ORD NO 18-1972 ORDINANCE NO.
AN ORDINANCE PROVIDING FOR THE CONSTRUC-
TION OF BETTER ENTS AND IMPROVEMENTS E1NTS TO
THE EXISTING WATERWORKS AND SEWER SYSTEMS
NOW SERVING THE CITY OF VAN BUREN, ARKANSAS;.
PROVIDING FOR THE ISSUANCE OF WATERWORKS
AND SEWER REVENUE BONDS, 1972 SERIES; AND
FOR OTHER PURPOSES.
WHEREAS, the City Council of the City of Van Buren,
Arkansas (hereinafter sometimes called the "Council has
determined to construct necessary betterments and improve-
s
ments to the existing waterworics system now serving the City
of Van Buren, Arkansas, under the provisions of Act No. 131 of
the Acts of the General Assembly of the State of Arkansas of
1933, as amended (hereinafter sometimes called "Act No. 131
of 1933, as amended and
WHEREAS, the Council has caused to be filed with the
City Clerk by a duly qualified engineer, chosen by the Council,
plans and specifications for, and an estimate of the costs of
constructing the betterments and improvements to the said
existing waterworks system, consisting principally of a storage
tank, pumping station, extensions to the distribution system,
and appurtenant facilities; and
WHEREAS, the Council has further determined to construct
necessary betterments and improvements to the existing sewer
0 system forthe City of Van Buren, Arkansas, under the prwisLons
of Act No. 132 of the Acts of the General Assembly of the Stat. c4V: e 4 of Arkansas of 1933 (herein after sometimes cal -led "Act 132.
of 1933, and
WHEREAS, the Council has caused to be filed with the City
Clerk by the same engineer plans and specifications for, and an
estimate of the costs of constructing the said betterments and im-
provements to the existing water system, consisting principally of
a treatment plant, necessary repairs to and replacements for the
sewer system, equipment and appurtenant facilities; and
WHEREAS, according to the above mentioned estimates,
the cost of constructing the betterments and improvements to
the said existing waterworks system will be approximately the
sum of 140,000.00 and of constructing the betterments
and improvements to the said existing sewer system, exclusive
of federal grants will be approximately the sum of $360,000,00
both estimates including engineering, legal and other expenses
incidental to the construction and to the issuance of the bonds
hereinafter authorized; and
WHEREAS, in order to raise the money to pay $500,000.00
of the costs of construction of the betterments and improvements
to the waterworks system and of the betterments and improvements
to the sewer system, exclusive of federal grants, the Council
has determined to issue the combined waterworks and sewer revenue
bonds hereinafter authorized, to be payable solely from the
revenues of both systems; and
WHEREAS, the Council has sold to Sullivan, Trulock
Dillingham, Inc., of Little Rock, Arkansas, at par and accrued
interest, $500,000.00 principal amount of bonds bearing interest
at the rate of 5.80% per annum, dated November 1, 1972, and
maturing serially on November 1 in each of the years 1973 to
1997, inclusive, the said bonds to be furnished to the purchaser
f
PAGE 2
without cost and the purchaser to have the privilege of naming
the paying agent and the bank to certify the bonds and of
converting the bonds into an issue for which the City will pay
and receive substantially the same as upon the 5.80% bonds at
the price bid; and
WHEREAS, the said purchaser has elected to convert
said $500,000.00 of 5.80% bonds to an issue of $540,000.00 of
bonds bearing interest at the rates of 4.25 4.75%, 5 5.25
and 5.40% per annum, and more fully described hereinafter, by
which conversion the Council finds that the City will pay and
receive substantially the same as upon the 5.80% bonds at the
price bid:
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF
THE CITY OF VAN BUREN, ARKANSAS:
Section 1. That the said betterments and improvements
to the said existing waterworks and sewer systems be con
structed in accordance with the plans hereinbefore referred to.
