05 May 1999 Regular MINUTES OF THE VAN BUREN, ARKANSAS
CITY COUNCIL MEETING HELD MAY 17, 1999
The City Council of the City of Van Buren Arkansas met at 7:00 p.m. , Monday,
May 17, 1999, at City Hall , The meeting was called to order by Mayor Riggs,
presiding officer. On roll call the following members answered as their names were
called: Alderman Parker, Swaim, Taylor, Moore, Spoon and Barker. City Clerk
Barbie Curtis and City Attorney Candice Settle were also present. This made a
total of nine (9) present. A quorum was declared.
The Invocation was given by Reverend Tom Hill , pastor of Calvary Missionary
Baptist Church.
Next the Mayor led the Pledge of Allegiance.
Alderman Taylor seconded by Alderman Parker made a motion to approve the April
17, 1999 Council Meeting minutes and the May 11, 1999 Special Called Council
Meeting minutes as corrected. Motion was unanimously carried by the City Council.
Next the Mayor said he would like to open a Public Hearing to consider an
ORDINANCE PROVIDING FOR THE ISSUANCE OF $5,880,000 WATER AND SEWER CAPITAL
IMPROVEMENT AND REFUNDING REVENUE BONDS BY THE CITY OF VAN BUREN, ARKANSAS FOR THE
PURPOSE OF ACQUIRING, CONSTRUCTING AND EQUIPPING BETTERMENTS AND IMPROVEMENTS TO
THE WATER AND SEWER SYSTEM OF THE CITY AND REFUNDING THE CITY'S OUTSTANDING WATER
AND SEWER REVENUE BONDS, SERIES 1993; PROVIDING FOR THE PAYMENT OF PRINCIPAL OF AND
INTEREST ON THE BONDS; AUTHORIZING THE EXECUTION AND DELIVERY OF A BOND PURCHASE
- AGREEMENT PROVIDING FOR THE SALE OF THE BONDS; AUTHORIZING THE EXECUTION AND
DELIVERY OF AN ESCROW DEPOSIT AGREEMENT PROVIDING FOR THE REFUNDING OF THE SERIES
1993 BONDS; PRESCRIBING OTHER MATTERS RELATING THERETO; AND DECLARING AN EMERGENCY.
The Mayor asked if there was any discussion on this matter. There was none. The
Clerk read the Ordinance heading the first time. The Mayor then asked if there was
a motion to suspend the rules and read the heading only. Alderman Taylor moved
that the rules be suspended and the Ordinance placed on its second reading. The
motion was seconded by Alderman Swaim. On the Clerk's calling the roll , the
following vote resulted: Ayes -- Alderman Parker, Barker, Spoon, Taylor, Moore and
Swaim. The Mayor declared the motion carried as there were six (6) ayes and (0)
nays. Four (4) votes being necessary for passage. The Ordinance heading was read
the second time.
Alderman Swaim then moved that the rules be further suspended and the
Ordinance heading be placed on its third and final reading. The motion was
seconded by Alderman Taylor. On the Clerk's calling the roll , the following vote
resulted: Ayes - Alderman Parker, Barker, Spoon, Taylor, Moore and Swaim. The
Mayor declared the motion carried as there were six (6) ayes and (0) nays. Four
(4) votes being necessary for passage. The Clerk then read the Ordinance the third
and final time, The Mayor declared the Ordinance open for discussion. The Mayor
then put the question, "Shall the Ordinance Pass ?" Motion was made by Alderman
Swaim and seconded by Alderman Parker to adopt the Ordinance. On the Clerk's
calling the roll, the following vote resulted: Ayes - Alderman Parker, Barker,
Spoon, Taylor, Moore and Swaim. The Mayor declared the Ordinance passed as there
were six (6) ayes and (0) nays. Four (4) votes being necessary for passage.
Motion was then made by Alderman Taylor and seconded by Alderman Swaim, that
the Emergency Clause be adopted which motion on roll call carried by the unanimous
vote of the Council . The Mayor then declared the Ordinance duly passed and signed
same in open Council , duly attested to by the City Clerk.
THE ORDINANCE WAS GIVEN THE NUMBER 6-1999
S-COURIER •
The City and the Trustee will recognize:tt a seciaines'dieposit •
its nominee as the Bondholder for all purposes,including receipt of
payments,notices,and voting;provided the Trustee may recognize
votes by or on behalf of Beneficial Owners as if such votes were
institutions are authorized by law to close with the same force and made by'Owners o a relate portion of the Bonds when such votes are
effect as if shade on the interestpayment date,the date of maturity or received in compliance with an omnibus proxy or other comparable
the date fixed for redemption,and no interest shall accrue for the evidence delivered to the Trustee by the Owners.
period after the interest'payment date,the date of maturity or the date During any period for which a securities depository or its nominee is
fixed for redemption, ' the Owner of the Bonds,the City and the Trustee shall be entitled to
The pr icipsl of the Aids shall be payable to the Owners thereof at treat the person in whose name a Bond is registered as the absolute
the principal corporate trust.office of Citizens Bank&;Trust owner of such Bond for all purposes of this Ordinance,and neither
Company, in the City of Van Buren, Arkansas,which is hereby the City nor the Trustee shall have any responsibility or obligation to
designated the Trustee, Paying Agent and Bond Registrar(the any Beneficial Owner of such Bond.' Without limiting the
Trusted')for the Bonds. immediately preceding sentence, neither the City nor the Trustee
Only such Bonds as shall have endorsed thereon a Certificate of shall have any responsibility or obligation with respect to(a)the
Authentication substantially in the form set forth in Section 10 accuracy of the records of any securities depository or any other
hereof,dulyexecuted by the Trustee,shall be entitled to any right or person with respect to any ownership interest in the Bonds, (b)the
benefit under this Ordinance.No Bond shall be valid and obligatory delivery to any person,other than an Owner, of any notice with
for any purpose unless and until such Certificate of Authentication respect to the Bonds, including any notice of redemption or
shall have been duly'executed by the Trustee,and such certificate of refunding,(c)the selection of the particular Bonds or portions thereof
the Trustee upon any such Bond shall be conclusive evidence that to be redeemed or refunded in the event of a partial redemption or
such Bond has been authenticated and delivered under this refunding of part of the Bonds then outstanding,or(d)the payment to
Ordinance.The Trustee's Certificate of Authentication on any bond any person,other than an Owner,of any amount with respect to the
shall be deemed to have been executed if signed by an authorized principal of or interest on the Bonds.
officer of the Trustee,but it shall not be necessary that the same Section 8.The City shall cause books for the registration and transfer
officer sign the Certificate of Authentication on all of the Bonds of the Bonds to be maintained by the Trustee as provided herein and
issued hereunder. in the Bonds.The Trustee shall act asthe bond registrar.Each Bond
In case any Bond issued hereunder shall become mutilated or be is transferable by the Owner thereof or by the Owner's attorney duly
destroyed or lost,the City shall,if not then prohibited by law,cause authorized in writing at the principal office of the Trustee.Upon such
to be executed and the Trustee may authenticate and deliver a new transfer,a new fully registered Bond or Bonds of the same maturity,
Bond of like date,number, maturity and tenor in exchange and of authorized denomination or denominations, and for the same
substitution for and upon cancellation of such mutilated Bond,or in aggregate principal amount will be issued to the transferee in
lieu of and in substitution for such Bond destroyed or lost,upon the exchange therefor.
Owner's paying the reasonable expenses and charges of the City and No charge shall be made to an Owner of a Bond for the privilege of
Trustee in connection therewith,and,in the case of a Bond destroyed transfer or exchange,but an Owner of a Bond requesting a transfer or
or lost,filing with the Trustee evidence satisfactory to it that such 'exchange shall pay any tax or other governmental charge required to
Bonds were destroyed or lost, and of the ownership thereof, and be paid with respect thereto.Exceptas otherwise provided in the
furnishing the City and Trustee with indemnity satisfactory to them. immediately preceding sentence,the cost of preparing each new
The Trustee is hereby authorized to authenticate any such new Bond. Bond upon each exchange or transfer and any other expenses of the
In the event any such Bond shall have matured,instead of issuing a City orate Trustee incurred in connection therewith shall be paid by
new Bond,the City may pay the same without the surrender thereof. the City.The City shall not be required (i) to issue,transfer or
Upon the issuance of a new Bond under this Section,the City may i exchange aqy Bond during a period beginning at the opening of
require the payment of a sum sufficient to cover any tax or other. business 15 days before any selection of Bonds of that maturity for•
governmental charge that may be imposed in relation thereto and any redemption and ending at the close of business on the day of the first
other expenses(including the fees and expenses of the Trustee) mailing of the relevant notice of redemption, or(ii)to transfer or
connected therewith. exchange any Bond selected for redemption in whole or in part.
Section 7.The Bonds shall be registered in the name of Cede&Co., The Owner shall be deemed and regarded as the absolute owner
as nominee of he Depository Trust Company("DTC")and shall be thereof for all purposes, and payment of or on account of the
held in the custody of DTC.A Letter of Representation's with DTC principal or,interest on any Bond shall be made only to or upon the
(the"Letter of Representations")is hereby approved in substantially order of the Owner thereof or the Owner's legal representative,but
the form submitted to this meeting, and the Mayor is hereby such registration may be changed as hereinabove provided.All such.
authorized and directed to execute and deliver the Letter of payments shall be valid and effectual to satisfy and discharge the
Representations on behalf of the City and to take all action required liability upon such Bond to the extent of the sum or sums so paid.
on the part of the City to fulfill its obligations under the Letter of Neither the City nor the Trustee shall be affected by any notice to the
Representations. All payments of principal of and interest on the contrary.
Bonds and all notices with respect thereto,including notices of full or Section 9.The Bonds shall be executed on behalf of the City by the
partial redemption,shall be made and given at the times and in the manual or facsimile signatures of the Mayor and City Clerk and shall
manner set out in the Letter of Representations. The terms and have impressed or imprinted thereon the seal of the City or facsimile
provisions•of the Letter of Representations shall govern in the event thereof Ilii case any one or more of the officers who shall hat'e signed
of any'inconsistency between the provisions of this Ordinance and or sealed any of the Bonds shall cease to be such officer before the
the Letter of Representations.The Letter of Representations may be Bonds so signed and sealed shall have been delivered by the Trustee,
amended without notice to or consent of the Owners of the Bonds. such Bonds may,nevertheless,be delivered as herein provided,and
All payments of principal of and interest on the Bonds and all notices may be issued as if the persons who signed or sealed such Bonds had
with respect,thereto,including notices of full or partial redemption, not ceased to hold such offices. Any Bonds may be signed and
shall-be made and given at the times and in the manner set out in the sealed on behalf of the City by.such person as at the time of the
Letter of Representations. execution of such Bonds shall be duly authorized or hold the
The book-entry registration system for all of the'Bonds may be proper.office in r the City, although at the date borne by the
terminated and certificates(in denominations of$5,000 or integral Bonds,suchpersons may not have been so authorized or have held
multiples thereof)delivered to and registered in the name of the such office.
beneficial owners of such Bonds(the`Beneficial Owners"),under Section 10.The Bonds and the Trustee's Certificate of Authentication
either of the following circumstances: shall be in substantially the following form,and the Mayor and City
(a)DTC notifies the City and the Trustee that it is no longer willing Clerk are hereby expressly authorized and directed to make all
or able to act as securities depository for the Bonds and a successor recitals contained therein:
securities depository for the.Bonds is not appointed by the City prior
to the effective date of such discontinuation;or +. (Form of Bond)
•
(b)The City determines that continuation of the book-entry system REGISTERED REGISTERED
through DTC(or a successor securities depository)is not in the best No.R- $
interest of the Beneficial Owners of the Bonds. UNITED STATES OF AMERICA
In the event a successor securities depository is appointed by the STATE OF ARKANSAS
City,the Bonds will be registered in the name of such successor CITY OF VAN BUREN •
securities depository or its nominee. In the event certificates are WATER AND SEWER CAPITAL IMPROVEMENT
required to be issued to Beneficial Owners,the Trustee and the City AND REFUNDING REVENUE BOND,SERIES 1999
shall be fully protected in relying upon a certificate.of DTC or any . -
DTC participant as to the identity of and the principal amount of Interest Rate:__.% CUSIP No. • Maturity Date:April 1,
Bonds held by such Beneficial Owners. Registered Owner:
The Beneficial Owners of Bonds will not receive physical delivery of Principal Amount: Dollars
certificates except as provided herein. For so long as there is a Know all Men By These Presents:
securities depository for the Bonds, all of such Bonds shall be That the City of Van Buren,Arkansas(the"City"),a city of the first
registered in the name of the nominee of the securities depository,all class,duly created under the laws of the State of Arkansas,for value
ti made
of,bene'frc el'ownet`ahip'interests in such Bonds wilbe' received,hereby promises to pay,but solely from the source as
made.1 the-$6 'it 'df the sedIriffea depository,bi ll lid investor be' hereinafter provided and not otherwise,to the registered owner(the
other city purchitsM Selliltcg,'°dr'b'ritei*ise'tt'antferring beneficial "Owner")shown above,or registered assigns,upon the presentation
ownership of such Bonds is to receive, hold, or deliver any,,,,
certificate.The City and the Trustee shall have no responsibility or
liability formairsfers of beneficial ownership interests in such Bonds. n
WilF,rifilliejudgMentoftheCOMMISSIOIVTUIly
the Improvements so as to fully promote and protect the best interests
May19, 1999-PRESS,ARGU� of the City and the re miners(the"Owners")of the Bonds.
