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AN ORDINANCE PROVIDING FOR THE ISSUANCE OF BONDS FOR THE PURPOSE OF AIDING IN THE BUILDING AND EQUIPMENT OF A CITY HALL AND CENTRAL FIRE STATION AND A FIRE SUB-STATION; LEVYING A TAX SUFFICIENT TO PAY THE PRINCIPAL AND INTEREST OF SAID BONDS; AND DECLARING AN EMERGENCY.
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WHEREAS, by an ordinance duly passed on March 3, 1958, there was submitted to the qualified electors of the City of Jonesboro, Arkansas, the question of whether the City should issue bonds in the amount of $180,000, of which $150,000 would be issued for the purpose of aiding in the building and equipment of the City Hall and Central Fire Station and $30,000 would be issued for the purpose of aiding in building and equipping a Fire Sub-Station; and
WHEREAS, due notice of the election was given as required by law and said election was duly held on April 8, 1958, at which election both issues of bonds were approved by large majorities; and
WHEREAS, the result of the election was announced by the Mayor by proclamation issued April 9, 1958, and duly published in the JONESBORO EVENING SUN, a newspaper having a bona fide circulation in said City; and
WHEREAS, the City of Jonesboro at a public sale held at 2:00 P.M. April 10, 19858, in the Council Chamber, after more than twenty days' advertisement in said newspaper, contracted to sell the bonds to Stephens, Inc. of Little Rock, Arkansas, who submitted the best and highest bid for said bonds, being a price of 100 cents on the dollar face value plus accrued interest for bonds hearing interest at the race of 2.74 % per annum, with the provision that the buyer could convert the bonds from 2.74 % interest to a lower rate of interest; and
WHEREAS, the buyer of said bonds has elected to name The Peoples National Bank of Jonesboro, Arkansas, as trustee and paying agent, and has elected to convert the $180,000 in 2.74 % improvement bonds to $183,700 in bonds bearing interest and maturing as hereinafter set out, and has presented computations showing the cost of maturing the bonds after conversion to b $222.29 less than the cost of maturing the bonds according to the original schedule, so that the conversion is within the terms of the sale notice; now, therefore,
BE IT ORDAINED by the City Council of the City of Jonesboro, Arkansas:
SECTION 1. That the sale of the bonds to Stephens, Inc. of Little Rock, Arkansas, and the conversion of the bonds to a lower rate of interest, are hereby approved and confirmed.
SECTION 2. That the Mayor and City Clerk are hereby authorized and directed to execute the improvement bonds of this City dated as of March 1, 1958, and maturing on April 1 of each year as follows:
YEAR BOND NOS. AMOUNT
(Both Inclusive)
1961 1 to 12 $11,700
1962 13 to 24 12,000
1963 25 to 36 12,000
1964 37 to 49 13,000
1965 50 to 62 13,000
1966 63 to 76 14,000
1967 77 to 90 14,000
1968 91 to 105 15,000
1969 106 to 120 15,000
1970 121 to 135 15,000
1971 136 to 151 16,000
1972 152 to 167 16,000
1973 168 to 184 17,000
All the bonds shall be in the denomination of $1000 each except No. 12, which is in the denomination of $700. The bonds shall bear interest payable semi-annually at the rat of 2 ½ % per annum, and shall be callable as hereinafter set out.
SECTION 3. That said bonds shall be in substantially the following form:
UNITED STATES OF AMERICA
STATE OF ARKANSAS
COUNTY OF CRAIGHEAD
CITY OF JONESBORO
2 ½ % Improvement Bond
No.______ $__________
KNOW ALL MEN BY THESE PRESENTS:
That the City of Jonesboro, in the County of Craighead, State of Arkansas, acknowledges itself to owe and, for value received, promises to pay to bearer the sum of ________________ Dollars
On the first day of April, 19__, with interest thereon from date hereof at the rate of two and one-half per centum (2 ½%) per annum until paid, interest payable semi-annually on the first day of April and October of each year, commencing October 1, 1958, on presentation and surrender of the annexed coupons as they severally mature. Both the principal and interest of this bond shall be payable in any coin or currency which on the day of payment is legal tender for the payment of debts due the United States of America, at the office of The Peoples National Bank of Jonesboro, Arkansas.
