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AN ORDINANCE AMENDING ORDINANCE NO. 3016 FOR THE PURPOSE OF AMENDING THE DEFINITION OF PERMITTED INVESTMENTS; AND PRESCRIBING OTHER MATTERS RELATING THERETO
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WHEREAS, there was submitted to the qualified electors of the City of Jonesboro, Arkansas (the "City") on February 7, 1995, pursuant to Ordinance No. 2600, adopted January 3, 1995 the question of issuing, under Amendment No. 62 to the Constitution of the State of Arkansas (the "State") and under Title 14, Chapter 164, Subchapter 3 of the Arkansas Code of 1987 Annotated (the "Authorizing Legislation"), capital improvement bonds in the maximum principal amount of $44,000,000 for the purpose of financing the cost to the City of extensions, betterments and improvements to streets and roads, with related and ancillary improvements (the "Improvements"); and
WHEREAS, at the special election held February 7, 1995, a majority of the electors voting on the question approved the issuance of such bonds; and
WHEREAS, the City has issued and retired bonds in the principal amount of $14,990,000; and
WHEREAS, the City Council has issued $29,010,000 in aggregate principal amount of Sales and Use Tax Revenue Bonds, Series 1997 (the Bonds) to finance the balance of the Improvements (the "Project") pursuant to Ordinance No. 3016 (the Bond Ordinance) adopted on December 1, 1997 and the election held February 7, 1995; and
WHEREAS, the scheduled payment of principal of and interest on the Bonds when due is insured pursuant to a municipal bond insurance policy (the Insurance Policy or the Bond Insurance Policy) issued by Financial Security Assurance Inc., a New York stock insurance company (the Bond Insurer, or Insurer or Financial Security which terms include any successor); and
WHEREAS, pursuant to Section 17(b) of the Bond Ordinance, the City desires by the Ordinance to amend the Bond Ordinance, upon obtaining the written consent of the Bond Insurer and the Bond Trustee, to change the definition of Tax Exempt Obligations because the current definition of Permitted Investments is defective in failing to provide investments that can be obtained in sufficient amounts and at appropriate interest rates for investment of moneys in the Construction Fund.
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Jonesboro, Arkansas:
SECTION 1: Section 15(d)(4) of the Bond Ordinance is hereby amended to read as follows:
With respect to the construction Fund only, Tax-Exempt Obligations, which are defined as follows: Any bonds or other obligations of the State of Arkansas or of any agency, instrumentality or local governmental unit of such State which are eligible for the investment of public funds, which are rated in one of the three highest rating categories of either of Standard & Poor’s and Moody’s or any successors thereto and which obligations are described in Section 149(g)(3)(B)(I)(I) and (11) of the Code; or
SECTION 2: Except as provided herein, the Bond Ordinance is hereby ratified and confirmed.
SECTION 3: The Ordinance shall not become effective until the written consent of the Bond Trustee and the Bond Insurer have been obtained and filed in the Office of the City Clerk.
PASSED this 16th day of February, 1998.