June 5, 194580
MINUTES OF A REGULAR FETING OF THE WEST M~PHIS CITY COUNCIL
WEST '~ P.'.F'HIS, ARI~AP75AS
JLTI~ 5, 1945
On June 5, 1945, the City Council of West Memphis, Arkansas, met in a
regular session in the City Hall Building at 8 PM with the following
members present:
p, L`.. Dacus, b:ayor J. B. Loyd -,I
J. H. Spears, Attorney C. H. Brown
J. F. Jenkins iJ
Curtis Foster
G. W. LicAuley
G. I. Bollinger, Alderman
All members being present, and it being determined a quorum was present
the following prooeedings were had to wit:
Minutes of an adjourned meeting on May 10, 1945, were read and approved.
Mr. McKay appeared before the Council to request extension of the light
lines on South 11th Street, he was advised extensions would be made as
soon as materials are available.
The Mayor next directed attention to the matter of financing and~or the
issuance of revenue bonds to finance the construction of the proposed
sewer system.
f+ttention was first directed to the fact that the 1935 issue of the
revenue sewer bonds, which financed the construction of the present
sewer system, had been sold to the RFC;. that the RFC had later sold
ell of these bonds to Vvalton-Sullivan & Company, bond dealers of
Little Rock, Arkansas; that these dealers had in turn sold these bonds
to their customers; that they were scattered throughout the country; j~
that they are non-callable four percent revenue bonds and are considered IILJ~'
by bond dealers and buyers of bonds to be an excellent investment; that.
these bonds constitute a first lien on the present sewer system and the
revenues derived therefrom; that various efforts had been made to secure
a list of holders of these bonds from the Trustee and from Vielton-Sullivan
de Company; that the Trustee advised they were unable to furnish such a
list; that an effort was then made to secure this list from Vuslton-
Sullivan & Company; that this request was declined by b:r. V+alton of Vialton-
Sullivan & Company for various reasons.
It was further pointed out that the 1935 issue of revenue sewer bonds
had been reduced to X41,000 principal outstanding; that this x'41,000
constitutes a first lien on the present sewer system and on the revenues
of the system over and above the necessary expenses, maintenance, and
operation; that a new issue could not be made on any additional bonds
sold until this 1935 issue had been disposed of; that all efforts to
secure a list of the holders of this y41,000 had been unavailing; that
unless this .1935 issue could be disposed of in some manner either by
trade or purchase; that no additional revenue bonds could be issued on
the sewer system, and thereby preventing the construction of the new
system until the 1935 issue of bonds matured, vahich would be in 1960;
that long before that time the present sewer system would be completely
out-moded; that the future growth and progress of the city would be
seriously hampered if some plan could not be worked out whereby the
1935 issue could be gotten out of the way, and a way provided for the
issuance of new bonds to finance the construction of the proposed system. ~~~jjj
It was further pointed out that the present sewer system had broken down;
that a large amount of money would be required to make the necessary
repairs; that at the present time sewerage is being pumped into the drain-
age ditch paralleling Highway 70; that this would constitute and create a
serious menace to the public health and safety of the citizens of VTest
1'emphis, and the people living in the surrounding territory*; that the
Federal and State Departments of Public Health would likely raise serious
objections to a continued use of the drainage ditch as a means of dispos-
ing of the sewerage.
Therefore, in view of the foregoing the Lisyor, accompanied by L. P. Bernhard
and Herman Spears, called on Walton-Sullivan & Company at their offices in
Little Rock, Arkansas, as a last resort and made an attempt to secure a
list of the present holders of the 1935 issue of sewer bonds, and if that
effort should be unavailing, to make some kind of tentative agreement with
Vdalton-Sullivan & Com~ny to handle the proposed issue of setiver bonds;
that fir.'+Valton appeared uninterested in discussing the matter, furnishing
a list of the holders of the outstanding bonds, or to handle the proposed
issue of sewer bonds. Since it appeared to be obvious that he was unwilling
to give the desired inf ormation as to the holders of the present bonds, and
I in any event the holders of the present issue of bonds being clients of his,
` ~ he would likely be in a good position to exchange the outstanding bonds for
bonds of the new issue; that a discussion was then had with him as to the
possibility of his handling the proposed issue of new bonds; that after a
discussion of the amount, nature of the issue, and other facts relative to
the proposed issue, he suggested a rate of three and one-fourth percent
interest and selling the bonds at par. This appeared to be a high rate of
interest and further discussion was had in an effort to secure a lower rate
of interest, but this was unobtainable in this conference.
