ORD NO 01-2013 ORDINANCE NO. 1 -2013
AN ORDINANCE AUTHORIZING THE ISSUANCE OF SALES
AND USE TAX BONDS, SERIES 2013 FOR THE PURPOSE OF
FINANCING THE COST OF CAPITAL IMPROVEMENTS;
PLEDGING COLLECTIONS OF TWO 0.50% SALES AND USE
TAXES TO PAY THE PRINCIPAL OF AND INTEREST ON
THE BONDS; PRESCRIBING OTI -IER MATTERS RELATING
THERETO; AND DECLARING AN EMERGENCY.
WHEREAS, there was submitted to the qualified electors of the City of Van
Buren, Arkansas (the "City the questions of issuing, under Amendment No. 62 to the
Constitution of the State of Arkansas (the "State and under Title 14, Chapter 164, Subchapter 3
of the Arkansas Code of 1987 Annotated (the "Authorizing Legislation capital improvement
bonds, which are described as follows: (a) bonds in the maximum principal amount of
$2,900,000 to finance all or a portion of the costs of firefighting facilities and apparatus,
including particularly, without limitation, a new fire station, and any parking, equipment,
furnishings and utility improvements therefor (the "Firefighting Improvements'); (b) bonds in
the maximum principal amount of $4,400,000 to finance all or a portion of the costs of police
facilities, including particularly, without limitation, a new police station and any land acquisition,
parking, equipment, furnishings and utility improvements therefor (the "Police Improvements
(c) bonds in the maximum principal amount of $1,750,000 to finance all or a portion of the costs
of park and recreational facilities and any land acquisition, parking, equipment, lighting and
utility improvements therefor (the "Park and Recreational Improvements and (d) bonds in the
maximum principal amount of $2,650,000 to finance all or a portion of the costs of a facility to
be used primarily as a senior center and associated safe shelter and any demolition, land
acquisition, parking, equipment, furnishings and utility improvements therefor (the "Senior
Center Improvements
WHEREAS, at the special election held July 10, 2012, a majority of the electors
voting on the questions approved the issuance of such bonds; and
WHEREAS, pursuant to Ordinance No. 16 -2012 of the City duly adopted on
August 27, 2012 ("Ordinance No. 16- 2012 the City has issued its Sales and Use Tax Bonds,
Series 2012 in the principal amount of $9,870,000 (the "Series 2012 Bonds and
WHEREAS, the principal amount of the Series 2012 Bonds plus net original issue
premium (i.e., $9,996.539.20) was allocated as follows: $2,264,173.41 for the Senior Center
Improvements; $1,495,208.85 for the Park and Recreational Improvements; $3,759,382.26 for
the Police Improvements; and $2,477 for the Firefighting Improvements; and
WHEREAS, the City Council is prepared to proceed with the issuance of the
second series of bonds in aggregate principal amount of $1,680,000 designated as "City of Van
Buren, Arkansas Sales and Use Tax Bonds, Series 2013" (the "Series 2013 Bonds and
WHEREAS, the Series 2013 Bonds are being issued pursuant to Ordinance No.
16 -2012 as "Additional Parity Bonds" thereunder; and
WHEREAS, the City has made arrangements for the sale of' the Series 2013
Bonds to Stephens Inc. (the "Purchaser at a price of $1,680,358.85 (principal amount plus
original issue premium of $21,778.85 and Less underwriter's discount of $21,420), plus accrued
interest (the "Purchase Price pursuant to a Bond Purchase Agreement between the Purchaser
and the City (the "Agreement which has been presented to and is before this meeting; and
WHEREAS, the principal amount of the Series 2013 Bonds plus original issue
premium (i.e., $1,701,778.85) is allocated as follows: $385,445.64 for the Senior Center
Improvements; $421,808.44 for the Firefighting improvements; $254,539.57 for the Park and
Recreational Improvements; and $639,985.20 for the Police Improvements; and
WHEREAS, the Preliminary Official Statement, dated January 16, 2013, offering
the Series 2013 Bonds for sale (the "Preliminary Official Statement has been presented to and
is before this meeting; and
WHEREAS, the Continuing Disclosure Agreement between the City and Citizens
Bank Trust Co., Van Buren, Arkansas, as Dissemination Agent (the "Disclosure Agreement"),
providing for the ongoing disclosure obligations of the City with respect to the Series 2013
Bonds, has been presented to and is before this meeting;
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Van
Buren. Arkansas:
Section 1. The offer of the Purchaser for the purchase of the Series 2013 Bonds
from the City at the Purchase Price, for Series 2013 Bonds bearing interest at the rates per
annum, maturing and otherwise subject to the terms and provisions hereafter in this Ordinance
set forth in detail be, and is hereby accepted and the Agreement, in substantially the form
submitted to this meeting, is approved and the Series 2013 Bonds are hereby sold to the
Purchaser. 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.
