390.. J
ORDINANCE NO.
AN ORDINANCE PROVIDING FOR THE ISSUANCE OF BONDS FOR THE PURPOSE
OF REFUI~IDING OUTSTAPIDING BONDS A~ MAKIAIG CERTAIN IMPROVEMENTS IN
THE CITY OF WESTI~MPHIS,, ARKANSAS; DECLARING AN EMERGENCYt AND
FOR OTHER PURPOSES.
«"" WHEREAS, by Ordinance No. 382, passed and approved April 21,
1960, there was submitted to the qualified electors of the City of
West Memphis, Arkansas, the question of whether the City should
issue bonds to the amount of $410,000 for the purpose of refunding
$i87, 000 in callable 296 and 2~6 bonds issued under authority of
Amendment No. 13 to the Constitution of the State of Arkansas, and
issuing new bonds for the purpose of constructing and equipping a
city jail, purchasing fire-»fighting apparatus and equipment, and
Pyxchasing a site for and constructing housing for fire-fighting
equipment, said bonds to bear interest at a rate acceptable to the
City Council; and
WHEREAS, due notice of the election was given as required by
law and said election was duly held on June 14, 1960, at which
election all purposes were approved, and the result of the election
was announced by the Mayor by a proclamation issued on June
1960, and duly published in the EVENING TIMES, a newspaper published
and having a bona fide circulation in said City; and
WHEREAS, the City of West Memphis at a public sale held at
1:00 PM June 16, 1960, in the Council Chamber in the City Hall, after
more than twenty days' advertisement in said newspaper, contracted to
sell the bonds to T. J. Raney & Sons of Little ,Rock, Arkansas, who
were the best and highest bidder with a price of 100.43 on the dollar
face value plus accrued interest; and
WHEREAS, the buyers of said bonds have elected to name the
Worthen Bank & Trust Company of Little Rock, Arkansas, as Trustee
and paying agent, and has elected to convert the $410,000 at an
average interest rate of 4'x°,6 per annum, maturing as set out in the
notice of sale, to $469,000 in bonds bearing interest and maturing
as hereinafter set out, and have presented computations showing the
cost of maturing the bonds after conversion to be $150.83 less than
the cost of maturing the bonds according to the original schedule,
which is within the terms of the sale notice; now, therefore,
BE IT ORDAINED by the City Council of the City of West
Memphis, Arkansas
SECTION 1. That the sale of the bonds to T. J. Raney & Sona
of Little Rock, Arkansas, and the conversion of the bonds to lower
interest rates, are hereby approved and confirmed.
SECTION 2. That the Mayor and City Clerk are hereby
authorized and directed to execute the Refunding and Improvement
Bonds of 1960 of this City, dated as of July 1, 1960, and maturing
on August 1 of each year as follows:
YEAR BOND NOS. AMOUNT
(both incltsiye)
1963 1 to 15 $15,000
1964 16 to 31 16,000
1965 32 to 47 16,00.0
1966 48 to 63 16,000
1967 64 to 80 17,000
1968 81 to 98 18,000
1969 99 to 116 18,000
1970 117 to 134 18,000
1971 135 to 153 19,000
1972 154 to 173 20,000
1973 174 to 193 20,000
1974 194 to 213 20,000
1975 214 to 233 20,000
1976 234 to 253 20,000
1977 254 to 274 21,Q00
1978 275 to 295 21,000
1979 296 to 317 22,000
1980 318 to 339 22,000
1981 340 to 362 23,000
1982 363 to 387 25,000
1983 388 to 413 26,OD0
1984 414 to 440 27,000
1985 441 to 469 29,000
Bonds Nos. 1 to 63, both inclusive, and Nos. 346 to 469,
both inclusive, are refunding bonds. All the bonds shall be in
the denomination of $1000 each. They shall be callable as herein-
after set out, and shall bear interest payable semi»annually at
the following rates per annum: Nos. 1 to 63, inclusive, at 2'96;
Nos. 64 to 134, inclusive, at 3 3/4~; Nos. 135 to 345, inclusive,
at 496; and Nos. 346 to 469, inclusive, at 2'96.
