8.1 Sell GO Bonds ' CITY OF SALINA
REQUEST FOR COMMISSION ACTION DATE TIME
5/23/94 4:00 P.M.
AGENDA SECTION: ORIGINATING DEPARTMENT: ApI~ROVED FOR
NO. 8 City Clerk AGENDA:
ITEM:
NO. ! Judy D. Long
BY: BY':, ,~~
Item
Second Reading Ordinance No. 94-9634, authorizing and directing the issuance,
sale and delivery of $1,175,000 principal amount of General Obligation
Improvement Bonds of the city of Salina, Kansas, Series 1994-A~ for the
purpose of providing funds to pay the cost of certain street and utility
improvements in the City.
Baekgeound
This Ordinance was first presented on May 16, 1994, at which time the first
reading was approved.
Recommendation
Approve Ordinance Number 94-9634.
COMMISSION ACTION
MOTION BY SECOND BY
THAT:
GILMORE & BELL
Document No. K102186\ORD2
ORDINANCE NO. ~" ~
OF THE
CITY OF SALINA, KANSAS
$1,175,000
GENERAL OBLIGATION INTERNAL IMPROVEMENT BONDS
SERIES 1994-A
INDEX
Section 1. Definitions .................................. 1
Section 2. Authorization of and Security for the Bonds .............. 3
Section 3. Description of the Bonds, Designation of Paying Agent
and Bond Registrar ............................ 3
Section 4. Redemption of Bonds Prior to Maturity ................ 4
Section 5. Method and Place of Payment of Principal of and Interest
on the Bonds ................................ 5
Section 6. Execution, Authentication and Delivery of the Bonds ........ 5
Section 7. Registration, Transfer and Exchange of Bonds ............ 6
Section 8. Persons Deemed Owners of Bonds ................... 7
Section 9. Mutilated, Lost, Stolen or Destroyed Bonds .............. 7
Section 10. Cancellation and Destruction of Bonds Upon Payment ....... 7
Section 11. Form of Bonds ................................ 8
Section 12. Disposition of Bond Proceeds and Other Funds ............ 8
Section 13. Levy and Collection of Annual Taxes and Assessments ....... 8
Section 14. Transfer of Funds to Paying Agent and the Bond Registrar .... 8 -
Section 15. Authorization of Agreement Between the City and the
Bond Registrar ............................... 8
Section 16. Tax Covenants ................................ 8
Section 17. Defeasance .................................. 9
Section 18. Approval of Preliminary Official Statement and Official Statement 9
Section 19. Severability .................................. 9
Section 20. Effective Date ................................ 10
Exhibit A
Exhibit B
ORDINANCE NO.
A~ O~I~ANe~. AUTHO~ A~D DI~~ TH~ ISSUAnCe, SA~ AND D~IV~Y
$~,~7~,~ ~NCI~AL AMOU~ O~ ~~L O~U~A~ON I~AL IM~0V~M~
~ONDS O~ ~ e~ O~ SAUNA, ~NSAS, S~S ~4-A ~O~
~OVIDI~ ~U~DS TO ~AY ~ ~OST O~ ~TAIN ~~ A~D U~ I~O~M~S
~N ~ ~; ~Se~ ~ ~O~ A~D D~TA~S O~ SAID ~O~DS; ~OV~IN~ ~O~
~ L~VY AND ~OLL~ON O~ TH~ N~e~SSA~Y TAX~S ~O~ ~ ~U~OS~ ~ ~A~N~
~ P~N~IPAL OF ~ IN~ST ON SAID BONDS AS ~Y B~OME DU~;
AU~O~Z~G AN AG~EMENT BE~EEN ~E C~ AND ~E BOND ~GIS~R;
APPROVING ~E P~L~INARY AND FINAL OFFICIAL STATEME~S.
WHEREAS, pursuant to K.S.A. 12-6a01 et seq., as amended, and other provisions !of the laws
of the State of Kansas applicable thereto, by proceedings duly had, the governing body of the City of
Salina, Kansas (the "City"), has proceeded with certain street and utility improvements (tho "Project")
in the City; and
WHEREAS, the City has previously issued its temporary notes to finance the costs of said
improvements on an interim basis; and
WHEREAS, all legal requirements pertaining to said improvements have been complied with,
and the governing body of the City now finds and determines that the total cost of the aforesaid
improvements and related expenses (including issuance costs of the bonds herein authorized) less other
funds on hand and available to pay the said cost (including funds received from the prepayment of
assessments) is $1,175'000; and
WHEREAS, tho governing body of the City is authorized by law to issue general obligation bonds
of the City to pay the costs of said improvements; and
WHEREAS, the governing body of the City has advertised the sale of its general obligation bonds
in accordance with the law and, at a meeting held in the City on May 16, 1994, awarded the s~e of such
bonds to the lowest bidder; and
WHEREAS, the governing body of the City now deems and finds it necessary to anllhorize the
issuance of the aforesaid bonds for delivery to the purchaser thereof;
NOW, THEREFORE, BE IT ORDAINED BY THE GOVERNING BODY OF THE CITY OF
SALINA, KANSAS, AS FOLLOWS:
Section 1. Definitions. In addition to the words and terms otherwise defined herein, i~nless the
context shall clearly indicate some other meaning, the words and terms defined in this Sectiol~ shall for
all purposes of this Ordinance have the respective meanings specified in this Section, to wit:
"Bondholder" and "Holder" mean a Person in whose name a Bond is registered in the Bond
Register.