Section 2. The Preliminary Official Statement is hereby approved and the
previous use of the Preliminary Official Statement by the Purchaser in connection with the sale
of the Series 2013 Bonds is hereby in all respects approved and confirmed, and the Mayor be and
he is hereby authorized and directed, for and on behalf of the City, to execute the Preliminary
Official Statement and the final Official Statement in the name of the City as set forth in the
Agreement.
Section 3. The Disclosure Agreement, in substantially the form submitted to this
meeting, is approved, and the Mayor is hereby authorized and directed to execute and deliver the
Disclosure Agreement on behalf of the City. The Mayor and City Clerk are each authorized and
directed to take all action required on the part of the City to fulfill the City's obligations under
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the Disclosure Agreement. Any legal fees and other administrative costs incurred by the City in
connection with making the annual report pursuant to the Disclosure Agreement (except audit
fees) shall be considered administrative charges that may be payable from moneys in the Bond
Fund.
Section 4. Under the authority of the Constitution and laws of the State, including
particularly Amendment No. 62 to the Constitution of the State and the Authorizing Legislation,
the Series 2013 Bonds are hereby authorized and ordered issued in the total principal amount of
$1,680,000, the proceeds of the sale of which are necessary to provide a portion of the funds
necessary for accomplishing the Senior Center Improvements, the Park and Recreational
Improvements, the Firefighting Improvements and the Police Improvements (collectively, the
"2013 Improvements paying expenses incidental thereto, funding a debt service reserve, and
paying expenses of issuing the Series 2013 Bonds.
The Series 2013 Bonds shall bear interest at the rates and shall mature on
October 1 in the amounts and in the years as follows:
Year
(October 1) Amount Interest Rate
2014 $195,000 1.000%
2015 200,000 2.000%
2016 205,000 2.000%
2017 210,000 2.000%
2018 210,000 2.000%
2019 215,000 2.000%
2020 220,000 2.125%
2021 225,000 1.950%
The Series 2013 Bonds shall be issuable only as fully registered bonds without
coupons in the denomination of $5.000 or any integral multiple thereof. Unless the City shall
otherwise direct, the Series 2013 Bonds shall be numbered from 1 upward in order of issuance.
Each Series 2013 Bond shall have a CUSIP number but the failure of a CUSIP number to appear
on any Series 2013 Bond shall not affect its validity.
Each Series 2013 Bond shall be dated as of March 1, 2013. Interest on the Series
2013 Bonds shall be payable on October 1, 2013, and semiannually thereafter on April 1 and
October 1 of each year. Payment of each installment of interest shall be made to the person in
whose name the Series 2013 Bond is registered on the registration books of the City maintained
by Citizens Bank Trust Co., Van Buren, Arkansas, as Trustee and Paying Agent (the
"Trustee at the close of business on the fifteenth day of the month (whether or not a business
day) next preceding each interest payment date (the "Record Date irrespective of any transfer
or exchange of any such bond subsequent to such Record Date and prior to such interest payment
date, by check or draft mailed by the Trustee to such owner at his address on such registration
books; provided, however, payment of interest shall be made by wire transfer if requested by a
registered owner of the Series 2013 Bonds in the aggregate principal amount of $1,000,000 or
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more. Principal of the Series 2013 Bonds shall be payable at the principal corporate trust office
of the Trustee.
