April 7, 1954~~",~_~
MINUTES OF AN ADJOURNED MEET.TNG OF THE CITY COUNCIL OF THE CITY OF WEST MEMFHIaS, ARKANSAS
HAD AND HELD ON AFRIZ 7, 1951x.
The Council of the City of West Memphis met in an ad3ourned session at the City Hall
in said City at 7:30 P.M. on the 7th day of April, 195!x.
The meeting was called to order by the Mayor, and upon roll call. there were:
Present: Mayor H. B. Price presiding anal the following Al.dex~rnen:
James Bledsoe, 0. I. Bollinger, John Burrow, Freeman Finley,
Curtis Foster, A. R. Manchester, P. B. Powers, and C. H. Rowton;
acrd City Attorney Atl.ee Harris.
Abserxt: W, R, Seaton, City Clerk
It being determined a quorum was present, the following proceedings were had to-wit:
Mayor Price announced the point meeting with the Light & Water Commission had been
called to discuss the possi.b].e reduction in amount of the proposed $950,000.00 sewer-water
revenue bond issue, and other details of the issue. Members of the Light & Water Commission
present were: Commissioners Charles J. Upton, Toney Peters, and E. J. White. Mr. Lewis W. Cherry
summarized proceedings as to adoption of a resolution for Notice of Sale of the bond issue,
and read the proposed resolution and notice for sale. Mr. Henderson of Equitable Securities
was also present and advised that in order to px•esent; as sound a bond as possible to get the
band buyers to bid as low as possible, it was recommended that if the earnings of the water
acrd sewer system together are not suffi.ci.ent that whatever shortage occurred in any one year
that it be paid out of the electrical system. It was brought to the Counci].ts attention
that there are now $Lt48,000.0U outstanding sewer bonds that would be retired in 1982, anal
this issue being an open-end issue would not prohibit issuing additional bonds if the revenue
of the system was sufficient. The question of retiring bonds of this issue after construction
and there was a balance in the fund was discussed, and explained that at the end of a twelve
moni;h period if any frxnds from the sale of the bonds were unexpended that could be used to
call in bonds from the end of t}re issue also at any interest paying date.
Mr. A. E. Heagler, Consulting Engineer on the sewer system, had been requested to be
present to discuss the reduction in amount needed for the system. Mr. Heagler described the
location of the proposed new construction and rehabilitation of the present system, also
cormnented on previous work done on the system. Also!l stated in his opinion from preliminary
survey the cost would be approximately amount of $73q,000,00 unless the amount of the work
was curtailed. It was also brought to the Councils attention that the estimate included
X46,000.00 to be replaced in the Bond Reserve Fund as the proposed bond issue could not be
made uxrless done so by Arkansas Law, also approximately $la5,000.00 had been allocated for
negotations on the Memphis View Outfal.l Line.
Mr. I., Allen of Allen & Hoshall, Consulting Engineers of Memphis, for the water system,
was present and outlined the cost for the proposed water reservoir and equipment necessary.
Mr. Allen advised if the capacity of the reservoir be reduced then the construction estimate
could be lowered, also that any water lines that had been constructed since the estimate was
presented would be eliminated from the cost. The proposed site for the reservoix• and the
additional cost of purchasing said property was discussed.
The issuing of the bonds was discussed ~ length and the concensus of opinion being the
sewer system construction and rehabililati.on, and the water reservoir being vitally necessary
for the city that the Sewer-dater Revenue Bond issue irr the amount of $950,000.00 be advertised
in the Crittenden County Times, West`Memphis, Arkansas.
Thereupon, the following resolution was introduced in writing by Alderman Finley; who
moved its adoption:
R E S O L U T I O N
WHEREAS, the City of West Memphis, Arkansas, needs to improve its municipally owned
and operated water. and sewer systems, and has had plans prepared by A. E. Heagler anal
Allen and Hoshall, consulting engineers, showing an estimated cost of $950,000, and the
Cii;y has entered into a contract with Lewis W. Cherry Company of Little Rock, Arkansas,
and Equitable Securities Corporation of Nashville, Tennessee, to serve as agents for the
City in the execution and del3.vexy of the bonds to be issued to pay this cost; and
WIiF'REAS, the City Councih has decided that this issue should be sold at public sale,
and a proposed notice of sale has been prepared by the agents and presented to and read
in fu1.1 to the City Counci.l.; now, therefore,
BE IT RESOLVED, that the City Council of the City of West Memphis, Arkansas, does
hereby approve the form of the notice of sale as read, a copy of which is attached to
this resolution, acrd does hereby instruct the Mayor and. City Clerk to publish said
notice of sale once a week for three times, the first publication to be more than
twenty days prior to the date fixed for the sale, in Crittenden County Times, a newspaper
published in the City of West Memphis, Arkansas, setting the time and place of said sale
at 2 o-clock P.M, on the 5th day of May, 19511, in the office of Council Chambers, City Hall,
i.n West Memphis, Arkansas, and to publish. said notice also in such other publications as they
may deem advisable.