"Bond Register" means the register and all accompanying records kept by the Bond iRegistrar
evidencing the registration, transfer and exchange of Bonds.
"Bond Registrar" means the State Treasurer of Kansas when acting in the capacity ~ registrar
and transfer agent for the registration, transfer and exchange of Bonds, and any successors ~hereto.
"Bonds" means $1,175,000 original principal amount of General Obligation Internal Improvement
Bonds, Series 1994-A, authorized according to the terms provided in this Ordinance.
"City" means Salina, Kansas.
"Interest Payment Date" means the Stated Maturity of an installment of interest on the Bonds.
"Maturity" with respect to any Bond means the date on which the principal of such Bond becomes
due and payable as therein or herein provided.
"Ordinance", "this Ordinance", "hereof", "herein", "hereto" and similar terms shall refer to this
Ordinance of the City authorizing the Bonds, as originally executed or as it may be supplemented or
amended from time to time.
"Outstanding" when used with respect to Bonds means, as of the date of determination, all Bonds
theretofore executed, authenticated and delivered under this Ordinance, except:
(i) Bonds theretofore cancelled by the Bond Registrar or delivered to the Bond Registrar
for cancellation;
(ii) Bonds that have been defeased by the deposit of funds or qualified sec~irities with
the Paying Agent or other qualified party in compliance with this Ordinance; and
(iii) Bonds in exchange for or in lieu of which other Bonds have been authenticated and
delivered pursuant to this Ordinance.
"Paying Agent" means the State Treasurer of Kansas when acting in the capacity as paying agent
for the payment of the principal of, premium, if any, and interest on the Bonds and any !successors
thereto.
"Person" means any individual, corporation, partnership, joint venture, association, joint-stock
company, trust, unincorporated organization or government or any agency or political subdivision thereof.
"Project" means the construction of certain street and utility improvements in the Ci~.
"Redemption Date" when used with respect to any Bond to be redeemed means the date fixed for
redemption pursuant to this Ordinance.
"Registration Date" means the effective date of registration of a Bond as evidenced by the Bond
Registrar in the Certificate of Authentication appearing on the Bond.
"Regular Record Date" for the interest payable on any Interest Payment Date means the 15th day
(whether or not a business day) of the calendar month next preceding such Interest Payment Date.
-2-
"Special Record Date" for the payment of any Defaulted Interest, as defined in SectiOn 5, means
a date fixed by the Bond Registrar pursuant to Section 5.
"Stated Maturity" when used with respect to any Bond or any installment of interest thereon
means the date specified in Section 3 of this Ordinance as the fixed date on which the principal of such
Bond or such installment of interest is due and payable.
Section 2. Authorization of and Securi _ty for the Bonds. For the purpose of providing funds for
the Project, there shall be issued and are hereby authorized and directed to be issued Iihe General
Obligation Internal Improvement Bonds, Series 1994-A, of the City in the principal amount of
$1,175,000.
The Bonds shall be general obligations of the City, payable as to both principal and interest from
special assessments levied upon the property benefited by the construction of the Project and, if not so
paid, from ad valorem taxes which may be levied without limitation as to rate or amount Upon all the
taxable tangible property, real and personal, within the territorial limits of the City. The full faith, credit
and resources of the City are hereby irrevocably pledged for the payment of the Bonds and ~he interest
thereon as the same become due.
Section 3. Description of the Bonds, Designation of Paying Ag0n~ and. Bond Refft. Strar. The
Bonds shall consist of fully registered Bonds, without coupons, transferable to subsequent Owners only
in the Bond Register maintained by the Bond Registrar as hereinafter provided. Each Bondi shall be in
the denomination of $5,000 or any integral multiple thereof, not exceeding the principal amouOt of Bonds
maturing in the year in which such Bond becomes due, as specified by the Holder of such Bond. The
Bonds shall be numbered in a manner determined by the Bond Registrar. The Bonds shall be dated as
of June 1, 1994 and shall mature and shall bear interest at the rates per annum as follows:
MATURITY . PRINCIPAL INTEREST
OCTOBER 1 AMOUNT RATE
1995 $120,000.00 6.50 %
1996 120,000.00 5. I0 %
1997 120,000.00 4.70 %
1998 120,000.00 2['71t3'-%
1999 120,000.00 5.00 %
2000 115,000.00 5.10 %
2001 115,000.00 5.20 %
2002 115,000.00 5.30 %
2003 115,000.00 5.35 %
2004 115,000.00 5.40 %
The Bonds shall bear interest from the most recent Interest Payment Date to which itaterest has
been paid in full or, if no interest has been paid, from June 1, 1994. Interest on the Bonds ,at the rates
aforesaid shall be payable semiannually on April 1 and October 1 in each year, beginning April 1, 1995.