This bond is one of a series of bonds aggregating One Hundred Eighty-Three Thousand Seven Hundred Dollars ($183,000), all of like tenor and effect except as to number, denomination, and maturity, numbered from One to One Hundred Eighty-Four (184), inclusive, issued for the purpose of aiding in the building and equipment of a City Hall and Central Fire Station and a Fire Substation, and the City hereby warrants and covenants that in the issuing of this bond it has proceeded in accordance with the provisions of Amendment No. 13 to the Constitution of the State of Arkansas and in accordance with the laws of said State, under ordinances of the City Council and said City and in pursuance of an election duly held at which the majority of th legal voters of said City voting on the question voting in favor of the issue of said bonds; that all conditions, acts and things required to exist, to be performed, and to happen precedent to an in the issuance of this bond do exist, have been performed, and have happened in due time, form and manner as required by law and particularly by said Amendment No. 13; that a tax sufficient to pay the bonds aforesaid has been duly levied in accordance with said Amendment and made payable annually until all of said bonds and interest thereon have been fully paid and discharged; and that the indebtedness represented by this bond and the issue of which it forms a part does not exceed any constitutional of statutory limitation. For the prompt payment of this bond and the interest thereon, the said City of Jonesboro hereby pledges its full faith, credit and taxing power, including the two and half mill special tax authorized to be levied by said Amendment to the Constitution for the payment of this bond and other bonds of this series, but the City reserves the right to pay the principal and interest of the bonds of this issued out of the contingency fund set up by the Jonesboro City Water and Light Plant, and only in the event that this contingency fund should become inadequate for such payments will the special tax be collected.
The City has agreed that out of the revenue derived from the special tax which is has levied and which is authorized by Amendment No.13 to the Constitution of the State of Arkansas, and out of the payments for the contingency fund, it will first set up a reserve of $16,500 and that any surplus in the Bond and Interest Fund after that reserve has been set up shall be used to call the bonds of this issue for payment prior to maturity.
The bonds of this issue are callable for payment prior to maturity in inverse numerical order at part and accrued interest, as follows: from surplus revenue derived from the special tax levied for their payment or from proceeds of the bond sale remaining when construction has been completed, on any interest paying date; from funds from any source, on any interest paying date on and after April 1, 1961. In the event that the City shall call bonds for payment prior to maturity, it shall publish notice of such call once a week fro two weeks in some newspaper of general circulation throughout the State of Arkansas, the first publication to be not less than fifteen days prior to the date fixed for redemption, and the notice shall give the number and maturity of each bond being called. All bonds so called shall cease to bear interest after the date fixed for their redemption, provided the funds for their payment are on deposit with the paying agent at that time.
This bond shall not be valid under authenticated by the certificate hereon of The People's National Bank of Jonesboro, Arkansas.
IN WITNESS WHEREOF, the City of Jonesboro, Arkansas, has executed this bond by the hands of its Mayor and City Clerk and attested it with its corporate seal, and has caused the coupons hereto attached to be authenticated by the facsimile signature of its Mayor, as of the first day of March, 1958.
City of Jonesboro, Arkansas
By _________________
Mayor
(Seal)
Attest:
_____________________
City Clerk
(Form of Coupon)
No. ____ $_____
On the first day of April/October, 19__, unless the bond to which this coupon is attached is paid prior thereto, the City of Jonesboro, Arkansas, promises to pay the bearer _________ DOLLARS in any coin or currency which on said date is legal tender for the payment of debts due the United States Of America, at the office of The People's National Bank of Jonesboro, Arkansas, being six months' interest then due on its 2 ½ % Improvement Bond dated March 1, 1958, and numbered ___.
CITY OF JONESBORO, ARKANSAS
By ____________________________
Mayor
(The first coupon shall be for seven months' interest. The signature of the Mayor on the coupons may be lithographed or engraved.)
Each bond shall be authenticated by the Trustee as follows:
TRUSTREE'S CERTIFICATE
The People's National Bank of Jonesboro, Arkansas, hereby certifies that this bond is one of the series of the 184 Improvement Bonds aggregating $183,700 described within.
The Peoples National Bank
Of Jonesboro, Arkansas, TRUSTEE
By_________________________
Authorized Signature
SECTION 4. The Mayor and City Clerk are hereby authorized and directed, when they have executed said bonds and have had them duly certified, to deliver them to the purchaser upon receipt of the full purchase price, and the proceeds of said bonds shall be used for no purpose except the purposes for which voted.