Page 12-� Wednesday, Seddon 2.The City Council hereby finds and declares that the period
LEGAL NOTICE of usefulness of the Ithprovements will be more than twenty(20)
years,which is longer than the term of the Bonds.
Section 3.The offer of the Purchaser to purchase the Bonds pursuant
Published in the May 19,1999 issue of the Press Argus-Courier 1 to the terms of the Purchase Agreement,in the form subtiiitted to this
ORDINANCE NO.6-1999 meeting,is hereby accepted and the Purchase Agreement?f hereby
approved and confirmed, and the Mayor is hereby authorized and
W
An Ordinance Providing for the Issuance of$5,880,000ater and directed to execute and deliver the Purchase Agreement on behalf of
Sewer Capital Improvement and Refunding Revenue Bonds by the the City and to take all action required on the part of.the City to fulfill
City of Van Buren, Arkansas for the Purpose of Acquiring, its obligations under the Purchase Agreement,and the City Clerk is
Constructing and Equipping Betterments and Improvements to the hereby authorized and directed to attest the same and to affix the seal
Water and Sewer System of the City and Refunding the City's of the City thereto.
I Outstanding Water and Sewer Revenue Bonds, Series 1993; Section 4.The Escrow Agreement is hereby approved in substantially
Providing for the Payment of Principal of and Interest on the Bonds; the form submitted to this meeting, and the Mayor is hereby
Authorizing the Execution and Delivery of a Bond Purchase authorized and.directed to execute and deliver the Escrow Agreement
€ Agreement Prpviding for the Sale of the Bonds; Authorizing the, on behalf of the City and to take all action required on the part of the
Execution and Delivery of an Escrow Deposit Agreement Providing City to fulfill its ions under the Escrow Agreement. Any
for the Refunding of the Series 1993 Bonds; Prescribing Other
Matters Relating Thereto;and Declaring an Emergency. changes to the E o, Agreement may be approved by the Mayor,
his execution and dig/very to constitute conclusive evidence of such
Whereas,the City of Van Buren, Arkansas(the "City"), owns, CPI"Yn 5 The Pr
operates
Official Statement is hereby approved and
operates and maintains a municipal waterworks and sewer system
which is operated as a single,integrated municipal undertaking(the the'previous use of the Preliminary Official Statement in connection
I "System")on behalf of the City by the Van Buren Municipal Utilities with the offer and sale of the Boitds is hereby in all respects ratified,
Commission(the"Commission");and approved and confirmed.The Preliminary Official Statement is
Whereas,the City Council and the Commission have determined that hereby"deemed final"within the meaning of Section 15c2-12 of the
the construction and equipping of betterments and improvements to Securities Exchange Act of 1933.The preparation of a final Official
the System(the"Improvements")are necessary in order to make the
services provided by the System adequate for the needs of the City Statement in the name of the City and its use in connection with the
sale of the Bonds as set forth in the Purchase Agreement,s hereby
and have caused to be prepared a preliminary report, including approved.The Mayor is hereby authorized,empowered and directed,
estimates of costs for the proposed Improvements,which has been for and on behalf of the City,to execute the final Official Statement
examined and approved by the City Council and the Commission and inthe name of the City and do all such acts and things necessary to
a copy of which is on file in the office of the City Clerk,where it may carry out and comply with the provisions of the Official Statement.
be inspected by any interested person;and Whereas,the engineering Section 6.Under the authority of the Constitution and laws of the
report has estimated the cost of the Improvements(including the State of Arkansas,including particularly Amendment No.65 to the
I furnishing of all labor,materials, and other services in connection Constitution of the State of Arkansas and the Statutes,there is hereby
with the completion of the Improvements) to be approximately authorized the issuance of bonds of the City to be designated as
I $4,000,000; and Whereas,the City presently has outstanding its
Water and Sewer Revenue Bonds,Series 1993,dated April 1, 1993, "Water and Sewer Capital Improvement and Refunding RevenueBonds,Series 1999"in the principal amount of$5,880,000 for the
I issued in the original principal amount of$1,900,000;of which purpose of accomplishing the Improvements, refunding the Series
• $1,500,000 is currently outstanding(the"Series 1993 Bonds"),issued 1993 Bonds,paying necessary expenses incidental thereto and to the
authorization and issuance of the Bonds, and establishing a debt
J under and secured by the provisions of Ordinance No.3-1993 of the •
I City(the"1993 Bond Ordinance"),adopted and approved on March service reserve.
15,1. '1993 under the authority Arkansas Code of 1987 Annotated The Bonds shall mature on April 1 in the years 2000 to 2019,
(1998 Repl.) §§14-234101 to -218 and §§ 14-235-101 to -225 inciusive, and in the principal amounts and shall bear interest as
(collectively,the"Statutes");and follows:
' Whereas,the City also has outstanding its Water and Sewer Revenue Year Principal Rate of
• Refunding Bonds, Series 1995, dated November 1, 1995, in the (Apnl 1) Amount Interest
original principal amount of$2,580,000,of which$2,195,000 is now 200) $240,000Amou3.Inter
outstanding(the"Series 1995 Bonds"),issued under and secured by 2001 240,000. 3.500%
the provisions of Ordinance No.32-1995 of the City(the"1995 Bond 2002 245,000 3.750%
Ordinance"),adopted and approved on October 30, 1995 under the 2003 245,000. 3.850%
authority of the Statutes;and 2004 260,000 3.950%
Whereas,the Commission has recommended to the City Council and270,000 4.000%
the City Council has determined that,in order to achieve debt service 20050%
0
savings,it is in the best interest of the City to refind the outstanding 2006 290,000 2006 280,000 4.14.100%
• Series 1993 Bonds;and 200$ 305,000 4.250%
Whereas,in order to provide for the defeasance and redemption prior 2009325,000 4.350%
to maturity of the Series 1993 Bonds,there is to be executed and - 2010
delivered an Escrow Deposit Agreement,dated as of June 1, 1999 330,000 4.450%2011 345,000 4.550%
(the"Escrow Agreement"),between the City and Citizens Bank& 360,000 4.600%
Trust Company, Van Buren, Arkansas, as escrow trustee (the 2012 2013 380,000 4.650%
"Escrow Trustee");and 2013 380,000 4.650%
Whereas,the City is authorized under Amendment No. 65 to,the
Constitution of the State of Arkansas and the Statutes to issue and sell 2015 270,000 4.750%
revenue bonds for the purpose of financing the costs of acquiring and 2016 285,000 4.800% •
constructing improvements and betterments to the System or to 2017 300,000 4.850%
refund outstanding bonds payable from revenues of.the System, 2018 315,000 4.900%
together with printing, legal, underwriting and other expenses 2019 330,000 4.950%
incidental to the issuance of such bonds;and Each shall be dated(1)as'of the interest payment date to which
Whereas,to secure funds necessary to finance the Improvements,
refund the Series 1993 Bonds,fund a debt service reserve,and pay interest has been paid,(ii),as of the date on which it is authenticated,
legal and other costs incidental to the issuance of revenue bonds for or(iii)if it is authenticated prior to a date on which interest has been
such purposes,the City has determined to issue its Water and Sewer paid,June 1,1999.
Capital Improvement and Refunding Revenue Bonds,Series 1999,in Interest on the Bonds shall be payable on October I, 1999 and
the aggregate principal amount of Five Million Eight Hundred Eighty semiannually thereafter on April 1 and October 1 of each year.
Thousand Dollars($5,880,000)(the"Bonds");and P-ayment f each installment of interest shall be made to the Owner
Whereas,the City has made arrangements for the sale of the Bonds to whose name is shown on the registration books of the City
Morgan Keegan&Company,Inc. (the "Purchaser"), at a price of maintained by the Trustee, at the close of business on the fifteenth
98.35%of the principal amount thereof plus accrued interest(the •day of the month(whether or not a business day)next preceding each
"purchase price"),pursuant to a Bond Purchase Agreement dated interest payment date (the "Record Date"), irrespective of any
May 17,1999(the"Purchase Agreement")which has been presented transfer or exchange of any such Bond subsequent to such Record
to and is before this meeting;and Date and prior to such interest payment date.
Whereas,a Preliminary Official Statement,dated May 11, 1999(the In'any case where the-late of maturity of interest on or principal of
"Preliminary Official Statement"),offering the Bonds for sale has the Bonds or the date fixed for redemption of any Bonds shall be a
been presented to and is before this meeting; Saturday or Sunday or shall be in the State of Arkansas a legal
Now,Therefore,be it Ordained by the City Council of the City of holiday et a day onwhich banking institutions are authorized by law
Van Buren,Arkansas that: to close,then payment of principal or interest need not be made on
Section 11 The Improvements and the refunding of the Series 1993 such date but may be made on the next succeeding business day not a
Bonds shall be accomplished under the control and supervision of, Saturday or Sunday or a legal holiday or a day upon which banking
and all detail's in connection therewith shall'13e liandled`by,the
Commission. The Contnsission•shall make alflqoirtt'actiJAWd ' rya
agreements necessary or incidental to the performance of its duties" •
and the execution of its powers. The Commission shall let all
contracts pursuant to and in accordance with existing laws and shall ;
require such performance bonds and insurance for construction as
LEGAL NOTICE 2.The Bonus or portions mereor may be redeemed at the option of
the City,in whole or in part,from funds from any source,in inverse
and surrender hereof at the principal corporate office of Citizens order of maturity(and by lot within a maturity in such manner as the
Bank&Trust Company,in the City of Van Buren,Arkansas,or its Trustee shall determine)on any interest payment date on and after
successor.or Successors,as trustee,paying agent and registrarOctober(herein 1, 2004, at the price of par plus accrued interest to the
redemption date.
referred to at the',Trustee"),on the fo t}l Date shown above Notice of redemption identifying the Bonds or portions thereof
(unless this i>atid shall have:been called for prior redemption,in, (which shall be$5,000 or a multiple thereof)to be recleaned shall be
which case rhoi redemption date),the Principal Amount shown above, given by'die'Trustee,not less than 30 nor more than 60 days prior to
'in such coin or currency of the United States of America as at the the date fixed for redemption,by mailing a copy of the redemption
time of payment shall be legal tender for the payment of public and notice by first class mail,postage prepaid,to all Owners of Bonds to
private debts and to pay by check or draft interest thereon,but solely be redeemed.Failure to mail an appropriate notice or any such notice
from the source as hereinafter provided and not otherwise,in like to one or more Owners of Bonds to be redeemed shall not affect the
coin or currency from the date hereof at the Interest Rate. per annum validity of the proceedings for redemption of other Bonds as'to which
semiannually above,payable October 1, 1999,' and thereafter notice of redemption is duly given in proper and timely fashion. In
on AprilI and October I of each year,until payment of such principal
, case any outstanding Bond is in a denomination greater than$5,000,
sum or, if this bond or a portion thereof shall be duly called for each$5,000 of face value of suet'Bond shall be treated as a separate
redemption,until the date fixed for redemption,and to pay interest on bond of the denomination of$5,000. All such Bonds or portions
overdue principal and interest(to the extent legally enforceable)at thereof thus called for redemption and for the retirement of which
the rate borne by this bond.Payment of each installment of interest funds are duly provided in accordance with the Bond Ordinance prior
shall be made to the person in whose name this bond is registered on to the date fixed for redemption will cease to bear interest on such
the registration books of the•City maintained by the Trustee at the redemption date.
