ORD NO 25-2001 CITY OF VAN BUREN, ARKANSAS
0 ORDINANCE NO. aJ
AN ORDINANCE AUTHORIZING THE ISSUANCE OF
$1,560,000 WATERWORKS AND SEWER SYSTEM REVENUE
REFUNDING BONDS, SERIES 2001, 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, 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 of Van Buren, Arkansas is authorized to issue its bonds to finance capital improvements to
the City's waterworks and sewer system (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 has issued the following bonds secured by revenues of the System:
Name of Bonds Purpose of Bonds
Water Revenue Bonds dated July 1, 1955 Financing improvements to the System
$931,500 Water and Sewer Refunding and Financing improvements to the System
Improvement Revenue Bonds dated October 1, 1963 and refunding the 1955 Bonds
$500,000 Waterworks and Sewer Revenue Bonds, Financing improvements to the System
1972 Series
$1,887,000 Water and Sewer Revenue Refunding and Financing improvements to the System
Improvement Bonds, Series 1978 and refunding the 1963 Bonds and the
1972 Bonds
$3,070,000 Water and' Sewer Revenue Refunding and Financing improvements to the System
Construction Bonds, Series 1989 and refunding the 1978 Bonds
Water and Sewer Revenue Bonds, Series 1993 Financing improvements to the System
52,580,000 Water and Sewer Revenue Refunding Advance refunding the 1989 Bonds
Bonds, Series 1995
$5,880,000 Water and Sewer Capital Improvement and Financing improvements to the System
Refunding Revenue Bonds, Series 1999 and advance refunding the 1993 Bonds
WHEREAS, the City has determined that it can achieve significant interest savings by
refunding the 1995 Bonds and, to provide moneys this purpose, the City has determined to issue its
Watenvorks and Sewer System Revenue Refunding Bonds, Series 2001, dated November 1, 2001
0 (the "Bonds in the principal amount of $1,560,000; and
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0 WHEREAS, pursuant to Ark. Code Ann. (Rept. 1998) 14 -164 -418, the Bonds shall have the
same priority of lien on the revenues of the System as originally pledged for payment of the 1995
Bonds, i.e., on a parity of security with the 1999 Bonds; and
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
WHEREAS, a Preliminary Official Statement, dated October 3, 2001, offering the Bonds for
sale has been presented to and is before this meeting;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF VAIN BUREN, ARKANSAS, as follows:
Section 1. The issuance of the Bonds in the aggregate principal amount of S1,560,000 is
hereby authorized for the purpose of refunding the 1995 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. Pursuant to Ark. Code
Ann. (Repl. 1998) 14 -164 -418, the Bonds shall have the same priority of lien on the revenues of
the System as originally pledged for payment of the 1995 Bonds, i.e., on a parity of security with
the 1999 Bonds. The Bonds shall be dated November 1, 2001, 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 September 1 Principal Amount Interest Rate
2002 3130,000 2.50%
2003 190,000 2.75
2004 195,000 3.10
2005 195,000 3.30
2006 205,000 3.50
2007 210,000 3.75
2008 215,000 4.00
2009 220,000 4.10
Section 2. The Bonds shall be sold pursuant to the specific terms and conditions set forth in a
Bond Purchase Agreement, dated October 15, 2001 (the "Bond Purchase Agreement between the
City and the Underwriter, for the purchase price of 98.80% of the principal amount thereof, plus
accrued interest to the date of purchase. The Mayor is hereby authorized and directed to execute the
Bond Purchase Agreement on behalf of the City in substantially the form submitted at this meeting.
0 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 3. 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 November 1, 2001, by and
between the City and Citizens Bank Trust Company, 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 4. There is hereby authorized, ratified and confirmed the preparation and distribution
to various prospective and actual purchasers of the Bonds of the Official Statement dated
October 15, 2001 (and the Preliminary Official Statement dated October 3, 2001) 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 5. The selection of Rose Law Firm, a Professional Association, as bond counsel and
the appointment of Citizens Bank Trust Company to serve as Trustee are hereby approved.
Section 6. All actions heretofore taken by the City and the Underwriter in connection with the
offer and sate of the Bonds are hereby in all respects ratified and approved.
Section 7. The City hereby calls for redemption prior to maturity on January 1, 2002, the
outstanding 1995 Bonds and instructs the trustee for the 1995 Bonds to provide notice of the
redemption.
Section 8. 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
Preliminary Official Statement and 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 1995
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 cany 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.
0 Section 9. 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
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person, a copy of the Trust Indenture, the Preliminary Official Statement, and the Bond Purchase
Agreement.
Section 10. The City hereby declares its expectation and intention that bonds issued and to be
issued by the City during calendar year 2001 will not in the aggregate exceed 810,000,000 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 11. Emergency Clause. The City Council hereby determines that the City of Van
Buren can achieve significant interest savings by refunding the 1995 Bonds; that an appropriate way
to achieve such savings is by the issuance of refunding 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: October 15 ,2000
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ATTEST:
By: 1)..l
City Clerk
(S E A L)
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