ORD NO 02-1970 ORDINANCE NO. 2 -1970
AN ORDINANCE PROVIDING FOR THE ISSUANCE OF BONDS FOR THE PURPOSE
OF CONSTRUCTING AND ELUIPPING A CITY HALL, CONSTRUCTING AND EQUIP-
41, PING A,LIBRARY, PURCHASING FIRE FIGHTING APPARATUS AND PURCHASING
A SITE 08 SITES FOR AND CONSTRUCTING BUILDINGS TO HOUSE IT: LEVYING:
A TAX'.TO PAY THE SAME: DECLARING AN EMERGENCY: AND FO8 OTHER;PUR-
POSES.:.
WHEREAS, by ordinance duly passed on the 10th day of November
1969; there was submitted to the qualified electors of the City
of Van Buren, Arkansas, the question whether it should issue bonds
to the extent of 594,000.00 for the purpose of constructing and
equipping a City Hall, 594,000.00 for the purpose of constructing
and equipping a library, and $112,000.00 for the purpose of
purchasing fire fighting apparatus, purchasing a site or sites for
and constructing buildings to house it, the bonds to bear interest
at such rate or rates as the City Council might determine in the
sale of the bonds; and
WHEREAS, due notice of the election was given as required by
law, land at said election 430 votes were cast in favor of the
bondS4ssue for the purpose of constructing and equipping a City
Hall and 109 votes were cast against it; 424 votes were cast,in
favor.of the bond issue for the purpose of constructing and
equipping a library, and 116 votes were cast against it; and 448
votes were cast in favor of the bond issue for the purpose of
purchasing fire fighting apparatus and purchasing a site or sites
for and constructing buildings to house it, and 93 votes were cast
against it; and
WHEREAS, the vote is favorable to all three issues and they
will be combined into one issue of bonds in the principal amount
of 5300,000.00; and
vWHEREAS, after due advertisement for the time and in the mann:r
required by law, duly published in a newspaper having a bona, fide
circulation in the City of Van Buren, said bonds were offered for
sale''on auction bids at the City Hall, at 10:00 o'clock, A.M. on
the 23rd day of March, 1970, and at said sale Hill, Crawford 2.,
Langford, Inc., of Little Rock, Arkansas, bid and offered the
price: par for bonds bearing interest at the rate of 6%, per annu:1,
if and'when deliveredHand this being the best bid, said bonds were
sold.--to the said bidder at that price; and
WHEREAS, the said purchaser has elected to convert the said
bonds :into an issue of $b314,500.00 of bonds, bearing interest at
the rates of 51%, 5.60 5.75%, 6%, and 5 =,5o per annum, and which
conversion the City Council finds substantially in accordance With
Universal Bond Values Tables and in accordance with the terms of
the sale;
NOW, THEREFORE, DE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF VAN DUREN:
Section 1. That the said conversion of $300,000.00 of 6%
bonds to 5314,500.00 of bonds, bearing interest at tha rates. of
5-g-°f, 5.60%, 5.75°fo, 6%, and 51% per annum, is hereby approved.
Section 2. The Mayor and City Clerk are hereby authorized ani
directed to execute the bolds of this City, dated January 1, 1970,
bearing interest, and their numbers denominations and maturities t)
be as follows but subject to redemption before maturith9 as hereineFter
set out:
Page 2
Bond Numbers Interest Maturity
(A11 Inclusive) Denomination Rates Amount January 1
1 500 51%
:2- 7 1,000 it 6,500 1973
8- 13 1,000 ty 6,000 1974
'14- 19 1,000 6,000 1975
Agati
.20- 25 1,000 6,000 1976
26- 31 1,000 it 6,000 1977
32- 37 1,000 5.60% 6,000 1978
38- 43 1,000 It 6,000 1979
'44- 50 1,000 7,000 1980
5 51- 57 1,000 7,000 1961
58- 64 1,000 7,000 1982
65- 72 1,000 5.75% 8,000 1983
73- 80 1,000 is 8,000 1984
81- 89 1,000 9,000 1985
90- 98 1,000 6% 9,000 1986
99 -108 1,000 II 10,000 1987
109 -119 1,000 it 11,000 1988
120 -131 1,000 IT 12,000 1989
132 -143 1,000 12,000 1990
144 -156 1,000 It 13,000 1991
157-171 1,000 15,000 1992
172 -186 1,000 15,000 1993
167 -202 1,000 16,000 1994
203 -219 1,000 5+% 17,000 1995
2a0 -237 1,000 18,000 1996
238 -255 1,000 it 18,000 1997
256 -2 74 1,000 19,000 1998
275 -294 1,000 20,000 1999
295 -315 1,000 21,000 2000
.Section 3. Said bonds shall be in substantially the following
form:
UNITED STATES OF AMERICA
STATE OF ARKANSAS
COUNTY OF CRAWFORD
Q CITY OF VAN BUREN
5z% GENERAL OBLIGATION CITY HALL, LIBRARY, AND
FIRE HOUSE IMPROVEMENT BOND
No.
