Loading...
May 28, 1946 T.!ITtLTTE5 OF AN ADJGCRT:ED OBEYING OF THE 1tiEST T~ETTFHIS CITY CUL'IiCIL p,~;y 28, 1946 The Council of the City of ltiest Memphis in the County of Crittenden, State of Arkansas, met in an adjourned session at City Hall in said City, at 8:00 F.M. o~cleck on the 26th day of h'ay, 1946, The meeting was called to order by the b:ayor, and the roll being ~~ called, there were: Present: F. M. Dacus, in the chair, and the following named aldermen: G. ~~. T~,cAuley, Curtis Foster, ~T. A. Johnson, J. B. Loyd, 0. I. Bollinger, and C. H. Brown; and City Attorne5• J. H. Spears, City Clerk H. E. Manning, City Treasurer Dayton Sackett, and Clarence Clifton, Attorney for the Light and Viater Department. All members of the Council being present, the following procsedin~s were had to wit: L^inutes of an adjourned meeting on May 22, 1946, were road and approved. The follcwing resolution was introduced in v;riting by Alderman Loyd, who moved that the same be read in full: BE IT RESCL~TED, That the Mayor and Cit3* Clerk be and they are hereby authorized and directed to publish the notice of the call of the outstanding'"+ater and Electric Revenue Certificates of this city, dated January 1, 1941, in t!ie amount of ~~213,000, said call to be published according to the manner set out in the face of said certif icate and in Ordinance No. 85 authorizing their issuance. ~~ The motion being seconded by Alderman Brown, the question was put by the Mayor on the adoption of said motion, and the roll being called the following voted: Aye: G. Vr'. McAuley, Curtis Foster, J. A. Johnson, J. B. Loyd, C. I. Bollinger, and C. H. Bra; and the following voted: Nay • r'.one . Mayor Dacus advised the Council that a committee had gone to Little Rock as recommended by the Council at their last meeting on May 22nd, and discussed with b;r. ~tiallace Townsend the proposed crdinance for the refunding of the City's water bonds, and that said ordinance had now been revised. After discussion by said Council, Alderman G. W. 2v`.cAuley introduced in writing the ordinance i'or that purpose, and moved that the same be read in full. The motion being seconded by Aldermar. C. H. Brown, the question was put by the hayor on the adoption of said mction, and the roll being called, the following voted: Ayes G. u'T. b;cAuley, Curtis Foster, J. A. Johnson, J. B. Loyd, - 0. I. Bollinger, and C. H. Brown; and the following voted: ~ f~ Nay: None . J 1'dhereupon, the Mayor declared the motion duly passed and ordered that said ordinance be read. Said ordinance was then read in full by H. E. Manning, City Clerk. -~~~ Alderman Curtis Foster then moved that the rule reouiring said ordinance to be read in full on three different days be suspended and that said ordinanee--be placed on-its second readinb, seconded by Alderman J. A. Johnson, and thereafter the ~:ayor put the question on the adoption of said motion, and the roll being called, the following voted; Aye: G. V+. b":cAuley, Curtis Foster, J. A. Johnson, J. B. Loyd, r-- 0. I. Bollinger, and C. H. Brown; and the following voted; i~ Nay: None. '~1'heraupon, the p;:ayor declared the motion duly passed and said ordinance placed on its second reading. The ordinance was then read by H. :;. bSanning, City Clark. Alderman J. B. Loyd, then moved that said ordinance be now placed upon its final adoption, seconded by Alderman 0. I. Bollinger, and after due consideration thereof by said Council, the Mayor put the question on the adoption of the motion, and upon the roll being called, the following voted: Aye: G. pv. b~icAuley, Curtis Foster, J. A. Johnson, J. B. Loyd, 0. I. Bollinger, and C. H. Brown, and the following voted; Nay: None. V1`hereupon, the Mayor declared the motion duly carried and said ordinance placed upon its final reading and adoption. Said ordinance eras read in full by Alderman C. H. Er own, and after due consideration thereof by said Council, the layor put the question upon the adoption of said motion and upon the passage of said ordinance, and the roll being called, the following voted; !,_ Aye: G. Pr. McAuley, Curtis Foster, J. A. Johnson, J. B. Loyd, 0. I. Bollinger, and C. H. Brown; and the following voted: Nay: None . Vifhereupon, the Mayor declared said motion duly adopted and said ordinance duly passed, and signed his approval to said ordinance, same attested by the City Clerk, and impressed with the seal of said City. Alderman C. I. Bollinger then moved that said ordinance go into immediate operation and become effective without delay because of the emergency declared in Section 35 of said ordinance, which Section was then read in full, seconded by Alderman C. H. Brown. The Mayor put the question on the adoption of said motion, and the roll being called, the following voted: Aye: s. 7.. D?cAuley, Curtis Foster, J. A. Johnson, J. B. Loyd, 0. I. Bollinger, and C. H. Brown; and the following voted: Nay: Nane. F~hereupon, the Mayor decay red said motion duly passed. Said ordinance, to which nc amendment was offered, read as - follows: ~b~ ORDINANCE NO. lzl AN OP.DIr1ANCE PROVIDING FCR THE ISSUANCE OF ."CATER REVENUE BONUS TO REFUND OUTSTAr?DING Vl'ATER AN'D ELP:CTRIC REVENUE CERTIFICATES ISSUE BY THE CITY GF WEST N'R~1'I-iIS, ART{ANSASs PROVIDING FOR EliT'EIu'- STIONS AND IN'.PROVEb'~NTS TG THE V,ATER SYSTEN'; SETTING OF CERTAIN FUNDS: AN'D D?;CLARING AN EN:ERGED?CY. VY'HEREAS, the City of ti~est Memphis, Arkansas, (herein- after called the "City"), owns its present waterworks and electric systems on which its owes a balance of X213,000, evidenced by water and electric revenue certificates dated the 1st day of January, 1941, bearing interest at the