8.3 Airport Authority GO Bonds
CITY OF SALINA
REQUEST FOR CITY COMMISSION ACTION
DATE
07/26/2010
TIME
4:00 P.M.
AGENDA SECTION
NO:
8
ORIGINATING DEPARTMENT: APPROVED FOR
AGENDA:
ITEM
NO.
Page 1
FINANCE AND ADMINISTRATION
3
BY:
BY: Rod Franz
ITEM: Ordinance No.1 0-1 0560
Unconditionally Approving the Issuance of General Obligations Bonds by the Salina Airport Authority
for the Purpose of Financing the Cost of Certain Capital Improvements Located at the Salina Airport
Industrial Center and the Salina Municipal Airport.
BACKGROUND:
The Salina Airport Authority (the "Authority") was established in 1965 by the City of Salina pursuant to
Kansas enabling legislation enacted that same year. The statute authorizes the Authority to issue its
own general obligation bonds. The statute also provides that: "If the Authority desires to issue its
general obligation bonds, the board of directors shall adopt a resolution setting forth the principal
amounts of bonds proposed to be issued and the purpose for which the bonds are to be issued, and
shall forward a copy of such resolution to the mayor of the city. The mayor shall present such
resolution to the governing body of the city for its approval or disapproval." The governing body then
has three choices:
(1) To disapprove the Authority's resolution by ordinance;
(2) To unconditionally approve the Authority's resolution by ordinance; or
(3) To approve the Authority's resolution and to publish a notice of the Authority's intent to issue
its general obligation bonds, subjecting the bond issue to a referendum election if a protest
petition is signed by not less than 20% of the qualified electors of the city and filed within 15
days of the published notice.
On July 21, 2010 the Board of Directors of the Authority adopted a resolution approving the issuance
of general obligation bonds not to exceed $4,300,000 (including costs of issuance) to pay the cost of
certain capital improvements located at the Salina Airport and Industrial Center. Attached are copies
of Salina Airport Authority Resolution No. 10-02, and the proposed Ordinance unconditionally
approving the proposed issuance of the Authority's general obligation bond issue.
The Project and the proposed financing have been developed and structured with the assistance of
the Authority's public finance advisors, George K. Baum & Company. The law firm of Gilmore & Bell
will serve as bond counsel.
FISCAL NOTE:
While the proposed general obligation financing is backed by the full faith and credit of the Salina
Airport Authority, K. S.A. 27 -323( a) specifically provides that "such general obligation bonds of the
authority shall not constitute a debt or obligation of the city which established and created the
authority." This bond issue by the Salina Airport Authority does not count toward the City's bonded
indebtedness limitations. This issue consists of taxable GO Bonds, and so do not affect the Bank
Qualification of any remaining debt the City may issue this year.
CITY OF SALINA
REQUEST FOR CITY COMMISSION ACTION
DATE
07/26/2010
TIME
4:00 P.M.
AGENDA SECTION
NO:
8
ORIGINATING DEPARTMENT: APPROVED FOR
AGENDA:
ITEM
NO.
Page 2
FINANCE AND ADMINISTRATION
3
BY:
BY: Rod Franz
CONFORMANCE WITH THE STRATEGIC PLAN:
The Project and the proposed general obligation bond issue by the Authority are consistent with the
subparagraph (j) of the City of Salina's Shared Vision Statement:
"0) Salina will encourage and be supportive of industrial development, economic expansion,
market-driven tax base growth, and home grown entrepreneurial ism"
and the follow Strategic Goal under the City's Strategic Plan:
"Goal: The City will create a community of mixed-use, quality development and redevelopment."
COMMISSION ACTION:
Approve Ordinance No.1 0-1 0560 on first reading unconditionally approving the Authority's Resolution
No. 10-02.
SALINA AIRPORT AUTHORITY
RESOLUTION NO. 10-2
A RESOLUTION APPROVING THE ISSUANCE OF GENERAL OBLIGATION
BONDS OF THE SALINA AIRPORT AUTHORITY FOR THE PURPOSE OF
FINANCING THE COST OF CERTAIN CAPITAL IMPROVEMENTS AT THE
SALINA AIRPORT AND INDUSTRIAL CENTER AND AUTHORIZING THE
SALE OF TAXABLE GENERAL OBLIGATION NOTES OF THE SALINA
AIRPORT AUTHORITY.
BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE SALINA AIRPORT
AUTHORITY AS FOLLOWS:
Section 1. The issuance of general obligation bonds (the "Bonds") by the Salina Airport
Authority (the "Authority") in a principal amount not to exceed $4,300,000, excluding costs of issuance
and temporary financing costs, for the purpose of paying the costs of certain capital improvements located
at the Salina Airport and Industrial Center, including, but not limited to the acquisition, construction,
improvement, furnishing and equipping of (a) improvements to the airfield including pavement
rehabilitation, acquisition of navigational equipment and paying a portion of the costs of a new aircraft
rescue and firefighting station and (b) improvements to and rehabilitation of various buildings (including
any necessary demolition) (collectively, the "Project"), as authorized by K.S.A. 27-315 to 27-326
inclusive, is hereby approved and is in the best interests of the Authority. Pending the issuance of the
Bonds, the Authority may issue its temporary notes to provide financing for the Project.
A copy of this resolution shall be forwarded to the Mayor of the City of Salina, Kansas (the
"City"), with the request that the Mayor present this resolution to the governing body of the City for its
approval or disapproval.
Section 2. The Authority expects to make capital expenditures after the date of this
resolution in connection with the Project, and the Authority intends to reimburse itself for such
expenditures with the proceeds of bonds or notes in an amount not to exceed $4,300,000.
Section 3. The Authority shall offer for sale its taxable general obligation notes (the
"Notes") in the approximate principal amount of $12,060,000 to pay the costs of the Project, the costs of
renewing the outstanding portion of the Authority's Taxable General Obligation Notes, Series 2007-1, and
the costs of issuance and capitalized interest for the Notes.
Section 4. The Authority's staff are hereby authorized and directed to receive proposals for
the purchase of the Bonds and to deliver all proposals so received to a meeting of the governing body of
the Authority, at which meeting the governing body will review such proposals and act on the acceptance
of the best proposal.
Section 5. The Executive Director, the Manager of Administration and Finance, George K.
Baum & Company, the Authority's financial advisor, and Gilmore & Bell, P.C., the Authority's bond
counsel, are hereby authorized and directed to take such other action as may be necessary to carry out the
sale of the Bonds.
Section 6.
This Resolution shall take effect immediately upon its adoption and passage.
ADOPTED AND PASSED by the governing body of the Authority on July 21,2010.
SALINA AIRPORT AUTHORITY
Name: Jeffrey R. Thompson
Chairman
(SEAL)
ATTEST:
By:
Name: Dr. Randy Hassler
Secretary