SECTION 3. Said bonds shall be in substantially the following
form:
UNITED STATES OF AMERICA
STATE OF ARKANSAS
COUNTY OF CRITTEAIDEN
CITY OF WEST MEMPHIS
96 Refunding and Improvement Bond of 1960
No.
KNOW ALL MEN BY THESE PRESENTS:
$1000
That the City of West Memphis, in the County of Cfittenden,
State of Arkansas, acknowledges itself to owe and for value received
promises to pay to bearer the sum of
ONE THOUSAND DOLLARS
on the first day of August, 19T, with interest thereon from date
hereof until paid at the rate of
per centum (~)
per annum, interest payable semi-annually on the first day of
February and August of each year, commencing February 1, 1961, on
presentation and surrender of the annexed coupons as they severally
mature. Both the prinspal of and interest on this bond are hereby
made payable in any coin or currency which on the respective dates
of payment is legal tender for payment of debts due the United
States of America, at the office of the Worthen Bank & Trust
Company of Little Rock, Arkansas.
This bond is one of a series of bonds aggregating Four Hundred
Sixty-nine Thousand Dollars ($469,000), all of like tenor and effect
~ r
except as to number, interest rate, and maturity, numbered from
One (1) to Four Hundred Sixty nine (469), inclusive, issued for
the purpose of refunding outstanding valid bonded indebtedness and
for constructing and equipping a city jail, purchasing fire-fighting
apparatus and equipment, and purchasing a site for and constructing
housing for firefighting equipment in the City of West Memphis,
Arkansas, and the City hereby warrants and covenants that in the
issuing of this bond it has proceeded in accordance with the pro-
visions of Amendment No. 13 to the Constitution of the State of
Arkansas, and in accordance with the laws of said State, under ordi~
nances of the City Council of said City and in pursuance of an
election duly held at which the majority of the legal voters of
said City voting on the question voted 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 and 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 levied in accordance with said constitutional amendment
and made payable annually until all of said bonds and interest
thereon have been fully paid and discharged; and that the indebted
ness represented by this bond and the issue of which it forms a part
does not exceed any constitutional or statutory limitation. For the
prompt payment of this bond and the interest thereon, the said City
of West Memphis hereby pledges its full faith, credit and taxing
power, including the five 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.
Ztihe City has agreed that out of the revenue derived from the
special tax which it has levied and which is authorized by Amendment
r
No. 13 to the Constitution of the State of Arkansas, it will first
aet up a reserve of six months' interest, and that any surplus after
that reserve has been set up must be used to call the bonds of this
issue for payment prior to maturity in inverse numerical order at
par and accrued interest on any interest paying date, and cannot be
used for any other purpose.
The bonds of this issue are callable for payment prior to
maturity in inverse numerical order at par and accrued interests
as follows: From surplus funds derived from the special tax or
from the bond sale, on any interest paying date; from funds from
any source, on any interest paying date on and after August 1, 1965.
In the event the City shall call bonds for payment prior to maturity,
it shall publish notice of such call once a week for 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, giving the number and
maturity of each bond being called. All bonds so called shall cease
to bear inter est after the date fixed for their rede~tinns provided
funds for their payment are on deposit with the paying agent at
that time.
This bond shall not be valid until authenticated by the
certificate hereon of the Worthen Bank & Trust Company of Little
Rock, Arkansas.
IN WITNESS WHEREOF, the City of West Memphis, Arkansas, has
executed this bond by the hands of its Mayor and City Clerk and
attested it with its corporate seals and has caused the coupons
hereto attached to be authenticated by the facsimile signature of
its Mayor, as of the first day of Julys 1960.