close of business on the fifteenth day of the month(whether or not a This bond is transferable bythe Owner hereof in person or b the
business day)next preceding each/interest payment date(the"Record Owner's attorney-in-fact duy authorized in writing at the principal
Date"), irrespective of any transfer or exchange of this bond corporate office of the Trustee,but only in the manner,subject to the
subsequent to such Record Date and prior to such interest payment limitations and upon payment of the charges provided in the Bond
date. Ordinance,and upon surrender and Cancellation of this bond. Upon
This bond is one of an issue of City of Van Buren,Arkansas Water such transfer a new fully registered bond or bonds of the same
and Sewer Capital Improvement and Refunding Revenue Bonds,
Series 1999, aggregating Five Million Eight Hundred Eighty maturity,of authorized denomination or denominations,for the same
aggregate principal amount, will be issued to the,transferee in
Thousand Dollars($5,880,000)in principal amount(the"Bonds"), exchange therefor.This bond is issued with the intent that the laws of
and is issued, to finance the costs of acquiring, constructing and the State of Arkansas shall govern its construction.
equipping betterments and improvements (the"Improvements") to The City and the Trustee may deem and treat the Owner hereof as the
the City's municipal waterworks and sewer system(the"System"), absolute owner hereof for the purpose of receiving payment of or on
'refund certain outstanding debt of the System (the "Series 1993 account of principal hereof and interest due hereon and for all other
Bonds"),pay costsof issuance of the Bonds,and establish a debt purposes,and neither the City nor the Trustee nor any paying agent
service reserve(the"Debt Service Reserve"). shall be affected by any notice-to the contrary.
The Bonds are issued pursuant to and in full compliance with the The Bonds are issuable only as fully registered bonds in the
Constitution and laws the State of Arkansas,including particularly
Amendment No.65 to the Constitution of the State of Arkansas and denomination of$5,000,and any integral multiple thereof.Subject to
Arkansas Code of 1987 Annotated(19 j8 repl.) §§ 14-234-101 to- the limitations and upon payment of the charges provided in the Bond
218,and§§ 14235-101 to-225 (collectively,the"Statutes"),and Ordinance,fully registered bonds may be exchanged for a like
pursuant to Ordinance No. '-1999,duly adopted by the City Council aggregate principal amount of fully registered bonds of the same
maturity of other authorized denominations.
on May17,'1999(the"Bond Ordinance"),and do not constitute an It is hereby certified,recited and declared that all acts,conditions and
indebtedness Of the City within any constitutional or statutory things required to exist,happen and be performed precedent to-and in
limitation.The Bonds are not general obligations of the City,but are the issuance of the Bonds do exist, have happened and have been
special obligations payable solely from the net revenues of the.
System.Pursuant to Arkansas Code of 1987 Annotated(1998 Repl.) performed in due time,form an manner as required by law;that the
indebtedness,represented by the Bonds,together with all obligations
§14-234-208,the Bonds are also secured by a statutory lien on thee of the City,does not exceed any constitutional or statutorylimiitatioon;
waterworks: An amount of System revenues sufficient to pay the and that the above referred to revenues pledged to the payment of the
principal of and interest on the Bonds has been duly pledged and principal of and interest on the Bonds as the same become due and
shall`be set aside into the Series 1999 Water and Sewer Revenue payable will be sufficient in amount for that purpose.
Bond Fund(the"Bond Fund")created by the Bond Ordinance. This bond shall not be valid or become'obligatory for any,purpose or
The Bonds are issued on a parity of lien,pledge and security with the be entitled to any security or benefit under the Bond Ordinance until
City's Water and Sewer Revenue Refunding Bonds,Series 1995(the the Certificate.of Authentication hereon shall have been signed by the
"Series 1995 Bonds"),issued in the original principal amount of Trustee.
$2,580,000.The Bond Ordinance permits the City to incur, under The City has designated this bond as a"qualified tax-exempt.
certain circumstances,additional bonds and indebtedness that may be• obligation" within the meaning of the Internal Revenue Code of
on asperity of security with the Series 1995 Bonds and the Bonds. 1986,as amended.
The Series 1995 Bonds,the Bonds,and any additional parity bonds In Witness Whereof,the City of Van Buren,Arkansas has caused this
are referred to as"System Bonds."Reference is hereby made to the bond to be executed by its Mayor and City Clerk,theirmanual or
Bond Ordinance for a detailed statement of the terms and conditions facsimile signatures thereunto duly authorized and its corporate seal
upon,which the Bonds are issued, of the nature and extent of the or facsimile thereof to be impressed,or imprintedon this bond,all as'
security for the Bonds,and the rights and obligations of the City,the of June 1,1999.
Trustee and the Owners of the Bonds.
The City has fixed and has covenanted and agreed to maintain rates City of Van Buren,Arkansas
for the services of the System which shall be sufficient,together with By:
Other available moneys,at all times to provide for the proper and
reasonable expenses of operation and maintenance of the System and ,VW'(7;kt Rote
for the payment of the principal of and interest on the System Bonds, A 1'1'h$T:
including Trustee's fees,if any,as the same become due and payable, n
to establish and maintain required debt service reserves and to make 8,64/i(iaptjt
deposits required for the depreciation of the System. City Clerk '
In the Bond Ordinance, the City covenants to maintain rates for [S E A LI
System'services sufficient to produce net revenues annually equal to TRUSTEE'S CERTIFICATE OF AUTHENTICATION
the,amount required to be set aside for a depreciation fund and leave
a balance equal to at least 130% of the aggregate average annual This bond is one of the Bonds issued under the provisions of the
principal and interest requirements on all System Bonds. within mentioned Bond Ordinance.
The Bonds are further secured by amounts maintained in the Debt'
Service Reserve in the Bond Fund. Moneys in the Debt Service Citizens Bank&Trust Co.,as Trustee
Reserve may be used only for the payment of principal of and interest By Authorized Signature
on the Bonds in the event moneys paid into the Bond Fund are
insufficient for such purposes,or to pay the final principal maturity of LEGEND
the Bonds.
The Bonds shall be subject to extraordinary and optional redemption Unless this bond is presented by an authorized representative of The
as follows: Depository Trust Company,a New York corporation("DTC"),to the
1. The Bonds or portions thereof shall be redeemed from Bond '
City or its agent for registration of transfer,exchange,or payment,
proceeds remaining in the Improvements Fund(hereinafter defined) and any bond issued is registered in the name of Cede&Co.or in
nofti 'fin'the''pprtrpones'intended, iri'wlYble''or-in"part' on any such other name as is requested by an authorizedrepresentative of
1 intAifgfiliehlt d'dte'bkft itlk`e t'lirte�r than*Off'1 2003, in DTC(and any payment is made to Cede&Co.or to such Other entity
inveifse-brdet',of ntaturity`(anil'by lbt`wimlif'a'matifiify Th Such as is requested by an authorized representative of DTC),any traniifoy '
manner as the Trustee shall determine), at a price equal to the pledge,or other use hereof for value or otherwise by or to any person
principal amount being redeemed plus accrued interest to the
redemption date. •, '
System revenues are deposited;provided,however,separate-accounts LEGAL NOTICE
for the 1995 Bond Fund and the 1999 Bond Fund(each as defined a
below)have been or will be established.The City or the Commission ;; t •
shall notify the Trustee in writing of the initial depository or ' is wrongful inasmuch"as the Owner hereof,Cede&`Co.,has an
depositories for the Revenue Fund,the 1995 Bond Fund and the 1999, is wro[herein.
Bond Fund(and any other find for which a separate account is" ASSIGNMENT For valpe received,the undersigned hereby sell?,' '
established and into which System,revenues are deposited)and any ASSIGNMENT
and transfers For
vatoe
change in such depository or depositories.
Section 14.The City covenants that it will continuously operate the '(Name and Address,Including Postal Zip Code of Assignee)
System as a revenue producing undertaking and will not sell or lease' '
the same,or any substantial portion thereof;provided,however,that" (Social SecutYty or Other Identifying Number •
of Assignee)
nothing herein shall be construed to prohibit the City from making} . ' the and. alle rights thereunder,gand hereby ;
such dispositions of properties of the System and such replacements', • the withinitntbond as attorney irrevocablyp
and substitutions for properties of the System as shall be necessary or: constitutes
transfethe-and appointsp bond on the books kept for registration thereof,t
incidental to the efficient operation of the System as a revenue With fullpower of substitution in the premises. ,
producing undertaking; and provided further, however, that all '
revenue derived from such dispositions shall be deposited into the' DATE:
Revenue Fun
Section 15. All revenues derived from the operation of the System` Signature Guaranteed:
shall be paid monthly into the special fund created by Ordinance No. go
31-1978 of the City,adopted and approved on August 31, 1978(the NOTICE:'Signatures)must be guaranteed by an institution'
"1978 Bond Ordinance"),and designated as the"Water and Sewer` acceptable to the Trustee. ,
Fund" (the"Revenue Fund"). Moneys in the Revenue Fund are
hereby pledged and shall be applied to the payment of the reasonable' NOTICE:The signature(s)to this assignment must correspond wit�r
and em, the expenses of rfmaintenanceand and repair ofys the the names appearing upon the face of the within bond in every`
System,the payment cofe the principal of and interest on System' ' particular,without alteration or enlargement or any change whatever
Bonds, the aired maintenance of the debtof servicenreserves for System 1 ection 11.The City covenants and agrees that:
BondsFuat he payment vof the the Trustee's
fees an otherwiseadequaie Ds de c descratic/hibed
(a)The rates charged for.water furnished by the System,fixed by-
•
in theh,to the Bndd ce,theee'1 and ase dand this Ordinance No.22-1998,and the Yates charged for sewer services of
Ordinance. Bond Ordinance, 1995 Bond Ordinance, and this the System, fixed by Ordinance No. 20-1998 (collectively, the
"System Rates"),and the conditions,rights and obligations pertaining'
fundSecti
on at d byre the shall 1978 paidBBond.Ordinance
thetic RevenuenFund into a special thereto,as set out in those Ordinances,are hereby ratified,confirmed
created Bond�Ordinance and designated as the' �
"Water and Sewer Operation and Maintenance Fund"(the"Operation and continued;
and Maintenance Fund"),on the first business day of each month,ah' ' (b)System Rates shall never be reduced while any of the Bonds are'
outstanding unless there is obtained from an independent certifie •
d '
amount sufficientoato pay the maintenance an repair and necessarySystemfmon such• public accountant not in the regular employ of the City a certificate`
e
mpnth and of romation, disbursements of the for ase' . that the net revenues of the System(being defined as gross revenues t-
-
month Fixedewhich charges,suchshall insurance made only for those" ' less the expenses of operation,maintenance and repair of the System,'
purposes.fannual nsuch as premiums and the including all expense items (with the exception of depreciation,.;-
sesest up on anr annul and maintenance expenses,may) computed udant ' interest and amortization expenses,which are specifically excluded)-
e on annual basis and rat owand (1/e n the a nd ea h'` ro rl attributable to the operation,maintenance and repair-of the
thereof may be paid into the Operation and Maintenance Fund each properly
under generally.accepted accounting principles applicable tp ,
month. municipal water and sewer facilities("Net Revenues")), with the'
If intheey month for any reason on the
Operation
n a andfMaintenancelure transfer a d reduced rates,will always be equal to the amount required to be set
•
pay amount of any amount into the beeadded amountofrwFuise° aside for the Depreciation Fund(hereinafter identified)and leave a'
requiredhe of deficiency shall added to the Operationoand •
balance equal to at least 130% of the aggregate average annual',Maintenance -
to Fund transferred and paid into thennyfiscalyear
principal add interest requirements on all outstanding bonds payable-,
asurplus
shall e in the next succeedingdin month.If in any year` ' from S stem revenues("System Bonds").
