96-9737 Issue Bonds(Published in the Salina Journal May 17 , 1996)
U,.IdeuaUlu -
Draft - 5/1/96
Document No. K103099\Ord3
ORDINANCE NO. 9 6- 9 7 3 7
AN ORDINANCE AUTHORIZING THE ISSUANCE AND DELIVERY OF $1,847,000
PRINCIPAL AMOUNT OF GENERAL OBLIGATION INTERNAL IMPROVEMENT
BONDS, SERIES 1996-A, 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 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, pursuant to K.S.A. 12-6a01 gl M. and K.S.A. 12-685 9 egg., 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"):
Twin Oaks Street and Utility Improvements
Nord and Wallerius Street Improvements
Holiday Resort Improvements
Ninth and Broadway Corridor Improvements
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 $1,847,000, 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
$1,847,000 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. 12-6a01 gl M.and K.S.A. 12-685!9 M., 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
Cmsd'MoloGSaOW
notes or bonds of the City which are currently outstan ng an av
(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 1996-A authorized
by this Ordinance in the aggregate principal amount of 51,847,000 and dated June 1, 1996.
"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.
"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.
ec i n 2. Auftrization of and Security fQr 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 pan
from special assessments levied upon the property benefited by the construction of certain portions of the
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.
Se 'on 3. Term _Derails 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 adopted by the governing
body of the City.
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CansMiEeIMSeYv
Section 4. Levy 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 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 hereby designates the Bonds as "qualified tax-exempt obligations" as defined in Section
265(b)(3) 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 1995 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.
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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 g. 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 May 13, 1996.
(SEAL)zi�G
ayor
ATTEST: Evelyn Maxwell
",d,— s L"',
Citylerk
D. Long
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