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AN ORDINANCE AUTHORIZING THE ISSUANCE OF A GENERAL REVENUE PROMISSORY NOTE FOR THE PURCHASE AND IMPROVEMENTS OF A POLICE FACILITY LOCATED AT 1709 EAST HIGHLAND DRIVE, JONESBORO, ARKANSAS; PROVIDING FOR THE PAYMENT OF THE PRINCIPAL OF AND INTEREST ON THE NOTE; DECLARING AN EMERGENCY; AND PRESCRIBING OTHER MATTERS RELATING THERETO
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WHEREAS, the City of Jonesboro, Arkansas (the "City") is authorized and empowered under the provisions of Amendment 78 to the Arkansas Constitution and the provisions of Arkansas Code Annotated Section 14-78-1001 et seq (the "Act") to issue notes and expend the proceeds thereof to finance all or a portion of the cost of acquiring, constructing and improving real property and tangible personal property having an expected useful life of more than one year; and,
WHEREAS, the City proposes to finance the costs of the acquisition, construction, and improvement of a Police facility located at 1709 East Highland Drive, Jonesboro, Arkansas
WHEREAS, the City will issue its Promissory Note in the maximum principal amount of Three Million Dollars ($3,000,000.00) (the "Note") under the Act for the purpose of financing the purchase price and improvements of the Property to be Financed; and,
WHEREAS, the City published a notice of bids on July 16, 2026 for securing favorable financing terms for a short-term loan compliant with the Act from area financial institutions; and,
WHEREAS, Arvest Bank offered the most competitive terms for a loan compliant with the Act.
WHEREAS, the loan terms include an interest rate of 4.83%, fixed for the duration of the loan, amortized over 60 months with principal and interest paid monthly, no fees and no prepayment penalties.
NOW THEREFORE, BE IT ORDAINED by the City Council of the City of Jonesboro, Arkansas:
Section 1. The City Council hereby finds that the Property to be Financed is real property and tangible personal property and will have a useful life of more than one (1)-year. The City Council further finds that the maximum principal amount of the Note and the City's outstanding indebtedness issued or incurred under Amendment No. 78, does not exceed 5% of the assessed value of taxable property located within the City as determined by the last tax assessment.
Section 2. Under the authority of the Constitution and laws of the State of Arkansas (the "State"), including particularly Amendment No. 78 and the Act, the Note is hereby authorized and ordered issued in the maximum principal amount of Three Million Dollars ($3,000,000.00) for the purpose of financing the costs and improvements of the Property to be Financed and paying expenses, if any, of issuing the Note. The Note shall be dated the date of issuance and shall bear interest on the outstanding principal amount at a fixed rate not to exceed 4.83% per annum. The loan will amortize over 60 months with interest & principal being paid monthly. The Note shall be executed by the Mayor and the City Clerk and the seal of the City shall be affixed to the Note.
Section 3. The Note shall be issued to the Lender in consideration for the Loan.
Section 4. As provided in Amendment No. 78, the monthly debt service payments on the Note shall be charged against and paid from the general revenues of the City. For the purpose of making the Monthly Debt Service payments, there is hereby, and shall be, appropriated to pay the Note, an amount of general revenues of the City sufficient for such purposes. The Finance Director, or designee is hereby authorized and directed to withdraw from the general fund of the City the amounts and at the times necessary to make the monthly debt service payments on the Note.
Section 5. The City shall provide such financial information to the Lender as the Lender may reasonably request.
Section 6. The Mayor, City Attorney and City Clerk are hereby authorized and directed, for and on behalf of the City, to perform all acts of whatever nature necessary to effect and carry out the authority conferred by this ordinance and 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.
Section 7. Severability. In the event any title, section, paragraph, item, sentence, clause, phrase, or word of this Ordinance is declared or adjudged to be invalid or unconstitutional, such declaration or adjudication shall not affect the remaining portions of this ordinance, which shall remain in full force and effect as if the portion so declared or adjudged invalid or unconstitutional were not originally part of this ordinance.
Section 8. Repealer. All laws, ordinances, resolutions, or parts of the same which are inconsistent with the provisions of this Ordinance are hereby repealed to the extent of such inconsistency.
Section 9. Emergency Clause. The City Council hereby determines that the acquisition of the Property to be Financed is essential to the public health, safety and welfare of the citizens of the City and must be financed as quickly as possible; an emergency is, therefore, declared to exist and this ordinance shall be in full force and effect from and after the date of its execution.