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ORD NO 12-2004
City of Van Buren, Arkansas ORDINANCE NO. 00/ AN ORDINANCE AUTHORIZING THE ISSUANCE OF $5,725,000 WATERWORKS AND SEWER SYSTEM REVENUE CAPITAL IMPROVEMENT AND REFUNDING BONDS, SERIES 2004, BY THE CITY OF VAN BUREN, ARKANSAS; AUTHORIZING A TRUST INDENTURE SECURING THE BONDS; AUTHORIZING THE SALE OF THE BONDS AND THE EXECUTION OF A BOND PURCHASE AGREEMENT; PRESCRIBING OTHER MATTERS PERTAINING THERETO; AND DECLARING AN EMERGENCY WHEREAS, the City of Van Buren, Arkansas owns a water and sewer system which is operated and maintained as a single, integrated municipal undertaking (the "System on behalf of the City by the Van Buren Water and Sewer Commission (the "Commission and WHEREAS, pursuant to the Constitution and laws of the State of Arkansas, including particularly the Local Government Capital Improvement Revenue Bond Act of 1985, as amended, the City is authorized to issue its bonds to finance capital improvements to the System, to pledge the revenues of the System to the repayment of the bonds, and to issue bonds to refund bonds issued for such purpose; and WHEREAS, the City Council and the Commission have determined that the acquisition, construction, and equipping of capital improvements to the System (the "Improvements is necessary in order to make the services provided by the System adequate for the needs of the City; and WHEREAS, the City presently has outstanding its Water and Sewer Capital Improvement and Refunding Revenue Bonds, Series 1999, and Waterworks and Sewer System Revenue Refunding Bonds, Series 2001; and WHEREAS, the City is authorized under Act No. 305 of the Acts of the General Assembly of the State of Arkansas for the year 1967, as amended "Act 305 to pledge and cross pledge the revenues of any City water or sewer utility to revenue bonds issued for constructing, reconstructing, extending, improving, or equipping water and sewer utilities owned by the City at the time of such pledge or cross pledge; and WHEREAS, the City has determined that it can achieve significant interest savings by refunding the 1999 Bonds and, to provide moneys for this purpose and for accomplishing the Improvements, the City has determined to issue its Waterworks and Sewer System Revenue Capital Improvement and Refunding Bonds, Series 2004, dated August 1, 2004 (the "Bonds in the principal amount of $5,725,000; and WHEREAS, the Bonds shall be issued on a parity of security with the 2001 Bonds; and 1 WHEREAS, the City has made arrangements for the sale of the Bonds to Morgan Keegan Company, Inc. (the "Underwriter pursuant to a Bond Purchase Agreement, which has been presented to and is before this meeting; and WHEREAS, the City desires to accept the Underwriter's offer to purchase the Bonds and to authorize the issuance of the Bonds and the execution and delivery of various documents pertaining to the issuance of the Bonds; and NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF VAN BUREN, ARKANSAS, as follows: Section 1. The Improvements shall be accomplished under the control and supervision of, and all details in connection therewith shall be handled by, the Commission. Section 2. The issuance of the Bonds in the aggregate principal amount of $5,725,000 is hereby authorized for the purpose of accomplishing the Improvements and refunding the 1999 Bonds, and the Mayor and City Clerk are hereby authorized to execute, by manual or facsimile signature, and deliver the Bonds to or upon the direction of the Underwriter. The Bonds shall be not general obligations of the City, but shall be special obligations, payable from and secured by the revenues of the System on a parity of security with the 2001 Bonds. The Bonds shall be dated April 1, 2004, and shall be issued in the form and denominations, shall be numbered, and shall be subject to optional redemption prior to maturity all upon the terms and conditions set forth in the Bond Purchase Agreement and Trust Indenture, which are identified and authorized below. The Bonds shall mature on the dates and in the amounts and shall bear interest at the rates as follows: Due April 1 Principal Amount