Fund overve andbe accumulated the amou in the Operationallbe and tryMato defray
••' (c)System Rates shall,if and when necessary,from time to time,1*
asand above the amount which shall necessary n n ` increased in such manner as will produce Net Revenues at least'
repairt
ep reasonable and necessaryducost. ai operation,maintenance and sufficient to.provide the required deposits into the Depreciation Fund
arand the System during the remainder suchr ufthe mthay be transferredrent fiscal • and to leave a balance equal to 130%of the aggregate average annual`
year the next ensuing fiscal year,such surplus may principal and interest requirements on all outstanding System Bonds.
Sectionand
deposited intoA the makingngs Fund: (d)The balance provided by (b)and(c)must be sufficient to pay
Operation (d) d there h 11 be tra sfertranred tfromnto the rinci al of and ierest on aystem Bonds,pay any trustee,paying
Revenand Maintenance995Fund,there shall v nue Bond
Fundnm the principal
agent or registrar fees and make required deposits into any debt "
"19 5 Bond Fund into created Waterbyand 1995 Bond Ordinance (the° srvice reserve fund or account during the current and next ensuing '
"1995 Fund") by the and into thb fiscal ear.
1999 Bond Fund created below,the amounts required by the 1995, fiscal
Owners of the Bonds shall have the protection'of the'
Bond Ordinance(for the 1995 Bond Fund),by this Ordinance(for the • O
1999 Bond Fund),and by any future ordinance r any additional bonds' provisions of Arkansas Code of 1987 Annotated(1998 Repl.) §14+-'
issued on a parity of security with the Series 1995 Bonds and the - 235-223, and the City will diligently proceed to collect the amount '
due for sewer services together. with the penalty and expenses so '
Bonds(collectively,the `Bond Funds").The transfers to the Bond authorized.
Funds shall be made on the first business day of each month and shall ' Sectionu12.None of the facilities or services{afforded by the System'
(bon a parity with is one another. shall be furnished without a.charge being made therefor.In the event •
(b)theA special el fund is hereby created andn ted the"Series with 19999 Trustee" that the City or any department, agency or instrumentality thereorf
in name Revenueof Bondo Fund"un is(th the Fund").A Water` shall avail itself of.the facilities,the services or facilities so afforded'
and Sewer he1999 Bo (the"1999 Bond forthepurpose Amoe of' shall be charged against the City or such department, agency df._ '
c
providing
fundso the forBond Fund shall iben used the e' " instrumentality and shall be paid for as the charges therefor accrue.'
Bonds,payment the payment of the principal of and interest aothe• The revenues so received shall be deemed to be revenues derived
"Debs, ofse Trustee's fees and as a debt ve shalla reserve(thy" from the operation of the System and shall be usedAnd accounted for •
"Debt Strome the Reserve").proceeds of Debt onds Reserve te u lnto elle; in the samemanner-as any other revenues derived from the operation
funded from aximumn the principal Bonds inand amount requirements
m the of the System.Nothing herein shall be construed as requiring the City '
l
for
the Bonds,( the maximum annualaand inters and emenst or anyde artment,agency or instrumentality thereof to avail itself of'
for)1.25 and average annualthe principal and interest•
the failities or services afforded by the System.
requirements the Bonds,dand(iii)10%of original proceeds of Section 13. Revenues of the System shall be collected, held and'
(c)Bonds(thei "Required business L ay o). disbursed by the Commission. Each.employee of the City handling'
1999,On.the first tdiday ofd each month, commencing July 1, " revenues of the System shall give bond for the faithful discharge o -
pidin full allo provision
ng Bonds,with interest paythereon,have shall beep his or her duties.Such bond shall be approved by the City Council."
•
paid eor provision made for such payment, there s be' All revenues of the System shall be held in trust for the Owners of the
transferred from the Revenue Fund installmentto ofche Ie a Bond Fund the a on s System Bonds and shall at all times be accounted for separately and'•
(exceptequ
ao that) 1/6 withf the nextrespect hinterbeest due made the Bonds" distinctlyfrom other moneys of the City.All revenues of the Systeth '
businessda cmonth the payments to r 1999,on the sunt.' shall be sed and applied only as provided herein.All revenues of the '
shally of each of the
next October a1ofin the summa' System shall be deposited in the Revenue Fund(hereinafter defined)'
depositednthe be equal tom un accruedthinstallment deposited f teinst due`' to be held by such depository or depositories for the City as may be-
o
91999Bondsdless the the sat of heBonds),plus 1/12 of the designated herein or,if not,as may be lawfully designated from time•`
Bond Fund upon the son the the p (ii) to time byresolution of the City or the Commission;subject;
next installment tofo principaleon Bonds sines dayt that,with monthespedt however, o the giving of security as now or as hereafter may be-'
priort
the payments 2000,e made sum depositedee business l oa1/9 of theth required'b law•and provided that such depository or depositoriet '
to April 1, the shall be equal to 1/9 of shall ho 'ry'rietrtberstit'ifl he- Federal Deposit Insurance Corporation'
continued on page 13B (" :Alydeposits"shstll'be in the naive of the City and shall be"'
, designated on the books and records of the City so as to indicate the-•'
particular fund to which the revenges-of the System belong.The City"
may establish one or more accounts or sub-accounts into whicl)-
• Section 20. Any surplus in the Revenue Fund immediately&iter;,'
LFGAL NOTICE ma,tng all disbursements and Providing for all'funds described
above,and before additional deposits of gross revenues;May housed,
at t(ie.option of the City,'for any lawful municipal puiposc zed
nex installment of principal due on the Bonds),plus(iii)the amount by t e•City.
necessary to pay Trustee's and paying agents fees and expenses,plus Section..21. The City may,but shall not he required to,`eiCpend'
(iv)if the Debt Service Reserve ns hot fully funded at the Required motleys derived
Level,a sum equal to 1/24 of the Required Level. fin the urces other than the operation of thhe System
�1 for(,dde�bt service on the Bonds;System Operating,m rice and
(d)If the revenues of the System are insufficient to make the required repair expenses and System insurance premiums. , 1
payments on the first business day of any month into the 1999 Bond
Fund,then the amount.of any such deficiency in the payment made Se i on 22. So long as any of the Bonds are outstanding,-the City
sh be added to the amount otherwise required to be paid into the shatnot issue or attempt to issue any bonds claimed to be entitled to
19 Bond Fund on the first business day of the next month. a p onty of lien on the revenues of the System over the lien securing
(e) for any reason there shall be a deficiency in the.payments made the bonds of this issue.
into the 1999 Bond Fund so there are not sufficient moneys therein to Thq City reserves the right to issue additional bonds payable from
pay the principal of and interest on the Bonds as the same become revenues of the System to finance the cost of constructing any future
due,then any sums held in the Debt Service Reserve shall be used to extensions,betterments or improvements to the System,or to refund
the extent necessary to pay such principal and interest.The Debt outstanding bonds payable from revenues of the System,but the'City
Service Reserve shall be reimbursed in the amount of any such shall not authorize or issue any such additional bonds ranking on a
payment as described above.The Debt Service Reserve shall be used parity with outstanding System Bonds unless and until there have
solek as herein described,but the moneys therein may be invested as beep procured and filed with the Tr'stee and City Clerk a statement
set forth below.Earnings on the Debt Service Reserve which increase by an independent certified public accountant not in the regular
the amount therein above the Required Level shall be deposited into employ of the City reciting the opinion, based upon necessary
r t e 999 Bond Fund. investigation,that the Net Revenues of the System for the fiscal year
(f) o provide for the payment of the principal of and interest on the immt}ediately.preceding the fiscal year in,which.it is proposed to issue
Bo as the same becomes due and payable,the Trustee shall pay such additional bonds shall equal not less than 140%of the maximum
from the 1999 Bond Fund to the Owners the following amounts at the anneal principal and interest requirements on all the then outstanding
times set forth below: System Bonds and the additional System Bondsthen proposed to be
tc issuted,In making the computation set forth above,the City and the
Yep, Principal Interest independent certified public accountant on behalf of the City'may,
based upon the opinion or report-of a registered professional engineer
,, , (April,1) April 1 .October 1 Total not in the regular employ of the City,treat any increase in rates for
' the ystem enacted subsequent to the first day of such preceding
19't. $ . $ . $85,775.00 $85,775.00 fisc,year;as having been in effect throughout such fiscal'year and
21 t 1 2,40,000,00 1,28,662.50 124,462.50 493;125.00 may,include in gross reyenues for such fiscal year the amount that
2t Ii . 235,000.00 124,462.50 120,173.75 479,636.25 would have.been received,based on such opinion or report,had the
2t t� 245,000.00 , 120,173.75 115,580.00 480,753.75 in to se en in effect throuhout such fiscal tear.
200?: 255,000.00 115,580.00 110,671.25 481,251.25 Thq city may also issue additional bonds subordinate in security to
2260000.00 110,671.25 105,536.25 476,207.50 the ystem Bonds.
2 : 2')0,000.00 105,536.25 X 100,136.25 475,6;'2.50
2 2$0,000.0(} 100,136.25 94,396.25 474,532.50 S bion 23.-'Rhe City covenants that the City or the.Commission will
24 t, 290,000.00 94,396,25 88,378.75 472,775.00 faithfully,and punctually perform all duties with reference to the
21 ti: 305,000.00 88,378.75 81,897.50 475,276.25 sysEem required by the Constitution and laws of the State of
It' 325,000.00' 81,897.50 74,828.75 481,726.25 Arkansas, including making and collecting of reasonable and
2010_ 330,000.00 74,828.75 67,486.25 472,315,00 sufficient rates lawfully established for services rendered.by.the
20f 34.5,000.00 67,486.25 59,637.50 472;123.75 system,segregating the revenues of the System and applying them to
201
0,{140 00 59,637.50 51,357.50 479 995.00 the.respective funds herein.created.
201 380,000.00 51,357.50 42,522.50 473,880.00
201,4 260,000.00. 42,522.50 36,412.50 338 935.00 Section 24. The Bonds shall be subject to redemption prior to
200
270,000.00 36,412.50 30,000.00 336,412.50 maturity.in accordance with the terms set out in the bond-form
20
2,85,000.00 30,000,00 23,160.00 33$,160.00 contained in Section 10 hereof. The Bonds paid either at or before
201,., 300,000:00 23,160.00 15,885.00 339,045.00 mat city shall be canceled and shall not be reissued.