Each Series 2013 Bond shall bear interest from the payment date next preceding
the date on which it is authenticated unless it is authenticated on an interest payment date, in
which event it shall bear interest from such date, or unless it is authenticated prior to the first
interest payment date. in which event it shall bear interest from March 1, 2013, or unless it is
authenticated during the period from the Record Date to the next interest payment date, in which
case it shall bear interest from such interest payment date, or unless at the time of authentication
thereof interest is in default thereon, in which event it shall bear interest from the date to which
interest has been paid.
Only such Series 2013 Bonds as shall have endorsed thereon a Certificate of
Authentication substantially in the form set forth in Section 6 hereof (the "Certificate duly
executed by the Trustee shall be entitled to any right or benefit under this Ordinance. No Series
2013 Bond shall be valid and obligatory for any purpose unless and until the Certificate shall
have been duly executed by the Trustee, and the Certificate of the Trustee upon any such Series
2013 Bond shall be conclusive evidence that such bond has been authenticated and delivered
under this Ordinance. The Certificate on any Series 2013 Bond shall be deemed to have been
executed if signed by an authorized officer of the Trustee, but it shall not be necessary that the
same officer sign the Certificate on all of the Series 2013 Bonds.
Section 5. The Series 2013 Bonds shall be registered initially in the name of Cede
Co., as nominee for the Depository Trust Company (`DTC which shall be considered to be
the registered owner of the Series 2013 Bonds for all purposes under this Ordinance, including.
without limitation, payment by the City of principal of, redemption price, premium, if any, and
interest on the Series 2013 Bonds, and receipt of notices and exercise of rights of registered
owners. There shall be one certificated, typewritten Series 2013 Bond for each stated maturity
date which shall be immobilized in the custody of DTC with the beneficial owners having no
right to receive the Series 2013 Bonds in the form of physical securities or certificates. DTC and
its participants shall be responsible for maintenance of records of the ownership of beneficial
interests in the Series 2013 Bonds by book -entry on the system maintained and operated by DTC
and its participants, and transfers of ownership of beneficial interests shall be made only by DTC
and its participants, by book entry, the City having no responsibility therefor. DTC is expected
to maintain records of the positions of participants in the Series 2013 Bonds, and the participants
and persons acting through participants are expected to maintain records of the purchasers of
beneficial interests in the Series 2013 Bonds. The Series 2013 Bonds as such shall not be
transferable or exchangeable, except for transfer to another securities depository or to another
nominee of a securities depository, without further action by the City.
If any securities depository determines not to continue to act as a securities
depository for the Series 2013 Bonds for use in a book -entry system, the City may establish a
securities depository/book -entry system relationship with another securities depository. If the
City does not or is unable to do so, or upon request of the owners of all outstanding Series 2013
Bonds. the City and the Trustee, after the Trustee has made provision for notification of the
beneficial owners by the then securities depository, shall permit withdrawal of the Series 2013
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Bonds from the securities depository, and authenticate and deliver Series 2013 Bond certificates
in fully registered form (in denominations of $5,000 or integral multiples thereof) to the assigns
of the securities depository or its nominee, all at the cost and expense (including costs of printing
definitive Series 2013 Bonds) of the City or of the beneficial owners of the Series 2013 Bonds.
Prior to issuance of the Series 2013 Bonds, the City shall have executed and
delivered to DTC a written agreement (the "Representation Letter setting forth (or
incorporating therein by reference) certain undertakings and responsibilities of the City with
respect to the Series 2013 Bonds so long as the Series 2013 Bonds or a portion thereof are
registered in the name of Cede Co. (or a substitute nominee) and held by DTC.
Notwithstanding such execution and delivery of the Representation Letter, the terms thereof shall
not in any way limit the provisions of this Section or in any other way impose upon the City any
obligation whatsoever with respect to persons having interests in the Series 2013 Bonds other
than the registered owners, as shown on the registration books kept by the Trustee. The Trustee
shall take all action necessary for all representations of the City in the Representation Letter with
respect to the Trustee to at all times be complied with.
