10-10563 River Project Sales Tax Question(Published in the Salina Journal 3 , 2010)
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ORDINANCE NUMBER 10-10563
AN ORDINANCE SUBMITTING TO THE ELECTORS OF THE CITY THE
QUESTION OF WHETHER A ONE-FOURTH PERCENT (1/4%) SPECIAL PURPOSE
SALES TAX SHOULD BE IMPOSED FOR A PERIOD OF TEN (10) YEARS; USED ONLY
w TO FINANCE THE COSTS OF CONSTRUCTION AND IMPLEMENTATION OF
IMPROVEMENTS TO THE SMOKY HILL RIVER AND TO ISSUE SALES TAX
REVENUE AND/OR GENERAL OBLIGATION SALES TAX BONDS TO PAY THE
a COSTS OF THE RIVER PROJECT AND FINANCING COSTS.
BE IT ORDAINED by the Governing Body of the City of Salina, Kansas:
Section 1. Pursuant to K.S.A. 12-187, the Governing Body hereby authorizes, orders
and directs that a special question election shall be and is hereby called to be held in the City in
conjunction with the general election to be held on November 2, 2010 at which time there shall be
submitted to the qualified electors of the City the following proposition:
Shall the following be adopted?
Shall the City of Salina, Kansas be authorized to: (1) impose a one-fourth percent (1/4%)
city-wide retailers' special purpose sales tax (the "River Project Sales Tax"), the proceeds of
which shall be used only to finance the costs of construction and implementation of
improvements to the Smoky Hill River, including but not limited to studies, engineering,
design, land and easement acquisition, river channel improvements, recreational trail and
riverwalk construction and improvements, creation and improvement of adjacent parks, road
and bridge improvements, storm drainage and utility improvements and all other
improvements and expenses necessary and appropriate to implement the intent of the Smoky
Hill River Renewal Master Plan, as well as costs of maintaining all such improvements and
facilities related and adjacent thereto (the "River Project"); the collection of such River
Project Sales Tax to commence on April 1, 2011 or as soon thereafter as permitted by law
and to terminate ten years after its commencement; and (2) issue sales tax revenue and/or
general obligation sales tax bonds in a principal amount of not to exceed $27,800,000 to pay
the costs of the River Project and associated financing costs; all pursuant to the provisions of
K.S.A. 12-187 et seq., as amended and K.S.A. 10-101 el seq., as amended?
Section 2. If a majority of the electors of the City voting on the proposition approve the
levy of the tax and the issuance of such bonds, the Governing Body shall provide by ordinance for
the levy of the tax.
Section 3. If approved, the tax shall be subject to all applicable state laws and
administrative rules and regulations of the Kansas Department of Revenue. The service of the
Kansas Department of Revenue shall be utilized to administer, enforce and collect such tax.
Section 4. If approved, the collection of such tax shall commence on the first day of the
calendar quarter next following the ninetieth (90`h) day after the date that the City has provided
written notice to the director of taxation of the election authorizing the levy of the tax and a copy of
the ordinance referred to in Section 2 hereof. It is expected that the tax will commence April 1,
2011 or as soon thereafter as permitted by law, and such tax shall end ten (10) years after the date of
commencement.
Section 5. The City Clerk is directed to request that the County Election Officer take all
steps necessary to include the proposition set forth in Section 1 above on the ballot for the
November 2, 2010 general election, including publication of the Notice of Special Question
Election in substantially the form presented to the Governing Body on this date. The notice shall be
published in the Salina Journal once each week for two consecutive weeks, with the first publication
to be not less than twenty-one (21) days prior to the election and the last publication being not more
than ninety (90) days prior to the date of the election.
Section 6. This ordinance shall be in full force and effect from and after its adoption and
publication once in the'official city newspaper.
[SEAL]
ATTEST:
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Lieu Anne Elsey, CMC, City Clerk
Introduced: August 23, 2010
Passed: August 30, 2010
Passed by a vote of :yes;_no; Oabstain
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Aaron G. Peck, Mayor
EXHIBIT A
(Published in the Salina Journal on , 2010 and on , 2010.)
NOTICE OF SPECIAL QUESTION ELECTION
w CITY OF SALINA, KANSAS
q
Notice is hereby given to the qualified electors of the City of Salina, Kansas (the "City") that a
' a special question election has been called and will be held in conjunction with the general election on
November 2, 2010, for the purpose of submitting to the qualified electors of the City the following
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proposition:
Shall the following be adopted?
Shall the City of Salina, Kansas be authorized to: (1) impose a one-fourth percent (1/4%)
city-wide retailers' special purpose sales tax (the "River Project Sales Tax"), the proceeds of
which shall be used only to finance the costs of construction and implementation of
improvements to the Smoky Hill River, including but not limited to studies, engineering,
design, land and easement acquisition, river channel improvements, recreational trail and
riverwalk construction and improvements, creation and improvement of adjacent parks, road
and bridge improvements, storm drainage and utility improvements and all other
improvements and expenses necessary and appropriate to implement the intent of the Smoky
Hill River Renewal Master Plan, as well as costs of maintaining all such improvements and
facilities related and adjacent thereto (the "River Project"); the collection of such River
Project Sales Tax to commence on April 1, 2011 or as soon thereafter as permitted by law
and to terminate ten years after its commencement; and (2) issue sales tax revenue and/or
general obligation sales tax bonds in a principal amount of not to exceed $27,800,000 to pay
the costs of the River Project and associated financing costs; all pursuant to the provisions of
K.S.A. 12-187 el seq., as amended and K.S.A. 10-101 et seg., as amended?