:KNOW ALL MEN BY THESE PRESENTS:
That the City of Van Buren, in the County of Crawford, State of
Arkansas,acknowledges itself to owe, and for value received pro-
mises.to pay bearer, the sum of Dollars
in l money of the United States of America, on the first day
of January, 19 with interest thoreon from the first day of
January, 1970, at the rate of five and one -half per centum (51%)
per annum, payable on the first day of July, 1970, and semiannually
thereafter on the first day of January and July of each year;, on
presentation and surrender of the annexed interest coupons as
they'sevorally mature. Both principal of and interest on this
bond are hereby made payable at the office of The First National
Bank, Fort Smith, Arkansas..
-This is one of a series of three hundred fifteen (315) bonds
aggregating Three Hundred Fourteen Thousand Five Hundred Dollars
'$314;500.0U), all of like tenor and effect, except as to denom-
ination, rate of interest, right of prior redemption, and maturity;
numbered from 1 to 315, inclusive, issued for the purpose of con
structing and equipping a City Hall, constructing and equipping
a library, purchasing fire fighting apparatus and purchasing. a site
or sites for and constructing buildings to house it for the pity
of VanBuren, and said City of Van Buren hereby covenants that
in the issuing of this bond it has proceeded in accordance with the
provisions of amendment No..13 to the Constitution of the State
Page 3
of Arkansas, and in accordance with the laws of said State, and
under ordinances cf the City Council of said City, duly passed
and in pursuance of an election duly held at which the majority
cf the legal voters of said City voting at said election voted
in favor of the issuance of said bonds; that all things necessary
to the validity of this bond under the laws of the State of Arkansas
and particularly under said amendment to its Constitution, have
existed, have happened and have been performed as required by law;
that a,tax sufficient to pay the bonds aforesaid has been duly
levied.'in accordance with said Constitutional Amendment and made
payable annually until the last of the principal of and interest
on said bonds have been fully paid and discharged; and that the
indebtedness represented by this bond and the issue of which.it
forrns -;a part does not exceed any constitutional or statutory
limitation.
For the prompt payment of this bend and all others of this
issue and the interest thereon, the City of Van Buren hereby
pledges its full faith, credit and taxing power, including five (5)
mills tax authorized to be levied by said Amendment to the Cons-
titution and levied by Ordinance No. 26 -1969 of the City of Van
Buren, passed and approved on the 10th day of November, 1969.
The bonds of this series are subject to mandatory redemption
beforc•matutity, from time to time, in inverse numerical order
in lawful money of the United Statescof America, at par and
accrued interest, on any interest payment date, on and after.
January 1, 1971, from surplus revenues derived from the specific
tax levied for their payment in excess of the debt service require
ments'for the currant year and the next six months' interest,
and are subject to redemption berore maturity, from time to time,
et the.option of the City, in inverse numerical order, in lawful
money "of the United States of America, at par and accrued interest,
on any,interest payment date, after January 1, 1975, from any
other available funds. Notice of the call for redemptions shall
be published by the City Clerk of the City by one insertion not
1053 than thirty (30) days before the date of such redemption in
a newspaper of general circulation published in the City of
LittleRock, Arkansas, and having a general circulation throughout
the State of Arkansas, and after the date mentioned in the call
0 the bend or bonds so called will ceaso to bear interest; provided
funds for their payment are on deposit at that time.
This bond shall not be valid until authenticated by the
certificat hereon of the First National Bank, of Fort Smith,,
Arkansas.
IN WITNESS WHEREOF, the City of Van Buren, in the State of
Arkansas, has executed this bond by the hands of its Mayor and
City Clerk, and attested it with its corporate seal, and has
causedthe coupons heruto attached to be autrenticatod by the
facsimile signature of its Mayor, as of the first day of January,
1970.:.
