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AN ORDINANCE PROVIDING FOR THE PURCHASE OF LANDS AND IMPROVEMENTS, IMPROVING OF LANDS AND FACILITIES; PROVIDING A MEANS OF FINANCING THE PURCHASE BY ISSUANCE OF NOTES; PLEDGING INCOME AND PROPERTY TO THE PAYMENT OF SUCH INDEBTEDNESS, AND OTHER MATTERS RELATING THERETO
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WHEREAS, the City Council of the City of Jonesboro, Arkansas, has, on September 7, 19656, adopted a Resolution declaring a policy for acquisition of rights-of-way, parking facilities, airport improvements, and other capital investments in land and property required in furtherance of "Transportation and Land Use Plan" approved and adopted by the City Council by Resolution of July 16, 1962, and other improvements and property, declaring that all funds coming into the City's ownership or control by or from county road turn back (3 mill tax), parking revenue (subject to existing pledges), City Water and Light Plant pursuant to a joint Resolution adopted July 12, 1965, and from vehicle license fees as established by Resolution of the City Council dated June 21, 1965.
NOW, THEREFORE, in furtherance of and to effectuate the policies, resolutions and ordinances of the City of Jonesboro, be it ordained by the Mayor and the City Council of Jonesboro, Arkansas:
Section 1: That the City acquire right-of-way, parking spaces, improve existing properties, including the Jonesboro Airport, as same have been recommended by either the Jonesboro Parking Authority, the Traffic Advisory Commission, or the Airport Commission, all of the City Council.
Section 2: The Mayor and the City Clerk are authorized and directed to issue and sell Capital Notes of the City of Jonesboro for the purpose of obtaining funds for the acquisitions and improvements recited in Section 1. Such notes shall be issued as directed by Resolution of the City Council, but any purchaser thereof shall not be required to determine either the fact of sufficiency of such Resolution, and the Notes, when full consideration is paid therefore by the purchaser, shall be and constitute the valid and binging obligation of the City of Jonesboro, payable in the form and manner set out herein and out of the special funds or properties pledged for such payment, and shall not be general obligations of the City.
Said Notes shall be of dates and amounts as the issuing officer shall determine, shall be due on or before December 1, 1968, and shall bear interest at the rate of not more than five and one-half percent (5½ %) per annum, payable semi-annually, and shall be substantially in the following form:
CAPITAL NOTES
CITY OF JONESBORO, ARKANSAS
The City of Jonesboro, Craighead County, Arkansas, acknowledges itself to owe and for value received hereby promises to pay to Bearer, solely from the special funds provided as hereinafter set forth, the sum of $__________on or before the first day of December, 1968, together with interest at the rate of five and one-half percent (5 ½%) per annum on the unpaid portion of the principal so long as this note or any part thereof shall be outstanding and unpaid. Both principal and interest shall be payable by the City Treasurer at the City Hall and, in addition, at any bank or banks that the City may from time to time designate.
This note is one of a series of notes, the series not to exceed $1,500,000.00, all of like tenor and effect except as to number, date and amount, issued pursuant to Ordinance No.1123 of the City of Jonesboro, and secured by the pledges therein set out, including funds coming into the City ownership or control from the City Water and Light Plant, vehicle license fees, parking and rental revenues, and the three-mill county road tax, and is further secured by a mortgage lien upon certain real estate and improvements acquired or to be acquired by the City.
This note and the interest thereon is payable solely from said special funds or properties, and the City certifies and declares that all acts, conditions and things required to exist and to be performed precedent to the issuance of this note have been performed in time, form and manner as required by law, that the pledges of revenue and security for this note and other notes authorized by said ordinance will be performed and that the ordinances and resolutions establishing, levying and pledging the collection and use of said special funds will not be repealed or altered in any way that would deplete said funds or make the security less valuable while this or any of the notes of like tenor are outstanding. The City of Jonesboro, by its City Council, has caused this note to be signed by the Mayor and the City Clerk and sealed with the corporate seal of the City.
This_____ day of________________,19__.
CITY OF JONESBORO, ARKANSAS
MAYOR
(SEAL) CITY CLERK
Section 3: The funds obtained from the issuance of Capital Notes described herein shall be used solely for the acquisition of right-of-way, parking areas, other real estate or improvements, the improvement of real estate, including the Jonesboro Airport and other properties or other real estate owned by the City, for engineering, planning, research, data, and costs necessary, incidental or deemed to be advisable connected with or related to the acquisition or improvement of property.
No such funds shall be expended for the acquisition of property without the prior approval of the City Council. However, this provision shall not effect the obligation or the negotiability of the notes herein provided.
Section 4: Income, funds, or moneys coming into the control, ownership or possession of the City of Jonesboro from the following sources shall be deposited in any bank or banks in Jonesboro, Arkansas, in accounts designated CITY OF JONESBORO-CAPITAL FUND NO.1:
(A) Revenue from parking meters on-street or meters or gates on parking lots, or rentals form parking spaces on parking lots; provided, however, that such funds shall remain subject to the provisions of Ordinance No.998 adopted November 16, 1959, and shall be paid and accounted for under said Ordinance and according to its terms while any of the Certificates of Indebtedness or other obligation issued pursuant to said Ordinance 998 shall remain outstanding; provided, further, that by Resolution the City Council may direct that twenty-five percent (25%) of the proceeds of parking meters or parking rentals on streets or lots existing on date of this ordinance may be paid or credited to the General Fund of the City for such time as the other funds pledged hereunder, consisting of the 3-mill Road Tax, contributions of the City Water and Light Plant under Resolution dated July 12, 1965, and proceeds of vehicle licenses authorized by Resolution dated June 21, 1965, shall each equal the total sum of $30,000.00 in any year. In event any of said three funds fall below $30,000.00 in any year, then, in the next year following and for such period of time as any of said three funds do not equal $30,000.00 per year in revenue to the City, the entire parking revenue and rentals form parking lots or facilities purchased with parking money shall be paid into said Capital Fund No.1. The provisions of Ordinance 929, pledging certain specific parking rentals to specific bonded indebtedness, shall remain in full force and effect, and is not amended, repealed or in any way affected by the provisions of this ordinance.