During the period of discussion it was mentioned that Mr. Ross of Leftwich
& Ross, bond dealers of Memphis, Tennessee, had been working with the City
in an effort to assist in working out a plan whereby the old bonds might
be traded for new bonds or purchased; that Mr. '+^+alton immediately suggested
that he would be glad to have Leftwich & Ross participate in the handling
of the issue and stated that after conferring with Leftwich & Ross they
would prepare a proposal to submit to the council at its next regular or
call meeting.
That upon our return to 1Vest Memphis a meeting was had by the sewer
committee and members of the council in an unofficial meeti~ for the
purpose of discussing the proposed offer of 41~alton-Sullivan & Company
and Associates; that at this meeting, all of the above information was
given to the sewer committee and various other plans to finance the
proposed construction of the new system were discussed, but no plan could
be devised or suggested whereby a sufficient amount of money could be
~ obtained to construct the new system; that the sewer committee was of the
opinion that the three and one-fourth interest rate was too high a rate
of interest to be paid, but owing to the circumstances recommended that
tiie proposal be accepted rather than defer the construction of the new
system; that the issue be handled in such a way that the bonds might be
called when and if a lower interest rate oould be seoured at a later date.
The Mayor reported at this meeting that in a telephone conversation with
P~`r. Ross of Iaftwich Z: Ross he had induced the proponents to submit an
alternate proposal of three L.ercent and x,970.00 for each X1,000.00 bond.
After this report was rendered and after considerable discussion by the
members of the council and Mr. Ross of Leftwich & Ross, who appeared
before the council, Dr. Ross then made the following proposal:
June 5, 1945
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Mayor and Doard of Aldermen
City of Vilest Memphis, Arkansas,
West Memphis, Arkansas.
't''ie understand that your City proposed to authorize the issuance
of X300,000.00 Sarver Revenue Bonds of the City of Vest Memphis,
Arkansas, for the following purposes.:
1. To provide funds for construction purposes from the proceeds
of ~213,000.OO,.par value, of the above authorization.
2. To provide for the exchange of X41,000.00, par value, of the
above authorization for a like amount of presently outstand-
ing Sewer Revenue 4;' Bonds which are a prior lien on the
revenues of the existing System.
3. To provide for future construction, as the need may arise,
from X46,000.00, psr value bonds of the above authorizstion.
S~
To provide for the needs of the City, as set out in Items 1,
2 and 3 preceding, we submit the following proposal:
The City to authorize x;300,000.00, par value, Sewer c~evenue
Bonds, to be payable, both as to principal and interest,
from the net revenue of the entire Sewer System of the City
of West bemphis. 11et revenues are defined as gross revenues
received from the System, less ordinaary and usual charges
for operation and maintenance. The X300,000.00 bonds
authorized are to consist of -
(a) X41,000.00, par value bearing interest at 4 per ~
annum, maturing ;2,000 annually 1946 to 1949, inclusive,
and w3,000 annually 1950 to 1960, inclusive, all of the
bonds to be Non-Callable and to be insofar as is practical,
similar toe like amount of 4% Sewer Revenue Bonds dated
3arch 1, 1536, now outstanding. These bonds will rank
equally with all other bonds of the aforesaid 300,000.00
authorization. ...
(b) x;213,000.00 of bonds to be sold to provide funds
for the contemplated extensions and improvements mentioned
above. These bonds are to mature as follows:
~" 3,000.00 - 1949 to 1953 inclusive
4,000.00 - 1954 to 1958 inclusive
6,000.00 - 1959 to 1963 inclusive
8,000.00 - 1964 to 1968 inclusive
9,000.00 - 1969 to 1973 inclusive
10,000.00 - 1974 to 1976 inclusive
11,000.00 - 1977 to 1979 inclusive
(c) x"'46,000.00 remaining par value bonds v:ill be held
by the City unissued and unsold until such time as the City
finds the need for the proceeds thereof and is able to !~
quslif~ for their sale under the terms and conditions ha re in- j
after mentioned. These bonds shall mature as follrnvs: `--
1957 1966
1,000.00 - 1949 to 1966 inclusive
2,000.00 - .1967 to 1980 inclusive
3,000.00 - 1967 to 1978 inclusive
The entire x300,000.00 of bonds authorized shall be dated
June 1, 1945, shall mature on June 1st of each year, as set
out above, interest to be payable semi-annually on June 1st
and December 1st of each year, to be of X1,000.00 denomination
and all of said bonds shall boar interest at 3g~ per annum
except the x"41,000.00 mentioned in (a).above v,~hich are to bear
interest at 4 per annum. Both principal and .interest shall
be payable at the Offices of Union Flanters national Bank &
Trust Company, Memphis, Tennessee, who shall also be the
Trustee for the issue.
