8.4 Auth Temp Note Sale City Of Salina
Request for Commission Action
Date Time
06/18/2001 4:00 PM
AGENDA SECTION: ORIGINATING DEPARTMENT: APPROVED
NO. 8 FOR AGENDA:
FINANCE
ITEM NO,
4 BY: Rodney Franz BY: ~
ITEM:
A. Resolution No. 01-5723 Authorizing the public sale of approximately $935,000
Principal Amount of General Obligation Temporary Notes, Series 2001-2 and
approximately $5,470,000 Principal Amount of General Obligation Internal Improvement
Bonds, Series 2001-A of the City of Salina, Kansas
B. First Reading of Ordinance No, 01-10042, An Ordinance Authorizing the Issuance
and Delivery of $5,470,000 Principal amount of General Obligation Internal Improvement
bonds, Series 2001-A, of the City of Salina, Kansas, for the purpose of paying the cost or
a portion of the cost of certain improvements; providing for the levy and collection of an
annual tax and special assessments for the purpose of paying the principal of and
interest on the bonds as they become due; making certain covenants with respect
thereto.
BACKGROUND:
A. This resolution authorizes the sale and approves the Preliminary Official Statement
for the Series 2001-2 Temporary Notes, and the Series 2001-A General Obligation
Internal Improvement Bonds.
Series 2001-2 Temporary Notes extend the temporary financing for two projects that
were not completed in sufficient time to be included in the bond issue. These would be
the Airport subdivision improvements and the Eastview Estates Phase III subdivision
improvements. Financing for these projects is extended another year, to August 1,2002,
at which time they will be refinanced in the 2002 bond issue.
General Obligation Bonds, Series 2001-A establish long term financing for a number of
projects, including:
Aurora, Edward, and Magnolia/Ohio drainage
South Ohio and Magnolia Reconstruction
South Ninth Street Utility Improvements
1999 Subdivison Improvements (Eastview Phase II and Georgetown)
2000 Subdivision Improvements, Phase I (Eastbank Estates and Morrisons
Additi°~00 Subdivision Improvements, Phase II (Twin Oaks and Woodland Hills)
2000 Subdivision Improvements, Phase III (Holiday Addition)
Of the $5,470,000, approximately $1,570,000 will be repaid through Special
Assessments, $280,000 is due from utility or impact fees, and $3,620,000 will be an at-
large obligation payable from general property taxes. This general obligation primarily
reflects the Ohio and Magnolia Street reconstruction costs.
The Bonds will be issued for a term of 15 years.
The bond sale is scheduled for July 9.
B. Ordinance No. 01-10042 authorizes the issuance and delivery of the bonds, provides
that they are to be re-paid through the levy of future taxes and special assessments,
provides that they are a general obligation of the City, and provides that we will comply
with the Internal Revenue Code as it applies to tax-exempt obligations. The amount
specified ($5,470,000) may be reduced due to the fact that the~hPrepayment period for
special assessments does not close until 5:00 PM on June 18 . The City may also elect
to pay a portion of the at-large costs out of current year budget authority.
Second reading for Ordinance 01-10042 is scheduled for July 9, 2001, at which time the
bids on the bonds will also be awarded, and the Bond Sale resolution considered.
REQUESTED ACTION:
A. Pass Resolution No.01-5723
B. Pass Ordinance #01-10042 on first reading.