News Releases

7/12/2016 - Ordinance No. 16-10839 Issuance of General Obligation Refunding Bonds, Series 2016-B

ORDINANCE NO. 16-10839

 

AN ORDINANCE AUTHORIZING AND PROVIDING FOR THE ISSUANCE OF GENERAL OBLIGATION REFUNDING BONDS, SERIES 2016-B, OF THE CITY OF SALINA, KANSAS FOR THE PURPOSE OF PROVIDING FUNDS TO REFUND A PORTION OF THE CITY'S OUTSTANDING GENERAL OBLIGATION BONDS; PROVIDING FOR THE LEVY AND COLLECTION OF AN ANNUAL TAX FOR THE PURPOSE OF PAYING THE PRINCIPAL OF AND INTEREST ON SAID BONDS AS THEY BECOME DUE; AUTHORIZING CERTAIN OTHER DOCUMENTS AND ACTIONS IN CONNECTION THEREWITH; AND MAKING CERTAIN COVENANTS WITH RESPECT THERETO.

 

            WHEREAS, the City of Salina, Kansas (the “City”) is a city of the first class, duly created, organized and existing under the Constitution and laws of the State; and

 

            WHEREAS, the City previously issued and has outstanding the Refunded Bonds and is authorized by K.S.A. 10-427 et seq. to issue general obligation refunding bonds of the City for the purpose of refunding the Refunded Bonds; and

 

            WHEREAS, in order to achieve interest cost savings through early redemption of the Refunded Bonds and provide an orderly plan of finance for the City, it has become desirable and in the best interest of the City and its inhabitants to refund the Refunded Bonds; and

 

            WHEREAS, the governing body of the City has advertised the sale of the Bonds in accordance with the law and at a meeting held in the City on this date, awarded the sale of such Bonds to the best bidder.

            NOW, THEREFORE, BE IT ORDAINED BY THE GOVERNING BODY OF THE CITY OF SALINA, KANSAS, AS FOLLOWS:

            Section 1.   Definitions of Words and Terms.  In addition to words and terms defined elsewhere herein, the following words and terms in this Ordinance shall have the meanings hereinafter set forth.  Unless the context shall otherwise indicate, words importing the singular number shall include the plural and vice versa, and words importing persons shall include firms, associations and corporations, including public bodies, as well as natural persons.

            “Act” means the Constitution and statutes of the State including K.S.A. 10-101 to 10-125, inclusive, K.S.A. 10-427 et seq. and K.S.A. 10-620 et seq., all as amended and supplemented from time to time.

            “Bond and Interest Fund” means the Bond and Interest Fund of the City for its general obligation bonds.

            “Bond Resolution” means the resolution to be adopted by the governing body of the City prescribing the terms and details of the Bonds and making covenants with respect thereto.

            “Bonds” means the City’s General Obligation Refunding Bonds, Series 2016-B, dated July 26, 2016, authorized by this Ordinance.

            “City” means the City of Salina, Kansas.

            “Clerk” means the duly appointed and acting Clerk of the City or, in the Clerk’s absence, the duly appointed Deputy or Acting Clerk.

            “Mayor” means the duly elected and acting Mayor of the City or, in the Mayor’s absence, the duly appointed and/or elected Vice Mayor or Acting Mayor of the City.

            “Ordinance” means this Ordinance authorizing the issuance of the Bonds.

            “Refunded Bonds” means collectively: (a) the Series 2006-B Bonds maturing in the year 2021 in the aggregate principal amount of $185,000; (b) the Series 2007-A Bonds maturing in the years 2018 to 2027, inclusive, in the aggregate principal amount of $2,925,000; (c) the Series 2008-A Bonds maturing in the years 2018 to 2023, inclusive, in the aggregate principal amount of $1,500,000; (d) the Series 2009-A Bonds maturing in the years 2021 to 2029, inclusive, in the aggregate principal amount of $4,425,000; (e) the Series 2010-A Bonds maturing in the years 2021 to 2025 inclusive, in the aggregate principal amount of $1,825,000; and (f) the Series 2011-A Bonds maturing in the years 2022 to 2031, inclusive, in the aggregate principal amount of $3,275,000.