All of the aforesaid (x300,000.00 of bonds, except the x41,000.00
bearing 4f interest, shall be Callable at the option of the City
of Vest b!emphis in inverse numercial order on June 1, 1955 or on
any interest payment date thereafter at a price of x1,030.00 for
each x1,000 par value bond.
For the x213,000, par value of bonds described above to be issued
and sold, we agree to pay the City of 1'dest kemphis at the rate of
x970.00 for each x1,000 par value bond, plus accrued interest
from the date thereof to the date of delivery. Vie will pay for
the printing of the blank bonds, for the legal opinion of Chapman
& Cutler, Attorneys, Chicago, and fee of the Trustee. Vie are to
have the right to convert these bonds into bonds bearing lovrer
interest rate or rates at the same net interest cost to the City
of 1'~est I~"emphis, computed in accordance with Standard Bond Value
Tables. If the bonds are converted, such additional bonds as may
be necessary to complete the conversion are to be issued by the
City, and in that event the total ..uthorization, first referred
to herein, will be increased by that amount.
Our offer and agreement to purchase the .213,000 of bonds is
subject to the agreement by the holders of the presently out-
standing p41,000 4jo bonds exchanging them fora like amount
of 4;~ bonds of the new authorization, so that all of the bonds
authorized and issued will be equally secured and all will
enjoy a prior lien upon the net revenue of the System. Failure
or refusal on the part of the holder or holders of the X41,000
old bonds to make necessary exchanges so that the City of
'vilest i~:emphis is unable to issue and deliver bonds of the new
issue equally and ratably secured by a prior lien on the net
I revenues of the entire System, shall relieve us of any obliga-
~! tion to complete the purchase agreement.
The City will pass all necessary Resolutions and Ordinances
to carry out the details of this financing. In addition to
suoh ordinary and usual recitals and stipulations, thane
Resolutions and Ordinances shall contain a provision to the
effoct that the X46,000 par value of bonds to be held unexec-
uted and unisssued shall not be executed and outstanding until
such time as the net revenues of the System shall be equal to
one and one-half times the average annual requirement for both
principal and interest of the Sewer Revenue Bonds then outstand-
ing, plus such requirements on those bonds proposed to be issued.
Before we shall be required to take up and pay for bonds which
vre have agreed to purchase hereunder, tive shall be supplied
with an official certificate to the effect that the gross revenues
estimated to be derived from the entire Sevrer System vrhen com-
pleted will be not less than 120,000.00 per annum and that the
net revenues therefrom will be not less than X15,000.00 per
annum.
All proceedings hereunder and in connection herewith shall be
approved by Chapman & Cutler, Attorneys, Chicago, Illinois,
i and failure to receive their approval shall relieve us of any
obligation herein set out. You agree to take such action as
'~ may be required by said Attorneys to establish the validity
of those bonds, and to furnish us, without cost, a certified
copy of all proceedings taken by you in authorizind and issuing
the same.
tiJe agree to use our best efforts to expedite the completion of
every detail necessary, as set out above, to make this financ-
ing effective, but except at our option nothing herein contained
shall be binding upon us on and after August 1, 1945.
It is understood and agreed that the City will agree, by proper
resolution and ordinance, to take from available net revenues
of the Light & 'linter Department of the City, a sum annuell~r,
not in excess of ~3flf000.00, to supplement the net revenues of
the Sewer System if it should become necessary so to do in order
to provide for maturing principal and interest of the aforesaid
issue.
Respectfully submitted,
Walton, Sullivan dd Company
and Associates,
Little Rock, Arkansas.