The State Treasurer of Kansas, Topeka, Kansas, is hereby designated as the Paying Agent and as the
Bond Registrar for the Bonds.
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Section 4. Redemption of Bonds Prior tO Maturi~. The Series 1994-A Bonds maturing on
October 1, 2002, and thereafter shall be subject to redemption and payment prior to their Stat~ Maturity
at the option of the City on October 1, 2001, and thereafter, in whole at any time or in part on any
interest payment date, in such principal amounts for such maturities as shall be determined I~y the City,
at a redemption price of 100% of the principal amount of Bonds redeemed and paid plus accrued interest
to the Redemption Date, without a premium.
The Bond Registrar shall call Bonds for redemption and payment as herein provided upon receipt
by the Bond Registrar at least 45 days prior to the Redemption Date of a written request of the City.
The Bonds shall be redeemed in the principal amount of $5,000 or any integral multiple thereof.
In the case of a partial redemption of Series 1994-A Bonds of the same Stated Maturity, the Bonds to be
redeemed shall be selected by the Bond Registrar from the Outstanding Bonds of that Stated Maturity by
such method as the Bond Registrar shall deem fair and appropriate and which may provide for the
selection for redemption of portions of the principal of Outstanding Bonds of that maturity of a
denomination larger than $5,000. The portions of the principal of Outstanding Bonds so selected for
partial redemption shall be equal to $5,000 or integral multiples thereof. Any Bond which is to be
redeemed only in part shall be submitted to the Paying Agent and delivered to the Bond Registrar, who
shall authenticate and deliver to the Holder of such Bond, without service charge, a new Bon8 or Bonds,
of any authorized denomination as requested by such Holder in an aggregate principal amount equal to
and in exchange for the unredeemed portion of the principal of the Bond so surrendered. If the Holder
of any such Bond of a denomination greater than $5,000 shall fail to present such Bond to the Paying
Agent for payment and exchange as aforesaid, such Bond shall, nevertheless, become due md payable
on the Redemption Date to the extent of the principal amount of such Bond called for redemption (and
to that extent only).
If and when the City shall call any of the Bonds for redemption and payment prior to the maturity
thereof, the Bond Registrar shall give written notice in the name of the City of its intention !to redeem
and pay such Bonds at the office of the Paying Agent. Notice of redemption shall be given bY first class
mail, postage prepaid, mailed not less than 30 days prior to the Redemption Date, to each ~Holder of
Bonds to be redeemed, at his address appearing in the Bond Registrar. All notices of redemption shall
state:
(i) The Redemption Date;
(ii) The redemption price;
(iii) If less than all Outstanding Bonds are to be redeemed, the identification (and, in
the case of partial redemption, the respective principal amounts) of the Bonds to be rexieemed;
(iv) That on the Redemption Date, the redemption price will become due and payable
upon each such Bond, and that interest thereon shall cease to accrue from and after said date; and
(v) The place where such Bonds are to be surrendered for payment of the redemption
price (which shall be the office of the Paying Agent).
The failure of the Holder of any Bond to be redeemed to receive written notice mailed pursuant
hereto shall not affect or invalidate the redemption of said Bond. If any Bond is called for r~demption
and payment as aforesaid, all interest on such Bond shall cease from and after such redemPtion date,
provided funds are deposited with the Paying Agent for its payment on the Redemption Date at the
redemption price.
The Bond Registrar is also directed to comply with any mandatory or voluntary standards then
in effect for processing redemptions of municipal securities established by the Securities and Exchange
Commission. Failure to comply with such standards shall not affect or invalidate the redemPtion of any
Bond to be redeemed.
Section 5. Method and Place of Payment of Principal of and Interest on the Brands. The
principal of, premium, if any, and interest (computed on the basis of a 360-day year of twelve 30-day
months) on the Bonds shall be payable in such coin or currency of the United States of AmeriCa as at the
time of payment is legal tender for the payment of public and private debts. Payment of the i interest on
each Bond shall be made by the Paying Agent on each Interest Payment Date to the Person appearing as
the Holder thereof in the Bond Register at the close of business on the Regular Record!Date next
preceding said Interest Payment Date, by check or draft mailed to such Holder at the Holder's address
as it appears in the Bond Register. The principal of and redemption premium, if any, each iBond shall
be payable to the Holder thereof upon the presentation of such Bond for payment and cancellation at its
Maturity at the principal office of the Paying Agent.