rata of three and one-half per centum (3 ~) par annum, which it can call for payment on July 1, 1946, at a premium of two and one-half per centum (2 ~) of the principal amount and which it can refund by the issuance o£ revenue bonds bearing interest at the rate of one and one-half per centum (ly) per annum, with greatly shortened maturities, which will result in a very large financial saving to the City; and V~I~REAS, the City needs an estimated additional sum of X6,000 for extensions to its waterworks distribution system; and VaT-lEREAS, the City has surplus net revenues available to redeem outstanding certificates of the face value of X6,000, to pay the redemption premium on the entire outstanding series in the event they are redeemed on July 1, 1946, and ell interest that will have accrued or. said certificates to July 1, 1946; and VIrFIEREAS, the City, by a resolution duly adopted on May 7, 1946, has entered intc a contract with the Southern Securities Corporation and hew is Yu. Cherry Coml.any, both of Little Rock, Arkansas, for the sale of X213,000 of water revenue and refunding bonds, to be issued for the purpose of refunding X207,000 of the outstanding 3~f, water and electric revenue certificates, and X6,000 for making the needed extensions to the waterworks system, said water revenue and refunding bonds tc be dated July 1, 1946, and to mature serially on January 1 of the years 1957 to '_~56, both inclusive, as hereinafter set out; NOV1, THEREFORE, BE IT ORDAINED BY THE CITY COUidCIL OF THE CITY OF ViEST N~;N"PHIS, ARI{ANSAS: SECTION 1. That the Ccuncil hereby finds and declares that there is immediate need for the extension of the waterworks system now supplying water services in and to said City and that a brief description of the extension to be made iss the laying of additional water mains, at an estimated cost of X6,000; and it is the determination of the Council to make said improvements and extension. SECTIOrI 2. The Council hereby finds and declares that it is to the immediate benefit of the City and its inhabitants to make the great financial saving which will result from calluig the y~213,000 of 3~ present outstanding water and electric revenue certificates at a premium of 2 ~~ of the principal and refunding X207,000 in principal amount of them by a like amount of 1 o water revenue refunding bonds. SECTION 3. The Council hereby finds and declares that the value of the existing waterworks syster.~ now serving the City of '+'+est Memphis and its inhabitants is x;213,000 and that the period of usefulness of the present systeri is more than forty years, which is longer than the term of the proposed revenue bonds; that the cost of the new improvement and extension will be ;;6,000 and that the value of the water system after the works have been completed will be X219,000. 1~J~ SECTION 4. The Council hereby finds that it is to the best interest of the City to authorize, issue and deliver at this time, in accordance with the contract made on nay 7, 1946, with Southern Securities Corporation and kiwis h~. Cherry Company, both of Little Rock, Arkansas, X213,000 in 1;~"o water revenue and refunding bonds, for which the purchasers will pay par and accrued interest, but the City will pay the premium for the call of the outstanding water and electric revenue certificates and the interest accrued on said certificates to July 1, 1946, which premium and - interest shall be paid solely from surplus revenues now on hand from the operation of the water and electric light and power systems baiongin~ to said City. SECTICI~? 5. That under all lawful authority oP tho State of Arkansas, and particularly of Act No. 131 of the Acts of the General Assembly of the State of .;rkansas for the yrear 1933, as amended by later acts of the Legislature (hereinafter called "Act Tdo. 131, as amendad't), water revenue ref ending bonds of t:^ie City (hereinafter called "Bonds") be issued in the total amount of ~213,i;C0, the proceeds of which issue shall be used to provide funds to pay the cost of the new improvement and extension, including legal and other necessary exl:euses, and to pay the principal of the water and electric revenue certificates now outstanding and being refunded; said bonds shall be dated as of July 1, 1946, numbered from 1 to 213, both inclusive, to be in the denomination of $1x00 each, to be callable for payment prior to maturity in inverse numerical order at gar and accrual interest on any interest paying data on and after January 1, 1952, and to mature in numerical order on the first day of January in sack of the follaving years and in the following amounts respectively*: YF.~AR 3CT~ NOS. A2IOLTIT 1947 1 to 19, incl. ~ 19,000 -- 1943 2G to 39, " 20,000 149 40 to 60, " 21,000 1550 61 to 82, " 22,000 1951 83 to 105, " 23,000 1952 106 to 128, " 23,000 1953 129 to 150, " 22,000 1954 151 to 172, " 22,000 1955 173 to 193, " 21,000 1956 194 to 213, " 20,000 That the bonds bear intarast at the rata of one and one-half per cent am (15;x) per annum; that intarast be payable on January 1, 1947, and semi-annually thereafter on the first day of January and July of each year; that the bonds ba signed by the Mayor and City Clerk and sealed with the corporate seal of the City; that the intarast upon the bonds be evidenced by coupons thereto attached, the coupons to ba sio ed by said T;Isyor by his facsimile signature; that said r+ayor shall by the execution of the bonds adopt as and for his own proper signature his facsimile signature appearing on said coupons; that the bonds and coupons be pa;,rable in such funds as at the time of the rasp-active payments are legal tender for the