CITY OF VRN BUREN, (,RK.
BY: Allan R. Toothaker (s)
Mayor
ATTEST:
Geo. L. Crofton. (s)
'City Clerk
(SEAL)'
To each of said bonds are attached coupons for the semi-
annual`.interest in the following form:
No.
On the first day of July, January, 19_ the City of Van Buren
Page 4
Arkansas, promises to pay to bearer Dollars
in lawful money of the United States of America,
at the: office of The First National Dank, of Fort Smith, Arkansas,
ba=ng six months interest then due on its General Obligation
Ci'y`Hall, Library, and Fire House Improvement Bond, dated
JaLuary 1970, and numbered unless the bond to
wh_ch it appertains is sooner called for payment.
CEI
CITY OF VAN BUREN, ARKANS,1S.
BY: Allen R. Toothaker (s),
Mayor
On the back of the said bonds shall appear the following:
CERTIFICATE
This is to certify that this is one of the three hundred
fifteen (315) bonds of the issue mentioned and described herein.
THE FIRST NhTIONIL BANK
BY:
Authorized Signature
Fort Smith, Arkansas
0
Section 4. If default is made for thirty (30) days in the
payment of any interest coupon, the holder of the bond to which
it is attached may declare the same immediately due and payable.
Section 5. Oben the %314,500.00 of bonds heroin authorized
to 'ae issued have been executed by the Mayor and City Clark and the
see' of the City impressud, as herein provided, they shall be
delivered to the First National Bank, in Fort Smith, Arkansas,
which Shall authenticate and deliver them to the purchaser, Upon
payment in cash to the Bank of the purchase price of %300!;000.00
and accrued interest to the date of delivery.
a: w17.675.LO of the purchase price shall ba deposited .with
The First National Bank of Fort Smith, Arkansas, in trust, secured
as its other trust funds are secured, in a separate account
designated for the purpose, and disbursed by it solely in payment
of the interest on the said 014,5OO.00 of bonds as the interest
matures to and including January 1, 1971.
b; The remaining proceeds of the bond issue shall be used
for no_Hbther purpose except for constructing and equipping a".City
Hall, .constructing and equipping a library, purchasing fire
figSting apparatus and purchasing a site or sites for and construct
inc buiiidithgs to house it for the City of Van Buren, and for Hthe
expenses of the bond issue to be borne by the City.
Section 6. In ordur to pay the 10314,500.00 of General
Obligation City Hall, Library, and Fire House Improvement Bonds,
herein authorized, as they mature, with interest thereon, there
is hereby levied upon all real and personal property within the
City 6f Van Buren, Arkansas, a tax of five (5) mills for each of
the years 1971 to 2000, inclusive, being a sum sufficient to
meet said principal and interest as they mature with five per
cent ("p provided for contingencies. The City Clerk is directed
to transmit a certified copy of this Section of this Ordinance to
the County Clerk of Crawford County to the end that said taxes
may belextended on the tax books of the said County and collected
annJally in each of the years 1971 through 2000, inclusive, along
wit. the other taxes collected in each of the said years until
the said bonds and inturust thereon are paid in full.
Page 5
Section 7. The City hereby covenants and agrees that all
revenues received from the said special tax shall be deposited
when received into a special fund which is hereby created and
designated "General Obligation Improvement Bond Sinking Fund!!
(hereinafter called "Sinking Fund to be carried in such depository
or Jeposi.tcrius as may be designated from time to time by the City,
any shal be used solely for the payment of the principal cf'end
U in :rest on the bonds, the paying agents's feus, and the costs
of redemption either at maturity, or at redemption prior to
maturity, and that all revenues derived from the said special tax
in excess of that amount sufficient to provide a reserve in a sum
)c ewua1 the debt service requirement for the current year and the
next six months inturust to insure the prompt payment of the.
principal of and interest on the bonds, must be used an or after
January 1, 1971, to call the bonds fur payment prior to maturity
at the times and in the manner provided for call and payment prior
to maturity.
Section 8. For the prumpt payment of the bonds of this issue
with interest, the City of Van Buren huroby pledges its full
faith[ :crodit and taxing power, including a tax levied in Section 6.