CITY OF ST MEMPHISs NSAS
(Seal )
Attestz~ / Mayor
';
r
~_- = ~~
City Clerk
To each of said bonds shall be attached coupons for the semi-
annual interest in the following form:
COUPON
No . ,.~,~ $....___._
On the first da of Febguary 19
y Au ust . , unless the bond to which
this coupon is attached is paid prior thereto, upon surrender hereof
the City of West Memphis, Arkansas, promises to pay to bearer
DOLLARS in lawful money of the United States
of America, at the office of the Worthen Bank & Trust Company of
Little Rock, Arkansas, being six months' interest then due on its
Refunding and Improvement Bond of 1960 dated July 1, 1960, and
numbered
CITY OF WEST MEMPHIS, ARKANSAS
By
Mayor
(The first coupon mall be for seven months' interest. The
Mayor's signature on the coupons may be lithographed or engraved.)
Each bond shall be authenticated by the Worthen Bank & Trust
Company of Little Rock, Arkansas, as follows:
TRUSTEE`S CERTIFICATE
This is to certify that this bond is one of the 469 Refunding
and Improvement Bonds of 1960 aggregating $469,000 described within.
WORTHEN BANK & TRUST COMPANY
OF LITTLE ROCK, ARKANSAS
By
Authorized Officer
Little Rock, Arkansas
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 purchasers 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,
as follows:
(a) For refunding at the same interest rates
they naw bear the $187,000 outstanding
balance of bonds issued by the City under
the provisions of Amendment No. 13 and
dated December 1, 1954;
(b) For the construction and equipment of a
city jail, at an estimated cost of $58,300;
(c) For the purchase of fire-fighting apparatus
and equipment, at an estir~ed cost of
$93,900; and
(d) For the purchase of a site for and the
construction of housing for fire-fighting
apparatus, at an estimated cost of $70,800.
SECTION 5. In order to pay the said bonds as they .mature,
with interest thereon, there is hereby levied upon all taxable
real and personal property within the City of West Memphis,
Arkansas, a tax of five mills on each dollar of assessed valuation,
beginning with the taxes collected in the year 1961 and continuing
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 cent
added for unforeseen contingencies; and the City Clerk is hereby
directed to transmit a certified copy of this ordinance to the
County Clerk of Crittenden 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. The levy of said tax shall
continue annually at the same rate until said bonds and interest
are paid in full. The City agrees that all of the revenues from
the five mill tax 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 anal interest of this issue, as set out in this
ordinance. Any surplus from year to year shall be kept and
accumulated until the City has on hand a surplus of six months'
interest, and any revenues over and above this surplus must be
used to call the bonds of this issue for payment prior to maturity
in inverse numerical order, except that the City will not be
required to call bonds for partial payment. When this reserve
fund has been accumulated, it shall be maintained until used for
paying bonds and interest, and either shall be deposited in a
bank that is a member of the Federal Deposit Insurance Corporation
or may be invested in short -term United States Government obli-
gations.