2018 315,000.00 15,885.00 8,167.50 339,052.50
201p, 330,000.00 8,167.50 338,167.50 Secrtion 25. The,City shall cense proper books of accounts and
records to be kept(separate from all other records and accounts)in
which complete and correct entries shall be made of all transactions
(g) f a sure us shall exist in the 1999 Bond Fund over and above the relating to the operation of the System, and such books shall be
amount required for making all principal and interest payments available for inspection by the Owners of any of the Bonds at
dur xsg the next succeeding twelve month period and in excess of the reasonable times and'under reasonable circumstances. The City
Required Level for the Debt Service Reserve,such surplus shall,at agrees to have these records audited by an independent certified
the option of the Commission,either be(1)applied to the payment of public accountant at least once each year, and a copy of the audit
the principal of and interest on the Bonds that may be called for shall be delivered to the Trustee and made available to the Owners of
redemption prior to maturity or,(2)transferred to the Revenue Fund. the Bonds requesting the same in'writing within 120 days after the
(h)(When the moneys held in the 1999 Bond Fund,including the end of the fiscal year. In the event that the City fails or refuses to
Debt Service Reserve,shall be and remain sufficient to pay the male the audit, the Trustee, or any Owner of the Bonds,may have
principal of and interest on all of the Bonds then outstanding plus the audit mad,and the cost thereof shall be charged against the
Trustee's;fees, the City,shall not be obligated to make any further Operation and Maintenance Fund.The Trustee shall provide monthly
pay,p ents.into the 1999 Bond Fund. to the City and.the Commission a statement of all transactions
(i)The Bonds shall be specifically secured by a pledge of all the involving the funds held by the Trustee under this Ordinance for the
revenues required to besplaced into the 1999 bond Fund.This'pledge previous month and a statement of all fees and expenses of the
in(favor of the Bonds is hereby irrevocably made according to the Trustee to be-paid by the City under this Ordinance for such month.
terms of,this Ordinance,and the City and its officers and employees Section 26.The City covenants and agrees that it will maintain the
shall,execute, perform and carry out the terms thereof in strict Sy em in good condition and operate the same in an efficient manner
colotmity with the provisions of this Ordinance. ar4 at.reasonable cost. The City covenants that, to the.extent
Section 18.After making the monthly deposits into the Operation and comparable protection is not otherwise provided to the satisfaction of
Maintenance Fund and the Bond Funds,there shall be paid from the the Trustee,it will keep the System insured against loss or damage,
Re enue Fund into a fund created by the 1978 Bond Ordinance and and.will maintain public liability and property damage insurance
designated"Water and.Sewer Depreciation Fund"(the"Depreciation against claims for bodily injury or death and damage to property
fund"), on the first business day of each month, 596 of the gross otcsirring upon,in or about the System,in each case in an amount
revvnues,of the System for the preceding month. Moneys in the and against such risks as are usually insured against in connection
Depreciation Fund shall be used solely for the purpose of paying the with similar facilities aridundertakings as the System. The City
cost of major improvements,repairs and replacements to the Systemfurther covenants,to the extent comparable protection is not
or fin.extraordinaryrepairs to the System. f in any fiscal year a oth rwise.provided,to the satisfaction of the Trustee,that it will
surplus shell be `accumulated in, the Depreciation Fund over and maintain adequate fidelity insurance or bonds onnll officers or
abovethe amount necessary to defray the cost of the probable employees responsible for handling funds-of the System:All
reproements during the next twelve(12)months,such surplus may insurance shall be effected with reputable insurance cohpanies
be transferred and paid into the Revenue Fund. selected,by the City,which Usually insure risks similar in nature and
Section 19. Payments from the Revenue Fund,the Operation and monetary exposure.Policies of insurance shall name the Trustee as a
Maintenance Fund and the.Depreciation Rnn shall he made b/v check benefiiciary,to the extent of its interest under this Ordinance.Copies
sighed by the,persptt oripersops Iii r . iggp, d;; ofcertificates of the insurance,or summaries thereof,shall be placed
draivfir*,tg'1{te,dep with whiott mi ne's ins e'' nd•sstaatri. on ile with the Trustee. In the event of loss,the proceeds of such
have been deposited,and such check shall briefly specify the ,insur'anr $hall be applied solely toward the reconstruction,
purpose of the expenditure. regaeemettessr repair of the System,and in such event the�City,will,
with reasonable promptness,cause to be commenced and completed
'TX 3 'te't"wers•gran..-o e rus ee,or o ins"tfut sucl action,
suit or proceeding in its name,and unless,also,there shall have been
offered to the Trustee reasonable security and indemnity against the
costs,expenses andliabilities to be incurred therein or thereby and
LEGAL NOTICE the Trustee shall have refused or neglected to comply with such
request within a reasonable time.Such notification,request and offer
the reconstruction,replacement and repair work.If such proceeds are of indemnity are,at the option of the Trustee,conditions precedent to
P , the execution of any remedy.No one or more Owners of the Bonds
more than sufficient for such purposes,the balance remaining shall shall have any right in any manner whatever by the Owner's action to
be deposited to the credit of the Revenue Fund,and if such proceeds affect, disturb or prejudice the security of this Ordinance, or to
shall be insufficient for such purposes, the deficiency shall be enforce any right hereunder except'in the manner herein provided.
supplied first from moneys in the Depreciation Fund and second from All,proceedings at law or in equity shall be instituted) had and
moneys in the Operation and Maintenance Fund and third from maintained in the manner herein provided and for the benefitof al)„
surplus moneys in the Revenue Fund.Nothing shall be construed as Owners of the outstanding Bonds.Any individual rights of action or
requiring the City to expend any moneys for operation and other right given to one or more of such Owners by law are restricted
maintenance of the System or for premiums on its insurance which by this Ordinance to the rights and remedies herein provided.
are derived from sources other than the operation of the System,but
nothing shall be construed as preventing the City from doing so. (c)No remedy conferred upon or reserved to the Trustee or to the
Section 27. (a) Any Bond shall be deemed to be paid within the Owners of the Bonds is intended to be exclusive of any other remedy
meaning of this Ordinance when payment of the principal of and or remedies,and every such remedy shall be cumulative and shall be
interest on such Bond (whether at maturity or upon redemptidn as in addition to every other remedy given under this Ordinance or by
rovided herein, or otherwise),either(i) shall have been made or
caused to be made in accordance with the terms thereof,or(ii)shall law.
have been provided for by irrevocably depositing with the Trustee,in (d)The Trustee may,and,upon the written request of the Owners of
trust and irrevocably set aside exclusively for such payment(1)cash, not less than 50%in principal amount of the Bonds then outstanding,
fully insured by the FDIC or filly collateralized by securities shall,waive any default which shall have been remedied before the
described in (2), sufficient to make such payment and (2) non- entry of final judgment or decree in any suit, action or proceeding
callable direct obligations of(including obligations issued or held in instituted under the provisions of this Ordinance or before the
book entry form on the books of)the Department of the Treasury of completion of the enforcement of any other remedy, but no such
the United States of America(provided that such deposit will not waiver shall extend to or affect any other existing or any subsequent
affect the tax,exempt status of the interest on any of the Bonds or default or defaults or impair any rights or remedies consequent
cause anyof the Bonds to be classified as"arbitrage bonds"within
the meaing of section 148 of the Internal Revenue Code of 1986,as thereon.
amended(the "Code"), as set forth in an opinion of counsel (e)All rights of action under this Ordinance or under any of the
nationally recognized with respect to obligations the interest on Bonds secured hereby,enforceable by the Trustee,may be enforced
which is exempt from federal income taxation, which opinion is by it without the possession of any of the Bonds,and any such suit,
acceptable to the Trustee), maturing as to principal and interest in action or proceeding instituted by the Trustee shall be brought in its
such amounts and at such times as will provide sufficient moneys to name for the benefit of all the Owners of such Bonds,subject to the
make such payment,and all necessary and proper fees,compensation provisions of this Ordinance.
and expenses of the Trustee pertaining to the Bonds with respect to
which such deposit is made shall have been paid or the payment (O No delay or omission of the Trustee or of any Owners of the
thereof provided for to the satisfaction of the Trustee.In determining Bonds to exercise any right or power accrued upon any default shall
the sufficiency of the deposit of the obligations of the United States impair any such right or power or shall be construed to be a waiver of
of America,there shall be considered the principal amount then of_ any such default or an acquiescence therein; and every power and
and interest to be earned thereon until the maturity of the obligatiorlt. remedy given by this Ordinance to the Trustee and to the Owners of
the Bonds,respectively,may be exercised from time to time and as
(b)On the payment of all the Bonds within the meaning of this often as may be deemed expedient.
Ordinance, the Trustee shall hold in trust, for the benefit of the (g)In anyproceeding to enforce the provisions of this Ordinance,the
Owners of such Bonds,all such moneys and obligations. Trusteeor any plaintiff bondholder shall be entitled to recover from
the City all costs of such proceeding,including reasonable attorneys'
(c)When all the Bonds shall have been paid within the meaning of fees.
this Ordinance,and any arbitrage rebate due the United States under
section 148 of the Code has been paid or provided for to the Section 29.(a)Theterms of this Ordinance i
satisfaction of the Trustee and if the Trustee has been paid its fees shallconstitute a binding
and expenses,the Trustee shall take all appropriate action to cause(i) contract between the City and the Owners of fhe Bonds and no
the pledge and lien of this Ordinance to be discharged and canceled, variation or change in the undertakings herein set forth shall be made
P g while any of the Bonds are outstanding,except as hereinafter set forth
and(ii)all moneys held by it pursuant to this Ordinance and which in subsections(b)and(c),and the Owner of any Bonds may at any
are not required for the payment of such Bonds to be paid over or time for and on the Owner's own behalf or for and on behalf of all
delivered to or at the direction of the City. Owners enforce the obligations of the City by a proper suit for that
Section 28.(a)If there be any default in the payment of the principal Purpose.
of or interest on any of the Bonds,or if the City defaults in any 1999 (b) The Trustee may consent to any variation or change in this
Bond Fund requirement or in the performance of any of the other Ordinance to cure any ambiguity, defect or omission in this
covenants contained in this Ordinance,the Trustee may, and,upon Ordinance or any amendment hereto, which in the opinion of the
the written request of the Owners of not less than 20%in principal Trustee isnot materially adverse to the interests of Owners,without
amount of the then outstanding Bonds,shall,by proper suit,compel the consent of the Owners of the outstanding Bonds:
the performance of the duties of the officials of the City under the
laws of the State of Arkansas.In the case of a default in the payment (c)The Owners of not less than 75%in aggregate principal amount of
of the principal of and interest on any of the Bonds,the Trustee may, the Bonds then outstanding shall have thright, from time to time,
and,upon written request of the Owners of not less than 20% in anything contained in this Ordinance to the contrary notwithstanding,
principal amount of the then outstanding Bonds, shall, apply in a to consent to and approve the adoption by the City of such ordinance
proper action to a court of competent jurisdiction for the appointment or ordinances supplemental hereto as shall be necessary or desirable
of a receiver to administer the System on behalf of the City and the for the purpose of modifying, altering, amending, adding to or
Owners of the Bonds with power to charge and collect (or by rescinding,in any particular,any of the terms or provisions contained
mandatory injunction or otherwise to cause to be charged and in this Ordinance or in any supplemental ordinance; provided,
collected)rates sufficient to provide for the payment of the expenses however, that nothing contained in this Section shall permit or e
of operation, maintenance and repair and to pay any Bonds and, construed as permitting (a) an extension of the maturity of the
interest outstanding and to apply the revenues of the System in principal of or the interest on any Bond issued hereunder,or(b)a
conformity with the laws of the State of Arkansas and with this reduction in the principal amount of any Bond or the rate of interest
Ordinance.When all defaults in principal and interest payments have thereon,or(c)the creation of a lien or pledge superior to the lien and
been cured,the custody and operation of the System shall revert to pledge created by this Ordinance,or(d)a privilege or priority of any
the City. Bond or Bonds over any other Bond or Bonds,or(e)a reduction in
the aggregate principal amount of the Bonds required for consent to
(b)No Owner of any of the outstanding Bonds shall have any right to such supplemental ordinance.
institute any suit,action,mandamus or other proceeding in equity or
at law for the protection or enforcement of any power or right unless Section 30. (a)Moneys held for the credit of all funds identified in
such Owner previously shall have given to the Trustee written notice this Ordinance may be invested and reinvested pursuant to the
of the default on account of which such suit,action or proceeding is direction of the Commission in:
to be taken,and unless the Owners of not less than 10%in principal (i) direct or fully guaranteed obligations of the United States of.
amount of the Bonds then outstanding shall have made written America(including any such securities issued or held in book-entry
request of the Trustee after the right to exercise such power or right form on the books of the Department of the Treasury of the United
of action, as.the case may be, shall have.accrued,,,;tnd„slhnl)i havtet, States of America)("Government Securities");
afforded the a'sustee a.reasonable,,onoornMiti ieithar xA,kuoceer140,+ (ii)time deposits or certificates of deposits of banks, including the
Trustee, to the extent insured by the FDIC, or, if in excess of
insurance coverage,collateralized by Government Securities;and
(iii)'money market funds comprised exclusively of investments
described in(i)above(collectively,"Permitted Investments"). 6
LEGAL NOTICE
When the Improvements have been completed and all required
(b)Moneys held fur the credit of the Debt Service Reserve in the expenses paid and expenditures made from the I avements Fund
1999 Bond Fund shall be invested and reinvested in Permitted for and in connection with the accomplishment of". Improvements •
Investments,all of which shall mature,or which shall be subject to and the financing thereof,this fact shall b,e evidenced by a certificate
redemption by the holder thereof, at.4he option of such holder,not signed by the Manager of the System and,by the consulting engineer
laterthan the earlier of five years after the date of investment and the with respect to the Improvements, which certificate shall state,
maturity date of the Bonds.Moneys held for the credit of the 1999 among other'things, the date of the completion and that all
Bond Fund(other than the Debt Service Reserve)shall be invested obligations payable from the Improvements Fund have been
and reinvested in Permitted Investments which shall mature,or which, discharged.A copy of the certificate shall-be,faled-with the Trustee,
,shall be.subject to redemption by the holder thereof,at the option of and the Commission shall transfer any remaining balance to the 1999
such holder,not later than the date or dates when the moneys will beBond Fund for the purpose of redeeming the Bonds as set forth in the.,
required for payment of the principal of and interest on the Bonds ',form of Bond herein to the extent practicable. Any balance,not
when due.The Trustee shall so invest and reinvest moneys in the sufficient to redeem a Bond shall be applied to the next principal,
199'4 due.
fund and the Debi Service Reserve in Permitted payment on the Bonds.