pa~anent of debts due the United States of America at the office of the Union TTational Bark of Little RocTc, Arkansas. (i The bonds, together •,vith intarast thereon, shall be '"- payrable solely out of the 'Tatar Revenue Refunding Bond Fund as hereinafter defined, and shall be payab le in the first instance from such Fund, and the amount of the revenues pledged to said Fund, vrhich amount of said revenues is hereby pledged and mortgaged for the equal and ratable payment of the bonds and shall be used for no other purpose than to pay the principal and interest of the :166 bonds, except as hereinafter set out. As additions l security- the City pledges the net revenues from the electric system as hereinafter set forth. SEC^: ION 6. That said bonds and coupons be in substantially the following form: No. UTdITED STATES CF Ar;'ER1CA STATE. CF ARir.A"SAS CCUT.}TY OF CRITTEB'D~N CITY OF VEST 1'a"Ei,:i-1II5 1~" V~ater Revenue Refunding Bond KI~'Ol"i ALL It'iEN BY TxESE FRESF.NTS: j~1000.00 That the City of Vilest Paiemphis, in the County of Crittenden, State of Arkansas, for value received, hereby promises to pay, solely from the special fun3 provided the ref'or as hereinafter set forth, to bearer, the sum of Or~~. TxcusA}~ DoLL4Rs on the first day of January, 19 ,with interest, thereon at the rate of one and one-hal£ per ce~'um (1~) per annum from July 1, 1946, wntil paid, payable on January 1, 1947, and semi-annually thereafter on the first day of January and July of each year, upon presentation and surrender of the annexxed coupons as they severally become due. Both principal hereof and interest heroon shall be payable in such funds as at the time of the respective payments are legal tender for the payment of debts due the United States of America, at the office of the Union National Sank of Little ?{ock, Arkansas. This bond is one of a series of 213 bonds, aggregating Two Hundred Thirteen Thousand Dollars 0213,000), all of like tenor and effect, except as to maturities, dated as of July 1, 1946, numbered from 1 to 213, both inclusive, and is issued for the purpose of the improvement and extersiori of the existinb waterworks system now serving the City of Vest P~emphis (hereinafter called the "water- works System"), and refunding outstanding Vdater and Electric Revenue Certificates. This bond and the series of which it forms a part are issued pursuant to and in accordance tivith all lavrful authority of the Mate of Arkansas, and particularlj• with the provisions of Act i'o. 131 of the regular session of the General Assembly of the State of Arkansas for the year 1933, as amended by later acts of said ueneral Assembly of the State of Arkansas, and do not constitute an indebtedness of said City of '1+'est }~:emphis within any constitutional or statutory limitation. These bonds are payable ir. the first instance from a fixed amount of the net revenues of the waterworks system, sufficient to pay the principal of and interest on the bonds, and the City pledges as additional security a sufficient amount of the net revenue derived from year to year from the operation of its electric system to prevent any default in payment of either principal of or interest on said bonds. Said fixed amount of water revenue has been duly set aside and pledged as a special fund for that purpose and identified as the "Water Revenue Refunding Bond Fund," created by Ordinance IvTO. 121, duly adopted by the City Council of said City of 1Yest b9emphis on the 26th day of Dray, 1946, under which this bond is authorized to be issued, and the lb t said City of West la'emphis has fixed and has covenanted and agreed to maintain ratan for water services which shall be sufficient at all times to provide for the creation of separate depreciation funds for necassar~ replacements to said waterworks system, to provide for the pa;,*ment of the reasonable expenses of operation and maintenance o." said waterworks system, and to provide for the f-- payment of the principal of and interest on the bonds as the same become due and payable. This bond is expressly made negotiable by the statutes under which it is issued, and is issued wit}x the intent that the laws of the Mate of Arkansas shall govern the construction thereof, and the City hereby agrees and warrants that it has no offset, counterclaim or defense against said bond. The bonds of this issue shall be callable for payment before maturity, in inverse numerical order, at par and accrued interest, from funds from any source, on any interest paying data on and of+.er January 1, 1952. In the avant a call is made, the City shall publish notice of such call for redemption once a week for two weeks in soma newspaper of general circulation throughout the State of Arkansas and published in tics City of Little Rock, Arkansas, giving the number and maturity of each bond being called, the first publication to be at least fifteen days prior to the date fixed For redemption, and after the data fixed for redemption, each bond so called will cease to bear interest, provided funds for its pa~rnent are on deposit with the paying agent at that time. IT IS HEIL.BY CsRTIFIED, R3CITnD April DRCIAR.z'D that all acts, conditions and things required to exist, happen, and be performed pursuant to snd in the issuance of this bond have been !"