SECTION 6. In order to pay said bonds, with interest
thereon, as they mature, there are hereby appropriated out of
the proceeds of the tax hereinabove described, and if such pro-
ceeds be not sufficient, then out of the general revenues of the
City, the sums necessary to meet payments of principal and interest
as they mature, to-wit :
YEAR
_ PRINCIPAL
Aug. 1 of
each year INTEREST
Feb. 1 & Aug. 1
of each year TOTAL
1961 $ $9,111.67 $7,810.00
$16,921.67
1962 7,810.00 7,810.00 15,620.00
`~ 1963 15 000.00 7 810.00
7,810.00
30,620.00
1964 16,000.00 7x641.25 7,641.25 31x282.50
1965
~.. 16,000.00 7,461.25 7,461.25 30x922.50
1966 16x000.00 7x281.25 7x281.25 30x562.50
1967 17,000.00 7x101.25 7x101.25 31,202.50
1968 18x000.00 6x782.50 61782.50 31,565.00
1969 18,000.00 6,445.00 6,445.00 30,890.00
1970 18,000.00 6,107.50 6x107.50 30,215.00
1971 191000.00 5x770.00 5x770.00 30x540.00
1972 20x000.00 5,390.00 5x390.00 30x780.00
1973 20,000.00 4,990.00 4x990.00 29,980.00
1974 20,000.00 4x590.00 4,590.00 29,180.00
1975 20,000.00 4,190.00 4x190.00 28,380.00
1976 20,000.00 3,790.00 3,790.00 27x580.00
1977 21,000.00 3x390.00 3,390.00 27,780.00
1978 21,000.00 2,970.00 2x970.00 26x940.00
1979 22,000.00 2,550.00 2,550.00 27,100.00
1980 22,000.00 21110.00 2,110.00 26x220.00
1981 23,000.00 1x670.00 1,670.00 26,340.00
1982 251000.00 1,337.50 11337.50 27,675.00
1983 261000.00 1x025.00 11025.00 28,050.00
1984 271000.00 700.00 700.00 28,400.00
1985 29,000.00 362.50 362.50 29,725.00
The above amounts shall be proportionately reduced in the
event any bonds are called for payment prior to maturity.
SECTION 7. The Treasurer of the City of West Memphis 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, or interest and principal, due on said dater together
with the paying charged which shall be 1/8 of 196 on principal and
5~ per interest coupons with the provision that the minimum paying
charge shall be $5.00. This instruction to the Treasurer is ir-•
revocable and may be enforced by mandamus.
SECTION 8. The City agrees to deposit the proceeds of the
sale as follows: The accrued interest shall be paid into the Bond
and Interest Funds as hereinabove defined. The sum of $1871000
shall be deposited with the Trustee of the bonds being refunded,
to which the City shall add interest due July 11 1960x and paying
w
agent's charges, for the purpose of paying in full the bonds being
refunded. 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 the improve-
ments plus the expenses of the bond issue.
SECTION 9. Both the Bond and Interest Fund and the Construc~
tion Fund shall be deposited in one or more banks holding member-
ship in the Federal Deposit Insurance Corporation. Vouchers upon
either fund must be signed by two duly authorized persons.
SECTION 10. If default is made and continues for thirty
days in the payment of any interest coupon, the holder of the bond
to whi ch 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 11. The bonds of this issue shall be callable for
payment prior to maturity according to the terms set out in the
face thereof.
SECTION 12. The Worthen Bank & Trust Company of Little Rock,
Arkansas, is designated as Trustee, authorized to act for and on
behalf of the bondholders, but it shall be responsible only for
wilful wrong in the execution of its trust, and the recitals of
fact contained herein and in the bonds themselves (except the
recitals in the True"s Certificate) are statements made by the
City anal 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,
f
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 13. The terms of this ordinance shall constitute a
contract between the City of West Memphis and the holders of the
bonds herein authorized) and no variation or change in the under
takings herein set out shall be made while any of these bonds are
outstanding without the written consent of the holders of all of
the bonds of this issue then. outstanding, and the holder of any
bond may at any time, for and on his own behalf, or the Trustee
may,for and on behalf of all the bondholders, enforce the obligate
tions of the City by a proper suit for that purpose.
SECTION 14. The provisions of this ordinance are separable,
!r.
and in the event that any section or part of section shall be held
to be invalid, such invalidity shall .not affect the remainder of
the ordinance.
SECTION 15. It is hereby ascertained and declared that
there is immediate and urgent need for the construction of the
municipal improvements to be provided by the proceeds of this bond
issue, in order to protect the health, lives and property of the
inhabitants of the City of West Memphis, Arkansas; therefore, an
emergency exists and this ordinance, being necessary for the
preservation of the public glace, health and safety, shall take
effect and be in force immediately upon and after its passage.
1960.
Passed:
APPROVED:
7 ''~
Attest: Mayor
=~. ~
City Clerk