferred upon or reserved to the Bondholder is
intended to be exclusive of any other remedy or remedies herein provided or
provided by law,and every such remedy shall be cumulative and shall be in addition
to every other remedy given hereunder or given by law. No delay or omission of
the Bondholder to exercise any right or power accrued upon any default shall impair
any such right or power or shall be construed to be a waiver of any default or an
acquiescence therein; and every power and remedy given by this Ordinance to the
Bondholder may be exercised from time to time and as often as may be deemed
expedient.
No waiver of any default shall extend to or affect any other existing or any
subsequent default or defaults or impair any rights or remedies consequent thereon.
Any costs of enforcement of the bond or of any provision of this Ordinance,
including reasonable attorney's fees, shall be paid by the City. The Authority may
enforce all rights and exercise all remedies available to the Bondholder in the event
the Servicing Fee is not paid when due.
Section 20. When the bond has been executed and sealed as herein provided, it shall be
delivered to the Bondholder upon payment of all or a portion of the purchase price
in accordance with the Agreement. Sale proceeds in the amount necessary to make
all or a portion of the monthly interest and Servicing Fee payments due during the
construction period shall be applied, unless otherwise directed by the City, to the
monthly payment of Servicing Fees and interest on the bond to and including
January 1,2029. The balance of the sale proceeds shall be deposited, as and when
received, in a special account of the City hereby created in a bank that is a member
of the FDIC and designated the "2026C Sewer Construction Fund" (the
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"Construction Fund"). The moneys in the Construction Fund shall be used for
paying, or reimbursing the City for,the costs of accomplishing the Improvements,
expenses incidental thereto and the expenses of issuing the bond approved in
accordance with the Agreement. Payments from the Construction Fund shall be by
check or voucher signed by two persons designated by the City Commission and
drawn on the depository. Each such check or voucher shall briefly specify the
purpose of the expenditure.
When the Improvements have been completed and all required expenses paid and
expenditures made from the Construction Fund for and in connection with the
accomplishment of the Improvements and the financing thereof, this fact shall be
evidenced by a certificate signed by the Mayor and by the consulting engineer,
which certificate shall state,among other things,the date of the completion and that
all obligations payable from the Construction Fund have been discharged. A copy
of the certificate shall be filed with the depository bank,the Bondholder and ANRC.
Section 21. The terms of this Ordinance shall constitute a contract among the City, the
Bondholder and ANRC and no variation or change in the undertaking herein set
forth shall be made while the bond is outstanding unless consented to in writing by
the Bondholder and ANRC.
Section 22. The City agrees that it will keep proper records, books and accounts relating to the
operation of the System, which shall be kept separate from all other records and
accounts of the City, in which complete and correct entries shall be made of all
transactions relating to the operation of the System in accordance with generally
accepted government accounting standards. Such books shall be available for
inspection by the Bondholder and ANRC, or the agent or the representative of
either,at reasonable times and under reasonable circumstances. The City agrees to
have these records audited by an Accountant at least once each year and a copy of
the audit report shall be furnished to ANRC and the Bondholder. In the event the
City fails or refuses to furnish or cause such reports to be furnished,the Bondholder
may have the reports made, and the cost thereof shall be charged against the
Operation and Maintenance Fund.
Section 23. The City covenants and agrees that it will maintain the System in good condition
and operate it in an efficient manner and at reasonable cost. The City agrees that,
to the extent comparable protection is not otherwise provided to the satisfaction of
the Bondholder and ANRC, it will insure, and at all times keep insured in a
responsible insurance company or companies selected by the City and authorized
and qualified under the laws of the State to assume the risk thereof, all above-
ground structures of the System against loss or damage thereto in amounts and
against such risks as are customarily insured against in connection with similar
facilities and undertakings as the System. In the event of loss,the proceeds of such
insurance shall be applied solely toward the reconstruction, replacement or repair
of the System, and in such event the City will, with reasonable promptness, cause
to be commenced and completed the reconstruction, replacement and repair work.