SECTION 5. These bonds are issued for two purposes, but under the terms of the ordinance calling the election and of the ballot, both purposes having been approved by the majority of the electors of the City voting on the question, the two issues have been combined into one issue. Therefore, in order to pay said bonds with interest thereon there is hereby levied upon all taxable real and personal property within the City of Jonesboro, Arkansas, a tax of two and one-half mills on each dollar of assessed valuation, beginning with the taxes collected in the year 1959 and continuing annually as long thereafter as may be necessary in order to pay the bonds and interest authorized by this ordinance, being a sum sufficient to meet said bonds and interest as they mature, with five per centum added for unforeseen contingencies; and the City Clerk is directed to transmit a copy of this ordinance to the County Clerk of Craighead County, Arkansas, to the end that said tax may be extended on the tax books of said county and collected annually along with the other taxes until the said bonds and interest thereon are paid in full; provided, that the city will not have the tax extended for collection unless it becomes necessary to do so because the payments from the contingency fund set up by the Jonesboro City Water and Light Plant are at any time inadequate to meeting the principal and interest requirements of this issue. The special two and one-half mill tax must be extended for collection in the following year, in any year beginning with the year 1959 when the reserve in the Bond and Interest Fund is less than $16,500 on November 15 of that year. The City agrees that all of the revenues from the two and one-half mill tax and the monthly payments by the City Water and Light Plant shall be put in a separate fund known as the "Bond and Interest Fund" and shall be used solely for the payment of the bonds and interest of this issue, as set out in this ordinance. Any surplus form year to year shall be kept and accumulated until the City has on hand a reserve of $16,500 in the Bond and Interest Fund. Any revenues over and above this reserve shall be used to call the bonds of this issue for payment prior to maturity in inverse numerical order. The City may invest the reser4ve in the Bond and Interest Fund in bonds of the United States of America.
SECTION 6. The Board of Directors of the Jonesboro City Water and Light Plan, by a resolution of the Jonesboro City Water and Light Plant, by a resolution duly adopted on the 16 day of April, 1958, has agreed, for and in consideration of the acceptance an payment for these bonds of March 1, 2958, to transfer from the contingency fund established by the Board of Directors of said Plant by resolution adopted February 12, 1952, and amended June 12, 1956, beginning with May 1, 1958, the sum of $1391.88 per month into the Bond and Interest Fund, with the provision that when there has been accumulated in said Bond and Interest Fund a reserve of $16,500 above the current principal and interest requirements, the payment from the contingency fund into the Bond and Interest Fund may be reduced to 1/6 of the next interest installment plus the paying charges and 1/12 of the next principal payment plus paying charges, with the further provision that in the event the reserve shall ever be reduced below $16,500, then the monthly payments from the contingency fund of #1391.88 shall be resumed and continued until the full reserve of $16,500 has been restored.
SECTION 7. In order to pay said bonds, with interest thereon, as they mature, there are hereby appropriated out of the Bond and Interest Fund as set up in Section 5 of this ordinance, and if such Fund be not sufficient, then out of the general revenues of the City, the following sums, to-wit:
YEAR |
PRINCIPAL April 1 of each year |
INTEREST April 1 and Oct. 1 of each year |
TOTAL |
1958 |
$ |
$ |
$2,678.96 |
$2,678.96 |
1959 |
|
,2296.25 |
2,296.25 |
4,592.50 |
1960 |
|
2,296.25 |
2,296.25 |
4,592.50 |
1961 |
11,700.00 |
2,296.25 |
2,150.00 |
16,146.25 |
1962 |
12,000.00 |
2,150.00 |
2,000.00 |
16,150.00 |
1963 |
12,000.00 |
2,000.00 |
1,850.00 |
15,850.00 |
1964 |
13,000.00 |
1,850.00 |
1,687.50 |
16,537.50 |
1965 |
13,000.00 |
1,687.50 |
1,525.00 |
16,212.50 |
1966 |
14,000.00 |
1,525.00 |
1,350.00 |
16,875.00 |
1967 |
14,000.00 |
1,350.00 |
1,175.00 |
16,525.00 |
1968 |
15,000.00 |
1,175.00 |
987.50 |
17,162.50 |
1969 |
15,000.00 |
987.50 |
500.00 |
16,787.50 |
1970 |
15,000.00 |
800.00 |
612.50 |
16,412.50 |
1971 |
16,000.00 |
612.50 |
412.50 |
17,025.00 |
1972 |
16,000.00 |
412.50 |
212.50 |
16,625.00 |
1973 |
17,000.00 |
212.50 |
------ |
17,212.50 |
|
|
|
|
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These amounts shall be proportionately reduced in the event bonds are called for payment prior to maturity.
