88-3998 Issue Temporary Notes PT-99Kuhn -Cox Printing — S,hl Kansas
F
1
1
RESOLUTION NUMBER 88-3998
A RESOLUTION AUTHORIZING AND DIRECTING THE ISSUANCE OF
TEMPORARY NOTE NUMBER 1 OF THE CITY OF SALINA, KANSAS, IN THE
AMOUNT OF $23,000 FOR THE PURPOSE OF PROVIDING FUNDS TO PAY A
PORTION OF THE COST OF CERTAIN SIDEWALK IMPROVEMENTS IN SAID CITY.
WHEREAS, pursuant to K.S.A. 12-6a01 to 12-6a17, inclusive, and all
other provisions of the laws of the State of Kansas applicable thereto, by
proceedings duly had and other actions duly and legally taken, the City of
Salina, Kansas (the "City"), is proceeding with certain street and utility
improvements in said City (the "Project"), and
. WHEREAS, pursuant to actions duly taken in connection with the
Project, the City has entered into contracts and has incurred costs and expenses
in the amount of $23,000.00 on account of the Project, and
WHEREAS, part or all of the cost of the Project is to be paid by the
issuance of general obligation bonds of the City in the manner authorized by
law, and the City, by Resolution Number 88-3995 (the "Master Resolution"), has
authorized the issuance from time to time of the temporary notes of the City in
an aggregate principal amount not exceeding $23,000.00 to pay the obligations of
the City incurred in connection with the Project, SO NOW, THEREFORE
BE IT RESOLVED by the Governing Body of the City of Salina,
Kansas, as follows:
. Section 1. For the purpose of providing funds to pay obligations
incurred by the City in building and constructing the Project, there shall be
issued and hereby are authorized to be issued a municipal temporary note of the
City in the principal amount of $23,000 (the "Note"). The Note shall be
numbered 1, Series PT -99 and shall be in the form authorized -by the Master
Resolution. The Note shall be dated October 1, 1988, shall become due
December 31, 1989, shall bear interest from date at the rate of
percent ( %) per annum payable at maturity and shall
be redeemable at the option of the City at any time on not less than five days'
notice given by publication once in The Salina Journal, the official City
newspaper.
Section 2. The City will comply with all applicable provisions of the
Internal Revenue Code of 1986 (the "Code"), including Section 103 thereof, and
the regulations of the Treasury Department thereunder, from time to time
proposed or in effect, in order to maintain the exclusion from gross income for
purposes of federal income taxation of the interest on the Note.
The City covenants and agrees that it will use the proceeds of the
Note as soon as practicable and with all reasonable dispatch for the purpose for
which the Note is issued as hereinbefore set forth, and that no part of the
proceeds of the Note shall be invested in any securities, obligations or other
investments except for the temporary period pending such use nor used, at any
time, directly or indirectly, in a manner which, if such use had been reasonably
anticipated on the date of issuance of the Note, would have caused the Note to
be or become "arbitrage bonds" within the meaning of Section 103(b)(2) or
Section 148 of the Code and the regulations of the Treasury Department
thereunder proposed or in effect at the time of such use and applicable to
obligations issued on the date of issuance of the Note.
The City represents and warrants that (i) it is a governmental unit
under Kansas law with general taxing powers, (ii) the Note is not a private
activity bond as defined in Section 141 of the Code, (iii) 95% or more of the net
proceeds of the Note will be used for local governmental activities of the City
and (iv) the aggregate face amount of all tax-exempt bonds and notes (other
than private activity bonds) issued by the City (and all subordinate entities
thereof) during the calendar year 1988 is not reasonably expected to exceed
$5,000,000. The City hereby covenants that the City and all its subordinate
entities will not issue in excess of $5,000,000 of tax-exempt bonds and notes
(including the Note but excluding private activity bonds) during the calendar
year 1988 without first obtaining an opinion of nationally recognized counsel in
the area of municipal finance that the excludability of the interest on the Note
from gross income for federal tax purposes will not be adversely affected.
Kinn -Cow Priming — Salina, Kansas
1
1
j
The City hereby designates the Note' as "qualified tax-exempt
obligations" as defined in Section 265(b) (3) (B) of the Code. The aggregate face
amount of all tax-exempt obligations (excluding private activity bonds other than
qualified 501 (c) (3) bonds) issued or to be issued by the City (and all
subordinate entities thereof) during calendar year 1988. is not reasonably
expected to exceed $10,000,000. The City hereby covenants that the City and
all its subordinate entities will not issue in excess of $10,000,000 of qualified
tax-exempt obligations (including the Note but excluding private activity bonds
other than qualified 501(c) (3) bonds) during the calendar year 1988 without first
obtaining an opinion of nationally recognized counsel in the area of municipal
finance that the designation of the Bonds as "qualified tax-exempt obligations"
will not be adversely affected.
Section 3. Upon the execution and registration of the Note, it shall
be delivered to the purchaser thereof upon payment of the purchase price
thereof, being not less than the principal amount thereof plus accrued interest.
Adopted by the Board of Commissioners and signed by the Mayor this
22nd day of August, 1988.
[SEAL]
ATTEST:
Robert K. Biles, City Clerk
Sydjn/y/Sderbe*,aor