6.1 Ordinance 22-11103 General Obligation Bonds Airport AuthorityCITY OF SALINA
REQUEST FOR CITY COMMISSION ACTION DATE TIME
03/28/2022 4:00 P.M.
AGENDA SECTION
NO:
ITEM
NO:
Page I
ITEM: Ordinance No. 22-11103
ORIGINATING DEPARTMENT:
Finance & Administration
BY: Debbie Pack, Director :
FISCAL APPROVAL:
BY:
FINAL APP OVAL:
BY: h4,
An Ordinance Unconditionally Approving the Issuance of General Obligation Bonds by the Salina
Airport Authority for the Purpose of Financing the Cost of Certain Capital Improvements Located at
the Salina Regional Airport and Airport Industrial Center.
BACKGROUND:
The Salina Airport Authority (the "Authority") was established in 1965 by the City of Salina pursuant
to Kansas enabling legislation enacted that year. The statute authorizes the Authority to issue its
own general obligation bonds. The statute also provides that: "if the Authority desires to issue its
general obligation bonds, the board of directors shall adopt a resolution setting forth the principal
amounts of bonds proposed to be issued and the purpose for which the bonds are to be issued, and
shall forward a copy of such resolution to the mayor of the city. The mayor shall present such
resolution to the governing body of the city for its approval or disapproval." The governing body then
has three choices:
(1) To disapprove the Authority's resolution by ordinance;
(2) To unconditionally approve the Authority's resolution by ordinance; or
(3) To approve the Authority's resolution and to publish a notice of the Authority's intent to
issue its general obligation bonds, subjecting the bond issue to a referendum election if a
protest petition is signed by not less than 20% of the qualified electors of the city and filed
within 15 days of the published notice.
On March 16, 2022, the Board of Directors of the Authority adopted Resolution No. 22-02 approving
the issuance of not to exceed $12,250,000 (exclusive of costs of issuance and any temporary
financing costs) of general obligation bonds of the Authority to pay the cost of certain capital
improvements located at the Salina Regional Airport and Airport Industrial Center, including, but not
limited to:
Improvements to Hangars 606 and 626; and related apron, taxi lane and parking lot
improvements
Attached are copies of the Authority's Resolution No. 22-02 and the proposed ordinance
unconditionally approving the proposed issuance of the Authority's general obligation bonds.
FISCAL NOTE:
While the Authority's proposed general obligation financing is backed by the full faith and credit of the
Authority, K.S.A. 27-323(a) specifically provides that "such general obligation temporary notes of the
authority shall not constitute a debt or obligation of the city which established and created the
AGENDA SECTION
NO:
ITEM
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authority." The bonds pr
indebtedness limitations.
CITY OF SALINA
REQUEST FOR CITY COMMISSION ACTION DATE TIME
03%28/2022 4:00 P.M.
ORIGINATING DEPARTMENT:
Finance & Administration
BY: Debbie Pack, Director
FISCAL APPROVAL:
BY:
FIN
BY:
Salina Airport Authority do not count toward the City's bond
The Salina Airport Authority has advised that, if approved, the Authority expects to issue three four-
year temporary notes to fund the design and construction phases of these projects. The maximum
mill levy that would be used, for temporary note debt service would be .335 mills.
The Airport Authority's 2022 mill levy for their 2023 budget year is estimated to be .5640. The Airport
Authority's current mill levy (2022 budget year) is 4.838.
COMMISSION ACTION OR RECOMMENDED ACTION:
Staff has identified the following options for the City Commission's consideration:
1.) Approve Ordinance No. 22-11103 unconditionally approving the Issuance of General Obligation
Temporary Notes by the Salina Airport Authority for the purpose of financing the cost of the
Project.
2.) Direct staff to prepare an ordinance to disapprove the Authority's resolution.
3.) Direct staff to prepare a resolution approving the Authority's resolution and to publish a notice
of the Authority's intent to issue its General Obligation Bonds, subjecting the bond issue to a
referendum election if a protest petition is signed by not less than 20% of the qualified electors
of the city and filed within 15 days of the published notice.
Staff recommends Option #1
Attachments: City of Salina Ordinance No. 22-11103
Salina Airport Authority Resolution No. 22-02
ORDINANCE NUMBER 22-11103
AN ORDINANCE UNCONDITIONALLY APPROVING THE ISSUANCE OF
GENERAL OBLIGATION BONDS BY THE SALINA AIRPORT AUTHORITY FOR
THE PURPOSE OF FINANCING THE COST OF CERTAIN CAPITAL
IMPROVEMENTS LOCATED AT THE SALINA REGIONAL AIRPORT AND
AIRPORT INDUSTRIAL CENTER.
WHEREAS, on March 16, 2022, the Board of Directors of the Salina Airport Authority (the
"Authority") adopted a resolution approving the issuance of not to exceed $12,250,000 of general obligation
bonds of the Authority to pay the cost of certain capital improvements located at the Salina Regional Airport
and Airport Industrial Center, including, but not limited to:
The design, construction, acquisition and installation of equipment necessary to
construct an aircraft paint facility in Hangar 606 at the estimated cost of $7,900,000
(the "Hangar 606 Paint Facility Project')
The design and construction of improvements to Hangar 626 to house aircraft
modification, maintenance, repair and overhaul operations at the estimated cost of
$2,500,000 (the "Hangar 626 MRO Project')
The design and construction of improvements to the aircraft apron areas, taxi areas,
and employee parking areas associated with Hangars 606 and 626 at the estimated
cost of $1,850,000 (the "Hangar 606 & 626 Pavement Project' and collectively with
the Hangar 606 Paint Facility Project and Hangar 626 MRO Project, the "Project')
as authorized by K.S.A. 27-315 to 27-326, inclusive; and
WHEREAS, K.S.A. 27-323 provides that the Authority shall forward a copy of such resolution to the
Mayor of the City, who shall present such resolution of the governing body of the City for its approval or
disapproval.