~' performed in due time, form and manner, as required by law, and that sufficient of the income and revenue which is deemed to be derived from the operation of said waterworks system has been pledged to and will be set aside into said special fund for the payment of the principal of and interest on said bonds. This bond shall not be valid until it shall }rave been authenticated by the certificate hereon, duly signed by the Union Ylational Bank of Litt la Rock, Arkansas. IN VPITNESS WHER;CF, the City of Vest bemphis, Arkansas, by its City Council, has caused this bond to be signed by the hay or and City Clerk thereof and sealed with the corporate seal of said City, and has caused the coupons hereto attached to be executed by the facsimile signature of said Pdayor, all as of the first day of July, 1946. CITY OAF 'iJ'$ST E".~.4FHIS, ARIiAP1SAS ~Y ~ 7'~ Diayor (Seal) II Attests i 1 er ~b~ (Form of Coupon) No. "~ On the first day of J~n~ary, 1° the C sty of ~"dest D,:emphis, Crittenden County, A~kansas,-unless the bond to which __ this coupon is attached is sooner called for payment, promises to pay to bearer the sum of (~ ) Dollars, solely out of the fund specified in e on tow ich this coupon apper- -J twins, at the office of the Union National Bank of Little Rock, Arkansas, in such funds as at the time of payment hereof are legal tender for the payment of debts due the United States of America, being interest then due on its water revenue rsfunding bond dated July 1, 1946, and numbered CITY OF '~~T3ST 1LT~,h`Fr'.IS, P.RIIANSAS sy Il;a;~or (First coupon shall be for six months' interest.) (Il?eyor's signature may be lithographed.) On the back of said bonds is to appear the following; C~RTIFICAT~ This is one of the bonds aggregating X213,000 described within. UNION NAT IOIlA L BANK OF LITTLE RCCK, ARiiAI~'SAS, Trustee By __ Vice-press er. & Trus C~ icer Little Rock, Arkansas 1946 SECTION 7. .The City has established and now has on file with its light and water departments a schedule of rates for the various types of service for both electricity and water as supplied by the light and water departments of the City, and the Council hereby finds them to be reasonable and the necessary minimum rates to be charged, and the Council hereby confirms and continues said rates. This Council further finds and declares that the water rates as set out in the schedule above mentioned will produce a total revenue sufficient to pay the total operation and maintenance expense of the watervrorL-s system and provide for the payment of the bonds herein authorized to be issued and the extension of the water- works system, both principal and interest, as the same fall due and are payable, and to create all funds herein provided. Except as herein authorized, said rates, both for !'? electricity and water, shall never be reduced until all bonds herein authorized and all coulons thereto attached have been paid in full and shall, when necessary, be increased in an amount sufficient to provide for tho maintenance of the funds hereinafter ~b~~ described. 111zanever the total amount of the outstanding bonded indebtedness has been reduced to sixty per centum (60~) of its original total or less, exclusive of interest, and it shall be made to appear to the Trustee that the earning capacity of the waterworks system is sufficiently large to ~ustify it, a reduction say be made in the rates hereinabove described, by and with the consent of the Trustee, and to continue for such time as the Trustee ~-- in its sole 3iscretion may deem consistent with the ability of the City to meet bond snd interest payments promptly, provided no reduction in rates shall be made that will produce an estimated net revenue, after setting up necessary funds for operation, maintenance and depreciation of the Works, less than one hundred twenty-five per cantum (1'~'.5j) of the average annual requirements for all the payment of principal and interest of all water revenue refunding bonds then outstanding, and although a reduction in rates may be granted, the original rates hereinabove described may be restored at any time Tatar, upon the sole demand of the Trustee. Tha discretion of the Trustee shall be final, either as to granting, refusing, or terminating any reduction in rates. Sn"CTION 8. None of the £acilities or services afforded by the waterworks system shall be furnished without a ra3sonable charge being made therefor. In the event that the City or any department, agency, or irstrumentality thereof shall avail itself of the facilities or services afforded by the watanvorks system, the reasc•rable value of the services and facilities so afforded shall be charged against the City or such_derartment, agency, or instrumentality, and shall be paid for as the charges therefor accrue. The revenues so received from the City shall be deemed to be revenues derived from the operation of the Works, and shall be used and accounted for in the same manner as any other revenues derived from the operation of the 1Vorks, provided, however, that nothing herein shall be construed as requiring the City or any department, agency, or instrumentality thereof to avail itself of the facilities or services afforded by the 1Vorks. SECTION 9. Ali moneys paid as accrued interest on the bonds issued hereunder shall be placed in the Water Revenue Refur_ding Bond Fund (hereinafter created) and applied to the payment of interest payable on such bonds on the next interest payment date, SECTION 10. The Treasurer of the City shall ba the custodian. of the revenues derived from the Works, and shall give bond for tiie faithful discharge of all duties as such custodiar_. 2uch bond shall be in an amount not less than y10,000, with a corporate surety authorized to do business in Arkansas. SECTIOD? 