227V
RESOLUTION N0. 6C.bc^-1.
A RESOLUTION AUTHORIZING THE CITY OF VEST ~tSMPHIS TO
BORROW $40,000.00 TO PAY FOR EXTENSIONS AND IMPROVE-
MENTS TO THE MUNICIPAL S~iATER WORKS, AND DECLARINQ AN
EMERGENCY. '
WHEREAS, in order to meet the needs of the residents of
~ certain areas in the City, the City of West Memphis, Arkansas,
extended and improved its distribution system at a cost of
$40,000.00; and
WHEREAS, the annual audit of the City's Light and Water
Department for the year ending December 31~ 1951, prepared by Oliver
P. Cobb 8c Company of Memphis, Tennessee, Certified Public Accountants,
shows a net operating revenue of the water department of $75,983.35,
-,
which is large enough to pay principal and interest of all water
revenue bonds as they mature and also pay the cost oP the extensions
and improvements, and the provisions of Ordinance No. 121 of the
City of West Memphis, adopted May 28, 1946, under which the out-
standing l bonds were issued, and of Resolution No. 181 of the City
of West Memphis, adopted May 2, 1950, under which the outstanding
2~, 2~~ and 2 water bonds were issued, permit the use by the City
of all surplus revenue for any municipal purpose; and
WHEREAS, the City can borrow at an interest rate oP 4~ per
annum the money to pay for the improvements and extensions which it
has made, and repay the loan out of its water revenue; now, therefore,
BE IT RESOLVED by the City Council oP the City of West
Memphis, Arkansas, that:
SECTION 1. Proceeding under authority oP Section 7 of
Act No. 49 of the 1949 Acts of Arkansas, the City Morrow the sum
of $40,000.00, due on or before one year after date, bearing interest
at the rate of 496 per annum and payable out of the net water revenue .
SECTION 2. The loan shall be evidenced by one or more notes
in substantially the Following form:
i
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IiEVE''L~ ~tiOT•ISSO ~~~' T0`.C~,'
~`~cst I~elnl~~llis, Arkansas
1952
I~`3G''; 1~1,L i,,~N ~Y ~'ITESE ~rti,LSENTS:
That pile Cit~r of ;est T;:e.,l_his, ;ir:;ansas, for value received hereby
promises to lay to
at the office
of tl~e Li~~l;t and .pater Je~~~rt~:!ent of ti-le ;;ity of ,~esti.~e. i~~his, Arl~ansas, on
or before t.r:lve rlonths after d<'.-Le, the sl.~~. of J0~%~",iS,
~ti:;drin~ -±ntUrGSt ~roi:i Ci<y:te icrBU~ until ~?ai~i ~~.t tI1E l":'i,E' O:i. Our ~~~°r centUll
{Lj''') per ai'llluIil inter::S-v ~uJrc.,-1e ~e1111-~;.nT1u~Ljr•
i~
Z'lli s note is one of ~. sel~.es o~ ore notes a~4;re;.';, sir.
I]ll.~l~it%J {~~i ~, 1;1'IUC'd lender the L~utllorlty U. the :,t~~tuteS 01
file Jtu.te Of ;T'l~~:.715aS, y)ar t-! Cu.l~~rly 'LCt i'O. Lr7 Of tT18 LCt:~ Of til.e i:ener ctl
f• ' and is ~' able solely
Assembly of tl~e ;;ta.te of '~l:'=Lr.Lnsas ~ or t'_le year 19.9, ~J`'
from tT-le net revenues derived from the operation of the municipally o~~,ned
and operated grater systell available under t':le terrls of Section 1?~ of
Ordin~.nce T•IU. 121 of the City of est ICl;ly,his, gassed and approved
I,Iay 2u, 19.6, .nd under the tes~,,!s of ~;,esolu-Lion h;o. lul of the City of
,aes-t I:~o-!':L1;j~is, y~assed and a_~l~rov~;d I~wy 2, 1)>0, and shall not in any event
cons'~.itute an indebteuness of file City i.ithin the m~:anin~; of any constitutional
-provision or linlit;~.tion. TI-~e City. reserves the ri;_;l-lt to pay this note
-~ 1. 1-;hole or in part at any -Line during t~le year, and interest ~Ilall cease
~c~ •' ?~ v •- ~~ ~ C.~ 1:~;'v^:1Cnt uylOn tall; ~~i~1011T1v .CO y~~11d. ''Ile (i-1ty
hc;reby ~.;'aives notice of reuen~.:lent for Lrayr:Tent and agrees t'rl<~t all
jJay:lEntS O: 1~rinC1~!2.1 a,nd ~nterewt shall be endor:~ed On '~7.Lv nOt~~ ~'~.:~ aril
~beT1 Bade.
Y,.. -; m. T.;.,_. --~~~+ ~ ~7 '- a~ --1_,•.. , .,s caused
1!a :+-1..L...~.JJ ~+~:L'-~.L'G~, tTle u1tJr 01 SYU~v ,E,,1y.~I1_::,, 1t~_:': i+~~.:i, ,ilu-
this note to be executeci for and on its~'oehalf by its IyaT~ror ~.nd City Clerk
under the weal of s;:iid pity, this
day of , 1952 •
CT'I'X' Or `~IaST I.E~.1'IiIS, .;~,I1AN:IAS
~Y
I,la~ror
~,nd
Csty C e-r c
(SEAL)
P ~ y ~
SECTION 3. As additional security for the payment of the
notes authorized hereby, the City hereby pledges out of the net
revenue derived from the operation of its electric light and power
y prevent a default
~ system such amounts, if an as may be needed to
~""' in said note .
SECTION 4. The City hereby obligates itself not to a®11,
lease, encumber or in any manner dispose of either the taterworks
system or the electric light and power system during the time any
of the notes authorized hereby or any interest thereon remains
unpaid, or to do any act that would impair its net water or electric
revenues pledged Por the payment of said debt.
SECTION 5. IIpon the passage of this resolution the 1Kayor
and City Clerk are authorized to execute and deliver revenue
promissory notes substantially in the form set out in this resolution,
to an aggregate amount of not over $0,000.00, together with such
other papers and certificates as may be needed to satisfy the
purchaser or<'purchasers of said notes of the officers' authority to
execute them and of the validity and enforceability of the City's
action.
SECTION 6. The provisions of this resolution are separable,
and in the event any sentence, phrase or provision hereof should be
held to be invalid, such invalidity shall not affect the remainder
oP this resolution.
SECTION 7. It is hereby ascertained and declared that the
City will shortly need to make extensive additions to its waterworks
system, and in order to do so it will be necessary to clear the
indebtedness for extensions and improvements already made and that
these extensions were necessary to protect the health and safety of
the inhabitants of the City, and therefore an emergency exists and
this resolution, being necessary for the preservation of the public
peace, health and safety, shall be in force immediately upon and
after its passage.
PASSED: , 1952 ~
~~-.
AP$ROVED. I , (,~
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