07-10390 Issue GO Bonds 2007-AM
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(Published in the Salina Journal on June L,3 2007.)
ORDINANCE NO. 07-10390
AN ORDINANCE AUTHORIZING. THE ISSUANCE AND DELIVERY OF $6,545,000
PRINCIPAL AMOUNT OF GENERAL OBLIGATION INTERNAL IMPROVEMENT BONDS,
SERIES 2007-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 FOR THE PURPOSE OF PAYING THE
PRINCIPAL OF AND INTEREST ON THE BONDS AS THEY BECOME DUE; AND MAKING
CERTAIN COVENANTS WITH RESPECT THERETO.
WHEREAS, the City of Salina, Kansas (the "City") is a City of the first class, created, organized
and existing under the laws of the State; and
WHEREAS, pursuant to K.S.A. 10-101 et seq., K.S.A. 12-685 et seq., and K.S.A. 12-6a01 et seq.,
as amended and supplemented, and all .other applicable .provisions of the laws of the state of Kansas, the
governing body of the City has caused the following improvements to be undertaken in the City (such
improvements to be referred to as the "Improvements"):
Resolution
Number
Project Name
Amount
02-5811; 06-6237
North Ohio Overpass
$2,240,000
04-6086; 06-6235
North Broadway Blvd
2,257,959
06-6243
Magnolia Hills Subdivision
790,029
06-1588
Piercy Addition
147,901
06-6233
Golden Eagle
312,675
06-6252
Eagle Med
27,599
06-6264,
Quail Meadows, Phase II
494,675
06-6280
West Grand Water extension
201,950
06-6282
Lakeside Addition
72,232
TOTAL= $6,545,000
WHEREAS, all legal requirements pertaining to the Improvements have been complied with, and
the governing body of the City now finds and determines that the total cost of the Improvements is.at least
$6,545,000, to be paid by the issuance of general obligation bonds; and
WHEREAS, the governing body of the City is authorized by law to issue general obligation bonds
of the City to pay the costs of the Improvements; and
WHEREAS, the governing body of the City hereby finds and determines it is necessary for the City
to authorize the issuance and delivery of its general obligation bonds in the principal amount of $6,545,000
to pay the costs of the Improvements;
NOW, THEREFORE, BE IT ORDAINED BY THE GOVERNING BODY OF THE CITY OF
SALINA, KANSAS, AS FOLLOWS:
Section 1. Definitions of Words and Terms.
"Act" means the Constitution and all applicable statutes of the State including but not limited to
K.S.A. 10-101 et seq., K.S.A. 12-685 et seq., and K.S.A. 12-6a01 et seq., all as amended and supplemented.
"Authorized Cost" means the amount of expenditure for an Improvement which has been authorized
to be paid by the City by a resolution or ordinance of the City, less (1) the amount of any notes or bonds of
the City which are currently outstanding and available to pay the Authorized Cost, and (2) any Authorized
Costs which have been previously paid by the City or by any eligible source of funds unless such amounts
are entitled to be reimbursed under State and federal law.
"Bond and Interest Fund" means the Bond and Interest Fund of the City for its general obligation
bonds.
"Bonds" means the General Obligation Internal Improvement Bonds, Series 2007-A authorized by
this Ordinance in the aggregate principal amount of $6,545,000 and dated July 15, 2006.
"City" means the City of Salina, Kansas.
"City Clerk" means the appointed and acting City Clerk or, in the City Clerk's absence, the appointed
and/or elected Deputy or Acting City Clerk of the City.
City of Salina - Bond Ordinance Series 2007-A
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"Code" means the Internal Revenue Code of 1986, as amended, and the applicable regulations
proposed or promulgated thereunder of the United States Department of the Treasury.
"Improvements" means the improvements referred to in the preamble to this Ordinance.
"Mayor" means the elected and acting Mayor of the City or, in the Mayor's absence, the appointed
and/or elected Vice or Acting Mayor of the. City.
"Ordinance" means this Ordinance authorizing the issuance of the Bonds.
"State" means the state of Kansas.
"Treasurer" means the appointed and acting Treasurer of the City or, in the Treasurer's absence, the
appointed and/or elected Deputy or Acting Treasurer of the City.
Section 2. Authorization of and Security for the Bonds. These Bonds shall be issued for the purpose
of providing funds to pay the Authorized Costs of the Improvements.
The Bonds shall be general obligations of the City payable as to both principal and interest in part
from special assessments levied upon the property benefited by the construction of certain improvements,
and, if not so paid, from ad valorem taxes which may be levied without limitation as to rate or amount upon
all the taxable property, real and personal within the territorial limits of the City. The balance of the principal
of and interest on the Bonds is payable 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 prompt payment
of the principal of and interest on the Bonds as the same become due.
Section 3. Terms, Details and Conditions of the Bonds. The Bonds shall be dated and bear interest,
shall mature and be payable at such times, shall be in such forms, shall be subject to redemption and payment
prior to the maturity thereof, and shall be issued and delivered in the manner prescribed and subject to the
provisions, covenants and agreements set forth in a resolution hereinafter adopted by the governing body of
the City.
Section 4. Levy and Collection of Annual Tax and Assessments. The governing body of the City shall
annually make provision for the payment of principal of, premium, if any, and interest on the Bonds as the
same become due, taking into account any scheduled mandatory redemptions, by levying and collecting the
necessary taxes and/or assessments upon all of the taxable tangible property within the City in the manner
provided by law.
The taxes and/or assessments referred to above shall be spread upon the tax rolls and shall be levied
and collected at the same time and in the same manner as the general ad valorem taxes of the City are levied
and collected, and the proceeds derived from the taxes and/or assessments shall be deposited in the Bond and
Interest Fund.
If at any time the taxes and/or assessments are not collected in time to pay the principal of or interest on
the Bonds when due, the City Treasurer is hereby authorized and directed to pay the principal or interest out of
the general funds of the City and to reimburse the general funds for money so expended when the taxes and/or
assessments are collected.
Section 5. Tax Covenants. The City covenants and agrees that it will not take any action, or fail to
take any action, if any such action or failure to take action would adversely affect the exclusion of the interest
on the Bonds from gross income for federal income tax purposes. The City covenants and agrees that it will
use the proceeds of the Bonds as soon as practicable and with all reasonable dispatch for the purpose for
which the Bonds are issued as previously set forth, and that it will not directly or indirectly use or permit the
use of any proceeds of the Bonds or any other funds of the City, 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. To that end, the
City will comply with all. requirements of Section 148 of the Code to the extent applicable to the Bonds.
The City covenants and agrees that it will not use any portion of the proceeds of the Bonds, including
any investment income earned on such proceeds, directly or indirectly, in a manner that would cause any
Bond to be a "private activity bond" within the meaning of Section 141(a) of the Code.
Section 6. Further Authority. The Mayor, City Clerk and other City officials are authorized and
directed to execute such documents and take such actions as they may deem necessary or advisable in order
to carry out the purposes of this Ordinance.
Section 7. Governing Law. The Ordinance and the Bonds shall be governed by and construed in.
accordance with the applicable laws of the State.
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Section 8. Effective Date. This Ordinance shall take effect and be in full force from and after its
passage by the governing body of the City and publication in the official City newspaper.
PASSED by the governing body of the City on June 11, 2007.
(SEAL)
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City Clerk
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