The authorized officers of the Trustee and the City shall do or perform such acts
and execute all such certificates, documents and other instruments as they or any of them deem
necessary or advisable to facilitate the efficient use of a securities depository for all or any
portion of the Series 2013 Bonds; provided that neither the Trustee nor the City may assume any
obligations to such securities depository or beneficial owners of Series 2013 Bonds that are
inconsistent with their obligations to any registered owner under this Ordinance.
Section 6. The Series 2013 Bonds and the Trustee's Certificate shall be in
substantially the following form and the Mayor and City Clerk are hereby expressly authorized
and directed to make all recitals contained therein:
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(Form of Series 2013 Bond)
REGISTERED REGISTERED
No.
UNITED STATES OF AMERICA
STATE OF ARKANSAS
COUNTY OF CRAWFORD
CITY OF VAN BUREN
SALES AND USE TAX BOND
SERIES 2013
Interest Rate: Maturity Date: October 1,
Dated Date: March 1, 2013 CUSIP No.:
Registered Owner: Cede Co.
Principal Amount:
KNOW ALL MEN BY THESE PRESENTS:
That the City of Van Buren, County of Crawford, State of Arkansas (the "City'),
for value received, hereby promises to pay to the Registered Owner shown above upon the
presentation and surrender hereof at the principal corporate trust office of Citizens Bank Trust
Co., Van Buren, Arkansas, or its successor or successors, as Trustee and Paying Agent (the
"Trustee on the Maturity Date shown above, the Principal Amount shown above, 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 public and private debts and to pay by check or draft to the Registered Owner
shown above interest thereon, in like coin or currency from the interest commencement date
described below at the Interest Rate per annum shown above, payable on October 1, 2013 and on
each April 1 and October 1 thereafter until payment of such Principal Amount or, if this bond or
a portion hereof shall be duly called for redemption, until the date fixed for redemption, and to
pay interest on overdue principal and interest (to the extent legally enforceable) at the rate borne
by this bond. Payment of each installment of interest shall be made to the person in whose name
this bond is registered on the registration books of the City maintained by the Trustee at the close
of business on the fifteenth day of the month (whether or not a business day) next preceding each
interest payment date (the "Record Date'), irrespective of any transfer or exchange of this bond
subsequent to such Record Date and prior to such interest payment date. Notwithstanding the
above, payment of interest shall be made by wire transfer when requested by the Registered
Owner hereof if it is the registered owner of bonds of this issue in the aggregate principal amount
of $1,000,000 or more.
Unless this bond is presented by an authorized representative of The Depository
Trust Company, a New York corporation "DTC to the Trustee for registration of transfer,
exchange or payment, and any certificate issued is registered in the name of Cede Co. or in
such other name as is requested by an authorized representative of DTC (and any payment is
made to Cede Co. or to such other entity as is required by an authorized representative of
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DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede Co., has an interest herein.
This bond shall bear interest from the payment date next preceding the date on
which it is authenticated unless it is authenticated on an interest payment date, in which event it
shall bear interest from such date, or unless it is authenticated during the period from the Record
Date to the next interest payment date, in which case it shall bear interest from such interest
payment date. or unless it is authenticated prior to the first interest payment date, in which event
it shall bear interest from the Dated Date shown above. or unless at the time of authentication
hereof interest is in default hereon, in which event it shall bear interest from the date to which
interest has been paid.
This bond is one of an issue of City of Van Buren, Arkansas Sales and Use Tax
Bonds, Series 2013, aggregating One Million Six Hundred Eighty Thousand Dollars
($1.680,000) in aggregate principal amount (the "bonds and is issued for the purpose of
financing the costs of accomplishing senior center improvements, park and recreational
improvements, firefighting improvements and police improvements, paying necessary expenses
incidental thereto, funding a debt service reserve, and paying expenses of authorizing and issuing
the bonds.