(B) All rents and income from parking or for occupancy received by the City originating from the use of any and all properties acquired with the proceeds of the borrowings authorized by this ordinance or from the use of funds listed in this Section.
(C) Contribution from the City Water and Light Plant of the City of Jonesboro made according to joint Resolution of the Board of said Plant and approved by the City Council on the 12th day of July, 1965.
(D) Amounts collected by the City from vehicles licenses authorized by Act 446 of the Arkansas Legislature for 1965, and adopted or levied by Resolution of the City Council dated June 21, 1965.
(E) Proceeds of the 3-mill Road Tax paid by Craighead County Collector to the City of Jonesboro.
Section 5: All of the above funds in the hands of the Collectors, agents for the City, or County or City officials, and any and all accounts or credits that shall exist in said Capital Improvement Account No. 1 are irrevocably pledged to the payment of the interest and principal of the indebtedness herein authorized and to the payment of obligations existing pursuant to Ordinance 998 of the City of Jonesboro and subject to specific liens or pledges now existing subject only to being expended for capital acquisitions authorized according to this Ordinance and subject to the following restriction: The City Treasurer shall deposit from said Capital Fund No.1 into a fund to be designated "Capital Funds Interest Account" amounts necessary to pay one full year's interest on the Capital Notes outstanding and, whenever additional notes are issued, shall add to said Interest Account a sufficient sum to pay such interest on the additional Notes. Provided there is on deposit in the Capital Funds Interest Account an amount equal to one full year's interest on the Capital Notes issued pursuant to this ordinance and then outstanding, funds in Capital Account No.1 may be used for the purchases or improvements or uses authorized by this Ordinance. The total amount of such expenditures and the Capital Notes issued shall not exceed the sum of $1,500,000.00.
Further, Capital Notes herein described may be issued to refund or pay the principal and interest of bonds, certificates of indebtedness, or obligations heretofore incurred by the City, pursuant to Ordinances 998 and 929 and 955.
Section 6: All real estate and improvements thereon acquired with the proceeds of Capital Notes authorized under this ordinance are further secured by a lien and statutory mortgage on said properties, which shall be further evidenced, for the record, by a Certificate issued by the Mayor and the City Clerk of the City of Jonesboro and filed with the Recorder of Craighead County, Arkansas, in the Count's Mortgage Records, which shall state that certain property is acquired pursuant to this Ordinance and that a lien exists in favor or the holders of Capital Notes of the City of Jonesboro, described herein, and shall recite the Mortgage Record and page where this Ordinance appears, and it is directed that this Ordinance be filed and recorded as a Mortgage on the Records of Craighead County, Arkansas. Holders of the notes herein authorized shall share ratably in the security of the described lien on the real estate and improvements thereon, and any holder, after any default, acting for such holder, or on behalf of all holders, may file foreclosure proceedings under this Pledge; the City consents to such suit and to the appointment of a receiver to take charge of and administer the properties for the benefit of said note-holders. The lien and mortgage herein created shall be deemed satisfied by the filing and recording of a Certificate signed by the Mayor of the City of Jonesboro and a Certified Public Accountant that the Notes hereby secured have been retired, refunded or paid in full.
Section 7: Any notes described herein that shall be issued for improvement of airport property or other purposes for which moneys originating from 3-Mill Road Tax., Parking Revenue, or License fees cannot be used, under then existing statutes of Arkansas, shall be retired and interest paid only from contributions of City Water and Light Plant, and, in such event, such contributions shall be used solely for payment of such notes, and that fact shall be so stated on face of the notes issued for such purposes and the lien and security of other notes shall be inferior to such notes as to funds derived from the City Water and Light Plant.
Section 8: Publication of this Ordinance is ordered to give notice to all persons that the ordinance has been adopted and that the City contemplates the issuance of notes described herein. The City Council will hear all objections or statements concerning said issuance of notes or of this Ordinance at 7:30 o'clock p.m. on the 18th day of October, 1965, at the City Hall.
Section 9: It is ascertained and declared that excessive curb parking and congestion of motor vehicles on the streets within the City of Jonesboro and the lack of off-street parking facilities, inadequate right-of-way for construction of streets, insufficient runways at the City Airport, and lack of adequate space and facilities to properly maintain and operate the City's vehicles, create hazards to life, health and well-being of both the operators of vehicles, planes, and pedestrians, interfere with the efficiency of operation of the Police and Fire Departments, thus creating dangers to both persons and property, diminish property values; and this Ordinance being necessary for the immediate protection of the public peace, health and safety and being made necessary by demands for the public welfare, an emergency is declared to exist and this Ordinance shall be in full force and effect immediately upon and after its passage.
PASSED and ADOPTED this 4th day of October, 1965.