By
Agen
C
Accepted:
8
~ s;
~n
After reading and studying the proposal by the various members of
the Council and a discussion of the proposal Nr. J. F. Jenkins made
the following motion: In view of the foregoing report, and the
difficulties in securing the outstanding bonds, the necessity of
expediting the sale of the new bonds, the necessity of beginning
the construction of a new sewer system this summer instead of post-
poning the matter a year or more when in all probability the city
vaould have developed and expanded to such an extent as to make the
sanitary conditions detrimental to the public health, welfare, and
safety. I wish to offer the following motion, to-wit: That the
proposal of Y~elton-Sullivan de Company and Associates be amended to
the following effect: that the clause that the bonds be sold at
X970.00 be changed or amended to read X985.00 for each X1,000.90;
that the last paragraph in said proposal, which is relative to the
pledge from the Light & V+ater Department be omitted, and if approved
by City Attorney Herman Spears as to form, etc., counter proposal
be submitted to Y~alton-Sullivan & Company and Associates for their
acceptance or refusal; that if it be accepted by. the said Ytalton-
Sullivan & Company and Associates, that the bleyor, P. M. Dacus, be
and he is hereby authorized to execute the proposal as amended on
behalf of the City of Y1iest Memphis.
This motion was seconded by J. B. Loyd. Upon the matter being
called to vote, the following voted: Aye - J. F. Jenl:irs, G. Yr. D:cAuley,
Curtis Foster, 0. I. Bollinger, and J. B. Loyd; Opposed - C. H. Brown.
Notion was made by G. Yti. D~;c6uley and seconded by 0. I. Bollinger to
accept the following ordinance annexing certain property to the
City of Vest Memphis:
Be it ordained by the City of Yrest Memphis that the following
described ]ands be incorporated into and form a part of the City of
Vuest Memphis, and that the boundaries of the said City be extended
and enlarged so as to embrace the said lands, vrhich are more accur-
ately described as follows:
Beginning at a point in the present limits of the City
of Yiest Memphis, Arkansas; said point being the center
of Section 17, Township 6 North, Range 9 East; thence
following said City Limits west, along the said south
boundary of the north half of said Section 17 to the
west boundary of said Section 17; thence.south along
the west boundary of said Section 17 to the point of
intersection with the north right-of way line of the
Chicago Rock Island and Paciflic Railway; thence in a
northeasterly direction along said north right-of-way
line of said railway 2560 feet to the intersection
with the west right-of way boundary of the St. Francis
Levee District; thence perpendicular to the said
railroad right=of way boundary, in a northwesterly
direction and along said 5t. Francis levee District
.:right-of-way to a point measured 350 feet from the
center line of said railroad; thence in a northeasterly
direction and parallel with the center line of the said
Chicago Rock Island and Pacific Railway and 350 feet
distant therefrom to the east line of the southwest
quarter of Section 17; thence north along said east
line of the southwest quarter of Section 17 to the
point of beginning.
The intent and purpose of the above description being
to include all that part of the Southvrest quarter of
Section 17, Township 6 North, Range 9 East Crittenden
County, Arl¢insas, lying north of the Chicago Rock
Island and Facif is Railway and the St. Francis Levee.
District right-of way.
~I~
And the jurisdiction of the City of Ytest 14iemphis is hereby
extended over said territory, and the proceedings in the annexation
of said lands are hereby ratified, affirmed, and the annexation of
said territory is hereby accepted.
~~
Upon the matter being called to vote, the following voted; Aye -
J. F. Jenkins, G. 1ti. D-cnuley, Curtis Foster, 0. I. Bollinger,
C. H. Brown, and J. B. Loydf Opposed - bone.
i'Yhereupon said ordinance was duly adopted with the emergency clause,
the Recorder vacs directed to spread the same upon the record of
Ordinances of the City of West Memphis, Arkansas, and to have same
published as required by law, and to number said ordinance No. 106.
The following petition was presented:
'~ TO THE CITY COUNCIL OF TIC CITY OF Vu.;ST b'~lt?PHIS
We, the undersigned, citizens snd residents of Ross Street in
the City of Vest hemphis, hereby petition the City Council of the
City of YYest Memphis to install street lights along Roas Street and
state that said street is being improved, homes are being constructed,
and have been constructed thereon, and additional homes will likely
be constructed thereon in the near future; therefore, said street
should be property lighted for the comfort, convenience, and safety
of the residents thereon.
5IGN~.~D: C. H. Rowtan
Mrs. gelcy Varner
B. B. D:cCarley*
S. E. Cross
tlirs . J. A. Gowen
E. E. Cook
Everard Veisburd
Harvey White
Sam Ryals
The Council authorized the D:ayor to have one light put up immediately,
and additional lights when materials are available.
