19-11011 Water & Sewer System Revenue Refunding Bonds (2019-B) d
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ORDINANCE NO. 19-11011
OF
THE CITY OF SALINA, KANSAS
PASSED
AUGUST 19, 2019
WATER AND SEWAGE SYSTEM REVENUE REFUNDING BONDS
SERIES 2019
Summary published in the Salina Journal on August 23, 2019.
Publicherl on the City of Salina'c weheite from August 20 sP0.1t-1 , 2019.
ORDINANCE NO. 19-11011
AN ORDINANCE AUTHORIZING AND PROVIDING FOR THE ISSUANCE OF
WATER AND SEWAGE SYSTEM REVENUE REFUNDING BONDS, SERIES 2019,
OF THE CITY OF SALINA, KANSAS, FOR THE PURPOSE OF PROVIDING
Z FUNDS TO REFUND THE CITY'S OUTSTANDING WATER AND SEWAGE
SYSTEM REVENUE BONDS; MAKING CERTAIN COVENANTS AND
AGREEMENTS TO PROVIDE FOR THE PAYMENT AND SECURITY THEREOF;
AND AUTHORIZING CERTAIN OTHER DOCUMENTS AND ACTIONS IN
CONNECTION THEREWITH.
WHEREAS, the City of Salina, Kansas (the "Issuer" or "City") is a city of the first class, duly
created, organized and existing under the Constitution and laws of the State; and
WHEREAS, the City is authorized under the provisions of the Act, to issue and sell revenue bonds
for the purpose of paying all or part of the cost of the acquisition, construction, reconstruction, alteration,
repair, improvement, extension or enlargement of the System, provided that the principal of and interest on
such revenue bonds shall be payable solely from the Net Revenues derived by the City from the operation of
the System; and
WHEREAS, the City previously issued and has Outstanding the Refunded Bonds and is authorized
by K.S.A. 10-116a to issue refunding revenue 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 and to provide an orderly plan of finance for the City, it has become desirable and in the best interest
of the City and the System to refund the Refunded Bonds; and
WHEREAS, the Issuer does not have Outstanding any System Indebtedness other than the Series
2011 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 and statutes of the State including K.S.A. 10-101 to 10-125, inclusive,
specifically including K.S.A. 10-116a, K.S.A. 10-620 et seq., and K.S.A. 10-1201 et seq., all as amended and
supplemented from time to time.
"Additional Bonds" means any bonds secured by the Revenues hereafter issued pursuant to the
Bond Resolution.
"Additional Obligations" means any leases or other obligations of the Issuer payable from the
Revenues, other than the Bonds.
"Bond Resolution" means the resolution to be adopted by the governing body of the City
prescribing the terms and details of the Series 2019 Bonds and making covenants with respect thereto.
"Bonds"means the Series 2019 Bonds and any Additional Bonds.
"City"means the City of Salina, Kansas.
"Clerk" means the duly appointed and acting Clerk of the Issuer or, in the Clerk's absence,the duly
appointed Deputy Clerk or Acting Clerk.
"Expenses" means all reasonable and necessary expenses of operation, maintenance and repair of
the System and keeping the System in good repair and working order (other than interest paid on System
Indebtedness and depreciation and amortization charges during the period of determination), determined in
accordance with generally accepted accounting principles, including without limiting the generality of the
foregoing, current maintenance charges, expenses of reasonable upkeep and repairs, salaries, wages, costs of
materials and supplies, paying agent fees and expenses, annual audits, periodic Consultant's reports, properly
allocated share of charges for insurance, the cost of purchased water, gas and power, if any, for System
operation, obligations (other than for borrowed money or for rents payable under capital leases) incurred in
the ordinary course of business, liabilities incurred by endorsement for collection or deposit of checks or
drafts received in the ordinary course of business, short-term obligations incurred and payable within a
particular Fiscal Year, other obligations or indebtedness incurred for the purpose of leasing (pursuant to a
true or operating lease) equipment, fixtures, inventory or other personal property, and all other expenses
incident to the operation of the System, but shall exclude all general administrative expenses of the City not
related to the operation of the System and transfers into any debt service reserve accounts established with
respect to any Parity Bonds or Parity Obligations.
..�. "Fiscal Year means the twelve-month period ending on December 31.
"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.
"Net Revenues" means, for the period of determination, all Revenues less all Expenses.
"Ordinance"means this Ordinance authorizing the issuance of the Bonds.
"Parity Bonds" means the Outstanding Series 2019 Bonds, and any Additional Bonds hereafter
issued pursuant to the Bond Resolution and standing on a parity and equality with the Series 2019 Bonds
with respect to the lien on the Net Revenues.
"Parity Obligations" means any Additional Obligations hereafter issued or incurred pursuant to the
Bond Resolution and standing on a parity and equality with the Parity Bonds with respect to the lien on the
Net Revenues.
"Parity Resolution" means the Bond Resolution and the ordinances and/or resolutions under which
any Additional Bonds which constitute Parity Bonds are hereafter issued.
"Refunded Bonds" means the Series 2011 Bonds maturing in the years 2019 to 2031, inclusive, in
the aggregate principal amount of$11,850,000.
"Revenue Fund" means the Water and Sewage System Revenue Fund referred to in the Bond
Resolution.
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"Revenues" means all income and revenues derived and collected by the City from the operation
and ownership of the System, including investment and rental income, net proceeds from business
"IM interruption insurance, and any amounts deposited in escrow in connection with the acquisition, construction,
remodeling, renovation and equipping of facilities to be applied during the period of determination to pay
interest on System Indebtedness, but excluding any profits or losses on the early extinguishment of debt or
w on the sale or other disposition, not in the ordinary course of business, of investments or fixed or capital
assets.