11. Mater Revenue Fund. From and after the delivery of any bons issue unde~ha provisions of this ordinance, the revenues of the watarv:orks system of the City and as it may hereafter be iurproved and extended, shall be kept separate from the general fund and all other funds of the City, and shall be set aside and placed into a special and separate fund known as the "Water Revenue Fund," and such revenues are hereby pledged and shall be applied, first, to the payment of the operation and mair_tenance of the 7Yorks. ~, SECTION 12. 'cr`ater System Depreciation Fund. After making due provision or~Fie ogera ion an maintenance of the 'dYorks, there shall be paid from the :"later Revenue Fund into a fund yr?rich is hereby created and designated "1Vatar System Deprecia- tion Fund," on or before the 10th day of each month while any of the bonds issued under this ordinance shall be outstanding, five per centum (5;~) of all money derived from the operation of the :'Yorks. P.ioneys in the 7iater system Depreciation Fund shall ba used solely for the purpose of paying costs of replacements made necessary by the depreciation of the Vdorks, except as otherwise provided herein. ~' i U If any surplus shall be accumulated in the ti'~ater System Depreciation Fund over and above the amount which shall be necessary to defray the cost of the probable replacements during the then current fiscal year and next ensuing fiscal year, and which in the judgment of the Council is not needed for replacements, such surplus or excess may be transferred by the Council and paid into the dater Revenue Refunding Bond Fund; provided, horovever, that such transfer or payment into the V~ater Revenue Refunding ~3ond Fund shall be ir. addition to all other payments hereinafter required to be made into said yyater Revenue Refunding Bond Fund. SF,CTION 13. 1later Revenue Refunding Bond Fund. (1) After making due provision ~ or opera.ion~ sa intenance of the Vdorls and depreciation thereon, there shall be raid from the Viater Revenue Fund into a fund which is hereby created and desigr:ated "VTater Revenue Refunding Bond Fund," the sums in the ar.:ounts and at the time hereinafter stated ir. subsection (2) for the purpose of pro- viding funds as a reserve and for the pa~~ment of the principal and interest on the bonds as they mature according, to the follovaing schedule: Yr..AR BOND NOS. FRII~CIPAL IIITRR.EST TOTAL Jan. 1 of Jan. 1 and July 1 each year of each year 1947 1 to 19, incl. i w 19,000,00 N 1,597.50 $~ 1,9-55,00 W 22,052,50 1948 LG to 39, incl. 20,000.00 1,455,00 1,305.00 22,760.00 1949 40 to 60, " ~ 21,000,00 1,305.00 1,147.60 23,452.50 1950 61 to 82, " ~ 22,000.00 1,147.50 982,50 24,130.00 1951 83 to 105, " 23,000.UO 982 ,5G 810.00 24,792.50 1952 106 to 128, " 23,000.00 810 ,v0 637.50 24,447.50 1953 129 to 150, " 22,000.00 637,50 472 .5U 23,110.00 - 1954 151 to 172, " 22,000.GO 472,50 307.50 22,78G.00 ' ii 1955 173 to 193, " 21,000.00 307 .5v 150.00 21,457.50 '~ 1956 194 to 213, " 20,000.00 150.00 --- 20,150.G0 -'' (2) There shall be paid from the Y~ater Revenue Fund into the 1"dater Revenue Refunding i3ond Fund, tc be deposited with the Trustee, beginning on or before t}~e 10th day of the month after the delivery of the bonds and continuing on or before the 10th day- of each month thereafter until all the bonds vrith interest issued under this ordinance have been paid ir:-full, or provision made for such payment, a sun equal to one-fifth (1/5) of the next installment of interest and one-tenth (1%1C) of the next installment of principal of the bonds; provided, however, that when in any fiscal year no principal or interest of the bonds of this issue is in default and the amount in said ;"later Revenue Refunding Bond Fund eouels the total amount required for making all principal and interest payments on the bonds of this issue during the succeeding twelve months, the amount so payable each month into said Fund shall eouel one-sixth (1~6) of the next installment of interest ®nd one-twelfth (112) of the next installment of principal; pro- vided, however, that for the last six months of 1946, the principal installment shall be one-fifth (1~5) of the January 1, 1947, princi- pal maturities. The City may establish this reserve, equivalent to the ~ amount required for all principal and interest payments on the bonds of this issue durir_g the next succeeding twelve months, either as J herein set up or, at its option, it may set up said reserve from future net revenues of either the water or electric systems, or both. The City further agrees that the payments herein provided to be made into the 1°rater Revenue Refunding Bond Fund shall be err made by the City in equal monthly installments, beginning January 1°47, sufficient to meet the next requirements of principal and interest by depositing said amounts with the Trustee and paying agent; provided, that such deposits shall be at the sole risk of the City.and s}~all not operate as a payment of the bonds or coupons until so applied. In addition to the foregoing, the City shall deposit with the Trustee the sum of ~p100.U0 per month ~' whenever necessary so as to accumulate and maintain a contir_gency I! reserve of X2,000.00 in such Water Revenue Refunding Bona Fund, to be used for Faying agent's fees or other incidental expenses. Any funds in the reserve he reinabove set up, shall, upon the request of the City, be invested in United States Government bonds of such type and maturities as the Trustee and the Iolayor of the City shall mutually agree upon. (3) If the revenues of the V1'orks in any month are insufficient to make the required payment on or before the 10th day of the following month into the VTa~er Revenue $efundirg Bond Fund, then the amorsnt of any deficiency in the payment made shall be added to the amount otherwise regt~irad to be paid into the Water Revenue Refunding Bond Fund