Notwithstanding any of the foregoing provisions of this Section to the contrary, any '~interest on
the Bonds which is payable, but is not punctually paid on any Interest Payment Date (herein called
"Defaulted Interest"), shall be payable to the persons in whose names the Bonds are registered at the close
of business on a Special Record Date. The Special Record Date shall be fixed in the following manner:
(1) The City shall notify the Bond Registrar in writing of the amount of Defaulted Interest ~oposed to
be paid on the Bonds and the date of the proposed payment, which proposed payment date ishall be at
least 30 days after receipt by the Bond Registrar of such notice from the City; (2) at the same time the
City shall deposit with the Paying Agent an amount of money equal to the aggregate amountito be paid
in respect of such Defaulted Interest or shall make arrangements satisfactory to the Paying Agent for such
deposit prior to the date of the proposed payment; and (3) thereupon, the Bond Registrar Shall fix a
special Record Date for the payment of such Defaulted Interest which shall not be more than 15 nor less
than 10 days prior to the date of the proposed payment.
The Bond Registrar shall promptly notify the City of such Special Record Date and, im the name
and at the expense of the City, shall cause notice of the proposed payment of such Defaulted I~terest and
the Special Record Date therefor to be mailed, first class postage prepaid, to the Holder of ~ach Bond
at the Holder's address as it appears in the Bond Register, not less than 10 days prior to suCh Special
Record Date. Notice of the proposed payment of such Defaulted Interest and the Special R~rd Date
therefor having been mailed as aforesaid, such Defaulted Interest shall be paid to the PersonS in whose
names the Bonds are registered at the close of business on such Special Record Date.
Subject to the foregoing provisions of this Section, each Bond delivered under this Ordinance
upon transfer of or in exchange for or in lieu of any other Bond shall carry the rights to interest accrued
and unpaid, and to accrue, which were carried by such other Bond.
Section 6. Execution, Authentication and Delivery of the Bonds. The Bonds shall be executed
on behalf of the City by the facsimile signature of its Mayor and attested by the facsimile signature of
its City Clerk, and shall have the seal of the City affixed thereto or imprinted thereon. In the!event any
officer whose signature or facsimile thereof appears on any Bond shall cease to be such officer before
the delivery of such Bond, such signature or facsimile thereof shall nevertheless be valid and sufficient
for all purposes, the same as if such person had remained in office until delivery. Any Bond may be
executed by such persons as at the actual time of the execution of such Bond shall be the proper officers
to sign such Bond although at the original date of such Bond such persons may not hav~ been such
officers.
The Bonds shall have endorsed thereon a Certificate of Authentication substantially in the form
hereinafter set forth and which shall have the date of registration inserted and shall be manually executed
by the Bond Registrar.
No Bond shall be entitled to any security or benefit under this Ordinance or shall be valid or
obligatory for any purpose unless and until such Certificate of Authentication shall have been duly
executed by the Bond Registrar by manual signature. Such executed Certificate of Authentication upon
any Bond shall be conclusive evidence that such Bond has been duly authenticated and delivered under
this Ordinance and that such registered owner has been entered on record in the Bond Register kept by
the Bond Registrar. The Certificate of Authentication shall be deemed to have been duly ex~cuted if the
Registration Date has been inserted and if it has been signed by any authorized officer or employee of
the Bond Registrar, but it shall not be necessary that the same officer or employee sign th~ Certificate
of Authentication on all of the Bonds that may be issued hereunder at any one time.
The Mayor and the City Clerk are hereby authorized and directed to prepare and i execute the
Bonds in the manner hereinbefore specified, the City Clerk is hereby authorized and directed to register
the Bonds, and the Mayor and the City Clerk are hereby authorized and directed to cause the Bonds to
be registered in the office of the State Treasurer of Kansas as provided by law, and when the~Bonds have
been duly registered with the Bond Registrar, to deliver the Bonds to the original purchaser ttlereof, upon
the payment of the aggregate principal amount of the Bonds plus accrued interest to the dat~ of payment
and delivery, together with any premium.
Section 7. Registration. Transfer and Exchange of Bon~t$. So long as any of the BZnds remain
outstanding, the City shall cause the Bond Register to be kept at the principal office of the Boad Registrar
and all of the Bonds and transfers and or exchanges thereof shall be fully registered as to both principal
and interest in the names of the Holders in the Bond Register and shall not be registered to ~bearer.
Bonds may be transferred in the Bond Register only upon surrender thereof to the Boad Registrar
duly endorsed for transfer or accompanied by a written instrument of transfer duly execated by the
Holder thereof or his attorney or legal representative in such form as shall be satisfactory to the Bond
Registrar. Upon any such transfer, the City shall execute and the Bond Registrar shall authbnticate and
deliver in exchange for such Bond a new Bond or Bonds, registered in the name of the transf/~ree, of any
denomination or denominations authorized by this Ordinance in an aggregate principal amo~lnt equal to
the principal amount of such Bond, of the same Maturity and bearing interest at the same rate.