7-7 "Series 2011 Bonds" means the Issuer's Water and Sewage System Revenue Bonds, Series 2011,
dated April 15, 2011.
"Series 2019 Bonds" means the Issuer's Water and Sewage System Revenue Refunding Bonds,
Series 2019, authorized by this Ordinance.
"State" means the State of Kansas.
"System" means the entire combined waterworks plant and system and sewerage plant and system
owned and operated by the City for the production, storage, treatment and distribution of water, and for the
collection, treatment and disposal of sewage, to serve the needs of the City and its inhabitants and others,
including all appurtenances and facilities connected therewith or relating thereto, together with all
extensions, improvements, additions and enlargements thereto hereafter made or acquired by the City.
"System Indebtedness" means collectively all Bonds and all Additional Obligations.
Section 2. Authorization of the Series 2019 Bonds. There shall be issued and are hereby
authorized and directed to be issued the Water and Sewage System Revenue Refunding Bonds, Series 2019,
of the City in the aggregate principal amount of $10,330,000 for the purpose of providing funds to: (a)
refund the Refunded Bonds; (b)pay costs of issuance of the Series 2019 Bonds; and (c) make a deposit to the
Series 2019 Debt Service Reserve Account.
Section 3. Security for the Series 2019 Bonds. The Series 2019 Bonds shall be special
obligations of the City payable solely from, and secured as to the payment of principal and interest by a
pledge of, the Net Revenues, and the City hereby pledges said Net Revenues to the payment of the principal
of and interest on the Series 2019 Bonds. The Series 2019 Bonds shall not be or constitute a general
obligation of the City, nor shall they constitute an indebtedness of the City within the meaning of any
constitutional, statutory or charter provision, limitation or restriction, and the taxing power of the City is not
pledged to the payment of the Series 2019 Bonds, either as to principal or interest.
The covenants and agreements of the City contained herein and in the Series 2019 Bonds shall be for
the equal benefit, protection and security of the legal owners of any or all of the Series 2019 Bonds, all of
which Series 2019 Bonds shall be of equal rank and without preference or priority of one Bond over any
other Bond in the application of the funds herein pledged to the payment of the principal of and the interest
on the Series 2019 Bonds, or otherwise, except as to rate of interest, date of maturity and right of prior
redemption as provided in this Ordinance. The Series 2019 Bonds shall stand on a parity and be equally and
ratably secured with respect to the payment of principal and interest from the Net Revenues with any Parity
Bonds. The Series 2019 Bonds shall not have any priority with respect to the payment of principal or interest
from said Net Revenues or otherwise over the Parity Bonds; and the Parity Bonds shall not have any priority
with respect to the payment of principal or interest from said Net Revenues or otherwise over the Series 2019
Bonds.
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Section 4. Terms, Details and Conditions of the Series 2019 Bonds. The Series 2019 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 the Bond Resolution
hereafter adopted by the governing body of the City.
Section 5. Rate Covenant. The City will fix, establish, maintain and collect such rates, fees and
charges for the use and services furnished by or through the System, including all repairs, alterations,
extensions, reconstructions, enlargements or improvements thereto hereafter constructed or acquired by the
City, as will produce Revenues sufficient to (a) pay Expenses; (b) pay the principal of and interest on the
Bonds as and when the same become due; and (c) provide reasonable and adequate reserves for the payment
of the Parity Bonds and the interest thereon and for the protection and benefit of the System as provided in
this Ordinance and the Bond Resolution. The Bond Resolution may establish requirements in excess of the
requirements set forth herein.
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 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 Series 2019 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 from and after its
passage by the governing body of the City, approval by the Mayor and publication of this Ordinance or a
summary thereof in the official City newspaper.
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[FORM OF SUMMARY ORDINANCE FOR PUBLICATION]
PUBLICATION SUMMARY OF ORDINANCE NO. 19-11011, PASSED BY THE GOVERNING BODY
OF THE CITY OF SALINA, KANSAS ON THE 19TH DAY OF AUGUST, 2019
E
w SUMMARY
On August 19, 2019, the Governing Body of the City of Salina, Kansas, adopted Ordinance No. 19-11011,
authorizing and providing for the issuance of $10,330,000 principal amount of Water and Sewage System
Revenue Refunding Bonds, Series 2019, of the City of Salina, Kansas. The purpose of the issuance of the
bonds is to provide funds to refund previously issued water and sewage system revenue bonds of the City. In
addition, the Ordinance provides for security of the bonds, terms, and details and conditions for the issuance
of the bonds. Such bonds constitute special obligations of the City payable solely from, and secured as to the
payment of principal and interest by a pledge of, the Net Revenues derived by the City from the operation of
the water and sewage system. The complete text of this ordinance may be obtained or viewed free of charge
at the office of the City Clerk, 300 West Ash Street, Salina, Kansas, or on the City's official website address,
www.salina-ks.gov, where a reproduction of the original ordinance will be available for a minimum of one
week following this summary publication.
This sura ' ce . ied this .?�day of August, 2019.
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PASSED by the governing body of the City on August 19, 2019 and APPROVED AND SIGNED
by the Mayor.
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Trent W. Davis, M. ., Mayor
ATTEST:
Shandi Wicks, CMC, City Clerk
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(Signature Page to Bond Ordinance)