The bonds are issued pursuant to and in full compliance with the Constitution and
laws of the State of Arkansas (the "State particularly Amendment No. 62 to the Constitution
of the State and Title 14, Chapter 164, Subchapter 3 of the Arkansas Code of 1987 Annotated
(the "Authorizing Legislation and pursuant to Ordinance No. 16 -2012 of the City duly adopted
on August 27, 2012 and Ordinance No. of the City duly adopted on January 28, 2013
(collectively, the "Authorizing Ordinance and an election duly held on July 10, 2012 at which
the majority of the legal voters of the City voting on the questions approved the issuance of the
bonds. 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, the Trustee and the registered
owners of the bonds. The bonds are special obligations of the City. payable from the collections
that are received by the City (the `'Pledged Revenues from a 0.50% sales and use tax (the
"Bond Tax levied by the City under the Authorizing Legislation and Ordinance No. 8 -2012 of
the City duly adopted on April 16, 2012, and a 0.50% sales and use tax levied by the City under
Title 26, Chapter 75, Subchapter 2 of the Arkansas Code of 1987 Annotated and Ordinance No.
6 -2012 of the City duly adopted on April 16, 2012. The City hereby pledges the Pledged
Revenues for the payment of the bonds on a parity of security with the City's Sales and Use Tax
Bonds, Series 2012 (the "Series 2012 Bonds The City has reserved the right in the
Authorizing Ordinance to issue additional bonds under the Authorizing Ordinance on a parity of
security with the bonds "Additional Parity Bonds
The bonds are subject to extraordinary and optional redemption as follows:
(1) The bonds shall be redeemed by the City from proceeds of the bonds not
needed for the intended purposes and Surplus Bond Tax Collections (defined below), in whole at
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any time or in part on any interest payment date, at a redemption price equal to the principal
amount being redeemed plus accrued interest to the redemption date.
The City has covenanted in the Authorizing Ordinance that "Surplus Bond Tax
Collections`, being collections from the Bond Tax in excess of the amount necessary to (1)
insure the prompt payment of the principal of, interest on and Trustee's and administrative fees
and expenses in connection with the bonds, the Series 2012 Bonds and any Additional Parity
Bonds as the same become due, (2) establish and maintain the Debt Service Reserve Account in
the required amount, and (3) make any arbitrage rebate payment due the United States, must be
used from time to time, at least annually, as and to the extent available, to redeem outstanding
bonds prior to maturity.
If there are no Series 2012 Bonds or Additional Parity Bonds outstanding, the
City shall apply 100% of the Surplus Bond Tax Collections to the redemption of the bonds.
While the Series 2012 Bonds, or while any Additional Parity Bonds that are issued to refund the
Series 2012 Bonds, are outstanding, the City shall use 15% of the Surplus Bond Tax Collections
to redeem the bonds and 85% of the Surplus Bond Tax Collections to redeem Series 2012 Bonds
or any such Additional Parity Bonds. In the event of a redemption from Surplus Bond Tax
Collections or from bond proceeds, the bonds shall be redeemed in inverse order of maturity and
by lot within a maturity in such manner as the Trustee shall determine.
In the case of any defeasance of the bonds, redemption of defeased bonds shall be
scheduled on the basis of the mandatory redemption requirements and assuming annual Pledged
Revenues in an amount equal to Pledged Revenues for a twelve -month period that ends not less
than 30 and not more than 90 days prior to the defeasance.
(2) The bonds are subject to redemption at the option of the City, from funds
from any source, on and after April 1, 2018, in whole at any time or in part on any interest
payment date, at a redemption price equal to the principal amount being redeemed plus accrued
interest to the redemption date. If fewer than all of the bonds shall be called for redemption, the
particular maturities of the bonds to be redeemed shall be selected by the City in its discretion. If
fewer than all of the bonds of any one maturity shall be called for redemption, the particular
bonds or portion thereof to be redeemed from such maturity shall be selected by lot by the
Trustee.