~~!~
Notice of Sale
X950,000
CITY OF WEST MEMPHIS, ARKANSAS
Water and Sewer Revenue Bonds
SEALED BTI)S will be received by the Mayor and City Council of the City of
WEST MEMPHIS, ARKANSAS, for $950,000 City of West Memphis, Arkansas, Water and
Sewer Revenue Bonds at the City Hall in said City up to 2 P.M. C.S,T, on the
5th day of Mme, 1954
at which time and place the bids will be opened for sale of all, but not part, of
this bond issue. Said bonds are coupon bonds in the denomination of $1,000 each,
dated May 1, 1954, and falling due serially on May 1 of each of the years 1955 to
1979, inclusive, as follows:
AMOUNT YEAR AMOUNT YEAR
$10,000 1955 X50,000 1968
10,000 1956 55,000 1969
10,000 1957 55,000 1970
10,000 1958 60,000 1971
10,000 1959 60,000 1972
10,000 1960 65,000 1973
10,000 1961 70,000 1974
10,000 1962 70,000 1975
15,000 1963 70,000 1976
15,000 1964 70,000 1977
15,000 1965 75,000 1978
15,000 1966 75,000 1979
35,000 1967
Interest payable November 1, 1954, and semiannually thereafter on May 1 and
November 1 of each year. The principal of and interest on said bonds are payable
in lawful money of the United States of America at the Union National Bank,
Little Rock, Arkansas, or at the option of the holder, at a bank or trust company
in the City of New York, New York, or Chicago, Illinois, to be determined at the
time of the sale by agreement between the City and the purchaser.
Said bonds are being issued under authority of Acts 131 and 132 of the General
Statutes of the State of Arkansas for 1933, as a~n~d, and will be payable solely
from revenues to be derived from the, operation of the City-s water and sewer systems,
subject only to the prior payment therefrom of the' reasonable expenses of operating,
maintaining and repairing the systems and to the prior pledge of said revenues to the
payment of $448,000 Sewer Revenue Bonds and $353,000 Water Revenue Bonds now outstanding.
In the event of a deficiency of said water and sewer revenues, this issue will be
additionally secured by a pledge, to the extent of such deficiency, of the net revenues
of the City's electric light and power system.
Bidders shall name a rate or rates of interest, not to exceed 4%, in multiples of
1/8 or 1/10 of 1~. No more than three rates of interest shall be specified, and there
slxall be no more than one rate for any one maturity. Subject to the right to reject
any and all bids, the bonds will be awarded at not less than par and accrued and
interest to the responsible bidder whose bid results in the lowest net interest cost
to the City. The City will furnish without cost to the successful bidder the approving
opinion of Townsend and Townsend, Attorneys, of Little Rock, Arkansas, a non-litigation
certificate and the executed bonds. The executed bonds will be delivered on or about
June 15th, 1954, in a city agreeable to the city and the purchaser. A good faith deposit
the amount of X19,000, in the form of a certified check, payable to the order of the
City of West Memphis, Arkansas, shall accompany each bid. Each bid should be enclosed in
a sealed envelope marked on the outside, "Proposal for Water and Sewer Revenue Bonds," and
addressed to the Mayor and City Counci7_ of the City o.f West Memphis, Arkansas.
The bonds wi1.l be cal7.able for payment prior to maturity in inverse numerical order
at par and accrued interest, as follows: 7f called from surplus water or sewer revenues,
or from unexpended bond proceeds, on any interest paying date; if called with funds from
any source, on any interest paying date on and after May 1, 1959.
The purchaser shall have the right to convert the bonds to bonds bearing a lower
rate of interest, subject to the following limitations:
(1) Such conversion is to be in substantial compliance with the
Universal Bond Values Tables.
(2) The City is to receive no less and pay no more in total
principal and interest payments over the life of the issue
than it would receive or pay if the bonds were not converted.
(,!-
(3) The bonds may not be converted to bonds bearing interest at rates more than
1/2 of l~ lower than the rates specified in the original bid schedule.
(!t) No more than three (3) interest rates may be designated in the converted
schedule.
(5) The City reserves the right to reject any such conversion if said conversion
does not comply with the above limitations.
For copies of the Official Statement, describing the issue in detail, including the
provisions for redemption prior to maturity, address the undersigned.
Dated, Ate. ril 7, 1951
TFfE CTTY OF WEST P1F'MFHIB, ARKANSAS
%S% HOWELL B, PRICE, Mayor
ATTEST:
%S% W, R, SEATUIQ
C ty C erk
The motion was seconded by Alderman Foster, and upon roll call_ vote, the Aldermen
voted:
Aye; Bledsoe, Bollinger, Burrow, Finley, Foster, Manchester, Powers, and Rowton.
Nay: None,
No further business appearing before the Council, motion was made by Alderman
Bledsoe and seconded by Alderman Finley to adjourn. Upon vote, the Aldermej, voted;
Aye: Bledsoe, Bollinger, Burrow, Finley, Foster, Manchester, Powers, and Rowton,
Nay: None,
~)
c-" _ ~
MAYOR
ATTEST:
CITY CLERK
APFROVGD: APRIL 20, 1954