on or before the 10th day of the neat month. The amount by which payments in any fiscal year exceed the aggregate amount of interest and principal payable in the next succeeding fiscal year shall be held in said Hater Revenue Refunding Bond Fund as a reserve and used solely as herein pro- vided; provided, however, that when the moneys held in the Vdater Revenue Fefunding Bond Fund, including the reserve, shall be and remain sufficient to pay the principal of and interest on all the bonds then outstanding, the City shall not be obliged to make any further pa;,rnents into the Water Revenue Refunding Bond Fund. If, for any reason, the City shall fail at any time to make any of i~ such payments into the 7:ater Revenue Refunding Bond Fund, any suL then held as a reserve shall be used to the extent necessary __ in the payment of the interest on and the principal of the bonds, but such reserve shall be reimbursed from the Water Revenue Fund out of the First available moneys in said Water Revenue Fund after making the payments hereinabove re cuired to be made. A11 moneys in the 'eater Rever_ue Refunding Bond Fund shall be used solely for the purpose of paying the interest on and the principal of the bonds issued under this ordinance and the paying agent's fees. SECTIGId 14. Aftor the City shall have established the Water Revenue Refunding Bond Fund hereinabove set out and shall maintain such Fund, the City may use the surplus revenue arising from the operation of the S;orks for any municipal purpose. SECTICIJ 15. The City owns and operates its electric system, and for t}:e purpose of preventing any default in the water revenue refunding bonds authorized by this ordinance, it hereby pledges as additional security for the payment of said water revenue refunding bonds and interest thereon, the surplus revenue derived each year from the operation of said electric system, with the provision that the surplus revenue shall be that revenue which remains after making full provision for the operation, maintenance, repair, replacement, and depreciation of the electric system, and any sum or sums trot may be necessary to prevent a default at any time in the payment of either principal or interest of the bonds authorized by this ordinance shall be paid from said net revenues - of the electric system direct to the Trustee; and the surplus electric revenue not Headed iri any year for the purpose of preventing a default*that may have previously occurred, shall thereupon be released from this pledge, but such release in one year shall not release said surplus of succeeding years from this pledge. ( *in the water revenue refunding bonds for that year, or curing a default) /~~ This pledge of the net revenues of the electric system shall, to the extent herainabove set out, as long as any of the water revenue refunding bonds remain outstanding, be prior to any other liens of any kind or character that the City may later place on the electric system or any subsequent pledge of its net revenues. SECTION lo.• The City hereby agrees that the holders of the water revenue refunding bonds herein authorized shall, in the i event of a default, be subrogatad to all of the rights of the holders of the water and electric revenue certificates refunde3 hereby. SECTION 17. The City hereby agrees to make all payments on bonds and interest onl}* through the paying aeert. All bonds paid or purchased, either at or before maturity, shall be canceled vrhen such pay:~nt or purchase is made, together ndth all arunatured coupons appertaining thereto, and held by the City Treasurer, and shall not be reissued. All unpaid interest coupons maturing on or prior to the date of such pa5^.rent or purchase shall continue to be payable to the respective bearers thereof. SECTION 18. The bonds, together w2th interest thereon, are not general obligations of the City nor do they constitute an indebtedness of the City within the meaning of any constitutional or statutory provision or limitation, but shall be payable solely out of the Water Revenue Refunding T3ond fund as herebefore pro- vided, and shall be a valid claim of the holders thereof only against said Fund, and the amount of the revenues pledged to said Fund, which amount of said revenues is hereby pledged for the equal and ratable payment of the bonds issued, and shall be used for no other purpose than to pay the principal and interest of the bonds __ as the same accrue, except as provided in this ordinance. ~~ ~1 SECTION 19. All revenues from the ~l'orks shall be -' deposited in such depository or depositories as may be lawfully designated from time to time, subject, however, to the giving of security by such depository as riow or as hereafter may be required by law, and provided such depository* or depositcries shall hold membership in the Federal Deposit Insurance Corporation. All deposits shall be made in the name of the City and be so designated as to indicate the particular fund to which the revenues belong. SECTION 20. Nothing herein shall be construed in such manner as preventing the issuance by the City of additional revenue bonds to finance or pay the cost of constructing any future better- ments and improvements to the F~orlcs; provided, however, that in order to insure the payment of the interest on and principal of the bonds, the City shall issue such additional revenue bonds while any of the bonds of this issue remain outstanding only if, at the time of the passage of an ordinance as provided in Section 10, Act iuo. 131, Acts of Arkansas, 1933, as amended, the revenues of the ti"dorks for the fiscal year immediately preceding the passage of said ordinance (in this