IT IS IMPORTANT FOR EACH QUALIFIED VOTER TO NOTE THAT YOUR BALLOT
CANNOT BE COUNTED UNLESS YOU TAKE THE APPROPRIATE STEPS:
To vote in favor of any question submitted on this ballot, make a cross or a check mark
in the square to the left of the word "Yes." To vote against it, make a cross or a check
mark in the square to the left of the word "No."
❑ YES
❑ NO
ADDITIONAL INFORMATION
General
The following additional information is provided by the City with respect to the impact of this
ballot question.
Passage of this ballot proposition would authorize the City to (a) impose a special retailers'
special purpose sales tax at the rate of 1/4 percent (1/4%) within the limits of the City (the "River
Project Sales Tax") to be used only to finance the costs of construction and implementation of
improvements to the Smoky Hill River, including but not limited to studies, engineering, design,
land acquisition, river channel improvements, recreational trail and riverwalk construction and
improvements, creation and improvement of adjacent parks, road and bridge improvements, storm
drainage and utility improvements and all other improvements and expenses necessary and
appropriate to implement the intent of the Smoky Hill River Renewal Master Plan, as well as costs
of maintaining all such improvements and facilities related and adjacent to the River (the "River
Project"); and (b) issue sales tax revenue and/or general obligation sales tax bonds in a principal
amount of not to exceed $27,800,000 to pay the costs of the River Project and associated financing
costs (the "Bonds"). If the proposition is approved, the City may issue temporary financing to
construct the River Project prior to the commencement of the River Project Sales Tax. In such case,
the Bonds would thereafter be issued to retire the interim financing after the River Project Sales Tax
has commenced. The River Project Sales Tax would commence on April 1, 2011 or as soon
thereafter as permitted by law and shall terminate ten years after its commencement, which date is
w expected to be March 31, 2021.
The following additional information is provided by the City with respect to compliance with
the provisions of K.S.A. 10-120a and K.S.A. 12-6,122 with respect to the River Project and the
' 8 Bonds. This information has been obtained from sources deemed reliable by the City. Certain
portions of this information are based upon projections. No assurances can be given that these
projections will be accurate as of the date of issuance of the Bonds due to changing market conditions
and other matters unknown or unavailable at this time. The assumed principal repayment schedule
and the average interest rates are based on recent bond issues for similar types of financings all as
shown below.
Projected Summary of River Project Costs — General Obligation Sales Tax Bonds
Sources of Funds Uses of Funds
Bonds to be Issued $ 23,300,000 River Project Costs (including architectural, $23,395
engineering design, construction, site improve-
ments, project management, contingency and
interim financing costs)
Interest Earnings $ 120,000 Issuance Expenses (including attorney fees, $25,000
printing costs, rating agency fees, financial
advisor fees, underwriting fees and other
miscellaneous expenses)
Total $23,420,000 Total $23,420
Projected Summary of General Obligation Sates Tax Bond Issue Repayments
Estimated Annual Sales Tax Revenues (1/4%):$2,500,000.00 [, plus 3% per annum]
Principal Repayment Term: 10 years Average Interest Rate: 3.0%
Total Interest Cost to Maturity: $3,596,498 Average Annual Principal and
Interest Payments $2,988,640
Ad Valorem Taxation Based on 100% of Estimated Sales Tax Collections: $ 0
0.000 mils
Ad Valorem Taxation Based on 90% of Estimated Sales Tax Collections: $ 250,000
.62 mils
Ad Valorem Taxation Based on 80% of Estimated Sales Tax Collections: $ 500,000
1.24 mils
1 Based on 2009 Assessed Valuation of $402,842,437
Projected Summary of River Project Costs —Sales Tax Revenue Bonds
Sources of Funds Uses of Funds
Bonds to be Issued $27,800,000 River Project Costs (including architectural, $24,549,211
engineering design, construction, site improve-
ments, project management, contingency and
interim financing costs)
Interest Earnings $145,000 Issuance Expenses (including attorney fees, 25,000
printing costs, rating agency fees, financial
advisor fees, underwriting fees and other
miscellaneous expenses)
Debt Service Reserve Fund 3,370,789
Total $27,945,000 Total 27,945,000
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Projected Summary of Sales Tax Revenue Bond Issue Repayments
Estimated Annual Sales Tax Revenues one-quarter percent (1/4%) $2,689,776
Principal Repayment Term: 10 years Average Interest Rate: 3.5%
w Total Interest Cost to Maturity: $5,908,486 Average Annual Principal and
Interest Payments $3,033,709
o 'Based on actual 2009 collections prorated for one-quarter percent (1/41/o) sales tax
The polls will open at 7:00 o'clock A.M. and will close at 7:00 o'clock P.M., on November 2,
2010, the election day. The voting places in the City, and the area each voting place will serve, will
be as follows:
[TO BE INSERTED BY COUNTY CLERK]
Voters Residing
In Precinct Will Vote At
Location
The election will be conducted by the officers and/or persons provided by law for holding
elections, and the method of voting will be by ballot. Registered voters are eligible to vote by
advance voting ballot upon application to the County Clerk set forth below pursuant to K.S.A. 25-
1117 el seg.
ELECTION INFORMATION
The election officer conducting the election will be the Election Commissioner of Saline
County, Kansas, whose address is: , , Salina, Kansas
DATED: 2010.
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Saline County, Kansas
County Clerk