Section 2. That under the authority of Act No. 131 of
1933, as amended, as construed by the Supreme Court of the State
of Arkansas in the case of City of Harrison v. Braswell, decided
April 15, 1946, and Act No. 132 of 1933, Waterworks and Sewer
Revenue Bonds, 1972 Series, of the City (hereinafter called
"bonds be issued in the total amount of Five Hundred Forty
Thousand Dollars ($540,000.00), the proceeds of the sale of
which are necessary, together with proceeds from federal grants,
Page 3
to provide sufficient funds to pay the costs of the construc-
tion of betterments and improvements to the said existing
waterworks system and sewer system, including engineering, legal,
and other expenses incidental to the construction and issuance
of bonds, and that said bonds be designated "4.25% (4.75 5
5.257, and 5.40 City of Van Buren Waterworks and Sewer Revenue
Bonds, 1972 Series be dated November 1, 1972, be of the
denomination of $1,000, numbered from 1 to 540, inclusive,
bear interest payable May 1 and November 1 in each year, and
mature in numerical order on the first day of November in each
of the following years and in the following amounts, respec-
tively, but callable as hereinafter set forth:
0
Page 4
INl'EREST
BOND NUMBERS DENOMINATION RATE AMOUNT MATURITY
(All Inclusive) November 1,
1 11 $1,000 4.25% $11,000 1973
12 22 1,000 11,000 1974
23 34 1,000 1, 12,000 1975
35 46 1,000 IT 12,000 1976
47 59 1,000 13,000 1977
60 72 1,000 13,000 1978
73 86 1,000 14,000 1979
87 100 1,000 14,000 1980
101 115 1,000 15,000 1981
116 131 1,000 16,000 1982
132 149 1,000 4.75% 18,000 1983
150 168 1,000 19,000 1984
169 188 1,000 20,000 1985
189 209 1,000 5.00% 21,000 1986
210 232 1,000 23,000 1987
233 257 1,000 25,000 1988
258 282 1,000 25,000 1989
283 308 1,000 5.25% 26,000 1990
309 335 1,000 27,000 1991
336 365 1,000 30,000 1992
366 395 1,000 30,000 1993
'396 428 1,000 5.40% 33,000 1994
429 463 1,000 35,000 1995
464 500 1,000 37,000 1996
501 540 1,000 if 40,000 1997
Page 5
that the bonds be signed by the Mayor and City Clerk and sealed
with the corporate seal of the City, and that the interest upon
the bonds be evidenced by coupons thereto attached, the coupons
to be signed by said Mayor and City Clerk, by their facsimile
signatures; that said Mayor and City Clerk shall, by the execu-
tion of the bonds, adopt as and for their own proper signatures
their facsimile signatures appearing on said coupons; and that
the bonds and coupons be payable in such funds as at the time
of the respective payments are legal tender for the payment of
debts due the United States of America at the office of
The bonds, together with interest thereon, shall be pay-
able solely out of the 1972 Waterworks and Sewer Revenue Bond
Fund, as hereinafter provided for, and shall be a valid claim
of the holders thereof only against such Fund, and the amount
of the revenues pledged to the Fund, which amount of said
revenues is hereby pledged and mortgaged for the equal and
ratable payment of the bonds and shall be used for no other
purpose than to pay the principal of and interest on the bonds.
Section 3. That said bonds and coupons be in sub
stantially the following forms:
Page 6
UNITED STATES OF AMERICA
STATE OF ARKANSAS
0 COUNTY OF CRAWFORD
CITY OF VAN BURIN
4.25% WATERWORKS AND SEWER REVENUE BOND,
1972 SERIES
No.
KNOW ALL MEN BY THESE PRESENTS:
THAT the City of Van Buren, in the County of Crawford,
and State of Arkansas, for value received, hereby promises to
pay to bearer solely from the special fund provided, as herein-
after set forth, the principal sum of
ONE THOUSAND DOLLARS
($1,000.00) on the first day of November, 19_, and to pay,
solely from said special fund, interest hereon at the rate of
four and twenty -five hundredths per centum (4.25 per annum,
from November 1, 1972, semiannually on the first days of May
and November in each year, beginning May 1, 1973, upon presen-
tation and surrender of the annexed coupons as they severally
become due. Both principal of and interest hereon shall be
payable in such funds as at the time of the respective payments
are legal tender for the payment of debts due the United States
0 of America, at,the office of
Page 7
This bond is one of a series of five hundred forty
(540) bonds aggregating Five Hundred Forty Thousand Dollars
($540,000.00), dated November 1, 1972, numbered from 1 to 540,
inclusive, all of like tenor and effect, except as to interest
rate, right of prior redemption, and maturity, and issued for
the purposes of providing for the payment of the construction
of betterments and improvements to the existing waterworks and
sewer systems now serving the City of Van Buren, Arkansas.
