06-6247 Hospital BondsRESOLUTION NUMBER 06-6247
RESOLUTION DETERMINING THE INTENT OF THE CITY OF SALINA,
KANSAS, TO ISSUE ITS HOSPITAL REFUNDING AND IMPROVEMENT
REVENUE BONDS (SALINA REGIONAL HEALTH CENTER, INC.), SERIES 2006,
Z IN AN AMOUNT NOT TO EXCEED $70,000,000.
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WHEREAS, the City of Salina, Kansas (the "City"), desires to promote, stimulate and develop the
general welfare and economic prosperity of the City and its inhabitants and thereby to further promote,
stimulate and develop the general welfare and economic prosperity of the State of Kansas; and
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WHEREAS, the City is authorized and empowered under the provisions of K.S.A. 10-116a and 12-
1740 to 12-1749d, inclusive, as amended (collectively, the "Act"), to issue hospital revenue bonds to pay the
cost of certain facilities (as defined in the Act) for the purposes set forth in the Act and to lease such facilities to
private persons, firms or corporations and to issue refunding bonds to refund bonds issued for such purpose;
and
WHEREAS, Salina Regional Health Center, Inc., a Kansas nonprofit corporation (the "Corporation"),
has requested that the City issue its Hospital Refunding and Improvement Revenue Bonds (Salina Regional
Health Center, Inc.), Series 2006 (the "Series 2006 Bonds"), in the principal amount not to exceed $70,000,000
for the purpose of (i) refunding the City's outstanding Hospital Revenue Bonds (Salina Regional Health Center,
Inc.), Series 1999 (the "Series 1999 Bonds"), which were issued in the original principal amount of
$25,230,000, for the purpose of providing funds to finance the acquisition, construction, installation, equipping
and furnishing of certain hospital facilities (together with other hospital facilities owned by the City and leased
to the Corporation, the "Facility") leased to and operated by the Corporation, (ii) providing funds to acquire,
construct, install, equip and furnish certain hospital facilities for the Corporation (the "Project"), and (iii) to pay
certain costs associated with the issuance of the Series 2006 Bonds; and
WHEREAS, it is hereby found and determined to be advisable and in the interest and for the welfare
of the City and its inhabitants that the City refund the Series 1999 Bonds and provide funds to finance the
Project by the issuance of the Series 2003 Bonds under the Act payable solely out of rentals, revenues and
receipts derived from the lease of the Facility by the City to the Corporation and from any additional credit
provided by the Corporation.
NOW, THEREFORE, BE IT RESOLVED BY THE GOVERNING BODY OF THE CITY OF
SALINA, KANSAS, AS FOLLOWS:
Section 1. The governing body of the City hereby finds and determines that refunding the Series 1999
Bonds and providing funds to finance the Project will promote the general welfare and economic prosperity of
the City and will be in furtherance of the public purposes set forth in the Act.
Section 2. The governing body of the City hereby approves the issuance of the Series 2006 Bonds in a
principal amount not to exceed $70,000,000 to be issued pursuant to the Act and determines and declares the
intent of the City to refund the Series 1999 Bonds and provide funds to finance the Project from proceeds of the
Series 2006 Bonds.
Section 3. Subject to the conditions of this resolution, the City will (i) issue the Series 2006 Bonds to
refund the Series 1999 Bonds and provide funds to finance the Project with the Series 2006 Bonds having such
maturities, interest rates, redemption terms and other provisions as may be determined by ordinance of the City,
and the lease (with an option to purchase) of the Facility to the Corporation; and (ii) to effect the foregoing,
adopt any resolutions or ordinances and authorize the execution and delivery of any instruments and the taking
of any actions as may be necessary or advisable for the authorization and issuance of the Series 2006 Bonds by
the City and take or cause to be taken such other actions as may be required to implement the foregoing.
Section 4. The issuance of the Series 2006 Bonds and the execution and delivery of any documents
related to the Series 2006 Bonds are subject to (i) obtaining any necessary governmental approvals; (ii)
approval by the Board of Trustees of the Corporation; and (iii) agreement by the City, the Corporation and the
underwriter for the Series 2006 Bonds upon (a) mutually acceptable terms for the Series 2006 Bonds and for
the sale and delivery thereof and (b) mutually acceptable terms and conditions of any documents related to the
issuance of the Series 2006 Bonds and the Facility.
Section 5. The sale of the Series 2006 Bonds shall be the responsibility of the Corporation. If for any
reason the Series 2006 Bonds are not issued, the City shall have no liability to the Corporation for any reason.
The Corporation shall pay all out-of-pocket expenses incurred by the City in connection with the proposed
issuance of the Series 2006 Bonds and any other actions contemplated by this resolution to the extent those
expenses are not paid from the proceeds of the Series 2006 Bonds, regardless of whether the Series 2006 Bonds
are issued.
Section 6. Gilmore & Bell, P.C., Bond Counsel, together with the officers and employees of the City,
are hereby authorized to work with the underwriter for the Series 2006 Bonds, the Corporation, their respective
counsel and others, to prepare for submission to and final action by the City all documents necessary to effect
the authorization, issuance and sale of the Series 2006 Bonds and other actions contemplated hereunder and the
lease of the Facility to the Corporation. All work shall be at the expense of the Corporation.
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w Section 7. This resolution shall inure to the benefit of the City and the Corporation and their
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respective successors and assigns.
Section 8. This resolution shall take effect and be in full force and effect after its adoption by the
governing body of the City.
ADOPTED this 13th day of February, 2006.
[SEAL]
T ST:
Lieu Ann Elsey, CMC, City It
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CITY OF SALINA, KANSAS
By
Deborah Divine, Mayor