Investptents pursuant to the direction of the Commission and,in the Section 32.(a)The City covenants that it shall not take any action or
Investments
n aneb direct instructions,from the Commission,in Permitted suffer or permit any action to be taken or conditions tO exist which
Investmentsdesrcribed in(a)(iii)above. causes or may cause the interest payable on the Bonds to be subject
(c).Obligations so purchased as an investment of moneys in any fund to federal income taxation.Without limiting the generality ef•the
shall be deemed,at all times to be a part of such fund and the interest foregoing,the City covenants that the proceeds of the sale of the
accruing thereon and any profit or lossrealized from such Bonds and revenues of the System will not be used directly or
investments shall be credited or charged to such fund, except that indirectly in such manner as to cause the Bonds to be,treated as
interest earnings and profits on investments of moneys in the Debt "arbitrage bonds"within the meaning of section 448 of the Code.
Service Reserve which increase the amount thereof above the (b)The City shall assure that(1)not in,excess of 10%of the Net
tLevel.shall,except Amounts
soa,transferredbe transferredshe Proceeds of the Bonds is used for Private Business Use if,in addition,
promptlycreditedinto the 149ty's obligation Fund.Am akes a msntohe,1l 99 the payment'of more than 10%of the principal or 10%of the interest
Bondned against;the City's to make payments into the,1999 due on the Bonds during the term thereof is,under'the terms of the
Fund. Bonds or any underlying arrangement,directly or indirectly secured
(d)Not later than the 90th day after the last day of each calendar by any interest in property used or to be used for a Private Business
year,the Trustee shall provide the City with a statement,showing the Use or in payments in respect;of property used or to be used for a
amounts on deposit or credited to the funds and accounts held by the Private Business Use or is to be derived from payments,whether or
Trustee and a valuation of the,investments of such amounts. In not to the City,in respect of property or borrowed moneys used ot to
computing the amount in any,fund or account,obligations purchased be used for a Private Business Use;and(2)in the event that both 4A)
as an investment of moneys therein shall be valued(i)at face value if in excess of 5%of the Net Proceeds of the Bonds are used for a
such obligations mature within six months from the date of valuation Private Business Use, and(B)an amount in excess of 5%of the
thereof and(ii)if such obligations mature more than six months after principal or 5% of the interest due on the Bonds during the term
the date of valuation thereof,at the price at which such obligations thereof is, under the terms of the Bonds or any underlying •
are redeemable by the holder at the holder's option if so redeemable, arrangement,directly or indirectly, secured by any interest in
or, if not'so redeemable,at the lesser of(1) the cost of such property used or to be used for said Private.Business;Use or in
obligations plus the amortization of any premium or minus the payments in respect of property used or to be used for said Private,
amortization of,any discount thereon and(2)the market value of such Business Use or is to be derived from payments,whether ornot to the
obligations. Valuation on any particular date shall include the City,in respect of property or borrowed money used or to be used for
amounts of interest then earned or accrued to such date on any said Private.Business Use, then said excess over said 5% of Net
moneys,or investments in such fund or account. Proceeds of the Bonds used for a Private Business JJse shall be used •
Section 31. When the.Bonds have been executed,they shall be for a Private Business Usef related to the governmental use of the
authenticated by the Trustee and the Trustee shall deliver the Bonds Improvements.
to the Purchaser upon payment in cashof the purchase price specified
in the Purchase Agreement,including accrued interest(the"total.sale The City shall assure that not in excess of 5%of,tfte Net Proceeds of
proceeds").The City will simultaneously deposit with the Trustee the the Bonds are.used,direcdly'or indirectly,to make or finance a loan to,
entire amount held for the credit of the bond fund being maintained in persons other than state or local governmental units; i
connection with the Series 1993.Bonds (the "1993 Bond Fund"), As used in this-subsection (b),the following terths shall have the
including the debt service reserve therein.The total sale proceeds and following meanings:
the amounts transferred from the 1993 Bond Fund shall be applied as "Net Proceeds"means the face amount of the Bonds,plus accrued
follows: interest and premium,if any,less original issue discount,if any,less
(athe amount deposited into the Debt Service Reserve.
deposited The amount of 99 Bon interestunpaid by the Purchaser shall be "Private Business Use"means use directly or indirectly in a trade or
into the 1999 Bond Fund; business carried on by a natural person or in any activity carried on
(b)An amount equal to the Required Level shall be deposited in the by a person other than a natural person,excluding,however,use by a
Debt Service Reserve; state or local government unit and use as a member of the general
public.
(c)The amount required pursuant to the Escrow Agreement shall be (c) The Bonds are hereby designated as "qualified tax-exempt
deposited with 1993 EscrowonTrustee,andall which.sum paying y ge gensuffa ent in obligations"within the meaning,of the Code.The City represents and
con the onrthewt Bonds all.tto be aand pplid tt agent feesnins covenants that the aggregate principal amount of ilk qualified tax-
due
connection therewith,such amounts to be applied to the payment as exempt obligations(excluding"private activity bonds" within the
due at maturity and upon redemption prior to maturity on April 1, meaning of section 141.of the Code which are not "qualified
•
2000 of the a principal ag n and interestnontihn Series 199Bonds and all SOl(c)(3)bonds"within the meaning of section 145,of the Code),
Trustee and paying agent fees in connection therewith;;and
including those of its subordinateentities, issued ip':calendar year
1999 will not exceed$10;000,000.
(d)The remainder of total salelusub-account
inatl be namedepoie truss The City.further covenants and represents that at least 95%of the
intosa special a depository
sub-lec ed the ofthesiCityaproceeds of the Bonds will be expended for the governmental
established with a depository selected by the City and designated activities of the City.
"Series 1999 Water and Sewer Revenue Bond Improvements Fund"
(the"Improvements Fund"). (d)The City covenants that it will tajce no action which would cause
The Improvements Fund shall be maintained by the Commission. the Bonds to be"federally guaranteed"within the meaning of section
149(b)of the Code; specifically, (A)the payment of any portion of
The moneys in the costs of accomplishing shall be disbursed solely in principal or interest with respect to the Bonds will not ton guaranteed
payment of the of the Improvements,gthepaying (directly or indirectly)by the United states or atton guarcy or
issuancecry expensesnds.Disbursements thereto,and paying the expensesronothe instrumentality thereof,and(B)not more than 5%of the pros t3'
asisofdelivery"lBonds. dhby bChe rman the the Bonds(exclusive of proceeds invested for an initial temporary
basis isonotinstructions ions signed n the requisitions
of the period until needed for the purpose for which the a re issued
•
Commission on the date of issuing the Bonds or requisitions which invested
shall contain at least the following information:the person to whom • and proceeds deposited into the 1999 Bond k'und);fv
made and th abed and' of,the paytng (directly or indirectly)in federally insured deposits or accounts.
n Pa aa.05� q'. . p bRr� Nothing in this Section shall prohibit investments in bonds issued by
- C� Th ra do s . such deft the United States Treasury.
e oriimrssuiw rRtar+!ruAB►e x111 lSeh3fri� '_^
instructions and requisitions.Upon execution,otttheirequisition,.the e
(e)The City covenanntss that it,will submit to the Secretary of the
Commission shall issue its check to the persons, firms, orlaterthan the 1 5th dry of the
corporations designated in the delivery instructions or a requisition. Treasury theUnitedStates, not
The Commission shall keep accurate records as to all payments made
on the basis of,the delivery instructions and the requisitions.
I
•
Section 34.The Trustee shall only.be responsible for the exercise ofm.
;US-C ILL Y 11�—Wednesday,May 19, 1999.,-Page 1 good faith and reasonable prudence,In the execution of its trust.Th
recitals in this Ordinance and in the àe of file Bonds are the recitals,
LEGAL. r t l C of the City and not of the Trustee.The Trustee shall not be requiredr
to take any action as Trustee unless it shall have been requested todoylr„
so in writing by the Owners of not less than 10%inspeincipal a*Xwunt 1j,
second calendar month after the close of the'calendar quartet t j, of the Bonds then outstanding and shall have been offeredeeasonebI
which the Bonds are issued,a statemem.on Form 8038 required by security and indemnit ageingt the costs,expenses and.liabiltitties tptek,
section 149(e)of the Code. incurred therein or thereby.The Trustee may resigQ;at ariy,ttttseby gt,
days' notice in writing to the City Clerk.and to the Owners of thew.
�Z' Bonds, and the,majority in principal amount of the Owners.pf the
Bonds The City recognizesrss income
that the purposes
exclusion of the interest paid tioihei , outstanding Bonds at any time,with or without cause,may removeri
dent upon forepurposes r vfisionl income Code. Thew
the Trustee.In the event of.a vacancy in the office,of Trustee,either
dependent upon compliance with the provisions of the Code. Thep by resignation or by removal,the majorwir
ity in principal amoun•t of thedi.
oCpinion,
shall,unless andrecognized ze City delivers to theTrusteea he last,0 Owners of the outstanding Bonds may appoint a new Trustee, sucllan,
paai paragraph
nationally subsectionb bonde the counsel as describedtos in the last,, appointment to be evidenced by a written instrument or instrumentsr
tioneinaft yhsubfl, ecmatio (fl regitired ads Make se them, filed with the City Clerk.If the majority in principal amount of theme
ic
action hereinafter by this subsection (fl regmred;and make sac r
further, Owners of the outstanding Bonds shall fail to fill a vacancy within 30t
actionsor'different determinations aryl take such further or counsel,enty days after the same shall occur,then the City shall fortliwitlym.
comply
as are necessary, in the'opinion of such bond toxo,
y with the requirements of section 148(fl of the Cpde and them designate a new Trustee by a written instrument filed in the office oto
Treasury Regulations pertaining thereto.The City shall rebate to they . the City Clerk.The new trustee shall be a bank or trusl t htPaLiy iu ry
United$tates,not later than 30 days after the end of the Bond Ye good standing,duly authorized to exercise trust powers in.the State oto.
ended April I,2004,and not later than 30 days after the end of,eaclam Arkansas and subject to examination by federal orState,of Arkansas •
fifth Bond Year thereafter,an amount which ensures that at least 90% authority, having a reported capital and surplus of not less:thaq ,
of the 1letiate Amount at the time of such payment will have beeino, $10,000,000.A`subsidiary trust company"within the meaning of theme
paid to the United States, and within 60 days after the payment o>;ar Bank Holding Company Subsidiary Trust Company Formation Actle
redemption,of all of the principal of the Bonds,an amount sufficientrdt,. of 1989 shall be deemed to have capital and surplus equal to its40‘,
to pay the remaining unpaid'balance of the Rebate.Ainount,all in the capital and surplus plus the capital and surplus of its ow ing.hard a;
manner'and as required by section 148 of the Code and the Treasuiy+„t. holding company. The original Trustee and any successor Trustee
regulations pertaining thereto. shall file a written acceptance and agreement to execute the trusti•
imposed upon it or them by this Ordinance,but only upon the termsd2.
r`°' and conditions set:forth in this Ordinance and subject to they
As used in this subsection (f), the following terms shall have the roSisions of this Ordinance,to all of which the Qwners of the Bonds
following meanings: P
agree.Such written acceptance shall be filed with the City Clerk and
"Bond Year"means the 12-month period ended April 1 in each year... a copy thereof shall be placed in the Bond transcript.Anysuccessoteni'
41 Trustee shall have all the powers herein granted to the originally
"Rebate Amount"means the amount described in section 148(0(2) of•• Trustee. The Trustee's resignation shall become effective upon theme
the Code, computed in accordance with the provisions of sectionkr acceptance of the mists by the successor Trustee. • , .2
•
148(0(2)and the Treasury Regulations pertaining thereto now ()of ' '
hereafter prgmitlgated. Section 35..It is understood and agreed that the Commission,acting,
The City shalldetermine the Rebate Amount.within 30 days acted,
!vizi, for and on behalf,of the City,has custody of and control over that...