Bonds, upon surrender thereof at the principal office of the Bond Registrar, together with a
written instrument of transfer duly executed by the Holder thereof or his attorney or legal reliresentative
in such form as shall be satisfactory to the Bond Registrar, may, at the option of the Holderithereof, be
exchanged for an equal aggregate principal amount of Bonds of the same Maturity, of any denomination
or denominations authorized by this Ordinance, and bearing interest at the same rate.
In ail cases in which Bonds shall be exchanged or transferred hereunder, the City shall execute
and the Bond Registrar shail authenticate and deliver at the earliest practicable time Bonds in accordance
with the provisions of this Ordinance. Ail Bonds surrendered in any such exchange or tri~sfer shall
forthwith be cancelled by the Bond Registrar. No service charge shall be made to any Bondholder for
registration, transfer or exchange of Bonds, but the City or the Bond Registrar may make a~charge for
every transfer or exchange of Bonds sufficient to reimburse it or them for any tax or other go~ernmentai
charge required to be paid with respect to such transfer or exchange, and such charges sh~ll be paid
before any such transfer or exchange shall be completed.
The City and the Bond Registrar shall not be required (i) to issue, transfer or exchange any Bond
during a period beginning at the opening of business 15 days preceding the date of mailing Of a notice
of redemption for Bonds selected for redemption under Section 4 and ending at the close of {~nsiness on
the day of such mailing; (ii) to transfer or exchange any Bond so selected for redemption in Whole or in
part; or (iii) to issue, transfer or exchange any Bond during a period beginning at the opening Of business
on the day after receiving written notice from the City of its intent to pay Defaulted Interest and ending
at the close of business on the date fixed for the payment of Defaulted Interest pursuant to this Ordinance.
Section 8. Persons Deemed Owners of Bonds. The Person in whose name any Bol~d shall be
registered shall be deemed and regarded by the City, the Bond Registrar and the Paying Agent as the
absolute owner thereof, whether such Bond shall be overdue or not, for the purpose of receivir~g payment
therefor or on account thereof and for all purposes, and neither the City, the Bond Registrar nor the
Paying Agent shall be affected by notice to the contrary. Payment of or on account of the l~rincipal of
and interest on any Bond shall be made only to or upon the order of the Holder thereof otc his legai
representative. All such payments shail be valid and effectuai to satisfy and discharge the liability upon
such Bond, including the interest thereon, to the extent of the sum or sums so paid.
Section 9. IViutil{~ted, Lost, Stolen or Destroyed Bonds. In the event any Bond shall become
mutilated, or be lost, stolen or destroyed, the City shall, if necessary, execute and the Bond Registrar
shall authenticate and shail deliver a new Bond of like date and tenor as the Bond mutilated, 10st, stolen
or destroyed; provided that, in the case of any mutilated Bond, such mutilated Bond shall first be
surrendered to the Bond Registrar, and in the case of any lost, stolen or destroyed Bond, if the
requirements of K.S.A. 84-8-40~5 are met and if an indemnity bond and affidavit of loss are provided to
the Bond Registrar and the City at the expense of the Holder. Such indemnity bond and affidavit of loss
must be sufficient, in the judgment of the Bond Registrar and the City, to protect the Bond Registrar and
the City from any loss which either of them might suffer if the Bond is replaced. In the event~ any such
Bond shall have matured, instead of issuing a substitute Bond the City may pay or authorize the payment
of the same without surrender thereof. Upon the issuance of any substitute Bond, the City and the Bond
Registrar may require the payment of an amount sufficient to reimburse the City and the Bond Registrar
for any tax or other governmental charge that may be imposed in relation thereto and ~ny other
reasonable fees and expenses incurred in connection therewith. The provisions of this S~ction are
exclusive and shall preclude (to the extent lawful) ail other rights and remedies with respect to the
replacement or payment of mutilated, lost, stolen or destroyed Bonds.
Section 10. Cancellation and Destruction of Bonds Upon Payment. All Bonds surren~dered for
payment, transfer or exchange shall be delivered to the Bond Registrar and, if not already cancelled, the
Bond Registrar shall cancel such Bonds and record such cancellation in the Bond Register. Thereafter,
such cancelled Bonds shall be delivered to the City.
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Section 11. Form of Bonds. The Bonds and the Bond Registrar's Certificate of Authentication
to be endorsed thereon shall be in substantially the form attached hereto as Exhibit UA~. The Bonds may
have endorsed thereon such legends or text as may be necessary or appropriate to conform to any
applicable rules and regulations of any governmental authority or any custom, usage or requirement of
law with respect thereto.
Section 12. Disvosition of Bond Proceeds and Other Fund~. All accrued interest and premium,
if any, received from the sale of the Bonds shall be deposited in the general obligation bond fund held
by the City Treasurer for the retirement of the Bonds.
