8.1 Issue W&S Refunding Bonds CITY OF SALINA
REQUEST FOR COMMISSION ACTION DATE TIME
4:00 P.M.
1 1319~ ..........
AGENDA SECTION: Admi ni strati on ORIGINATING DEPARTMENT: APPROVED FOR
AGENDA:
NO. 8 City Clerk
I~M:
NO. Stepha~ie Krug ~
1 BY: BY: ~
Item
Second Reading Ordinance Number 93-9614, authorizing and directing the
issuance, sale and delivery of $11,390,000 principal amount of combined water
and sewage system revenue refunding bonds of the City of Salina, KansaS, for
the purpose of refunding a portion of a prior issue of combined water and
sewage system revenue bonds of the City, prescribing the form and details of
said revenue bonds, providing for the collection, segregation and application
of the revenues of said system for the purposes authorized by law' including
paying the cost of operation and maintenance of said utility, paying the
principal of and interest on the revenue bonds of said City issued against said
system arid providing adequate reserve funds, making certain Covenants with
respect to said bonds; and approving a preliminary official !statement and
official statement relating to said bonds.
This ordinance was introduced for first reading on December 20, 1993.
Recommended Action
Adopt Ordinance Number 93-9614.
COMMISSION ACTION
MOTION BY SECOND BY
THAT: ,
Deletions appear as a bold+dbl underlined"
Additions appear as bold+dbl underlined text
Document No. K102008~ ORDRI~D
GILMORE & BELL
MARKED TO SHOW
CHANGES FROM
PREVIOUS DRAFT
CITY OF SALINA, KANSAS
ORDINANCE NO. 93- ~1/., / q
$11,390,000
COMBINED WATER AND SEWAGE SYSTEM REVENUE REFUNDING BONDS
SERIES 1994
DATED: JANUARY 1, 1994
outstanding and unpaid, any moneys held in any fund or account which are not immediately needed for
the purposes of such fund or account may be invested in Permitted Investments in which public funds are
permitted to be invested under Kansas law; provided, however, that no such investment shall be made
for a period extending longer than to the date when the moneys invested may be needed for the purpose
for which such fund or account was created. Cash moneys in each of the funds and accounts herein
created or established shall be deposited in a bank or banks in the City of Salina, Kansas, which are
members of the Federal Deposit Insurance Corporation, and all such bank deposit~ shall be adequately
secured by the banks holding such deposits. Moneys held in the 1994 Reserve Account may be invested
only in investments which have maturities not extending beyond five years from the date of the
investment. Except as to interest accumulated in the Bond and Interest Account and in the Reserve
Account relating to the 1977 Bonds, which interest shall be deposited in the escrow account for the 1977
Bonds, all interest on any investments held in any fund or account created by or referred to in this
Ordinance shall accrue to and become a part of such fund or account, except that interest on investments
in the 1994 Reserve Account and interest on investments in the Depreciation and Emergency Replacement
Account if the City shall not be in default in making any payment into said accounts at the time required
to be made by the provisions of Section 16, shall immediately be paid and credited to the Water and
Sewage Fund and used and applied for the purposes and in the order hereinbefore specified in Section
16 of this Ordinance. In determining the amount held in any fund or account under any of the provisions
of this Ordinance, obligations in which moneys are invested shall be valued at fair marl~t value and
marked to market on December 31 of each year. The Bond Insurer must aoprove any forward supply
contract used in co~iunction with a refundin~ of the Bonds prior to its execution and delivery.
Section 20. ,.Particular C~venants of the City. The City covenants that it will comply with the
covenants and agreements set forth in the 1977 Ordinance so long as any of the 1977 Bonds remain
outstanding and unpaid. From and after the time there are no longer any 1977 Bonds remaining
outstanding and unpaid, the 1977 Ordinance shall be of no force or effect. The City covenants with each
of the purchasers and owners of any of the Bonds that so long as any of said Bonds remain outstanding
and unpaid:
(a) Rates. The City will fix, establish and maintain rates, fees and other charges for the sale
of water and sewage services and commodities of the Water and Sewage Utility as shall be required to
provide Revenues at least sufficient in each fiscal year to pay: (i) operation and maintenance expenses
during such fiscal year, including reserves, if any, provided for in the annual budget for such fiscal year;
(ii) an amount equal to at least 125 % of the amount required to be paid in the current fiscal year on
account of principal of and interest on all obligations payable from the Revenues at the time outstanding
(except to the extent any such principal and interest is to be paid from moneys held in trust for the
specific purpose of making such payments); (iii) an amount, if any, to be paid during such fiscal year into
the 1994 Reserve Account; (iv) to the extent not otherwise provided for, an amount equal to debt service
on the 1977 Bonds for such fiscal year; (v) an amount, if any, to be paid into the reserve account for the
1977 Bonds and into the Depreciation and Emergency Replacement Account during such fiscal year; and
(vi) any and all charges or liens whatsoever payable out of Revenues during such fiscal year.