This bond and the series of which it forms a part are
issued pursuant to and in full compliance with the Constitution
and laws of the State of Arkansas, particularly Act No. 131 of
the regular session of the General Assembly of the State of
Arkansas of the year 1933, as amended, as construed by the
Supreme Court of the State of Arkansas in the case of City of
Harrison v. Braswell, decided April 15, 1946, and Act No. 132
of the regular session of the General Assembly of the State of
Arkansas of the year 1933, and pursuant to an ordinance of the
City Council of the City of Van Buren, duly adopted; and do
not constitute an indebtedness of the City of Van Buren within
any constitutional or statutory limitation. The bonds are pay-
able solely from a fixed amount of the net revenues from the
waterworks system and from the amount of the net revenues of
the sewer system remaining after deduction of the reasonable
monthly expenses of operation, repairs and maintenance of said
0 waterworks and sewer systems, after there has been set aside
sufficient revenues to meet the debt service requirements of the
Page 8
outstanding Water and Sewer Refunding and Improvement Revenue
Bonds of the City dated October 1, 1963, and to establish and
maintain all reserves required in connection therewith, which
amount shall be sufficient to pay the principal of and interest
on the bonds as the same become due and payable. Said amounts
have been duly set aside and pledged as a special fund for that
purpose and identified as the "1972 Waterworks and Sewer Revenue
Bond Fund created by Ordinance No. duly adopted by
the City Council of the City of Van Buren, Arkansas, on the
day of 197_, under which this bond is
authorized to be issued, and in said Ordinance the City of
Van Buren has fixed and has covenanted and agreed to maintain
rates to be charged for the use of and services rendered by
said waterworks system and sewer system. Such rates shall be
sufficient at all times to provide for depreciation and for
the payment of the reasonable expenses of operation, repair and
maintenance of the waterworks and sewer systems, respectively,
and to provide for the payment of principal of and interest
on the bonds as the same become due and payable.
This bond is expressly made negotiable under said Act
No. 131 and Act No. 132, and is issued with the intent that
the laws of the State of Arkansas shall govern the construction
thereof.
By virtue of the authority of said Act No. 131 of the
General Assembly of the State of Arkansas of the year 1933,
there is granted and created a statutory mortgage lien on the
betterments and improvements to the waterworks system to and
Page 9
in favor of the holders of each of the coupons evidencing
the interest on said bonds; and said betterments and improve-
ments to the waterworks system shall remain subject to such
statutory mortgage lien until the payment in full of all of
said bonds, both principal and interest, shall have been made.
Bonds of this issue may be called for payment before
maturity at the option of the City, in lawful money of the
United States of America, in inverse numerical order, on any
interest payment date up to and including November 1, 1977,
only from proceeds of the sale of the said bonds not required
for the construction of improvements and out of surplus collec-
tions from the waterworks system and sewer system of the City
of Van Buren, Arkansas, in excess of all such revenues required
to pay the principal of and interest on the outstanding Water
and Sewer Refunding and Improvement Revenue Bonds, of the
City, dated October 1, 1963, and to establish and maintain
all reserves required in connection therewith, and in excess
of all such revenues required to pay principal of and interest
on the bonds of this issue during the succeeding twelve
months, and on any interest payment date thereafter from any
available funds. Nntir.e nF the rn11 for redemption nh 1
published by the City Clerk once a week for two (2) weeks before
the date of such redemption in a newspaper of general circula-
tion published in the City of Little Rock, Arkansas, and having
a general circulation throughout the State of Arkansas, and
after the date mentioned in such call, the bond or bonds so
called will cease to bear interest; provided funds for their
payment are on deposit at that time.
IT IS HEREBY CERTIFIED, RECITED and DECLARED that all
acts, conditions and things required to exist, happen and be
performed 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 limitations;
and that sufficient of the income and revenue to be derived from
the operation d: said waterworks and said sewer system has
been pledged to and will be set aside into said special fund
for the payment of principal of and interest on said bonds.
This bond shall not be valid until it shall have been
authenticated by the certificate hereon, duly signed by
IN WITNESS WHEREOF, the City of Van Buren, Arkansas, by
its City Council, has caused this bond to be signed by the
Mayor and City Clerk thereof, and sealed with the corporate
seal of said City of Van Buren, and caused the coupons hereto
attached to be executed by the facsimile signatures of said
Mayor and City Clerk, all as of the first day of November, 1972.