Interest Rate 2005 $135,000 1.50% 2006 310,000 2.00 2007 315,000 2.40 2008 325,000 2.75 2009 340,000 3.00 2010 370,000 3.15 2011 380,000 3.40 2012 390,000 3.55 2013 400,000 3.70 2014 415,000 3.85 2015 430,000 3.95 2016 455,000 4.05 2017 465,000 4.15 2018 490,000 4.25 2019 505,000 4.35 Section 3. The Bonds shall be sold pursuant to the specific terms and conditions set forth in a Bond Purchase Agreement, dated July 19, 2004 (the "Bond Purchase Agreement between the City and the Underwriter, for the purchase price of 98.75% of the principal amount thereof, plus accrued interest to the date of purchase. The Mayor is hereby authorized and directed to execute the 2 Bond Purchase Agreement on behalf of the City in substantially the form submitted at this meeting. An executed copy of the Bond Purchase Agreement shall be filed in the permanent records of the City and kept by the City Clerk. Section 4. To prescribe the terms and conditions upon which the Bonds are to be executed, authenticated, delivered, issued, accepted, held, and secured, the Mayor is hereby authorized and directed to execute and acknowledge a Trust Indenture, dated as of April 1, 2004, by and between the City and Citizens Bank Trust Co., as Trustee, and the City Clerk is hereby authorized and directed to execute and acknowledge the Trust Indenture and to affix the seal of the City thereto, and the Mayor and City Clerk are hereby authorized and directed to cause the Trust Indenture to be accepted, executed, and acknowledged by the Trustee. The Trust Indenture is hereby approved in substantially the form submitted at this meeting, and the Mayor and City Clerk are hereby authorized, upon the advice of bond counsel, to confer with the Trustee and the Underwriter in order to complete the Trust Indenture with such modifications as shall be approved by the Mayor and City Clerk, their execution to constitute conclusive evidence of such approval. Section S. There is hereby authorized the preparation and distribution to various prospective and actual purchasers of the Bonds of the Official Statement dated July 19, 2004 in the name of the City, describing the City, the Bonds, the System, and the Trust Indenture and setting forth such other information as may be determined to be necessary or desirable. The Mayor, for and on behalf of the City, is authorized to execute the Official Statement, an executed copy of which shall be filed in the permanent records of the City. Section 6. The appointment of Citizens Bank Trust Co. to serve as Trustee is hereby approved. Section 7. All actions heretofore taken by the City and the Underwriter in connection with the offer and sale of the Bonds are hereby in all respects ratified and approved. Section 8. The City hereby calls for redemption prior to maturity on October 1, 2004, the outstanding 1999 Bonds and instructs the trustee for the 1999 Bonds to provide notice of the redemption. Section 9. The Mayor and City Clerk, for and on behalf of the City, are hereby authorized and directed to do any and all things necessary to effect the execution and delivery of the Bonds, the Bond Purchase Agreement, and the Trust Indenture; the execution, delivery, and distribution of the Official Statement; the execution and delivery of such other papers and documents necessary to effect the issuance of the Bonds and the refunding of the 1999 Bonds, including, particularly, an undertaking to make available certain financial information and operating data upon request and to provide notice of certain events; and the performance of all acts of whatever nature necessary to effect and carry out the authority conferred by this Ordinance. The Mayor and the City Clerk are hereby further authorized and directed, for and on behalf of the City, to execute all papers, documents, certificates, and other instruments that may be required for the carrying out of such authority or to evidence the exercise thereof. 