paragraph called the "Revenues") shall have been sufficient in amount so that, if they were deemed to be the total revenues derived from the entire waterworks system after the then contemplated betterments and urprovements had been completed, they would be at least equal to the maximum amount '^, required to pay the cost of operation, maintenance, and depreciation ~~ of the ti7orks for the next ensuing fiscal year, and to pay the combined principal and interest maturity requirements of the remainder of the present bonds and the bonds of the new issue. ~~~ ~~ SECTICN 21. Tha Y~torks shall be operated upon a fiscal year basis, beginning January 1 of each year and endin, on and including the following December 31. SECTIOIJ 22. It is covenanted and agreed by the City with the holder or holders of the bonds, or any of them, that it will (~~ faithfully and punctually perform alIl duties with reference to the 4Yorks required by the Constitution and st~stutos of the State of __` Arkansas, including makinb and collected of reasonable and suf- ficient rates lawfully established for services rendered by the 'aVorks, segregating the revenue of the system and its application to the respective funds herein created. SECTICN 23. The City will maintain the 'forks in good condition and operate the same in an efficient manner and at a reasonable cost. So long as any of the bonds era outstanding, tna City agrees to maintain firs, lightung and tornado insurance on the '~'r'orks in an amount which normally would be carried by a private company engaged in a similar type of business. These insurance policies are to be taken with companies approved by the Trustee, era to earr•,; a clause :Waking them payable to the Trustee as its interest may appear, are to be kept continuously in force, and are either to be placed in the custody of the Trustee or the Trustee shall be furnished a certificate of execution of said policies. In the event of loss, the proceeds of such insurance are to be applied solely towards the zeconstruction, replacement or repair of the '+tiorks. In such event, the amity will, with reasonable promptness, cause to be commenced and completed the reconstruction, replacement and .repair, and the Trustee shall pay such money to the City for such purposes upon the estimates of a mutually selected engineer or architect. Nothing herein shall be construed as requiring the City to expend sny funds for premiums on its insurance on the `tiorks which are derived from sources other than the operation of the 'y"corks, but nothing herein shall be construed as preventing the City from doing so. SECTION 24. So long as any of the bonds era outstanding, the City will not mortgage, pledge, or otherwise encumber the 'tiorks or any part thereof or any revenues therefrom, except as herein provided, and will not sell, lease, or othe raise dispose of any substantial portion of the same. SiiCTICN 25. The City will keep proper books of records and accounts (separate from all other records and accounts) in which comp late and correct entries shall be made of any transactions relating to the ',^forks. SisCTICN 26. If there be any default in the payment of either the principal of or interest on any of the bonds, the holder or holders of any of the bonds may by proper suit compel the perforrc~,nca of the duties of the officials of the City, as set forth in said:Aet No. 131, as amended. If there be default in the payment of the principal of or interest on the bonds, or if the City shall fail to keep any other obligation which it herein assumes, and such default shall continue for thirty days thereafter, ~i any court having jurisdiction in any proper action, which may be instituted either by the Trustee on behalf of all the bondholders, or by any holder of a bond in default, may appoint a receiver to administer the forks on behalf of the City, with power to charge and collect rates sufficient to provide for the expenses of the receivership, the payment of the bonds and interest thereon, and for the payment of the operating expenses, and to apply the income 1i~ and revenues in conformity with said Act and this ordinance pro- viding for the issuance of said bonds, but when all defaults are cured, the receivership shall be ended and the management and control of the Works restored to the City. SECTION 27. The City further covenants and agrees that I~ if default is made in the payment of any bond or coupon, or if the City fails to meet any sinking fund requirements, the holder of ~J such bond may declare that bond immediately due and payable, and such bonds shall thereupon be immediately due and payable and in default, and either the Trustee on behalf of all the bondholders or any bondholder for himself may institute suit to enforce the pledge lien herein granted. SECTION 28• The bonds in the face amount of X213,000 shall be delivered to Southern Securities Corporation and i~wis W. Cherry Company, both of Little Rock, Arkansas, upon payment by them in cash of the full purchase price of said bonds, together with the accrued interest on said bonds. The money received by the City for accrued interest shall be paid into the V~ater Revenue Refunding Bond Fund. Out of the X213,000 received fer the bonds, w6,000 shall be deposited by the City in a special fund to be known as the "Construction Fund Account" and to be used solely for the purpose of paying the cost of the extension which the City has planned. X207,000 of the money shall be deposited with the National Bank of Commerce in liiemphis, Tennessee, the Trustee and paying agent for the present Water and Electric Revenue Certificates. To this amount the City shall