CITY OF VAN BUREN, ARKANSAS
By:
Mayor
By:
City Clerk
Page 11
No.
May,
On the first day of 19_, the City of Van Buren,
November,
Crawford County, Arkansas, promises to pay to bearer out of
the fund specified in the bond to which this coupon appertains,
at the office of
in such funds as at the time of payment hereof are legal tender
for the payment of debts due the United States of America, the
sum of Dollars
being six months' interest then due on its 4.25% Waterworks and
Sewer Revenue Bonds, 1972 Series, dated the first day of
November, 1972, and numbered unless the bond to which
this coupon appertains is sooner called for payment.
CITY OF VAN BUREN, ARKANSAS
By:
Mayor
z_�
By, r
City Clerk
On the back of said bonds is to appear the following;
C E R T I F I C A T E
This is one of the bonds aggregating $540,000.00 described
herein.
By:
Title:
Arkansas
Page 12
Section 4. That the rates to be charged for water to
be furnished by the waterworks system heretofore fixed by Ordinance
4 No. 16 -1972 and for services to be furnished by the sewer system
heretofore fixed by Ordinance No. i7- lyi7", are hereby ratified
and confirmed. The said rates shall never be reduced until
all bonds herein authorized and all coupons thereto attached
have been paid, in full and shall, when necessary, be increased
in an amount sufficient to provide for the maintenance of the
Fund hereinafter described.
Section S. That the Treasurer of the City shall be
the custodian of the gross revenues derived from the waterworks
system and from the sewer system and shall give bond for the
faithful discharge of his duties as such custodian (such bond
to be fixed and approved by the Council). All moneys received
by the City Treasurer shall be deposited by him in such depository
or depositories for the City as may be lawfully designated from
time to time, subject, however, to the giving of security by
such depository as now or hereafter may be required by law.
All deposits made by the City Treasurer shall be in the name of
the City.
Section 6 (a) After there shall have been paid into
the Water Operation and Maintenance Fund, Sewer Operation and
Maintenance Fund, Water and Sewer Revenue Bond and Interest Sinking
Fund, and the Water and Sewer Depreciation Fund, established by
Ordinance No. 4 -1963, of the Ordinance of the City of Van Buren,
Arkansas, passed and approved on the 9th day of September, 1963,
revenues of the waterworks and sewer systems required to be paid
into the said Funds by said Ordinance No. 4 -1963, in the amounts
Page 13
required to be paid into the said Funds to meet the debt service
requirements of the Water and Sewer Refunding and Improvement
Revenue Bonds of the City dated October 1, 1963, there shall
be deposited into a fund which is hereby created and ordered
to be established as the "1972 Waterworks and Sewer Revenue Bond
Fund the remaining net revenues of the sewer system and
waterworks system to provide for the payment of the principal
of and interest on the bonds of this issue as the same become
due and payable.
(b) When the said Water and Sewer Refunding
and Improvement Revenue Bonds of the City, dated October 1, 1963,
shall have been fully paid, principal and interest, and after
there shall have been paid into the Water and Sewer Depreciation
and in the Sewer Operation and Maintenance Fund, established
by said Ordinance No. 4 -1963, revenues of the sewer system in an
amount sufficient to pay the reasonable and necessary monthly
expenses of the operation, repair and maintenance of the sewer
system and for its depreciation, there shall be deposited into
the said 1972 Waterworks and Sewer Revenue Bond Fund the remain
ing revenues of the sewer system and the revenues of the water-
works system remaining after the payment provided in sub- section
(c) hereof for the payment of the principal of and interest on
the bonds of this issue as the same become due and payable.
(c) When the said Water and Sewer Refunding
and Improvement Revenue Bonds of the City dated October 1, 1963,
shall have been fully paid, principal andinterest, there shall
be paid into the Water and Sewer Depreciation Fund, established
by said Ordinance No. 4- 1963, sufficient revenues of the water-
works system to pay the costs of the replacements made necessary
Page 14
by the depreciation of the waterworks system and there shall
be paid into the said Water Operation and Maintenance Fund
0 established by said Ordinance No. 4 -1963, sufficient revenues
of the waterworks system to pay the costs of operation and
maintenance of the waterworks system. All revenues of the
waterworks system in excess of the amount required to be paid
into the Depreciation Fund and into the Operation and Mainten-
ance Fund as herein provided shall be paid into the 1972
Waterworks and Sewer Revenue Bond Fund.
