02-10082 Issue Bonds(Published in the Salina Journal July //, 2002)
ORDINANCE NO. 02-10082
AN ORDINANCE AUTHORIZING THE ISSUANCE AND DELIVERY OF
$1,800,000 PRINCIPAL AMOUNT OF GENERAL OBLIGATION
INTERNAL IMPROVEMENT BONDS, SERIES 2002-B, 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.
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. 12-6a01 et seq., and K.S.A. 12-1736
et seq., all 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"):
1. Subdivision Improvements, Airport Industrial Center
2. Subdivision Improvements, Eastview Estates Addition, Phase III
3. Municipal Court Expansion
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 $1,800,000, 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 $1,800,000 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. 12-6a01 et seq., and K.S.A. 12-1736 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 Cost 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 2002-B
authorized by this Ordinance in the aggregate principal amount of $1,800,000 and dated July 15,
2002.
"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.
"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.
coredi S."n
"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
portions of the 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 tangible property, real and personal,
within the territorial limits of the City. The balance of the principal and interest on the Bonds shall
be 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. Lew and Collection of Annual Tax and Special 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 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
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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.
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 July 8, 2002.
(SEAL)
ATTEST:
Lieu Ann Nicola, City Clerk
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'Kiistin M. eaton ayor