Co) No Free Service: Service to City. None of the facilities or services afforded by the Water
and Sewage Utility will be furnished to any user without a reasonable charge being made therefor. The
City will require the prompt payment of accounts and will discontinue water and sewage service to any
customer delinquent in the payment of his account for a period which shall not exceed sixty (60) days.
The City will pay monthly into the Water and Sewage Fund for the water and sewage service furnished
the City in accordance with effective applicable rates, fees and charges.
Co) By suit, action or other proceeding in equity or at law to require the City, its officers,
agents and employees to account as if they were the trustees of an express trust.
(c) By suit, action or other proceeding in equity or at law to enjoin any acts or things which
may be unlawful or in violation of the rights of the Holders of the Bonds.
Nothing contained in this Ordinance, however, shall be construed as imposing on the City any
duty or obligation to levy any taxes either to meet any obligations incurred herein or to pay the principal
of or interest on the Bonds.
No remedy conferred hereby upon any holder of the Bonds herein authorized is intended to be
exclusive of any other remedy, but each such remedy is cumulative and in addition to every other remedy
and may be exercised without exhausting and without regard to any other remedy conferred hereby. No
waiver of any default or bleach of duty or contract by the Holder of any Bond shall extend to or affect
any subsequent default or breach of duty or contract or shall impair any rights or remedies thereon. No
delay or omission of the Holder to exercise any right or power accruing upon any default shall impair
any such right or power or shall be construed to be a waiver of any such default or acquiescence therein.
Every substantive right and every remedy conferred upon the Holders of the Bonds may be enforced and
exercised from time to time and as often as may be deemed expedient. In case any suit, action or
proceeding to enforce any right or exercise any remedy shall be brought or taken and then discontinued
or abandoned, or shall be determined adversely to the Holders of the Bonds, then, and in every such case,
the City and the Holders of the Bonds shall be restored to their former positions and rights and remedies
as if no such suit, action or other proceeding had been brought or taken.
Section 26. Defeasance. When all of the Bonds shall have been paid and discharged, then the
requirements contained herein and the pledge of Revenues made hereunder and all other rights granted
hereby shall cease and determine. Bonds shall be deemed to have been paid and discharged within the
meaning of this Ordinance if there shall have been deposited with the Paying Agent, or with a Kansas
bank having full trust powers, at or prior to the maturity or redemption date of such Bonds, in trust ~or
and irrevocably appropriated thereto, moneys and/or direct obligations of, or obligations the principal of
and interest on which are unconditionally guaranteed by, the United States of America, which, together
with the interest to be earned on such investments, will be sufficient for the timely payment of the
principal of such Bonds, the redemption premium thereon, if any there be, and interest accrued to the
date of maturity or redemption, as the case may be; provided, however, always that if any such Bonds
shall be redeemed prior to the maturity thereof, the City shall have elected to redeem such Bonds and
irrevocable instructions to give notice of such redemption shall have been given. The l~ond Insurer
must approve any forward supply contract used in co~junction with a refundin~ of the iBonds prior
to its execution and deliver~.
Section 27. Approval of Preliminary Official Statement and Official Statement. The Preliminary
Official Statement dated December 13, 1993, a copy of which has been submitted to and reviewed by the
Governing Body of the City on the date hereof and is attached hereto as Exhibit "A," was final within
the meaning of Rule 15c2-12 under the Securities Exchange Act of 1934 and the information therein was
accurate and complete. Said Preliminary Official Statement and the final Official Statement, in
substantially the form of the Preliminary Official Statement, and the public distribution of the same by
the Underwriters is hereby approved. The Mayor of the City is hereby authorized and directed to execute
and deliver said final Official Statement on behalf of the City with such changes therein or amendments
or supplements thereto as shall be approved by the Mayor, the Mayor's execution thereof to be conclusive
evidence of said representative's approval thereof.
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