1739ORDINANCE NO. I'73~I
AN ORDINANCE AUTHORIZING THE ISSUANCE OF
PUBLIC UTILITY REFUNDING REVENUE BONDS, FOR
THE PURPOSE OF ACHIEVING INTEREST SAVINGS;
AUTHORIZING MATTERS RELATED THERETO; AND
DECLARING AN EMERGENCY.
WHEREAS, the City of West Memphis, Arkansas (the "City")
` has issued its Public Utility System Refunding Revenue Bonds, 1991
' Series A, dated October 15, 1991 (the "1991 Series A Bonds"), for
the purpose of refinancing the acquisition, construction and
equipping of additions and improvements to the City's Public
Utility System (the "System"); and
WHEREAS, it has been found and determined, by the City~s
Public Utility Commission and by the City Council, that significant
interest cost savings may be achieved by the refunding of the 1991
Series A Bonds and, accordingly, to that end, that the City's
Public Utility Refunding Revenue Bonds, 1996 Series A, in the
maximum principal amount of $22,000,000 (the "1996 Series A Bonds")
should be and are being issued;
NOW THEREFORE BE IT ORDAINED by the City Council of the
City of West Memphis, Arkansas:
Section 1. The City of West Memphis, Arkansas Public
Utility Refunding Revenue Bonds, 1996 Series A, in the maximum
principal amount of $22,000,000, are hereby authorized and ordered
issued. The 1996 Series A Bonds shall be sold to First Chicago
Capital Markets, Inc. and T.J. Raney & Sons/Morgan Keegan, a
Division of Morgan Keegan & Company, Inc. (the "Underwriters").
Section 2. The Mayor of the City is authorized to
~ approve the 1996 Series A Bonds and to cause them to be issued
provided that:
1. The principal amount of the 1996 Series A Bonds
shall not exceed $22,000,000.
The average annualized savings effected by refunding
of the 1991 Series A Bonds shall be not less than $20,000.
3. No 1996 Series A Bonds shall bear interest at a rate
greater than 9$ per annum.
4. The true interest cost for the 1996 Series A Bonds
shall not exceed 6$ per annum.
5. No 1996 Series A Bond shall mature later than the
year 2009.
The Mayor of the City is authorized to execute, on behalf
of the City, a Bond Purchase Agreement of substantially the form
and content of the document of that name executed with respect to
the 1991 Series A Bonds, with such appropriate changes as may be
agreed to by him.
Section 3. The 1996 Series A Bonds shall be secured
under a Trust Indenture dated as of August 15, 1996. The Mayor is
authorized to execute the Trust Indenture, on behalf of the City in
substantially the form and content of the document of that name
dated as of January 1, 1980, as supplemented with respect to the
1991 Series A Bonds, with such appropriate changes as may be agreed
to by him.
Section 4. The Mayor of the City and the Chairman of the
Public Utility Commission, or either of them, are authorized to
execute and deliver, on behalf of the City, a Preliminary Official
Statement and a final Official Statement, describing the City and
the 1996 Series A Bonds and matters relevant thereto.
Section 5. The Mayor of the City and the Chairman of the
Public Utility Commission, and both of them, are authorized to
execute such writings and take such action as may be appropriate to
the proper issuance of the 1996 Series A Bonds and the
accomplishment of the purposes of this Ordinance.
Section 6. The provisions of this Ordinance are hereby
declared to be severable and if any provision shall for any reason
be held illegal or invalid, such holding shall not affect the
validity of the remainder of the Ordinance.
Section 7. This Ordinance shall not create any right of
any kind and no right of any kind shall arise pursuant to it until
the 1996 Series A Bonds shall be issued and delivered.
Section 8. All Ordinances and resolutions or parts
thereof in conflict herewith are hereby repealed to the extent of
such conflict.
Section 9. It is hereby ascertained and declared that
the refunding of 1991 Series A Bonds should be accomplished as soon
as possible, in order that the interest savings to be effected
thereby may be achieved, and that the issuance of the 1996 Series
A Bonds and the taking of the other action authorized by this
Ordinance is necessary for the accomplishment thereof. It is,
therefore, declared that an emergency exists and this Ordinance,
being necessary for the immediate preservation of the public peace,
health and safety, shall take effect from and after its passage.
PASSED: f-1 Vgt)S'~ ~ s , 1996.
APPROVED:
ATT
C
~O~
EST: Mayor
I Y CLER
RECEIVED
CITY CLERK OFFICE
~o:to~N..
DATE (1..~~.~~ Iz,_~~
FRo^n'. DG~r~'Qe,2..1'-
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CERTIFICATE
The undersigned, City Clerk of the City of West Memphis,
Arkansas, hereby certifies that the foregoing pages are a true and
correct copy of Ordinance No . ~_, adopted at a re c ~ 1c~.r
session of the City Council of the City, held at the regular
meeting place of the City Council in the City at 130 ~~.m. , on the
~ day of 1996, and that the Ordinance is of
record in Ordin ce Record Book No. !9g (o , Page , now in my
possession.
GIVEN under my hand and seal this ~_ day of A .u, 5-{- ,
1996.
City
{SEAL)
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