April 1,,2004 and each fifth April 1 thereafter and upon payment orni. System,operates,maintains and repairs the System and collects and49
redem on of all principal of the Bonds,and shall furnish handles System revenues.Therefore,it is understood and agreed th
pti P p the Tn}stee{�, q
upon each determination with a Written statement..verifying Arena.l• even though there are some express references to the Commission,alit?,
determination(the"Rebate Certificate").The City and' the Trustee.t,i, references hereto to,the City.shall, when appropriate in view of theme
shall retain copies of each Rebate Certificate and records of'such,,ut, authority and responsibility of the Commission, be constructed tq,e,
determinations until six years after final payment or redemption of allw mean and include the Commission. .. . >{;p'
principal of the Bonds.In determining the Rebate Amount,the City,
shall take into account all amounts held under this Ordinance in thu• Section 36. Anything herein.to the contrary notwithstanding,i8141,,
Debt Service Reserve in the 1999 Bond Rind. . rights of any Owner of any Bond hereunder to or with respect to any
moneys or investments held in any fund hereunder.shall terminate at
The Rebate Amount shall be paid by the City to theiJnited States:a : the expiration of five years from the date of maturity of such Bond,
such times and in such amounts as are necessary to comply with1thq)a; whether by scheduled maturity or by call for redemption prior to
provisions of section 148(t)of the Code and the Treasury Regulationsiw maturity in accordance with the.terms hereof.
issued thereunder, •
al„
Section 37.The provisions of this Ordinance are hereby declared'ta
In making the computations of the Rebate Amount provided for ink be separable and if any provision shall for any reason be held illegak.
this Section, the City and the Trustee shall comply with the or invalid,such holding shall not affect the validity of the remainder
applicable.provisions of the arbitrage certificate delivered to the iCityi u,r ' of the Ordinance.
upon issuance of the Bonds.
- Section 38.This Ordinance shall not create any right of any kind and
The Trustee,shall verify at least annually from die date of del• ivery Atli no right of any kind shall arise hereunder pursuant to it until the
the Bonds that(i)all requirements of this subsection(0 have been Bonds shall be issued and delivered.
met oq.,a continuing basis, (ii) adequate procedures have beetll4pi
established and are being complied with to insure continuing Section 39. On the date of issuance and delivery of the Bonds,all
compliance with the requirements of the arbitrage certificate,and(in+ funds and accounts being held in accordance with the provisions of
if applicable,the timely payment of all Rebate Amounts due anc. Ordinance No. 3-1993 of the City, except for the bond fund,
owingcto the United States Treasury has occurred. • including the debt service reserve, established therein, shall be
- transferred to,the corresponding funds and accounts created in
Notwit iSianding the foregoing,in the event the Trustee is furrlishe Ordinance No.32-1995 or this Ordinance.
with a written opinion of nationally recognized bond counsel to they • Section 40.Ordinance No.3-4993 is hereby repealed effective on the
effect that it is not necessary under either existing law, regulationsyy, date of issuance and delivery of the Bonds.All ordinances and
rulings and decisions or any then pending federal Iegislation tp pay,, resolutions or parts thereof,in conflict herewith-are hereby repealed
1 u to the extent of such conflict.
any.portion of earnings on investments held under this Ordinance or. �'
otherwise to the United States in order to assure the exclusion from 40 '
gross income for federal income tax purposes of interest onthe�j, Section 42. It is hereby ascertained and,declared that dig, ,
Bonds,'the requirements set forth in the preceding portion of'this,.t' Improvements must be accomplished and the Series 1993 Bonds.
subsection.(0(with respect to the portion of such earnings specifiedlty- refunded as soon as possible in order to-make the System adequate:4,
in such opinion)need not be complied with and shall no longer bero, for the needs of the City and its inhabitants and to insure theme,
effective. 8P' continued operation of the System, without which the life, health
safety and welfare thereof are jeopardized,and that the issuance o ,
Section 33. In the event the office of Mayor, City Clerk,'City the Bonds and the taking of the other action authorized by this,
Treasurer,City Council or Commission shall be abolished, or any,r Ordinance is necessary for the accomplishment thereof. Itis*,
two or more of such offices shall be'merged or consolidated,or in thetherefore;,declared that an emergency exists and this Ordinance bemg I,
le,
event the duties of a particular offic shall be transferred to anothesa•• necessary.for the immediate preservation of the public peace,healt1 r
office or officer,or in the event of vacancy in any such office by.„„a, and safety shall take effect and be in force from and after its passage.
reason of death,resignation,removal from office or otherwise,or in ,fadh
the event any,such officer shall become incapable of performing themPASSED:May 17,1999. t;-Me
duties of his or her office by reason f sickness,absence from the hF.
City or otherwise,all•powers eonferreg and all obligations and duties, ATTEST: Ba46ie C&4i8 City Clerk • i 4sli;
i o'',r'.Arfl9' .. o fide: officer, i.be_Re.49P e4i IAA,:Alc9ms [SEAL] �/// {oil
f APPROVBD: /SIR (To,6,r l� Marx gra.
office+N`y;oer upon whomo -tqg gatior itrid u q4 ` w2;
be imposed by law. bit
Next was to consider an ORDINANCE TO AMEND ORDINANCE NO. 7--1963 FOR THE PURPOSE
OF REZONING CERTAIN PROPERTY IN THE CITY OF VAN BUREN, ARKANSAS AND AMENDING THE
ZONING MAP OF THE CITY OF VAN BUREN, ARKANSAS. It was requested by Larry & Camille
Breeden and recommended by the Planning Commission. The Clerk read the Ordinance
the first time in its entirety. Alderman Swaim moved that the rules be suspended
and the Ordinance placed on its second reading. The motion was seconded by
Alderman Spoon. On the Clerk's calling the roll , the following vote resulted:
Ayes - Alderman Parker, Barker, Spoon, Taylor, Moore and Swaim. The Mayor declared
the motion carried as there were six (6) ayes and (0) nays. Four (4) votes being
necessary for passage. The Ordinance was read the second time.
Alderman Swaim then moved that the rules be further suspended and the
Ordinance be placed on its third and final reading. The motion was seconded by
Alderman Parker. On the Clerk's calling the roll , the following vote resulted:
Ayes - Alderman Parker, Barker, Spoon, Taylor, Moore and Swaim. The Mayor declared
the motion carried as there were six (6) ayes and (0) nays. Four (4) votes being
necessary for passage. The Clerk then read the Ordinance the third and final time.
The Mayor declared the Ordinance open for discussion. The Mayor then put the
question, "Shall the Ordinance Pass ?" Motion was made by Alderman Taylor and
seconded by Alderman Parker to adopt the Ordinance. On the Clerk's calling the
roll , the following vote resulted: Ayes - Alderman Parker, Barker, Spoon, Taylor,
Moore and Swaim. The Mayor declared the Ordinance passed as there were six (6)
ayes and (0) nays. Four (4) votes being necessary for passage.
THE ORDINANCE WAS GIVEN THE NUMBER 7-1999
os. ZOpWZi• L1C7Wrij _ amu a ^enau^ ua.uvvmv ua.oyy
W a ociwQ>.iimZO� ci:-vs ^ = ° 2 " `°?u1-zrA c„wa.�^ c c 8 tit' ''z- v >; oC
a� 04' a WmE-Vo4Qxi.z >,m.' u Z o `uUV o too ai a ) -E- c u �u(jig., jjI
.aO Eo� g� wI ' 4 .2041 qi � c. „.0. , .
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a �� _:ip3�' oO.A;raa 'x�o...oIiII ..
uQ O 3mlaw § N�ua"u°iaga z'.o l. —cltd1°z88tlea li a c"E. _
Next the Mayor said item number five (5) was pulled and would be presented
again in the June meeting. t
Next was to consider an ORDINANCE ADOPTING THE 1999 EDITION OF THE NATIONAL
ELECTRICAL CODE WITH LOCAL AMENDMENTS. It was recommended by the Planning ' r
Commission. The Clerk read the Ordinance the first time in its entirety. Alderman
Swaim moved that the rules be suspended and the Ordinance placed on its second
reading. The motion was seconded by Alderman Spoon. On the Clerk's calling the t
roll, the following vote resulted: Ayes - Alderman Parker, Barker, Spoon, Taylor, E
Moore and Swaim. The Mayor declared the motion carried as there were six (6) ayes
and (0) nays. Four (4) votes being necessary for passage. The Ordinance was read
the second time.
Alderman Swaim then moved that the rules be further suspended and the
Ordinance be placed on its third and final reading. The motion was seconded by
Alderman Moore. On the Clerk's calling the roll , the following vote resulted: I'
Ayes - Alderman Parker, Barker, Spoon, Taylor, Moore and Swaim. The Mayor declared
the motion carried as there were six (6) ayes and (0) nays. Four (4) votes being
necessary for passage. The Clerk then read the Ordinance the third and final time.
The Mayor declared the Ordinance open for discussion. The Mayor then put the
question, "Shall the Ordinance Pass ?" Motion was made by Alderman Taylor and
(
I
seconded by Alderman Moore to adopt the Ordinance. On the Clerk's calling the
roll, the following vote resulted: Ayes - Alderman Parker, Barker, Spoon, Taylor,
Moore and Swaim. The Mayor declared the Ordinance passed as there were six (6)
ayes and (0) nays. Four (4) votes being necessary for passage.
Motion was then made by Alderman Taylor and seconded by Alderman Swaim, that
the Emergency Clause be adopted which motion on roll call carried by the unanimous
vote of the Council . The Mayor then declared the Ordinance duly passed and signed
same in open Council, duly attested to by the City Clerk.
THE ORDINANCE WAS GIVEN THE NUMBER 8-1999
416
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On the agenda next was to consider a RESOLUTION APPROVING WAL-MART SUBDIVISION
IN THE CITY OF THE BUREN, ARKANSAS. It was recommended by the Planning Commission.
The Clerk read the Resolution in its entirety. The Mayor asked if there was any
discussion on the Resolution. Alderman Swaim made a motion that the Ordinance be
returned to the Planning Commission to be be reworked. He said the street off
Highway 59, must be built by the developer to the east edge of their property line.
He said we have required this of all local builders and developers, and this
builder is no different. Tim Ardon with CEI Engineering working on this project
with Wal-Mart presented the fact that they have access to Hwy. 59. He said as a
part of the process they went through with the Planning Commission, and various
aspects they presented this to the City, he said they had no indication they needed
to put a road to the East property line. Wal-Mart is planning to do extensive work
on Hwy. 59 to maintain and carry through the widening project through their
property. He said they are also going to have a traffic light at our North
entrance. Alderman Swaim said all they are asking is that a street be built to the
East bound property line. Alderman Swaim said that he is making a motion to send
this Resolution back to the Planning Commission making sure that a street will be
put in before it is passed. City Attorney Candice Settle said the concern was that
there could not be a traffic light put in unless the road goes back to the East
property line. Alderman Donna Parker asked question to Mr. Ken 0"Donald who talked
to the Council about the street and the reasons it should be built. Alderman Swaim
seconded by Alderman Parker moved that the Resolution be sent back to the Planning
Commission to be reworked. The Council followed with a unanimous vote.
Next on the agenda was to consider a RESOLUTION AUTHORIZING THE MAYOR TO
ADVERTISE AND TAKE BIDS ON CERTAIN IMPROVEMENT PROJECTS. The Clerk read the
Resolution in its entirety. Alderman Swaim seconded by Alderman Taylor moved that
the Resolution be adopted as amended and add the Peevyhouse Road Project. The
question was put by Mayor Riggs on the adoption of the motion and the roll being
called, the following voted aye; Alderman Parker, Barker, Spoon, Taylor, Moore and
Swaim. And the following voted nay: none.