In case any outstanding bond is in a denomination greater than $5,000, each
$5,000 of face value of such bond shall be treated as a separate bond of the denomination of
$5,000.
Notice of redemption identifying the bonds or portions thereof (which shall be
$5,000 or a multiple thereof) to be redeemed and the date they shall be presented for payment
shall be given by the Trustee, not less than 30 nor more than 60 days prior to the date fixed for
redemption, by mailing a copy of the redemption notice by first class mail, postage prepaid, or
by other standard means. including facsimile transmission and electronic communication, to all
registered owners of bonds to be redeemed. Failure to mail an appropriate notice or any such
notice to one or more registered owners of bonds to be redeemed shall not affect the validity of
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the proceedings for redemption of other bonds as to which notice of redemption is duly given in
proper and timely fashion. All such bonds or portions thereof thus called for redemption and for
the retirement of which funds are duly provided in accordance with the Authorizing Ordinance
prior to the date fixed for redemption will cease to bear interest on such redemption date.
This bond is transferable by the Registered Owner shown above in person or by
his attorney -in -fact duly authorized in writing at the principal corporate trust office of the
Trustee, but only in the manner, subject to the limitations and upon payment of the charges
provided in the Authorizing Ordinance, and upon surrender and cancellation of this bond. Upon
such transfer a new fully registered bond or bonds of the same maturity, of authorized
denomination or denominations, for the same aggregate principal amount, will be issued to the
transferee in exchange therefor. This bond is issued with the intent that the laws of the State
shall govern its construction.
The City and the Trustee may deem and treat the Registered Owner shown above
as the absolute owner hereof for the purpose of receiving payment of or on account of principal
hereof and interest due hereon and for all other purposes, and neither the City nor the Trustee
shall be affected by any notice to the contrary.
The bonds are issuable only as fully registered bonds in the denomination of
$5,000, and any integral multiple thereof. Subject to the limitations and upon payment of the
charges provided in the Authorizing Ordinance, fully registered bonds may be exchanged for a
like aggregate principal amount of fully registered bonds of the same maturity of other
authorized denominations.
IT IS HEREBY CERTIFIED, RECITED AND DECLARED that all acts,
conditions and things required to exist, happen and be performed, under the Constitution and
laws of the State, particularly Amendment No. 62 to the Constitution of the State and the
Authorizing Legislation, precedent to and in the issuance of this bond have existed, have
happened and have been performed in due time, form and manner as required by law; that the
indebtedness represented by this bond and the issue of which it forms a part does not exceed any
constitutional or statutory limitation; and that taxes sufficient to pay the bonds and interest
thereon have been duly levied under the laws of the State and receipts derived therefrom are
pledged to the payment of the bonds in accordance with the Authorizing Legislation.
This bond shall not be valid until it shall have been authenticated by the
Certificate hereon duly signed by the Trustee.
THE BONDS ARE HEREBY DESIGNATED AS QUALIFIED TAX EXEMPT
OBLIGATIONS WITHIN THE MEANING OF SECTION 265(B) OF THE INTERNAL
REVENUE CODE OF 1986, AS AMENDED.
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IN WITNESS WHEREOF, the City of Van Buren, Arkansas has caused this bond
to be executed by its Mayor and City Clerk and its corporate seal to be impressed or imprinted on
this bond, all as of the Dated Date shown above.
CITY OF VAN BUREN, ARKANSAS
ATTEST:
By
Mayor
City Clerk
(SEAL)
TRUSTEE'S CERTIFICATE OF AUTHENTICATION
This bond is one of the bonds issued under the provisions of the within mentioned
Authorizing Ordinance.
Date of Authentication:
CITIZENS BANK TRUST CO.
Van Buren, Arkansas
TRUSTEE
By
Authorized Signature
(A Form of Assignment shall be attached to the bonds.)
Section 7. The City hereby expressly pledges and appropriates all of the revenues
derived by the City from (a) a 0.50% sales and use tax levied by the City under the authority of
Title 26, Chapter 75, Subchapter 2 of the Arkansas Code of 1987 Annotated and Ordinance No.