SECTION 8. The Treasurer of the City of Jonesboro is hereby ordered and directed to remit to the paying agent, not less than five days before the date of each interest payment, the amount of interest of interests and principal due on said date, together with the paying charges, which shall be 1/8 of 1 % on principal and 5 cents per coupon, with the provision that the minimum paying charge shall be $5.00. This instruction to the Treasurer is irrevocable and may be enforced by mandamus.
SECTION 9. The City agrees to deposit the proceeds of the sale as follows: The accrued interest shall be paid into the Bond and Interest Fund, as hereinabove defined, and the balance received from the sale of the bonds shall be deposited in a separate fund to be known as the "Construction Fund," to be used solely for the payment of the cost of construction of the improvements plus the expenses of the bond issue, except that the City agrees, if it should be necessary, to set aside sufficient funds from the Construction Fund to meet interest requirements until tax revenues become available, but as soon as possible this money shall be repaid to the Construction Fund.
The City agrees to require from the depository bank in which the Construction Fund is place, security for all of the deposit over the $10,000 insured by the Federal Deposit Insurance Corporation, such security to be either in the form of a corporate surety bond or in the form of government bonds escrowed with some other bank, with the right in the depository to withdraw bonds from the escrow as the Construction Fund is withdrawn by the City. The City may during construction invest any part of the Construction Fund not immediately needed for construction in short-term United States notes or bonds.
SECTION 10. Both the Bond and Interest Fund and the Construction Fund shall be deposited in one or more banks holding membership in the Federal Deposit Insurance Corporation. Vouchers upon either fund must be signed by two duly authorized persons.
SECTION 11. If default is made and continue for thirty days in the payment of any interest coupon, the holder of the bond to which it is attached may declare the same immediately due and payable, and the failure of the holder to exercise this option upon any default shall not be a waiver of his right to exercise the option upon any subsequent default.
SECTION 12. The bonds of this issue shall be callable for payment prior to maturity according to the terms set out in the face thereof.
SECTION 13. The People's National Bank of Jonesboro, Arkansas, is designated to act as Trustee, authorized to act for an on behalf of the bondholders, but it shall be responsible only for willful wrong in the execution of its trust, and the recitals of fact contained herein and in the bonds themselves (except the Trustee's Certificate) are statements made by the City and not by the Trustee. The Trustee shall not be required to take notice of any default or to take any action hereunder until it shall have been notified in writing of said default and indemnified to its satisfaction against any loss, expense, or cost that it may incur by taking action. The holders of a majority in value of the outstanding bonds at any time may, by an instrument duly executed and recorded in the office of the City Clerk, appoint a new Trustee, who shall have all of the powers of the Trustee originally named, and the Trustee herein named may resign at any time upon ten days' notice in writing mailed to the City Clerk.
SECTION 14. The terms of this ordinance shall constitute a contract between the City of Jonesboro and the holders of the bonds herein authorized, and no variation or change in the undertakings herein set out shall be made while any of these bonds are outstanding, except with the written consent of the holders of all bonds of this issue then outstanding, and the holder of any bond may at any time, for an on his own behalf, or the Trustee may, for and on behalf of all the bondholders, enforce the obligations of the City by a property suit for that purpose.
SECTION 15. The provisions of this ordinance are separable, and in the even that any section or part of section shall be held to be invalid, such invalidity shall not affect the remainder of the ordinance.
SECTION 16. It is hereby ascertained and declared that there is an immediate and urgent need for proper housing for the City government, a Central Fire Station, and a Fire Sub-station, in order to protect the health, life and property of the inhabitants of the City of Jonesboro, Arkansas, and that therefore an emergency exists and this ordinance is necessary for the preservation of the public peace, health and safety, and shall be in force and take effect immediately upon and after its passage.
Passed: April 21, 1958.