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Section 24. In the event the office of Mayor, City Clerk, City Treasurer, City Council or City
Commission shall be abolished,or any two or more of such offices shall be merged
or consolidated, or in the event the duties of a particular office shall be transferred
to another office or officer,or in the event of a vacancy in any such office by reason
of death, resignation, removal from office or otherwise, or in the event any such
officer shall become incapable of performing the duties of his office by reason of
sickness, absence from the City or otherwise, all powers conferred and all
obligations and duties imposed upon such office or officer shall be performed by
the office or officer succeeding to the principal functions thereof, or by the office
or officer upon whom such powers,obligations and duties shall be imposed by law.
Section 25. (a) Moneys held for the credit of any funds created hereby shall be continuously
invested and reinvested in direct or fully guaranteed obligations of the United States
of America("Government Obligations"), or other investments as may be from time
to time authorized by law, which mature or which shall be subject to redemption
by the holder, at the option of such holder, not later than the date or dates when the
moneys will be needed for the purposes intended.
(b) Obligations so purchased as an investment of moneys in any such fund shall
be deemed at all times to be a part of such fund, and the interest accruing thereon
and any profit realized from such investment shall be credited to such fund,and any
loss resulting from such investment shall be charged to such fund.
(c) Moneys so invested in Government Obligations need not be secured by the
depository bank.
Section 26. The City agrees that the Bondholder may pledge the bond as security for the ADFA
Bonds, and the ADFA Trustee and/or the municipal bond insurer for the ADFA
Bonds may exercise any rights and remedies available to the Bondholder under this
Ordinance or the Agreement while the bond is pledged and/or the ADFA Bonds are
insured. In addition, the City agrees that while the bond is pledged and/or the
ADFA Bonds are insured, copies of all financial information shall be furnished to
the ADFA Trustee and/or the municipal bond insurer.
Section 27. A copy of the Agreement shall be filed in the office of the City Clerk where it may
be inspected by any interested person.
Section 28. It is understood and agreed that the City Commission, acting for and on behalf of
the City, has custody of and control over the System, operates, maintains and
repairs the System and collects and handles Revenues. Therefore, it is understood
and agreed that even though there are some express references to the City
Commission, all references herein to the City shall, when appropriate in view of
the authority and responsibility of the City Commission, be construed to mean and
include the City Commission. So long as the City Commission operates the
System,performance by the City Commission of any right or obligation of the City
hereunder shall be deemed performance by the City.
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Section 29. Following adoption, this Ordinance shall be posted in the following public places
in the City as set forth in Ordinance No. 04-2019 and Ordinance No. 10-2025: Van
Buren Municipal Complex,Van Buren Library,Van Buren Police Department,Van
Buren Senior Center and Crawford County District Court Building.
Section 30. The provisions of this Ordinance are hereby declared to be separable, and if any
provision shall for any reason be held illegal or invalid,it shall not affect the validity
of the remainder of this Ordinance.
Section 31. References in this Ordinance to 'Bondholder" shall include the original Bondholder
or any registered assign thereof.
Section 32. All ordinances and resolutions and parts thereof in conflict herewith are hereby
repealed to the extent of such conflict.
IN WITNESS WHEREOF, the City of Van Buren, Arkansas, by its City Council, did
pass, approve, and adopt, by a vote of(P for and against,the foregoing Ordinance at its
Regular Meeting held on the 9th day of February, 2026.
G\erk Tres
ell
City of Van Buren Jo ph P. urst
M
ATTESTED: APPROVED AS TO FORM:
rdCounty,Pt`ti
Shawnna M. Reynolds Jacob Howell
City Clerk/Treasurer City Attorney
(SEAL)
14
CERTIFICATE
The undersigned, City Clerk of the City of Van Buren, Arkansas (the "Ci ")
hereby certifies that the foregoing pages are a true and perfect copy of Ordinance No.
adopted at a regular session of the City Council of the City, held at the regular meeting place in
the City at 5:30 p.m., on the 9th day of February, 2026, and that the Ordinance is of record in the
Ordinance Record Book now in my possession.
GIVEN under my hand and seal on this 9th day of February, 2026.
���G\erk Treds� S
City Clerk
(SEAL) City of Van Buren
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