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10-10575 GO Refunding Bonds 2010-BORDINANCE NO. 10-10575 OF THE CITY OF SALINA, KANSAS PASSED OCTOBER 18, 2010 GENERAL OBLIGATION REFUNDING BONDS SERIFS 2010-B J (PUBLISHED IN THE SALINA JOURNAL ON OCTOBER i? 2010) ORDINANCE NO. 10-105-75 AN ORDINANCE AUTHORIZING AND PROVIDING FOR THE ISSUANCE OF z GENERAL OBLIGATION REFUNDING BONDS, SERIES 2010-B, OF TILE CITY w OF SALINA, KANSAS; PROVIDING FOR THE LEVY AND COLLECTION OF AN ANNUAL TAX FOR THE PURPOSE OF PAYING THE PRINCIPAL OF AND INTEREST ON SAID BONDS AS TIIEY BECOME DUE; AUTHORIZING ' a CER'T'AIN OTHER DOCUMEN'T'S AND ACTIONS IN CONNECTION THEREWITH; AND MAKING CERTAIN COVENANTS WITH RESPECT U THERE'T'O. WHEREAS, the City is a city of the first class, duly created, organized and existing under the Constitution and laws of the State; and WHEREAS, pursuant to the statutes referenced below, and other provisions of the laws of the State of Kansas applicable thereto, by proceedings duly had, the governing body of the City has authorized the following improvements (the `Improvements") to be made in the City: Project Description Resolution No. Authority Amount Various Water System Improvements 10-6760 K.S.A. 65-163u $8,600,000 and WHEREAS, the City has arranged for financing of a portion of the Improvements by the execution of various loan agreements described as follows: Dated Lender Loan'No. Date KDIIE KPWSLI 2153 12-01-1997 KDHL KPWSLI 2259 03-14-2001 (collectively, the "Loans"); and Maturity Original Date Amount 02/01/2020 $3,600,000 02/01/2023 5,000,000 Outstanding Redemption Amount Date $2,086,418.71 10-29-2010 3,577,224.12 10-29-2010 WHEREAS, in order to restructure debt payments and to provide an orderly plan of finance for the City, it has become desirable and in the best interest of the City and its inhabitants for the City to issue its general obligation bonds in order to permanently finance the costs of such improvements and to retire the Loans, and WHEREAS, Article 12, § 5 of the Constitution of the State of Kansas (the "Home Rule Amendment"): (a) empowers cities to determine their local affairs and government; and (b) provides that such power and authority granted thereby to cities: (1) shall be liberally construed for the purpose of giving to cities the largest measure of self -'government and (2) shall be exercised by ordinance, subject only to: (i) enactments of the Kansas legislature of statewide concern applicable uniformly to all cities, (ii) other enactments of the legislature applicable uniformly to all cities, (iii) enactments of the legislature applicable uniformly to all cities of the same class limiting or prohibiting the levying of any tax, excise, fee, charge or other action and (iv) enactments of the legislature prescribing limits of indebtedness; and WIIEREAS, the Kansas Supreme Court has considered the Home Rule Amendment and determined that: (a) home rule legislation should be permitted to stand unless an actual conflict exists between the home rule legislation and a stale legislative enactment, or unless the legislature has clearly preempted the field so as to preclude municipal action; and (b) legislative intent to reserve to the state exclusive jurisdiction to regulate an area must be clearly manifested by statute before it can be held that the state.has withdrawn from the cities the power to regulate in the field (McCarthy v. City of Leawood, 257 Kan. 566 (1995); Junction City v. Lee, 216 Kan. 495 (1975)); and WHEREAS, the Authorizations authorize the City to issue general obligation bonds to finance the Improvements, but neither authorize nor prohibit the issuance of general obligation bonds to prepay and retire the Loans incurred under such enactments; and WHEREAS, K.S.A. 10-427 et seq. authorizes the City to issue general obligation bonds to refund previously issued general obligation bonds of the City, but neither authorizes nor prohibits the issuance of general obligation bonds to prepay and retire loans incurred under the Authorizations.; and WHEREAS, the governing body of the City now further finds and determines that: (a) there are no enactments of the Kansas legislature of statewide concern applicable uniformly to all cities or applicable to the City relating to the issuance of general obligation bonds to prepay and retire loans incurred under the Authorizations; (b) no conflict would exist between a City ordinance authorizing the issuance of general obligation bonds to prepay and retire the Loans; and (c) the legislature has not clearly z preempted, or clearly manifested its intent to preempt, the field of municipal finance so as to preclude a City w ordinance authorizing the issuance of general obligation bonds to prepay and retire the Loans; and WHEREAS, the City is a city within the meaning of the Home Rule Amendment; and WHEREAS, the City proposes to issue its general obligation bonds to retire the Loans and pay a portion of the costs of the Improvements not funded by the Loans; and WHEREAS, the City heretofore issued and has outstanding the Refunded Bonds and is authorized by K.S.A. 10-427 'et seg. to issue general obligation refunding bonds of the City for the purpose of refunding the Refunded Bonds; and WHEREAS, in order to achieve interest cost savings through early redemption of the Refunded Bonds, to reduce debt service requirements of the City for certain years, to restructure the debt payments on the Refunded Bonds and to provide an orderly plan of finance for the City, it has become desirable and in the best interest of the City and its inhabitants to refund the Refunded Bonds. NOW, THEREFORE, BE