04-10205 GO Bonds 2004-B1
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(Published in the Salina Journal on July /��J , 2004)
ORDINANCE NO. 04-10205
AN ORDINANCE AUTHORIZING THE ISSUANCE AND DELIVERY OF
$4,053,000 PRINCIPAL AMOUNT OF GENERAL OBLIGATION INTERNAL
IMPROVEMENT BONDS, SERIES 2004-13, 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., K.S.A. 12-685 et seq.
and K.S.A. 12-2101 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"):
a. Schilling/Centennial Road
b. Water Well Road Interchange
C. Solid Waste Facility Improvements
d. Liberty Addition
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 $4,053,000, 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
$4,053,000 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., K.S.A. 12-685 et seq. and K.S.A. 12-2101 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 2004-B authorized
by this Ordinance in the aggregate principal amount of $4,053,000 and dated July 15, 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.
Caivalltla�e6Snline
"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
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 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.
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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 12, 2004.
(SEAL)
ATTEST:
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Deputy City rk
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I Alje4�"
Vi ce-Mayor