January 12, 1960MINUTES OF SPECIAL MEETING OF THE CITY COUNCIL CF THE CITY OF WEST MEI~4PHIS, ARKANSAS,
HELD AT THB CITY HALL IN SAID CITY ON THE 12TH DAY OF JANUARY, 1960, AT 12 NOGN,
On the 12th day of January, 1960, the Council of the City of West Memphis, Arkansas,
met in the City Hall in said City in special session, The meeting was called to order at
12:00 Noon, and on the roll call the following members of the Council were found to be
present:
Aldermen: O. I. Bollinger, R. C. Bowie, Bob Eden, L. E. Roleson, R. H. Ray, Jr.,
C. H. Rowton, and Y. G. Sims; and City Attorney W, H. Dillahunty,
Absent: Alderman B. J. David.
It being determined a quorum was present, the following proceedings were had to-wit:
The following Notice of Meeting was read by Alderman O. I, Bollinger:
T0: C. I. Bollinger
R. C. Bowie
B. J. David
Bob Eden
R. H. Ray, Jr.
L. E. Roleson
C. H. Rowton
Y. G. Sims, Aldermen of the City of West Memphis, Arkansas
You are hereby notified that a Special Meeting of the City Council of the City of
West Memphis will be held at the City Hall in West Memphis, Arkansas, on Tuesday,
January 12, 1960, at 12:00 Noon for the purpose of:
Discussing and Making Arrangements for contract as to reissuing bonds and for sale of
bonds,
Witness my hand this 11th day of January, 1960.
/S/ HOWELL B, PRICE, MAYOR
ATTEST: /S/ CHARLES F. DeGRAFF, CITY CLERK
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Mayor Price informed the Council Mr. Dallas P. Raney of T. J. Raney & Sons of
Little Rock, Arkansas, was present to present proposal to the City for the services of
his company in calling or refunding the Ad Valorem Tax bonds now outstanding; to assist
in preparing combined construction and refunding issue, securing a buyer for the bonds
and arranging for the sale and delivery of the bonds.
The bond market, outstanding bonds of the City of West Memphis, statutes regulating
issuing of bonds by a municipality, construction plans of the City were discussed.
Thereupon, the following contract was presented:
Honorable Mayor & City Council
West Memphis, Arkansas
Gentlemen:
We understand that you need to secure approximately $223,000 to erect and equip fire
stations and other public buildings. In order to secure these funds it will be neces-
sary to vote a bond issue under the terms of Constitutional Amendment Number 13, which
will require the calling or refunding of the bonds now outstanding under the terms of
Amendment Number 13. We can be of service to you in calling or refunding the bonds
now outstanding, in helping to prepare your combined construction and refunding issue,
finding a buyer for these bonds and arranging for the sale and delivery of the bonds.
Therefore, we submit for your consideration the following contract.
1. You now have outstanding $212,000 2 4% & 2Z% bonds which mayh not be called until
July 1, 1960. We agree to secure these bonds at no cost to the city, thereby saving the
city approximately four months interest that would have to be escrowed until the bonds
were called July 1, 1960.
2. You propose to issue not to exceed $410,000.00 City Ad Valorem Tax Refunding and
Construction Bonds and we agree tc find a buyer for these bonds at a price of 100 cents on
the dollar face value and accrued interest for bonds (including the refunding bonds)
bearing an average interest rate of 4Z%, said bonds to be dated on the first of the
nearest month that you have legal authority to sell them in the year 1960, interest to be
paid semi-annually on January 1 and July 1 of each year, and bonds to mature serially on
January 1 of the years 1963 to 1985, both inclusive. Said bonds to be delivered to the
buyer on or before April 15, 1960, thereafter at the byer's option.
3. The sale is to be upon condition that the electors of your city will vote a continuing
building fund tax of 5 mills for the payments of these bonds. After principal and interest
have been paid and funds have been set aside for the next six months requirements and any
surplus from the 5 mill building fund must be used to call bonds in inverse numerical order
at part and accrued interest.
4. The buyer shall have the right to convert from 4 i% bonds to bonds bearing a lower rate
of interest, conversion to be ]Figured according to the Universal Bond Value Tables, so that
the city will receive no less 8nd pay no more had the bonds not been converted.
4, The bonds are to be callable until January 1, 1965 at part and accrued interest from
surplus in the building fund. They are also callable on or after January 1, 1965 in inverse
numerical order, at part and accrued interest on any interest paying date from funds from
any source.
6, In consideration of our guaranteeing to secure for you a buyer who will pay you 100 cents
on the dollar face value a nd accrued interest foz bonds bearing an average interest rate ~f
4 2% at your public sale, you are to pay us for our services all of the premium you
receive for these bonds up to 2 a% of the face value of the authorized issue before
converstion. Out of this commission we agree to pay all the expenses of the printing,
trusteeing, and approving opinion subject to the buyer receiving the unqualified
approving opinion of Townsend and Townsend, Little Rock, Arkansas, as to the legality
of the bonds.
ACCHPTED this the day of
1960
CITY OF WEST MBMPHIS, ARKANSAS
Mayor
Recorder
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Yours very truly,
T. J. RANEY & SONS
By /S/ DALLAS P. RANEY
After discussion, motion was made by Alderman Eden: That the contract presented be
entered into by the City of Weat Memphis with T. J. Raney & Sons, and the Mayor and
City Clerk be and they are hereby authorized to execute said contract. The motion
was seconded by Alderman Bollinger, and the following vote was recorded:
Ayes: Aldermen: Bollinger, Bowie, Eden, Roleson, Ray, Rowton, Sims.
Nays: None.
There being no further business to c,me before the meeting, Alderman Roleson moved the
meeting adjourn, which motion was duly seconded by Alderman Ray, and the following vote was
recorded:
Ayes: Aldermen: Bollinger, Bowie, Eden, Roleson, Ray, Rowton,
Nays: None. ~~~ i7"'~
"~ ~~~ ~ MAYOR
ATTP~.'
CLERK
APPROVED: JANUARY 21, 1960