(d) All moneys in the 1972 Waterworks and
Sewer Revenue Bond Fund shall be used solely to provide for
the payment of the interest on and the principal of the bonds
herein authorized according to the following schedule:
YEAR AMOUNT INTEREST TOTAL
May 1, November 1,
1973 $11,000 $13,368.75 $13,368.75 $37,737.50
0 1974 11,000 13,135.00 13,135.00 37,270.00
1975 12,000 12,901.25 12,901.25 37,802.50
1976 12,000 12,646.25 12,646.25 37,292.50
1977 13,000 12,391.25 12,391.25 37,782.50
1978 13,000 12,115.00 12,115.00 37,230.00
1979 14,000 11,838.75 11,838.75 37,677.50
1980 14,000 11,541.25 11,541.25 37,082.50
1981 15,000 11,243.75 11,243.75 37,487.50
1982 16,000 10,925.00 10,925.00 37,850.00
1983 18,000 10,585.00 10,585.00 39,170.00
1984 19,000 10,157.50 10,157.50 39,315.00
1985 20,000 9,706.25 9,706.25 39,412.50
1986 21,000 9,231.25 9,231.25 39,462.50
1987 23,000 8,706.25 8,706.25 40,412.50
1988 25,000 8,131.25 8,131.25 41,262.50
1989 25,000 7,506.25 7,506.25 40,012.50
1990 26,000 6,881.25 6,881.25 39,762.50
1991 27,000 6,198.75 6,198.75 39,397.50
1992 30,000 5,490.00 5,490.00 40,980.00
1993 30,000 4,702.50 4,702.50 39,405.00
1994 33,000 3,915.00 3,915.00 40,830.00
1995 35,000 3,024.00 3,024.00 41,048.00
1996 37,000 2,079.00 2,079.00 41,158.00
1997 40,000 1,080.00 1,080.00 42,160.00
Page 16
If in any fiscal year a surplus shall be accumulated in
the 1972 Waterworks and Sewer Revenue Bond Fund over and above
0 the amount required for making all principal and interest pay-
ments on the bonds for the next twelve months' period, such
surplus may be applied by the Council to any lawful purpose,
including paying the principal of and interest on any of the
bonds herein authorized that may be called for redemption before
maturity.
It shall be the duty of the City Treasurer to withdraw
from the 1972 Waterworks and Sewer Revenue Bond Fund at least
five days before the maturity date of any bond or interest
coupon issued hereunder, and to deposit with the paying agent
an amount equal to the amount of such bond or coupon for the
sole purpose of paying the same as they mature, together with
the paying agent's fee of 122 cents for each $100 par value of
bonds and 10 cents for each coupon; and no withdrawal of funds
from the 1972 Waterworks and Sewer Revenue Bond Fund shall be
made for any other purpose except as otherwise authorized in
this Ordinance. Such deposit shall be at the sole risk of the
City, and shall not operate as a payment of the bonds or coupons
until so applied.
Section 7. All bonds paid either at or before maturity
shall be cancelled when such payment is made, together with
all unmatured coupons appertaining thereto, and held by the
City Treasurer. All unpaid interest coupons maturing on or prior
to the date of such payment shall continue to be payable to the
respective bearers thereof.
Page 17
Section 8. Bonds of this issue may be called for payment
before maturity, at the option of the City, in lawful money
of the United States of America, in inverse numerical order,
on any interest payment date up to and including. November 1, 1977,
only from proceeds from the sale of said bonds not required for
the construction of improvements and out of surplus collections
from the waterworks system and sewer system of the City of
Van Buren, Arkansas, in excess of all such revenues required to
pay principal of and interest on the outstanding Water and
Sewer Refunding and Improvement Revenue Bonds of the City dated
October 1, 1963, and to establish and maintain all reserves
required in connection therewith, and in excess of all such
revenues required to pay the principal of and interest on the
bonds of this issue during the succeeding twelve months, and on
any interest payment date thereafter from any available funds.