The remaining balance of the proceeds derived from the sale of the Bonds shall be d~Posited in
a fund held by the City Treasurer and shall be used solely for the purpose of paying the Costs of the
Project, including the retirement of temporary notes issued with respect to the Project, and the costs of
issuing the Bonds.
Section 13. Levy_ and Collection of Annual Taxes and Assessment?. The governing [~ody of the
City shall annually make provision for the payment of the principal of and interest on the BOnds as the
same become due by levying and collecting the necessary taxes and assessments therefor in the manner
provided by law.
Section 14. Transfer of Funds to Paying Agent and the Bond Registrar. The City T~easurer is
hereby authorized and directed to withdraw from the funds received in payment of the'. taxes and
assessments and from the debt service fund of the City and forward to the Paying Agent sum~ sufficient
to pay the principal of and interest on the Bonds as and when the same become due and ~to pay the
charges of the Paying Agent for acting as paying agent in the payment of principal and interest. In
addition, the City Treasurer is hereby authorized and directed to withdraw from the debt servico fund and
forward to the Bond Registrar sums sufficient to pay the charges of the Bond Registrar for acting as bond
registrar. Sums sufficient to pay said charges shall be forwarded to the Paying Agent and Bond Registrar
over and above the amount of the principal of and interest on the Bonds.
Section 15. Authorization of Agreement Between the Ci_ty and the Bond Re£istrar. The
Agreement between the City and the State Treasurer of Kansas, in substantially the form attacl~ed hereto,
with respect to the duties of the State Treasurer as Bond Registrar is in all respects hereby approved,
authorized and confirmed and the Mayor and City Clerk are hereby authorized and directed to execute
said Agreement for and on behalf of the City.
Section 16. Tax Covenant~.
(a) The City covenants and agrees that (1) it will comply with all applicable provisions of
the Internal Revenue Code of 1986, as amended (the "Code"), including Sections 103 and 141 through
150, necessary to maintain the exclusion from gross income for federal income tax purpOses of the
interest on the Bonds and (2) it will not take any action, or fail to take any action, if any sucl~ action or
failure to take action would adversely affect the exclusion from gross income of the interest on the Bonds.
The City will, in addition, adopt such other ordinances or resolutions and take such other actions as may
be necessary to comply with the Code and with all other applicable future laws, regulations,! published
rulings and judiciai decisions, in order to ensure that the interest on the Bonds will remain excluded from
federal gross income, to the extent any such actions can be taken by the City.
-8-
Co) The City covenants and agrees that (1) it will comply with all requirement~ of Section
148 of the Code to the extent applicable to the Bonds, (2) it will use the proceeds of the BOnds as soon
as practicable and with all reasonable dispatch for the purposes for which the Bonds are isaued and (3)
it will not invest or directly or indirectly use or permit the use of any proceeds of the Bonds Or any other
funds of the City in any manner, or take or omit to take any action, that would cause the Bonds to be
"arbitrage bonds" within the meaning of Section 148(a) of the Code.
(c) The City covenants that it will expend all of the proceeds of the Bonds, including any
investment earnings, within six months of the date of issuance of the Bonds in accordance with the
provisions of Section 148(f)(4)(B)(i) of the Code.
(d) The foregoing covenants shall remain in full force and effect notwithstanding the
defeasance of the Bonds pursuant to Section 17 of this Ordinance until the final maturity date Of all Bonds
Outstanding.
Section 17. Defeasance. When all of the Bonds shall have been paid and discharged, then the
requirements contained in this Ordinance and all other rights granted hereby shall terminate. 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 bank located in the State of Kansas and having full trust
powers, at or prior to the Stated Maturity of said Bonds, in trust for and irrevocably appropria[ed thereto,
moneys and/or direct obligations of, or obligations the principal of and interest on which areiguaranteed
by, the United States of America, or in evidences of ownership of such obligations, which, together with
the interest to be earned on any such obligations, will be sufficient for the payment of the principal of
said Bonds and interest accrued to the Stated Maturity, or if default in such payment shall have occurred
on such date, then to the date of the tender of such payments. Any moneys and obligations which at any
time shall be deposited with said Paying Agent or bank or on behalf of the City, for the Purpose of
paying and discharging any of the Bonds, shall be and are hereby assigned, transferred and Set over to
such Paying Agent or bank in trust for the respective Holders of the Bonds, and such mone~ts shall be
and are hereby irrevocably appropriated to the payment and discharge thereof. All moneys deposited with
said Paying Agent or bank shall be deemed to be deposited in accordance with and subject tO all of the
provisions contained in this Ordinance.