IT ORDAINED BY THE GOVERNING BODY OF THE CITY OF SALINA, KANSAS, AS FOLLOWS: Section 1. Definitions of Words and Terms. In addition to words and terms defined elsewhere herein, the following words and terms in this Ordinance shall have the meanings hereinafter set forth. Unless the context shall otherwise indicate, words importing the singular number shall include the plural and vice versa, and words importing persons shall include firms, associations and corporations, including public bodies, as well as natural persons. "Act" means the Constitution, specifically including Article 12, Section 5 thereof, and statutes of the State of Kansas, including K.S.A. 10-101 to 10-125, inclusive, K.S.A. 10-427 et seq., K.S.A. 10-620 et .req. and K.S.A. 65-163d et ,req., all as amended and supplemented from time to time. "Bond and Interest Fund" means the Bond and Interest Fund of the City for its general obligation bonds. "Bond Resolution" means the resolution to be adopted by the governing body of the City prescribing the terms and details of the Bonds and making covenants with respect thereto. "Bonds" means the City's General Obligation Refunding Bonds, Series 2010-13, dated October 15, 2010, authorized by this Ordinance. "City" means the City of Salina, Kansas, "Clerk" means the duly appointed and acting Clerk of the City or, in the Clerk's absence, the duly appointed Deputy Clerk or Acting Clerk. "Improvements" means the improvements referred to in the preamble to this Ordinance. "KDHE" means the Kansas Department of Hcalth and Environment. "Loans" means collectively: (a) the KDI-IE Loan KPWSLF 2153 between the Issuer and KDI-IE dated December 1, 1997, maturing February 1, 2020, in the aggregate outstanding principal amount of $2,086,418.71; and (b) the KDI-IE Loan KPWSLF 2259 between the Issuer and KDHE dated March 14, 2001, maturing February I, 2023, in the aggregate outstanding principal amount of $3,577,224.12. "Mayor" means the duly elected and acting Mayor or, in the Mayor's absence, the duly appointed and/or elected Vice Mayor or Acting Mayor of the City. "Ordinance" means this Ordinance authorizing the issuance of the Bonds "Refunded Bonds" means collectively, (a) the Series 2001-A Bonds maturing in the years 2012 to 2016, inclusive, in the aggregate principal amount of $1,775,000; and (b) the Series 2002-B Bonds maturing in the years 2013 to 2017, inclusive, in the aggregate principal amount of $325,000. "Refunded Obligations" means collectively the Refunded Bonds and the Loans. 2 "Series 2001-A Bonds" means the City's General Obligation Internal Improvement Bonds, Series 2001-A, dated July 15, 2001. "Series 2002-B Bonds" means the City's General Obligation Internal Improvement Bonds, z Series 2002-13, dated July 15, 2002. a w m _ "State" means the State of Kansas. Np N Section 2. Authorization of the Bonds. There shall be issued and hereby are authorized and directed to be issued the General Obligation Refunding Bonds, Series 2010-13, of the City in the principal amount of $7,860,000, for the purpose of providing funds to: (a) pay costs of issuance of the Bonds; and (c) refund and retire the Refunded Obligations. Section 3. Security for the Bonds. 'file 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 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 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 4. Terms, Details and Conditions of the Bonds. The Bonds shall be dated and bear interest, shall mature and be payable at such limes, 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 the Bond Resolution hereafter adopted by the governing body of tile City. Section 5. Levy and Collection of Annual Tax. 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 by levying and collecting the necessary taxes upon all of the taxable tangible property within the City in the manner provided by law. The taxes above referred to shall be extended upon the tax rolls in each of the several years, respectively, 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, shall be used solely for the payment of the principal of and interest on the Bonds as and when the same become due and the fees and expenses of the Paying Agent. The proceeds derived from said taxes shall be deposited in the Bond and Interest Fund. If at any time said taxes 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 said principal or interest out of the general funds of the City and to reimburse said general funds for money so expended when said taxes are collected. Section 6. Further Authority. The.Mayor, Clerk and other City officials are hereby further authorized and directed to execute any and all documents and take such actions as they may deem necessary or advisable in order to carry out and perform the purposes of the Ordinance, and to make alterations, changes or additions in the foregoing agreements, statements, instruments and other documents herein approved, authorized and confirmed which they may approve, and the execution or taking of such action shall be conclusive evidence of such necessity or advisability. Section 7. Governing Law. This Ordinance and the Bonds shall be governed exclusively 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 firom and after its passage by the governing body of the City, approval by the Mayor and publication in the official City newspaper. [BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK] PASSED by the governing body of the City on October 18, 2010 and APPROVED AND SIGNED by the Mayor. z (SEAL) a w N NI TEST: U Clerk Mayor [BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK] (Signature Page to Bond Ordinance)