259r
RESOLUTION N0. 259
A RESOLUTION AUTHORIZING THE CITY OF WEST MEMPHIS TO BORROW X40,000.00
TO PAY FOR EXTENSIONS AND IMPROVEMENTS TO THE MUNICIPAL WATER WORKS, AND
DECLARING AN EMERGENCY.
T~3EREAS, 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 X40,000.00; and
WHEREAS, the annual audit of the City~s Light and Water Department
for the year ending December 31, 1952, prepared by Oliver P. Cobb &
Company of Memphis, Tennessee, Certified Publie Accountants, shows a net
operating revenue of the water department of $78,813.23 which is large
enough to pay principal and interest of all water revenue bonds as they
mature and also pay the cost of the extensions and improvements, and the
provisions of Ordinance No. 121 of the City of West Memphis,. adopted
May 28, 1946, under which the outstanding l~ bonds were issued, and of
Resolution No. 181 of the City of West Memphis, Adopted May 2, 1950, under
which the outstanding 2~, 24~, 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 of 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 of the City of West Memphis,
Arkansas, that:
SECTION 1. Proceeding under authority of Section 7 of Act No. 49
of the 1949 Acts of Arkansas, the City borrow the sum of X40,000.00,
due on or before one year after date, bearing interest at the rate of
,~~ 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 follows-ng form:
REVENUE PROMISSORY NOTE
~•jest Memphis, Arkansas
1953
KNOW ALL MEDt BY THESE PRESENTS:
That the City of *~dest Memphis, Arkansas, for value received hereby
promises to pay to '
at the office of the Light and Water Department of the City of West Memphis,
Arkansas, on or before t1,,~elve months after date, the sum of
DOLLARS, bearin interest
from date hereof until paid at the rate of four per centum (~.~) per annum
interest payable semi-annually.
This note is one of a series of one notes aggregating
.DOLLARS (~~ ),
issued under the authority of the statutes of the State of Arkansas,
particularly Act No. 49 of the Acts of the .General Assembly of the State of
Arkansas for the year 1949, and is payable solely from the net revenues
derived from the operation of the municipally owned and operated Water
system available under the terms of Section 7.~. of Ordinance No. 121 of the
City of West Memphis, passed and approved May 28, 1946, and under the terms
of Resolution No. 181 of the City of West, Memphis, passed and approved
May 2, 1950, and shall not in any event constitute an indebtedness of the
City Within the meaning of any constitutional provision or limitation. The
City reserves the right to pay this note in Whole or in part at any time
during the year, and interest shall cease immediately at the time of payment
upon the amount so paid. The City hereby Waives notice of presentment for
payment and agrees that all payments of principal and interest shall be
endorsed on this note as and ~Jhen made.
IlV Z~,TITNESS ~~,THEREOF, the City of West Memphis, Arkansas, has caused
this note to be executed for and on its behalf by its Mayor and City Clerk,
under the seal of said City, this day of ___.. 1953.
CITY T MEMPHIS, ARKANSAS
BY: ~
ayor
AND~!J~Z-7~~.-:
C2ty C erk
(SEAL)
SECTION 3. As additional se cur ity 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 system such
amounts, if any, as may be needed to prevent a default iri said note.
SECTION 1t. The City hereby obligates itself not to sell, lease,
encumber, or in any manner dispose of either the waterworks 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 for
the payment of said debt.
SECTION 5. Upon the passage of this resolution the Mayor 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 officerst authority to execute them
and of the validity and enforceability of the Cityts 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 of 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: August ~., 1953 ,
,;
APPROVED : ~~~~ (ZC
MAYOR
ATTEST:
• CITY CLERK