3 Section 10. The City Clerk shall maintain, as a part of the minutes of the meeting at which this Ordinance is adopted, and in the permanent records of the City, for inspection by any interested person, a copy of the Trust Indenture, the Official Statement, and the Bond Purchase Agreement. Section 11. The City hereby declares its expectation and intention that bonds issued and to be issued by the City during calendar year 2004 will not in the aggregate exceed $10,000,000 in principal amount, and the City hereby declares the Bonds to be "qualified tax exempt obligations" within the meaning of section 265(b) of the Internal Revenue Code of 1986, as amended. Section 12. Emergency Clause. The City Council hereby determines that the Improvements must be accomplished as soon as possible in order to make the System adequate for the needs of the City and its inhabitants and to insure the continued operation of the System and that the City can achieve significant interest savings by refunding the 1999 Bonds; that an appropriate way to accomplishment the Improvements and achieve such savings is by the issuance of revenue bonds payable from revenues of the System as authorized by the Act; and that this ordinance shall be given immediate effect so that such savings may be secured as soon as possible. Therefore, an emergency is hereby declared to exist and this ordinance, being necessary for the immediate preservation of the public health, safety, and welfare, shall be in full force and effect from and after its passage and approval. ADOPTED: July 2004 Mayor R ATTEST: BY: A.kg_ a\ eit ca-,,c 1enk (SEAL) 4 07/20/04 TITE 09:30 FAX 501 375 1309 ROSE LAW FIR[ 0003 PRESS ARGUS- COURIER i 1 P.O. B ox 369 I' j Van Buren, AR 72957 J .TAWANA WR PLE ?SE REMIT PAYMENT 10 A30VE ADDRESS PAYMENT DILL NG Obi[,'.,TSRd: <4[ATAiDIIti :uDC 06/J0/04 I 49.41 I UPON Gi'OI:t 1 'BUNG FR0 Ii /Lll /:14 TO 062:10/0) F{l.J,jl LAW FIRM PA PERIOD ATTN: M. JANE DICKEY accwNivc. T,,nwuleNLLm 120 EAST FOURTH STREET LITTLE RCICK AR 7:12:01-Z893 1 11SSO?PAI ij PLEASE SHOW ACCOUNT NUMBER ON CFO' PLEASE RETURN THIS PORTION YIITRYOUR PAYMENT fi r REPEAENCE I pE5'RIPTIOh DIMENSIONS MI_LtU UNITS 'I RATC' AMOUNT L•'ALANCE FORWARD q0 )6/30 /CI 02101 NOTICE OF PUE<L IX 5.0 5.014 9.004%0 49.41 LINAGE PUB: PA S.00IN I I REVENUE PUB PA 1 49.41 TOfrAL DUE 49.41 110 H j i OV�R'30 RAVS OVER 6D DAYS I OM 90.gAYS CURREMT CHARGES 43.41 'AST DUE SALP.tJCE I =ROM PREVIOUS MONTHS CIO ICI .00 1 I 0 PRESS ARGUS-60URIFR PLEASE PAY ?LMAJOUP.NAL THIS AMOUNT a 1 DRAWFORD COUNTY ADVERTISER 4' 379 -474 -5215 MONTHLY APVERTIWG IN CE OR STATEMENT 07/20/09 TOE 09:29 FAX 501 375 1309 RUSE LAI; FIRM 0 002 z a r C. r C.} ._a j Cl. '-r, 74'9 0 in .w N m V v Q L Y tflosi rw c J m a. o o 0 1 i N Q A G I all tL1 C r y a o- o c la t d U 0 en O rr H 1 i: o .c roE d 0 K rN N 2 t 7 N C E 41' 9 0 av,? LL m w M 2' 7C 2' x U w d .g S 5 2 7 a to 8 u_ 8 6 I a in I a ci uaB E ysE5,5 �',v vd, «wEmN i3'' -4 °c�o- °0 a g �n vi g vagica -2 zi i. sl? a'��85a n ,eu. �S p It _n -t 19 'ae m e T.• m aca `a' F,I mt -=2 t L=E 2 'c uu V V., �n�` 2• o 5m� a nba aea4 �.a 'S g n�3 �^t'.� c �'8 m y u. iE w =S�"G �N OI`cl `R a.°rL'>w ao lep,' C C '2a�iier 410 u 3 yg '`N i. Ti c�'� y a zSa Z w? 5 rv' 'a EaE, k lo L -n s`dH w3s�'A °�$dy: 07/20/04 TUE 09 :29 FAX 501 375 1909 ROSE LAW FIRM Z001 M. Jane Dickey Rose Law Firm, Phone: (501) 377 -0312 a Professional Association Fax: (501) 375 -1309 120 East Fourth Street jdickey ©roselawfirm.com little Rock, AR 72201 -2893 Facsimile Transmittal Cover Page Please Deliver Immediately DATE: Tuesday, July 20, 2004 TO: Candice Beshears Fax: 479-471 -5010 Vivian Mitchell Jim Alexander Fax: 671 -1103 PAGES 3 MESSAGE 0 The information transmitted in this facsimile message is sent by an attorney or her agent, and Is intended to be eon(denflal and only for the use of the individual or entity named above. ffthe recipient is s client, this message may also be for the purpose of rendering legal advloo and therefore privileged. If the reader of this facsimile is not the Intended recipient, you ere hereby notified that any retention, dissemination, or copying of this facsimile is strictly prohibited. if you have received this facsimile In error, please notify us lmmechately by telephone and return the original message 10 us at the address above via the mail service (we will reimburse postage). Thank you. CLIENT: 101809 -4