Notice of the call for the redemption shall be published by the
City Clerk once a week for two weeks before the date of such
redemption in a newspaper of general circulation published in
the City of Little Rock, Arkansas, and having a general circula-
tion throughout the State of Arkansas, and after the date mentioned
in said call, the bond or bonds so called shall cease to bear
interest, provided funds for their payment are on deposit at
that time.
Section 9. The bonds, together with interest thereon,
shall be payable solely out of the 1972 Waterworks and Sewer
Revenue Bond Fund, as hereinbefore defined and shall be a valid
calim of the holders thereof only against said Fund, and the
Page 18
amount of the revenues pledged to said Fund, which amount of
said revenues is hereby pledged for the equal and ratable
0 payment of the bonds, and to the extent required therefor,
shall be used for no other purpose than to pay the principal of
and interest on the bonds as the same accrue. So long as there
is no default in the payment of the principal of or interest on
the bonds authorized hereunder, the Council may invest funds
on deposit to the credit of the 1972 Waterworks and Sewer Revenue
Bond Fund in excess of the reserve for debt service requirements
in a direct obligations of, or in obligations the principal of
and interest on which are guaranteed bythe United States of
America.
Section 10. The City reserves the right to issue bonds
for additional improvements to the waterworks and /or sewer system
of the City, which bonds, if and when issued, shall have no
priority of security over the bonds of this issue, but shall
be subordinate to the bonds of this issue or on a parity of
lien with the bonds of this issue only if the net revenues
(defined as gross revenues less the ordinary expense of operation
and maintenance as determined by a certified public accountant)
of the systems, or system, for the fiscal year immediately pre-
ceding the issuance of such bonds, when added to the net revenues,
as defined, estimated to be derived from the systems, or system,
as improved from the proceeds of the additional bonds, are
equal at least to 140% of the average annual debt service re-
quirements of all outstanding bonds of the City payable from the
revenues of the system, or systems, and the bonds proposed to be
issued.
Page 19
Section 11. It is covenanted and agreed by the City
with the holder or holders of the bonds, or any of them, that
it will faithfully and punctually perform all duties with
reference to the waterworks system and the sewer system required
by the Constitution and statutes of the State of Arkansas, includ-
ing making and collecting reasonable and sufficient rates lawfully
established for services rendered by the waterworks system and
the sewer system, aggregating the revenues of the systems and
its application to the respective funds herein created.
Section 12. The City will maintain the waterworks system
and the sewer system in good condition and operate the same in
an efficient manner and at a reasonable cost. So long as any
of the bonds are outstanding the City agrees to maintain
insurance on the system of a kind and in an amount which normally
would be carried by private companies engaged in a similar type
of business for the benefit of the bond holders. In the event
of loss, the proceeds of such insurance shall be applied solely
toward the reconstruction, replacement, or repairs of the system
or systems damaged. In such event, the City will, with reason-
able promptness, cause to be commenced and completed the
reconstruction, replacement, or repairs. Nothing herein shall
be construed as requireig the City to expend funds for mainten-
ance and operation of the waterworks and sewer systems or for
premiums on its insurance which are derived from sources other
than the operation of the waterworks system and the sewer system,
but nothing herein shall be construed as preventing the City
from doing so.
Page 20
Section 13. So long as any of the bonds are outstanding
the City will not mortgage, pledge or otherwise encumber the
waterworks or sewer systems, or any part thereof, or any revenues
therefrom, and will not sell, lease, or otherwise dispose of
any substantial portion of the same, except as herein provided.
Section 14. The City will keep proper books or records
and accounts (separate from all other records and accounts) in
which complete and correct entries shall be made of all trans-
actions relating to the waterworks system and the sewer system.
The City will furnish to any holder or purchaser of any ofthe
bonds, at any time outstanding, at the written request of such
holder or purchaser, not more than thirty (30) days after the
date of each six (6) months' period, complete operating and
income statements of the waterworks system and the sewer system
in reasonable detail covering such six (6) months' period, and
not more than sixty (60) days after the close of each fiscal
year, complete financial statements of the waterworks system and
the sewer system of the City, covering such fiscal year, cer-
tified by a certified public accountant, or, in lieu thereof,
when available, the audit of the State Comptroller.