add out of surplus net revenues which it now has on hand, an amount sufficient to pay the premium of 2~ of the principal amount of all the certificates being redeemed, whatever additional stun, if any, may be necessary to "~ redeem the outstanding certificates, and an amount sufficient to Ii pay accrued interest on all outstast~ng certificates to July 1, 1946, together with all paying charges, so that when the pa~nnent has been made, the water revenue refunding bonds of this issue, in the amount of X213,000, shall be the only indebtedness of the City outstanding against the waterworks system. SECTION 29. The bonds authorized hereby shall be callable for payment before maturity, in inverse numerical order, at par and accrued interest, from funds from any soiu~ce, on any interest paying date on and after January 1, 1952. In the event a call is made, the City shall publish notice of such call for redemption once a week for ttivo weeks in some newspaper of general circulation throughout the State of Arkansas and published in the City of Little Rock, Arkansas, diving the number and maturity of each bond being called, the first publication to be at least fifteen days prior to the date fixed for redemption, and after the date fixed for redemption, eaph bond so called will cease tc bear interest, provided funds for its pa;Rnent are on deposit with the paying agent at that time. SECTION 30. In order that the pledge of net revenues shall be a matter of record, a certified copy of this ordinance shall be placed of record in the office of the Circuit Clerk and Ex-officio Recorder of Crittenden County, Arkansas. i ', SECTION 31. Vdhenever reference is made in this ordinance to a Trustee, it shall r°fer to the union National Bank of Little Rock, Ar1Qa.nsas. The said Trustee shall be responsible only for wilful misconduct in the execution of this trust. The recitals of act 'rerein contained, and contained in the bonds, are t <<~ statements of the City and shall not be construed as boing made by the Trustee. The Trustee shall not be racuired to effect insurance against fire or damage to property, nor to advance any money to pay insurance premiums, nor to pay any charges or special assessments against said property, nor to see that this pledge of revenues is properly recorded and kept in force as a pledge, nor shall it be required to take notice or be deemed to have had _ notice of any default of the City in the failure to perform any of the conditions of this ordinance, unless said Trustee shall have been specifically notified in writing of said default; nor shall it ba required to take any action hereunder until it has been indemnified to its satisfaction by the holders of the bonds herein mentioned, or some of them, against loss or damage on account thereof. SECTICP: 32. It is hereby declared that the provisions of this ordinance are separable and, if any provision of this ordinance shall for any resson be held illegal or invalid, it shall not affect tiie validit;,r of the re ma finder of the ordinance. SECTIGPi 33. The P.:ayor is hereby directed to publish for one insertion in the CRITTENDEl,' CCUIdTY TES, which is hereby found and declared to be a newspaper published in and of general circulation in the City of 'l;est b.emphis, 1lrkansas, a certified copy of this ordinance, attached to a notice signed by hi.-,~, in substantially the following form: N O T I C E Notice is hereby given that the City Council (~' of the City of Nest ;~'emphis, ;lrkansas, has adopted the ord finance hereinafter set out; that said City contemplates - the issuance of the bonds described in said ordinance; that any person interested may appear before the Council on the 11th day of June, 1946, at 8;00 ctclock P.rI1. at the usual place of meeting in the City of 'r'est N:emphis and be heard. nt such herein, all objections snd suggestions will be heard and the said Council vri11 take such action as is deemed proper in the premises. llates this ? 9th day of ~;ay, 1946. ~ ~ ~ ~- D'ayor of 'rest Lam~is, Ar'xansas Att s , / C ~ arm /(The date set for the hearing wall be more than ten days after t?le date of publication of the notice and ordinance.) i, SECTION 34. X11 ordinances or parts of ordinances in _i conflict herewith are hereby repealed. lr~o SECTION 35. It is hereby ascertained and declared that there is immediate need, in order to protect the health and property of the inhabitants of the City, for the improvement and extension of the waterworks system now serving the City of 'crest Memphis; therefore, an emergency exists and this ordinance is necessary for the preservation of the public peace, health, and ~ safety, and shall take effect ar_d be in force yr thout delay from I i and after its passage. Fassed; May 2$, 1946 Approved; ~S~ F.Z,:. DACL'S ItAYCR (SEA L) Attest; ~S~ H. L:AITI ~ PIG CITYLC L^.RI' ~"oticn vaas made by Alderman G. ;;. I~".cAUley that the estimate of Mid V~,-est Contracting Compar_y of ~11,168,5C for the construction of the sewer system and apia owed by the Engineers, iviarion L. Crist & Associates be paid. The motion was seconded by Alderman -) C. I. Bollinger, and upon the me.tter being called to vote, the following voted; '~ Aye: G. ';':. iu:cAuley, Curtis Foster, J, A, Johnson, J, B, I-eyd, 0. I. Bollinger, and C. H. Brown; and the following voted: Nay: None . I„otion vaas made by Alderman Brown and seconded b;• Alderrar_ McAuley to adjourn the meeting; upon the matter being called to vote, the i'ollovring voted: Aye: G. 'r:. ricAuley, Curtis Foster, J. A. Johnson, J, B. Loyd, 0. I. Bollinger, and C. H. Brown; and the following voi;ed: Na~~~ None. nAYCR ATTEST: ' '.I /' C1T CLERIC ~~'