DSotion was made by G. ~. D:cAuley and seconded by J. B. Loyd to approve
the following bills, and authorize the Recorder to draw warrants £or
same;
GENERAL FUPID
Ivy Richardson X26.00 Merchants & Planters ~p87.89
R. J. 3~ster 29.70 0. B. Ross 27.75
Dan Morris 26.00 "Ivy Richardson 27.75
Crittenden County Timms 25.25 R. V. Roden 24.50
1Yest Memphis News 37.75 F. E. Denson 87.50
J. H. Spears 17.99 C. V. Griffin 15.00
C. V. Griffin, Fire Chief 137.00 Jean Hillencamp 140.00
Ralph Hamilton 6.00 H. D. Holland 150.00
Johnson Auto Company 37.64 H. D. Holland 30.00
Marion L. Crist & Ass. 50.00 P. M. Dacus 100.00
Nest D;emphis Lumber Co. 14.79 J. H. Spears 50.00
Bob Duncan .85 H. E. Dunning 25.00
Peoples Implement Co. 6.14 Davton Sackett 25.00
S. C. Toof & Company 1.24 Dlrs. I~. B. Currie 35.00
Davis Manufacturing Co. 21.95 J. F . YFright 200.00
J. A. Riggs Tractor Co. 26.26 Hester Johnson 40.00
Zlestern Union Telegraph Co. 2.47 H. L. Jennings 150.00
Bragg Service Co. 15.72 G. G. gietzman 273.00
Southwestern Bell Tel. 30.97 J. B. Loyd 5.00
Leggett & Gambill 93.47 C. H. Brown 5.00
Cash 48.93 G. i`r'. McAuley 5.00
Ivg.Richardson 24.50 Curtis Foster 5.00
Dan Morris 24.50 0. I. Bollinger - 5.00
R. V. Roden 21.75 J. F. Jenkins 5.00
Donald Hall, Postmaster 17.44 Jean Hilleneamp 5.00
National Bank of Commerce 137.95 Mrs. J. F. tiiright 138.20
Standard Oil Company 35.36 A. L. Cheek 146.58
Ivy Richardson 19.50 0. B. Ross 28.00
Dan Morris 17.50 Ivy Richardson 28.00
R. V. Roden 13.00 R. V. Roden 32.70
A. L. Cheek 75.00
~b
STRSET IN:FROVEIu~::NT FUND SERER REVENUE FUND
Ed Hudson X31.50 ti"lest N:emphis Tourist Court X9.71
0. B. Ross 18.75 Sewer Bond and Interest Fund 280.00
West V~iley 24.50 Pinky Y.indsey 6.75
VV ill Billings 25.00 Finky Lindsey 2.25
R. V. Roden 24.00
James Gidden 4.50
Robert Brisco 20.75
T. S. She lton 17.60
Essex Holt 4.50
Floyd I~ster 4.00
titiellin-Dic'~cey & Rich 280.89
Memphis b:achine V,orks 90.16 CITY HALL BOND AND ID'TEREST FUND
Cross County Gravel 67.09
yio. F. R:"R. Company 48.17 Union Planters idational
Choctaw Culvert-TGachinery 600.00 Bank Trust Company X842.10
Ed Hudson 6.75
0. B. Ross 21.75
West V:iley 20.50
k ill Billings 21.75
Robert Brisco 21.50
J. F. Dixon 21.75
Johney Sisson .4.50
Oliver I~ioore, Jr. 17.00
Alvin Dixon 20.00
Ed Hudson 24.00
0. B. Ross 20.00
West Wiley 13.00
V~ill Billings 9.50
Robert Brisco 18.00
J. F. Dixon 18.00
Johney Session 11.00
Essex Holt 9.00
Oliver ~;oore, Jr. 21.50
Alvin Dixon 13.50
Ed Hudson 36.75
y'lest Viilay 22,50
Pdill Billings 24.50
Robert Brisco 24.50
J. F. Dixon 20.00
Otis Dixon 2,~0
G. D. Duboise 7.00
Oliver Moore, Jr. 4.00
Alvin Dixon 20.00
Ed Hudson 36.75
West V~'iley 24.50
Vsil'1 Fillings 24.50
Robert Brisco 24.50
J. F. Dixon 15.50
Ottoway Peet 18.00
James Franklin 20.50 °
Moses Braxton 12.00
Alvin Dixon 17.50
There being no further business the meeting was duly adjourned.
'~~ ~-e--
YR
REC ' ER
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