The Mayor thereupon declared the Resolution adopted and signed the Resolution,
which was attested by the City Clerk and impressed with the seal of the City.
THE RESOLUTION WAS GIVEN THE NUMBER 5-2-1999
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CITY OF,VAN BUREN,ARKANSAS
RESOLUTION NO. 5-2-1999 /
A RESOLUTION AUTHORIZING THE MAYOR TO ADVERTrE AND TAKE BIDS ON
CERTAIN IMPROVEMENT PROJECTS.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VAN BUREN,
ARKANSAS:
SECTION 1: THAT the Mayor is authorized to advertise and take bids on the following
improvement projects:
Falls Branch Addition: Regrade existing ditch west of Lots 19-27, Falls Branch
Addition from Rena Road to Mitzi Lane and provide concrete ditch pavement for
erosion protection.
Madeline Street:Provide drainage system improvements along Madeline Street from
North 28th Street to Rudy Road to allow existing seepage water and small flows to
be captured and carried to the drainage pipe under Rudy Road just north of Madeline
Street.
Tanglewood Addition: Implement drainage system plans originally apart of the
Northside Drainage Improvements commencing at the northern end of Tanglewood
Addition and working upstream.
Peevyhouse Road Improvements.
PASSED AND APPROVED THIS /7 of May,1999.
MAYOR
ATTESTED:
CITY CLERIC/TREASURER
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Next on the agenda was to consider an RESOLUTION ACCEPTING A PERMANENT
MAINTENANCE EASEMENT CURRENTLY HELD BY THE ARKANSAS STATE HIGHWAY COMMISSION TO THE
CITY OF VAN BUREN. The Clerk read the Resolution in its entirety. Alderman Swaim
seconded by Alderman Spoon moved that the Resolution be adopted as amended. The
question was put by Mayor Riggs on the adoption of the motion and the roll being
called, the following voted aye; Alderman Parker, Barker, Spoon, Taylor, Moore and
Swaim. And the following voted nay: none.
The Mayor thereupon declared the Resolution adopted and signed the Resolution,
which was attested by the City Clerk and impressed with the seal of the City.
THE RESOLUTION WAS GIVEN THE NUMBER 5--3--1999
CITY OF VAN BUREN,ARKANSAS
RESOLUTION NO.5-3-1999
A RESOLUTION ACCEPTING A PERMANENT MAINTENANCE EASEMENT
CURRENTLY HELD BY THE ARKANSAS STATE HIGHWAY COMMISSION.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VAN BUREN,
ARKANSAS:
SECTION 1: THAT the permanent maintenance easement on the following described property
is hereby accepted by the City of Van Buren, and that the City of Van Buren will heretofore be
responsible for the maintenance of said property:
LEGAL DESCRIPTION
Part of Tract 234
A part of the Southeast Quarter of the Southwest Quarter of Section 30,Township 9 North,Range 31 West,
Crawford County,Arkansas,more particularly described as follows:
Starting at the Northeast Corner of the Southeast Quarter of the Southwest Quarter of Section 30;thence
South 02°54'West along the East line thereof a distance of 739.6 feet to a point;thence North 54°21' 30"
West a distance of 159.9 feet to a point on proposed Southerly right of way line of Fourth Street Relocation
for the point of beginning;thence South 69° 59' West along said proposed right of way line a distance of
85.4 feet to a point;thence South 49° 55' West along said proposed right of way line a distance of 332.33
feet to a point;thence North 40°05' West along said proposed right of way line a distance of 150.0 feet
to a point;thence North 49° 55' East along said proposed right of way line a distance of 366.93 feet to a
point;thence South 54° 21' 30"East a distance of 185.0 feet to the point of beginning and containing 1.35
acre more or less.
ALSO:
Part of Tract 235
A part of the Southeast Quarter of the Southwest Quarter and the Southwest Quarter of the Southeast
Quarter, both in Section 30, Township 9 North Range, 31 West, Crawford County, Arkansas, more
particularly described as follows:
On the agenda next was to consider a RESOLUTION EXPRESSING THE WILLINGNESS OF
THE CITY OF VAN BUREN TO UTILIZE FEDERAL-AID HIGH PRIORITY PROJECT FUNDS. The
Clerk read the Resolution in its entirety. Alderman Swaim seconded by Alderman
Moore moved that the Resolution be adopted. The question was put by Mayor Riggs on
the adoption of the motion and the roll being called, the following voted aye;
Alderman Parker, Barker, Spoon, Taylor, Moore and Swaim. And the following voted
nay: none.
The Mayor thereupon declared the Resolution adopted and signed the Resolution,
which was attested by the City Clerk and impressed with the seal of the City.
r
THE RESOLUTION WAS GIVEN THE --
NUMBER 5-41999
`
RESOLUTION NO. S``T
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A RESOLUTION EXPRESSING THE WILLINGNESS OF
THE CITY OF VAN BUREN
TO UTILIZE FEDERAL-AID HIGH PRIORITY PROJECT FUNDS
WHEREAS,the City of Van Buren understands Federal-aid High Priority Project funds are
available at 80%federal participation and 20%local cash match for the following project:
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to conduct a feasibility study for an intermodal port facility at Van Buren.
NOW,THEREFORE,BE IT RESOLVED BY THE CITY OF VAN BUREN,THAT:
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SECTION I: the Van Buren Public Facilities Board will participate in accordance with its 1
designated responsibility,including maintenance of this project.
SECTION II: Luke Gordy,Chairman of the Van Buren Public Facilities Board,is hereby
authorized and directed to execute all appropriate agreements and contracts necessary to expedite the
construction of the above stated improvement. •
SECTION HI: the City of Van Buren pledges its full support and hereby authorizes the
Arkansas State Highway and Transportation Department and the Federal Highway Administration to
initiate action to implement this project. i
THIS RESOLUTION adopted this /7 day of , 1999.
•
ATTEST: AI ..L_,.�
C Ri MayorRV
(SEAL)
On the agenda next was to consider a RESOLUTION SETTING UP A SPECIAL FUND FOR
THE FUNDS RECEIVED OUT OF THE SETTLEMENT WITH OMNIAMERICA DEVELOPMENT CORPORATION
AND ALLOCATING SAID FUND FOR CAPITAL IMPROVEMENTS ON CITY PROPERTY LOCATED AT 1400
CITY PARK ROAD. The Clerk read the Resolution in its entirety. Alderman Swaim
said he wanted to add an amendment to this Resolution. He said the property on
Rena road and formerly the home of Fire Station number three (3) should be cleaned
up and put back to mother earth and covered with green grass. Alderman Swaim said
he would like this beautification done with some of these funds. Mayor Riggs said
he had a request from the Brays. Their backyard faces the tower and they would
like a privacy fence around the back so their child would be safe from the tower or
they would't have to look at it from the back yard. Mayor Riggs said he also
would like to look at several different projects. The parking lot at the Chamber
of Commerce needs to be fixed, also Donna Parker had a good idea for a walking
trail . Alderman Taylor said he didn't know they were going to spend the money that
night, but was to put it all in a hopper and look at what needs to be taken care of
and worked on first. Mayor Riggs said he would like to look at all the ideas and
maybe call a special meeting to discuss it. Alderman Swaim asked if they were
going to vote on this Resolution or withdraw it. Alderman Barker, who had
requested this Resolution decided to withdraw the Resolution.
On the agenda next was to discuss Sales Tax Options. Mayor Riggs explained
the Sales Tax and his recommendation. The Sales Tax would be first penny general
purpose with ten a (10) year sunset clause would be used for operation. The second
penny for streets and drainage. In ten years the tax should bring in 21 Million,
with $700,000 spent per ward annually. The Mayor said the second penny tax would
be Title 14, a special 1 cent penny for a one time deal through the legislation and
can be voted in as a one time five (5) year tax it is a pay as you go tax. If
approved by the voters the tax would bring in 10.5 million. The Mayor again asked
for this to go for streets. The Mayor said the next option was a one (1) cent tax
with an eight (8) year sunset clause which would bring in approximately one 1
million annually.
Judge Williams talked to the Council and citizens. He said the Quorum Court
had been polled on this issue and the result was nine (9) out of ten (10) people
were for the one (1) cent sales tax county wide. He said all the elected officials
were present except one and he thought all of the officials would support the tax.
The Judge said there would be discussion at the Budget Committee Meeting Monday
night deciding on the one (1) cent sales tax.
Alderman Swaim said he would favor the County tax and that Van Buren could use
all the help they could get. He said that if the Councilselected a tax he hoped
it would be the County wide sales tax, and not a Van Buren City tax. He said he
would ask the County for one thing, last time it was splintered to the point that
there was no support from anyone. He said if the vast majority is not used for
roads and the Sheriff 's Department, he said he did not think there was a prayer of
a chance to pass the tax. Alderman Swaim asked that it not be splintered. Judge
Williams said he would like all the tax to go on roads but he knew that was not
possible„ He said there would be meetings to discuss the ways the money should be
used. Alderman Parker asked how the City would split their share of the tax. The
Mayor said he would suggest streets and drainage. Alderman Taylor said he
supported the County wide sales tax. Alderman Taylor said however we split it we
will have to live with it and the City will have to sign with the County and the
County will have to sign with the City.
Former Mayor Allan R. Toothaker spoke next saying this was going to be a real
hard job, because people are sick of taxes. He said poor and elderly will not walk
into the polls and say I want my taxes increased. He also said he was sick of
taxes. He said in November he was told his house taxes would go up one hundred
percent. He said the lot alone went up one hundred percent. Mr. Toothaker said he
thought people were sick of taxes. Mayor Riggs said when we pay sales tax in Fort
Smith we pay it with no problem. He said we still would be a penny less than Fort
Smith. He said you can look at Fort Smith and see they are a prime example of tax,
they are doing what they want and have very good streets. The Mayor said if people
want improvements on things we need, we have to have more money.
Some of the citizens spoke and said we would be supportive of the tax
increase. Alderman Taylor seconded by Alderman Swaim made a motion that the
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Council go on record as supporting the one cent County sales tax. The Council
followed with a unanimous vote. The Mayor said the motion passed.
On the agenda next was a request by the Van Buren Municipal Utilities
Commission to reappoint Mr. C. E. Dougan to serve another term on the Board.
Alderman Swaim seconded by Alderman Moore made a motion to reappoint C. E. Dougan
to the Board. The term will end in April , 2007. The Council members followed with
a unanimous vote.
Next on the agenda was the Treasurer's Report. Motion was made by Alderman
Parker and seconded by Alderman Swaim to appropriate the sum of $825,508.53 to pay
expenses and salaries for April 1999 presented by the City Clerk-Treasurer. The
motion on roll call was unanimously carried by the City Council .
The Mayor said we need to look at a special Ordinance having to do with
Topless Bars or Clubs. Reverned George Lynn spoke to the Council representing
several pastors in the vicinity. He said he would like to encourage the Mayor to
pass an ordinance as soon as possible to protect our area from the thing that has
happen to Fort Smith recently with the opening of a topless club. Reverend George
Lynn said he was pleading with the Council to take action on passing an Ordinance
to protect the City. The Mayor said they are in process of getting an Ordinance
together. Alderman Swaim spoke to say this is a legal mine field and we need all
the help we can get with this Ordinance making sure it protects our City in all
areas.
Next was a report on Vision 2010 given by Marjorie Armstrong. Marjorie said
we are going to receive Grant money for $ 7,500 to do the archaeological historical
survey, on the original floor at Phillip's landing. Marjorie said the A & P
Commission has already committed to put a up $7,500 dollar match. She also said
they have an archaeologist to do the work and the announcement should be coming
soon..
Next Police, Fire, Fire Marshal , Building Inspector's and KOH Auditorium
Commission reports were presented for filing.
Next was the time for any item from any citizen present. There was none.
Next was time for miscellaneous and general discussion. There was none.
There being no further business motion was made by Alderman Taylor seconded by
Alderman Swaim to adjourn. The meeting adjourned at 9:10 P.M.
APPROVED:
' 41.--- - -- .
MAYOR
ATTESTED:
/13a1L-&-t-a---'
CITY CLERK-TREASURER �����
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