Section 9. In order to pay said bonds as they mature:, there
is hereby appropriated out of the proceeds of the tax hereby
0 levied and if such proceeds be not sufficient, then out of the
general revenues of the City, the following sums to pay the
principal of:and interest on the said bonds as they mature:
YEAR PRINCIPAL INTEREST TOTAL
January 1 July 1
1970 t iC $8,837.75 a 8,837.75
1971 8,837.75 8,837.75 17,675.50
1972 8,837.75 8,837.75 17,675.50
1973 6,500 8,837.75 8,659.00 23,996.75
197! 6,000 8,659.00 8,494.00 23,153 :00
197; :6,000 8,494.00 8,329100 22,323.00
197) 6,000 8,329.00 8,164.00 22,493.00
1977 6,000 8,164.00 7,999.00 22,163.,00
1975 6,000 7,999.00 7,831.00 21,830.00
0 197) 6,000 7,831.00 7,663.00 21,494.00
1980 7,000 7,663.00 7,467.00 22,130.00
1961 7,000 7,467.00 7,271.00 21,738.00
1982 7,000 7,271.00 7,075.00 21,346.00
1983 8,000 7 :075.00 6,845.00 21,920.00
1984 8,000 6,845.00 6,615.00 21,460.00
1985 .9,4300 6,615.00 6,356.25 21,971.25
1986 9,000 6,356.25 6,086.25 21,442.50
1987 10,000 6,086.25 5,786.25 21,872.50
1988 11,000 5,786.25 5,456.25 22,242.50
1989 12,000 5,456.25 5,096.25 22,552.50
1990 12,000 5,096.25 4,736.25 21,832.50
1991 13,000 4,736.25 4,346.25 22,062.50
1992 15,000 4,346.25 3,896.25 23,242.50
1993 15,000 3,896.25 3,446.25 22,342 :50
1994 16,000 3,446.25 2,966.25 22,412.50
1995 17,000 2,966.25 2,520.00 22,486.25
1996 18,000 2,520.00 2,047.50 22,567.50
1997 1 18,000 2,047.50 1,575.00 21,622.50
1998 19,000 1,575.00 1,076.25 21,651.25
1999 20,000 1,076.25 551.25 21,627.50
2000 21,000 551.25 21,551.25
Section 10. The bonds of this series shall be subject to
mandatory redemption before maturity, from time to time, in
inverse numberical order, in lawful money of the United States of
America, at par and accrued interest, on any interest payment
I
Page 6
date, .on and after January 1, 1971, from surplus revenues derived
from the specific tax levied for their payment, in excess of the
debt service requirements for the current yoar and the next six
months! interest, and are subject to redemption before maturity,
from time to time, at the option of the City, in inverse numerical
order,.'in lawful money of the United States of America, at par and
accrued interest, on any interest payment date after January 1,
1975,. from any other available funds. Notice of the call for
redemption shall be publishod by the City Clerk of the City by
one ihsertiun not less than thirty (30) days before the date of
such redemption in a newspaper of general circulation published in
the City of Little Ruck, ;,rkansas, and having a general circulation
throughout the State of Arkansas, and after the date mentioned in
the call the bond or bends so called will cease to bear interest;;
provided, funds for their payment are on deposit at that time.
.Section 11. It shall be the duty of the City Treasurer to
deposit with the First National B of Fort Smith, Arkansas,
the paying agent, at least five (5) days before the maturity
date of any bond or interest coupon issued hereunder, an amount
from the funds herd!n appropriated equal to the amount cf such
bondscr coupons for the sole purpose of paying the same together
with the paying agent's fee of twolve and one -half cants (1231)
for each 'f100 par value of bonds and a fee of five cents (5¢) for
0
each coupon. 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 12. 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
be issued and delivered.
Section 13. Ril ordinances and parts of ordinances in
conflict with this ordinance are hereby repealed.
"Section 14. It is ascertained and declared that the City
of Van Buren lacks adequate facilities for a City administration
building and for a library to meet the needs of its inhabitants,
Q and lacks adequate fire fighting facilities to protect the
properties, safety and health of the inhabitants of the City, and
that -a City Hall, Library, and additional fire fighting facilities
are immediately necessary. IT I5 THEREFDRE, declared that an
emergency exists, that this ordinance is necessary for the iMmediate
preseiVation of the public peace, health and safety, and that
this ordinance shall take effect and be in force frum and after
its passage.
PASSED AND APPROVED ON APRIL 6, 1970.
.1
Allen R. Toothaker (s)
Mayor
Attest:
Geo. L. Crofton (s)
City Clerk