02-10069 Issue Bonds(Published in the Salina Journal on January(, 2002)
ORDINANCE NO. 02-10069
AN ORDINANCE AUTHORIZING THE ISSUANCE AND DELIVERY OF
$2,045,000 PRINCIPAL AMOUNT OF GENERAL OBLIGATION WATER AND
SEWAGE SYSTEM REFUNDING BONDS, SERIES 2002-A, OF THE CITY OF
SALINA, KANSAS, FOR THE PURPOSE OF REFUNDING CERTAIN
OUTSTANDING COMBINED WATER AND SEWAGE SYSTEM IMPROVEMENT
REVENUE 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
WHEREAS, the City has previously issued pursuant to K.S.A. 12-856 et seq. its Combined Water
and Sewage System Improvement Revenue Bonds, Series 1993-A, currently outstanding in the principal
amount of $2,295,000 (the "Refunded Bonds"), and
WHEREAS, pursuant to Charter Ordinance No. 28, the city has exempted itself from the provisions
of K.S.A. 12-868 and provided substitute and additional provisions on the same subject, including
provisions authorizing the issuance of the City's general obligation bonds to refund the City's revenue bonds
previously issued under the K.S.A. 12-856 et seq., which include the Refunded Bonds; and
WHEREAS, the City desires to refund the Refunded Bonds, and the City is authorized pursuant to
the provisions of Charter Ordinance No. 28 and 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 10-427 et seq., Article 12, § 5 of the Constitution of the State of Kansas and
Charter Ordinance No. 28 of the City, 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 Water and Sewage System Refunding Bonds, Series 2002-A
authorized by this Ordinance in the aggregate principal amount of $2,045,000.
"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.
"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.
"Refunded Bonds" means the combined water and sewage system improvement revenue bonds
referred to in the preamble of this Ordinance.
"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 refunded the Refunded Bonds and to pay the costs of issuance of the Bonds.
The Bonds shall be general obligations of the City payable as to both principal and interest 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. 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 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 shall be deposited in the Bond and Interest Fund.
If at any time the 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 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 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 Bonds are deemed designated under Section 265(b)(3)(D)(ii) of the Code. In addition, the City
hereby represents that:
(1) the aggregate face amount of all tax-exempt obligations (other than private activity
bonds which are not "qualified 501(c)(3) bonds") which will be issued by the City (and all
subordinate entities thereof) during calendar year 2002 is not reasonably expected to exceed
$10,000,000; and
(2) the City (including all subordinate entities thereof) will not issue an aggregate
principal amount of obligations designated by the City to be "qualified tax-exempt obligations"
during the calendar year in which the Bonds are issued, including the Bonds, in excess of
$10,000,000, without first obtaining an opinion of bond counsel that the designation of the Bonds as
"qualified tax-exempt obligations" will not be adversely affected.
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.
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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 January 14, 2002.
(SEAL)
ATTEST:
xkt-` &�
Lieu Ann Nicola, City Clerk
3-
istin M. Seato , Mayor