04-10192 GO Refunding BondsiWjNq -
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(Published in the Salina Journal on April 00 2004)
ORDINANCE NO. 04-10192
AN ORDINANCE AUTHORIZING THE ISSUANCE AND DELIVERY OF $5,585,000
PRINCIPAL AMOUNT OF GENERAL OBLIGATION REFUNDING BONDS, SERIES
2004-A, OF THE CITY OF SALINA, KANSAS, FOR THE PURPOSE OF REFUNDING
CERTAIN OUTSTANDING GENERAL OBLIGATION INTERNAL IMPROVEMENT
BONDS OF THE CITY; 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
bonds:
WHEREAS, the City has previously issued the following general obligation internal improvement
1)
General Obligation Internal Improvement Bonds, Series 1995-A,
currently outstanding in the
Amount Refunded
principal amount of $480,000 (the "Series 1995-A Bonds"), and
$480,000
2)
General Obligation Internal Improvement Bonds, Series 1996-A,
currently outstanding in the
495,000
principal amount of $555,000 (the "Series 1996-A Bonds"), and
1,730,000
3)
General Obligation Internal Improvement Bonds, Series 1997-A,
currently outstanding in the
905,000
principal amount of $660,000 (the "Series 1997-A Bonds"), and
4)
General Obligation Internal Improvement Bonds, Series 1998-A,
currently outstanding in the
principal amount of $2,350,000 (the "Series 1998-A Bonds"), and
5)
General Obligation Internal Improvement Bonds, Series 1999-A,
currently outstanding in the
principal amount of $3,355,000 (the "Series 1999-A Bonds"), and
6)
General Obligation Internal Improvement Bonds, Series 2000-A,
currently outstanding in the
principal amount of $2,885,000 (the "Series 2000-A Bonds"), and
WHEREAS, the City desires to refund the following portions of the Series 1995-A Bonds, Series
1996-A Bonds, Series 1997-A Bonds, Series 1998-A Bonds, Series 1999-A Bonds and Series 2000-A Bonds
(collectively, the 'Refunded Bonds"):
Maturities
Refunded
08-01-04 through 08-01-05
08-01-04 through 08-01-06
08-01-05 through 08-01-07
08-01-06 through 08-01-13
10-01-09 through 10-01-14
10-01-10 through 10-01-15
and the City is authorized pursuant to K.S.A. 10-427 et seq. to issue the general obligation bonds herein
authorized to refund the Refunded Bonds; and
WHEREAS, all legal requirements pertaining to the refunding of the Refunded Bonds have been
satisfied; 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 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.
"Act" means the Constitution and all applicable statutes of the State including but not limited to
K.S.A. 10-101 et seq. and K.S.A. 10-427 et seq., all as amended and supplemented.
"Bond and Interest Fund" means the Bond and Interest Fund of the City for its general obligation
bonds.
Principal
Series
Amount Refunded
1995-A
$480,000
1996-A
555,000
1997-A
495,000
1998-A
1,730,000
1999-A
1,055,000
2000-A
905,000
Maturities
Refunded
08-01-04 through 08-01-05
08-01-04 through 08-01-06
08-01-05 through 08-01-07
08-01-06 through 08-01-13
10-01-09 through 10-01-14
10-01-10 through 10-01-15
and the City is authorized pursuant to K.S.A. 10-427 et seq. to issue the general obligation bonds herein
authorized to refund the Refunded Bonds; and
WHEREAS, all legal requirements pertaining to the refunding of the Refunded Bonds have been
satisfied; 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 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.
"Act" means the Constitution and all applicable statutes of the State including but not limited to
K.S.A. 10-101 et seq. and K.S.A. 10-427 et seq., all as amended and supplemented.
"Bond and Interest Fund" means the Bond and Interest Fund of the City for its general obligation
bonds.
"Bonds" means the General Obligation Refunding Bonds, Series 200ZI-A authorized by this
Ordinance in the aggregate principal amount of $5,585,000 and dated May 1, 2004.
"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.
"Refunded Bonds" means the general obligation internal improvement bonds referred to in the
preamble of 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. The Bonds shall be issued for the purpose
of providing funds to refund the Refunded Bonds and to pay costs of issuance on the Bonds.
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 being financed 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
IN
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.
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.
(SEAL)
PASSED by the governing body of the City on April 19, 2004.
City Clerk
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