Section 18. A_D_DrOVal of Preliminary Offici~ Statement and Qfficial Statement. The l~reliminary
Official Statement dated May 2, 1994, a copy of which has been submitted to and reviewed by the
Governing Body of the City, was final within the meaning of Rule 15c2-12 under the Securitie.q Exchange
Act of 1934 except for the omission of information relating to offering prices, interest rate~, delivery
dates, any other terms or provisions required to be specified in the bid for the Bonds, other t0ffi-~s of the
Bonds depending on such matters and the identity of the successful bidder for the Bondi, and the
information therein was accurate and complete. Said Preliminary Official Statement and the fitial Official
Statement, in substantially the form of the Preliminary Official Statement, and the public distribution of
the same by the underwriters of the Bonds 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.
Section 19. Severability. If any one or more of the covenants or agreements provided in this
Ordinance (including the exhibits hereto) on the part of the City should be contrary to law, ':then such
covenant or covenants or agreement or agreements shall be deemed severable from the remaining
covenants and agreements, and shall in no way affect the validity of the other provisions of this Ordinance
or of said exhibits. It shall not be necessary for said exhibits to be published in the official City
newspaper, but all such exhibits shall be on file in the office of the City Clerk and shall be available for
inspection by any interested party.
Section 20. Effective Date. This Ordinance shall take effect and be in full force from and after
its publication in the official City newspaper.
PASSED by the governing body of the City of Salina, Kansas, this day of May, 1994.
(SEAL) ,
ATTEST: Mayor
City Clerk
EXHIBIT A
REGISTERED RI~GISTERED
NUMBER $ ,
UNITED STATES OF AMERICA
STATE OF KANSAS
COUNTY OF SALINE
CITY OF SALINA
GENERAL OBLIGATION INTERNAL IMPROVEMENT BOND
SERIES 1994-A
Interest Maturity Bond
Rate Date Date CUSIP
.% Per Annum June 1, 1994
REGISTERED HOLDER:
PRINCIPAL AMOUNT: DOLLARS
The City of Salina, in the County of Saline, State of Kansas (herein called the "City"), for value
received, hereby promises to pay to the Registered Holder identified above, or registered assigns, on the
Maturity Date identified above, the Principal Amount identified above and to pay interest thereon at the
Interest Rate specified above from the most recent Interest Payment Date to which interest h~ been paid
in full or, if no interest has been paid, from June 1, 1994, semiannually on April 1 and October 1 in each
year, beginning April 1, 1995
INTEREST on this Bond will be paid by check or draft mailed to the person in whose name this
Bond (or one or more predecessor Bonds) is registered in the Bond Register maintained by the Bond
Registrar at the close of business on the fifteenth day of the month next preceding each interest payment
date (the Regular Record Date). Interest not punctually paid will be paid as otherwise provided in the
ordinance authorizing this Bond (the "Ordinance"). The Principal Amount of this Bond shall be payable
by check or draft to the Registered Holder upon presentation and surrender hereof at the principal office
of the State Treasurer of Kansas, in the City of Topeka, Kansas. The full faith, credit and resources of
the City are hereby irrevocably pledged for the prompt payment of the principal of and interest on this
Bond as the same become due. The principal of and interest (computed on the basis of a 360-day year
of twelve 30-day months) on this Bond are payable in such coin or currency of the United States of
America as at the time of payment is legal tender for payment of public and private debts.
REFERENCE IS MADE TO THE FURTHER PROVISIONS OF THIS BOND SET FORTH ON
THE REVERSE HEREOF. SUCH PROVISIONS SHALL FOR ALL PURPOSES HAVE TI~tE SAME
EFFECT AS IF SET FORTH HERE.
THIS BOND shall not be valid or become obligatory for any purpose or be entitled to any
security or benefit under the Ordinance until the Certificate of Authentication hereon shall have been
dated and executed by the Bond Registrar.
IT IS HEREBY DECLARED AND CERTIFIED that all acts, conditions and thingsi required to
be done and to exist precedent to and in the issuance of this Bond have been done and performed and do
exist in due and regular form and manner as required by the constitution and laws of the Stat~ of Kansas,
and that the total indebtedness of the City, including this Bond and the series of which it is o!~e, does not
exceed any constitutional or statutory limitation.
IN WITNESS WHEREOF, the governing body of the City of Salina, Kansas, has icaused this
Bond to be signed by facsimile signature of its Mayor and attested by facsimile signaturei of its City
Clerk, the City's corporate seal to be printed hereon and this Bond to be dated June 1, 1994.
CITY OF SALINA, KANSAS
By (facsimile)
Mayor
ATTEST:
(facsimile)
City Clerk
Registration No. 0322-085-060194-668
CERTIFICATE OF AUTHENTICATION
REGISTRATION DATE:
This Bond is one of the Bonds described in the within mentioned Ordinance.