            “Refunded Bonds Redemption Date” means (a) October 1, 2016, for the Series 2006-B Refunded Bonds; (b) October 1, 2017 for the Series 2007-A Refunded Bonds and the Series 2008-A RefundedBonds; and (c) October 1, 2018 for the Series 2009-A Refunded Bonds, the Series 2010-A Refunded Bonds and the Series 2011-A Refunded Bonds.

 

          “Series 2006-B Bonds” means the City's General Obligation Internal Improvement Bonds, Series 2006-B, dated July 15, 2006.

 

          “Series 2007-A Bonds” means the City's General Obligation Internal Improvement Bonds, Series 2007-A, dated June 15, 2007.

 

           “Series 2008-A Bonds” means the City's General Obligation Internal Improvement Bonds, Series 2008-A, dated July 15, 2008.

 

            “Series 2009-A Bonds” means the City's General Obligation Internal Improvement Bonds, Series 2009-A, dated July 15, 2009.

 

           “Series 2010-A Bonds” means the City's General Obligation Internal Improvement and Refunding Bonds, Series 2010-A, dated May 1, 2010.

 

             “Series 2011-A Bonds” means the City's General Obligation Internal Improvement Bonds, Series 2011-A, dated July 15, 2011.

 

            “State” means the State of Kansas.

 

            Section 2.   Authorization of the Bonds.  There shall be issued and hereby are authorized and directed to be issued the General Obligation Refunding Bonds, Series 2016-B, of the City in the principal amount of $13,750,000, for the purpose of providing funds to: (a) refund the Refunded Bonds; and (b) pay costs of issuance of the Bonds.

 

            Section 3.   Security for the Bonds.  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 the improvements financed by the Refunded Bonds 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 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 4.   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 the Bond Resolution hereafter adopted by the governing body of the City.

 

            Section 5.   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 and/or assessments upon all of the taxable tangible property within the City in the manner provided by law.

            The taxes and/or assessments above referred to shall be extended upon the tax rolls in each of the several years, respectively, 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, shall be used solely for the payment of the principal of and interest on the Bonds as and when the same become due and the fees and expenses of the Paying Agent.  The proceeds derived from said taxes and/or assessments shall be deposited in the Bond and Interest Fund.

            If at any time said 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 said principal or interest out of the general funds of the City and to reimburse said general funds for money so expended when said taxes and/or assessments are collected.

            Section 6.   Further Authority.  The Mayor, Clerk and other City officials are hereby further authorized and directed to execute any and all documents and take such actions as they may deem necessary or advisable in order to carry out and perform the purposes of the Ordinance, and to make alterations, changes or additions in the foregoing agreements, statements, instruments and other documents herein approved, authorized and confirmed which they may approve, and the execution or taking of such action shall be conclusive evidence of such necessity or advisability.

            Section 7.   Governing Law.  This Ordinance and the Bonds shall be governed exclusively 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, approval by the Mayor and publication in the official City newspaper.

            PASSED by the governing body of the City on July 11, 2016 and APPROVED AND SIGNED by the Mayor.

 

(SEAL)                                                      

 Karl F.Ryan, Vice-Mayor

 

ATTEST:

Shandi Wicks, CMC, City Clerk

PUBLICATION SUMMARY OF ORDINANCE NO. 16-10839, PASSED BY THE GOVERNING BODY OF THE CITY OF SALINA, KANSAS ON THE 11TH DAY OF JULY, 2016

SUMMARY

On July 11, 2016, the Governing Body of the City of Salina, Kansas, adopted Ordinance No. 16-10839, authorizing and providing for the issuance of $13,750,000 principal amount of General Obligation Refunding Bonds, Series 2016-B, of the City of Salina, Kansas. The purpose of the issuance of the bonds is to provide funds to refund a portion of previously issued general obligation bonds of the City. In addition, the Ordinance provides for security of the bonds, terms, details and conditions for the issuance of the bonds and the rate covenants for the bonds. The complete text of this ordinance may be obtained or viewed free of charge at the office of the City Clerk, 300 West Ash Street, Salina, Kansas, or on the City’s official website address, www.salina-ks.gov, where a reproduction of the original ordinance will be available for a minimum of one week following this summary publication.

This summary is certified this 11th day of July, 2016.

Greg A. Bengtson

City Attorney