6 -2012 adopted on April 16, 2012 (the "Multipurpose Tax and (b) a 0.50% sales and use tax
levied by the City under the Authorizing Legislation and Ordinance No. 8 -2012 adopted on April
16, 2012 (the "Bond Tax to the payment of the principal of and interest on the Series 2013
Bonds on a parity with the Series 2012 Bonds. The Series 2013 Bonds are being issued as
Additional Parity Bonds under Ordinance No. 16 -2012 and shall be a part of "the bonds" within
the meaning of such ordinance. In this regard, all provisions of Ordinance No. 16 -2012
pertaining to "the bonds' shall inure and appertain to the Series 2013 Bonds to the same extent
and with like force and effect as if herein set out in full. The effect of the above provisions shall
be to continue the applicable provisions of Ordinance No. 16 -2012 in full force and effect after
the Series 2012 Bonds are paid or provision is made therefor.
Section 8. The Series 2013 Bonds shall be callable for payment prior to maturity
in accordance with the terms set out in the face of the bond form set forth in Section 6 of this
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Ordinance. The City hereby covenants to use Series 2013 Bond proceeds not necessary for the
purposes intended to redeem Series 2013 Bonds on the first available interest payment date.
Section 9. When the Series 2013 Bonds have been executed and sealed as herein
provided, they shall be delivered to the Trustee, which shall authenticate them and deliver them
to the Purchaser upon payment of the Purchase Price. The accrued interest shall be deposited in
the Bond Fund. The expenses of issuing the Series 2013 Bonds as set forth in the delivery
instructions to the Trustee signed by the Mayor and City Clerk (the "Delivery Instructions shall
be paid from the Purchase Price. The amount necessary to be deposited into the Debt Service
Reserve Account as set forth in the Delivery Instructions shall be deposited therein.
The balance of the Purchase Price shall be deposited in four (4) special accounts
of the City in the Trustee hereby created and designated "2013 Senior Center Improvement
Fund "2013 Park and Recreational Improvement Fund "2013 Firefighting Improvement
Fund" and the "2013 Police Improvement Fund Moneys initially credited to the 2013 Senior
Center Improvement Fund, 2013 Park and Recreational Improvement Fund, 2013 Firefighting
Improvement Fund and 2013 Police Improvement Fund (collectively, the "2013 Construction
Fund shall be allocated among the various funds comprising the 2013 Construction Fund in
proportion to the principal amount of Series 2013 Bonds allocated for each purpose. The
amounts credited to each fund comprising the 2013 Construction Fund shall be expended to
accomplish the purpose for which the account was created. Issuance costs and other expenses
not specific to any one purpose shall be joint obligations to be paid from each fund comprising
the 2013 Construction Fund in proportion to the initial moneys credited thereto. Disbursements
shall be made from the 2013 Construction Fund on the basis of requisitions which shall specify:
the name of the person, firm or corporation to whom payment is to be made; the amount of the
payment; the purpose of the payment; the account from which the payment is to be made; and
that the payment is a proper charge on that account. Each requisition must be signed by the
Mayor and City Treasurer. The Trustee shall issue its check upon the applicable fund that is a
part of the 2013 Construction Fund to the person, firm or corporation designated in the
requisition. The Trustee shall keep records as to all payments made from the 2013 Construction
Fund.
Moneys in the 2013 Construction Fund shall also be used to pay the principal of
and interest on the Series 2013 Bonds when due on a pro rata basis if moneys in the Bond Fund
are not sufficient for that purpose.
When all required expenses have been paid and expenditures made from the 2013
Construction Fund for and in connection with the accomplishment of the 2013 Improvements
and the financing thereof, this fact shall, if moneys remain in the 2013 Construction Fund, be
evidenced by a certificate signed by the Mayor, which certificate shall state, among other things,
that all obligations payable from the 2013 Construction Fund have been discharged. A copy of
the certificate shall be filed with the Trustee, and upon receipt thereof the Trustee shall transfer
any remaining balance to the Bond Fund for purposes of redeeming the Series 2013 Bonds.