SO NOW THEREFORE, BE IT ORDAINED BY THE GOVERNING BODY OF THE CITY
OF SALINA, KANSAS AS FOLLOWS:
Section 1. That the resolution of the Authority adopted on March 16, 2022, providing for the
issuance of not to exceed $12,250,000 of general obligation bonds of the Authority for the purpose of financing
the costs of the Project is hereby unconditionally approved.
Section 2. That this ordinance shall be in full force and effect from and after its adoption and
publication once, or publication of a summary thereof, in the official city newspaper.
[THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]
PASSED by the City Commission the day of April, 2022, and SIGNED
by the Mayor.
[Seal]
ATTEST:
Trent W. Davis, M.D., Mayor
'A onna A. Rutherford, City'Clerk
(Published in The Salina Journal on April 8, 2022)
SUMMARY OF ORDINANCE NUMBER 22-11103
On April _, 2022, the City of Salina, Kansas, passed Ordinance No. 22-11103. The
ordinance unconditionally approves the Salina Airport Authority's issuance of general
obligation bonds and/or temporary notes to fund certain improvements. A complete copy
of the ordinance is available at www.salina-ks.gov for not less than 7 days following the
publication date of this summary or in the office of the City Clerk, 300 W. Ash Street, free
of charge. This summary is certificated to be legally accurate and sufficient pursuant to
the laws of the State of Kansas by the city attorney.
The publication summary set forth above is certified this _ day of April, 2022.
City Attorney
Y.
u`'
RESOLUTION NO. 22-02
A RESOLUTION PROVIDING STATUTORY AUTHORITY FOR THE
ISSUANCE OF GENERAL OBLIGATION BONDS OF THE SALINA AIRPORT
AUTHORITY FOR THE PURPOSE OF FINANCING THE COST OF CERTAIN
CAPITAL IMPROVEMENTS AT THE SALINA REGIONAL AIRPORT AND
AIRPORT INDUSTRIAL CENTER
WHEREAS, the Salina Airport Authority (Salina, Kansas) (the "Authority") is a legally constituted
public airport authority, duly created, organized and existing under the Constitution and laws of the State,
including specifically IC.S.A 27-315 to 27-236 et seq. (the "Act"); and
WHEREAS, the governing body of the Authority (the "Governing Body") has considered the need
for certain internal improvements as further described herein and found it necessary and advisable to
construct such improvements; and
WHEREAS, the Governing Body further finds and determines that it is necessary and advisable
to authorize the issuance of general obligation bonds of the Authority under the Act to provide funds to pay
to pay for the costs of such improvements.
THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE SALINA
AIRPORT AUTHORITY AS FOLLOWS:
Section 1. Project Authorization. The construction of the following internal improvements
is hereby authorized:
The design, construction, acquisition, and installation of equipment necessary to
construct an aircraft paint facility in Hangar 606 at the estimated cost of
$7,900,000 (the "Hangar 606 Paint Facility Project")
The design and construction of improvements to Hangar 626 to house aircraft
modification, maintenance, repair and overhaul operations at the estimated cost
of $2,500,000 (the "Hangar 626 MRO Project")
The design and construction of improvements to the aircraft apron areas, taxi
areas, and employee parking areas associated with Hangars 606 and 626 at the
estimated cost of $1,850,000 (the "Hangar 606 & 626 Pavement Project" and
collectively with the Hangar 606 Paint Facility Project and Hangar 626 MRO
Project, the "Project")
Section 2. Bond Authorization. The issuance of general obligation bonds (the "Bonds") of
the Authority under the Act in an amount not to exceed $12,250,000 to pay all or a portion of the costs of
the Project is hereby authorized. Pending the issuance of the Bonds, the Authority may issue its temporary
notes to provide financing for the Projects. The issuance of the general obligation bonds of the Authority
is subject to further resolution of the Authority.
Section 3. Reimbursement. The Bonds may be issued to reimburse expenditures made on
or after the date which is 60 days before the date of this Resolution, pursuant to Treasury Regulation
§ 1.150-2.
Section 4. The Executive Director, the Director of Administration and Finance, Stifel,
Nicolaus & Company, the Authority's Financial Advisor and Gilmore & Bell, P.C., the Authority's Bond
600597.20046 -PROJECT AUTHORIZATION RESOLUTION -HANGAR 606,626
Counsel, are hereby authorized and directed to take such other action as may be necessary to carry out the
intent of this Resolution.
Section 5. This Resolution shall take effect immediately upon its adoption.
600597.20046 —PROJECT AUTHORIZATION RESOLUTION - HANGAR 606, 626
ADOPTED by the governing body of the Authority on March 16, 2022.
(SEAL)
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N er
Secretary
SALINA AIRPORT AUTHORITY
600597.20046 - PROJECT AUTHORIZATION RESOLUTION - HANGAR 606,626