Section 15. There shall be a statutory mortgage lien
upon the betterments and improvements to the waterworks system,
including the real property on which they are situated, as
provided in said Act No. 131, as amended, which shall exist
in favor of the holders of the bonds, and each of them, and to
and in favor of the coupons attached to the bonds, and the said
Page 21
betterments and improvements shall remain subject to such
statutory mortgage lien until payment in full of theinterest
ej on and principal of the bonds. If there be any default in the
payment of either the interest on or principal of any of the
bonds, and such default shall continue for thirty (30) days
thereafter, and if default shall be made in the due and punctual
performance of any of the other covenants and agreements con-
tained in the bonds or in this Ordinance, the holder or holders
of any of the bonds may enforce the statutory mortgage lien
upon the said betterments and improvements in accordance with
the provisions of Section 7 of said Act No. 131, and may by
proper suit compel the performance of the duties of the officials
of the City, as set forth in said Act and in Act No. 132 of 1933.
If there be default in the payment of the principal of or
interest on the bonds, and such default shall continue for
thirty (30) days thereafter, any court having jurisdication in
any proper action may appoint a receiver to administer the
waterworks system and sewer system on behalf of the City and the
1
holders of the bonds, 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
bonds, and interest thereon, and for the operation expenses
of the waterworks system and sewer system and to apply the
income and revenues in conformity with said Acts and this
Ordinance providing for the issuance of the said bonds.
Section 16. When the $540,000.00 of bonds herein autho-
rized to be issued have been executed by the Mayor and City Clerk
and the seal of the City impressed, as herein provided, they
5
Page 22
shall be delivered to the paying agent, which shall authenticate
and deliver them to the purchasers upon payment in cash to the
Bank of the purchase price of $500,000.00, and accrued interest
from November 1, 1972, to the date of delivery. The Mayor and
City Clerk are hereby authorized, in their discretion, to
designate the bank to serve as paying agent and the bank to
authenticate the bonds.
(1) The proceeds of the bonds, less the amount of
the accrued interest paid by the purchasers, shall be deposited
with the paying agent, in trust, secured as its other trust
funds are secured and disbursed by it solely in payment of the
cost of said improvements and betterments to the existing water-
works and sewer systems, including engineering, legal and other
expenses incidental to the said'construction and issuance of the
bonds, but only on warrants or vouchers signed by the Mayor and
City Treasurer, briefly specifying the disbursement or expen-
diture, accompanied by a certificate signed by the consulting
engineer of such construction that an obligation in a stated
amount has been incurred on account of the cost of construe
tion, and to whom such obligation is owed, except that no such
certificate shall be required for payment of the engineering,
legal, and other incidental expenses. Any unexpended balance
remaining after the final completion of the construction shall
be paid to the City Treasurer and deposited by him in the 1972
Waterworks and Sewer Revenue Bond Fund, hereinabove defined.
(2) The accrued interest paid by the purchasers
of the bonds shall be paid by the paying agent to the Treasurer
Page 23
of the City of Van Buren and he shall pay the same into the
1972 Waterworks and Sewer Revenue Bond Fund, in addition to the
other amounts herein required to be paid into the said Fund.
Section 17. The City further covenants and agrees that
if default is made in the payment of any bond or coupon, or if
the City fails to meet any bond fund requirement, or any of the
other covenants contained in this Ordinance, the holder of such
bond may declare such bond immediately due and payable, and such
bond shall thereupon be iliuuediately due and payable and in
default.
Section 18. This Ordinance shall not create any right of
any character, and no right of any character shall arise under
or pursuant to it, until the bonds authorized by this Ordinance
shall have been issued and delivered.
Section 19. If any provision of this Ordinance shall
for any reason be held illegal or invalid, it shall not affect
the validity of the remainder of the Ordinance.
Section 20. All ordinances, or parts of ordinances,
in conflict herewith are hereby repealed to the extent of such
conflict.
Section 21. It is ascertained and declared that the
lack of an adequate waterworks system and sewer system for the
needs of the City of Van Buren, Arkansas, greatly endangers
the life, health and property of the inhabitants of the City,
and that betterments and improvements must be made immediately
to the waterworks and sewer systems for the protection of the
health and property of the inhabitants of the City of Van Buren.
Page 24
TT, THEREFORE, declared that an emergency exists, and that this
Ordinance is necessary for the immediate preservation of the
public peace, health and safety, and that this Ordinance shall
take effect and be in force from and after its passage.
PASSED; 197
APPROVED:
Mayor
ATTEST
City Clerk
(SEAL)