OFFICE OF THE STATE TREASURER OF KANSAS Bond Registrar
By
Bond Registrar and Paying Agent:
STATE TREASURER OF KANSAS
[ON REVERSE SIDE]
THIS BOND is one of an authorized series of fully registered bonds of the City designated
"General Obligation Internal Improvement Bonds, Series 1994oA", aggregating the principal lamount of
$1,175,000 (the "Bonds"), issued by the Cityfor the purpose of providing funds to pay the Lost of the
construction of certain street and utility improvements in the City, under the authority of and in full
compliance with the constitution and laws of the State of Kansas, including K.S.A. 10o101 Ot seq. and
12-6a01 et seq., as amended and supplemented and all laws amendatory thereof and supplemeatal thereto,
and pursuant to ordinances duly passed and proceedings duly and legally had by the governing body of
the City.
THE BONDS are general obligations of the City, payable as to principal and interest from special
assessments levied upon the property benefited by the construction of said improvements an~l, if not so
paid, from ad valorem taxes which may be levied without limitation as to rate or amount Upon all the
taxable tangible property, real and personal, within the territorial limits of the City.
THE BONDS maturing on October 1, 2002, and thereafter are subject to redemption and payment
prior to maturity, at the option of the City on Oct6ber 1, 2001, and thereafter, in whole at any time or
in part on any interest payment date in such principal amounts for such maturities as shall be determined
by the City, at a redemption price of 100% of the principal amount of Bonds redeemed and paid plus
accrued interest to the redemption date, without a premium. In the case of partial redemption of Bonds
of the same maturity, the Bonds to be redeemed shall be selected by the Bond Registrar in such manner
as it shall deem fair and appropriate.
IN THE EVENT any of the Bonds are called for redemption as aforesaid, written no6ce thereof
will be given by first class mail mailed not less than 30 days prior to the redemption date to each
Registered Holder of Bonds to be redeemed. All Bonds so called for redemption will cease to bear
interest on the specified redemption date provided funds or certain securities in which sucl~ funds are
invested for their redemption are on deposit with the Paying Agent on such redemption date, and will no
longer be secured by the Ordinance and will not be deemed to be outstanding under the provi~ions of the
Ordinance.
THIS BOND is transferable only in the Bond Register at the office of the Bond Registrar upon
surrender of this Bond to the Bond Registrar duly endorsed for transfer or accompanied bY a written
instrument of transfer satisfactory to the Bond Registrar duly executed by the Registered Ho[der hereof
or his attorney or legal representative, and .thereupon a new Bond or Bonds in the same! aggregate
principal amount shall be issued to the transferee in exchange therefor, subject to the coaditions as
provided in the Ordinance. The Bonds for each maturity are issuable only in the form of fully!registered
Bonds without coupons in the denomination of $5,000 or any integral multiple thereof. The Registered
Holder of any Bond or Bonds may surrender the same in exchange for an equal aggregat~ principal
amount of Bonds of any authorized denomination in the manner and subject to the conditions a~ provided
in the Ordinance. No service charge shall be made for any such transfer or exchange, but, prior to any
transfer or exchange, the Registered Holder hereof shall pay to the City or the Bond Registrar hn amount
sufficient to reimburse it or them for any tax or other governmental charge required to be paid with
respect to such transfer or exchange. The City, the Bond Registrar and the Paying Agent may! deem and
treat the person in whose name this Bond is registered as the absolute owner hereof for the purpose of
receiving payment of, or on account of, the principal hereof and interest due hereon and for all other
purposes. If the date for making any payment of interest or principal occurs on a Saturday Or Sunday
or a holiday in the City of Topeka, Kansas, then such payment may be made on the next sUcceeding
business day with the same force and effect.
A-3 ~
(FORM OF ASSIGNMENT)
FOR VALUE RECEIVED the undersigned does (do) hereby sell, assign and transfer to
(Name and Address)
(Social Security or Taxpayer Identifying No.)
the Bond to which this assignment is affixed in the outstanding principal amount of $ ,, standing
in the name of the undersigned on the books of the State Treasurer. The undersigned does {do) hereby
revocably constitute and appoint
attorney to transfer the said Bond, on the books of said State Treasurer, with full power of Substitution
in the premises.
Dated
Name
Account No.
Signature
(Sign Here Exactly as Name or
Names Appear on the Face of
the Certificate)
(Signature Guarantee)
A-4
STATE OF KANSAS )
) ss.
COUNTY OF SALINE )
I, Judy D. Long, City Clerk of the City of Salina, Kansas, do hereby certify that this Bond has
been duly registered in my office according to law.
WITNESS my hand and official seal this June 1, 1994.
[SEAL]
City Clerk
(FORM OF STATE TREASURER'S CERTIFICATE)
OFFICE OF THE STATE TREASURER OF KANSAS
I, SALLY THOMPSON, Treasurer of the State of Kansas, do hereby certify that a ffanscript of
the proceedings leading up to the issuance of this Bond has been filed in my office and that this Bond was
registered in my office according to law this
WITNESS my hand and official seal.
(facsimile)
State Treasurer of Kansas
[SEAL]
A-5