Section 10. Moneys held for the credit of the 2013 Construction Fund shall be
invested and reinvested in Permitted Investments (defined in Section 17 of Ordinance No. 16-
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2012) or other investments permitted by Arkansas law which shall mature, or which shall be
subject to redemption by the holder thereof, at the option of such holder, not later than the date or
dates when such money will be required for the purposes intended.
Section 11. (a) The City covenants that it will not reimburse itself from Series
2013 Bond proceeds for any costs paid prior to the date the Series 2013 Bonds are issued except
in compliance with United States Treasury Regulation No. 1.150 -2 (the "Regulation This
Ordinance shall constitute an "official intent" for the purpose of the Regulation.
(b) The City covenants that it will, in compliance with the requirements of
Section 148(f) of the Internal Revenue Code of 1986, as amended (the "Code pay with
moneys in the Bond Fund to the United States Government in accordance with the requirements
of Section 148(f) of the Code, from time to time, an amount equal to the sum of (1) the excess of
(A) the amount earned on all Non purpose Investments (as therein defined) attributable to the
Series 2013 Bonds, other than investments attributable to such excess over (B) the amount which
would have been earned if such Non purpose Investments attributable to the Series 2013 Bonds
were invested at a rate equal to the Yield (as defined in the Code) on the Series 2013 Bonds, plus
(2) any income attributable to the excess described in (1), subject to the exceptions set forth in
Section 148 of the Code. The City further covenants that in order to assure compliance with its
covenants herein, it will employ a qualified consultant to advise the City in making the
determination required to comply with this subsection (b). Anything herein to the contrary
notwithstanding this provision may be modified or rescinded if in the opinion of Bond Counsel
such modification or rescission will not affect the tax exempt status of the Series 2013 Bonds for
federal income tax purposes.
Section 12. The City further covenants that it will submit to the Secretary of
the Treasury of the United States, not later than the 15th day of the second calendar month after
the close of the calendar quarter in which the Series 2013 Bonds are issued, a statement
concerning the Series 2013 Bonds which contains the information required by Section 149(e) of
the Code.
Section 13. The Series 2013 Bonds are hereby designated as "qualified tax
exempt obligations" within the meaning of the Code. The City represents and covenants that the
aggregate principal amount of its qualified tax exempt obligations (excluding "private activity
bonds" within the meaning of Section 141 of the Code which are not "qualified 501(c)(3) bonds"
within the meaning of Section 145 of the Code), including those of its subordinate entities,
issued in calendar year 2013 are not anticipated to exceed $10,000,000.
Section 14. The provisions of this Ordinance are separable and in the event that
any section or part hereof shall be held to be invalid, such invalidity shall not affect the
remainder of this Ordinance.
Section 15. All ordinances and resolutions and parts thereof in conflict herewith
are hereby repealed to the extent of such conflict.
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Section 16. It is hereby ascertained and declared that the 2013 Improvements are
immediately needed for the preservation of the public peace, health and safety and to remove
existing hazards thereto. The 2013 Improvements cannot be accomplished without the issuance
of the Series 2013 Bonds, which cannot be sold at the interest rates specified herein unless this
Ordinance is immediately effective. Therefore, it is declared that an emergency exists and this
Ordinance being necessary for the preservation of the public peace, health and safety shall be in
force and take effect immediately upon and after its passage.
PASSED: danunr (RS 2013.
APPR
ATTE T:
City Clerk
(SEAL),
\l \(t
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CERTIFICATE
The undersigned, City Clerk of the City of Van Buren, Arkansas (the "City
hereby certifies that the foregoing pages are a true and correct copy of Ordinance No. I-ao13
passed at a regular session of the City Council of the City, held at the regular meeting place of
the Council, at 7:00 o'clock p.m. on the 28 day of January, 2013, and that the Ordinance is of
record in Ordinance Record Book No. at Page now in my possession.
GIVEN under my hand and seal this oZ4 day of January, 2013.
at
City Clerk
(SEAL)
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