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10/20/2020 - Ordinance No. 20-11041 Authorizing & Providing for the Issuance of General Obligation Improvement and Refunding Bonds, Series 2020-B


ORDINANCE NO. 20-11041


OF


THE CITY OF SALINA, KANSAS


PASSED


OCTOBER 19, 2020

____________________


GENERAL OBLIGATION IMPROVEMENT AND REFUNDING BONDS
SERIES 2020-B



ORDINANCE NO. 20-11041

AN ORDINANCE AUTHORIZING AND PROVIDING FOR THE ISSUANCE OF GENERAL OBLIGATION IMPROVEMENT AND REFUNDING BONDS, SERIES 2020-B, OF THE CITY OF SALINA, KANSAS; 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 governing body of the City (the “Governing Body”) has previously authorized certain public improvements described as follows (collectively the “Improvements”):

Project Description

Ord./Res. No.

Authority

Amount*

Emergency Communications System Improvements

Ord. 20-11043

Kansas Constitution Article 12, Section 5

$2,100,000.00

Fire Fighting Equipment

Res. 20-7809

K.S.A. 12-110c

1,318,603.46

Public Water Supply System Improvements – Water Main

Res. 20-7880

K.S.A. 65-163d et seq.

3,554,216.48

Total

 

 

$6,972,819.94

* Plus costs of issuance

 

 

 


* Plus costs of issuance

WHEREAS, the City has previously entered into the following loan agreement with KDHE for the purposes of financing the water main improvements (the “Loan”):

Loan No.

Dated Date

Maturity

Date

Original

Amount

Outstanding

Amount

Redemption

Date

KPWSLF Project No. 2841

01/13/2014

08/01/2036

$4,239,375.00

$3,520,775

12/04/2020



WHEREAS, the City heretofore 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, reduce debt service requirements of the City for certain years, restructure the debt payments on 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 is authorized by law to issue general obligation bonds of the City to pay the costs of the Improvements, including the prepayment of the Loan, and refund the Refunded Bonds, and none of such general obligation bonds heretofore authorized have been issued and the City proposes to issue $8,450,000 of its general obligation bonds, together with bid premium thereon, to pay such costs; and

WHEREAS, the Governing Body 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 CITY COMMISSION 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, including Article 12, Section 5 thereof, and statutes of the State including K.S.A. 10-101 to 10-125, inclusive, K.S.A. 10-427 et seq., K.S.A. 10-620 et seq., K.S.A. 12 110c, and K.S.A. 65-163d 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 prescribing the terms and details of the Bonds and making covenants with respect thereto.

“Bonds” means the City’s General Obligation Improvement and Refunding Bonds, Series 2020-B, dated November 19, 2020, 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, Assistant or Acting Clerk.

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

“Governing Body” means the City Commission of the City.

“KDHE” means the Kansas Department of Health and Environment.

“Loan” means the KDHE Loan for KPWSLF Project No. 2841 between the Issuer and KDHE, dated January 13, 2014, maturing August 1, 2036, in the aggregate outstanding principal amount of $3,520,775.

“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 2010-B Bonds maturing in the years 2021 to 2023, inclusive, in the aggregate principal amount of $745,000; and (b) the Series 2012-A Bonds maturing in the years 2021 to 2027, inclusive, in the aggregate principal amount of $1,185,000.

“Refunded Loan” means the outstanding principal amount of the Loan.

“Series 2010-B Bonds” means the City’s General Obligation Refunding Bonds, Series 2010-B, dated October 15, 2010.

“Series 2012-A Bonds” means the City’s General Obligation Internal Improvement Bonds, Series 2012-A, dated July 15, 2012.

“State” means the State of Kansas.

“Substitute Improvements” means the substitute or additional improvements of the City authorized in the manner set forth in the Bond Resolution.

Section 2. Authorization of the Bonds. There shall be issued and hereby are authorized and directed to be issued the General Obligation Improvement and Refunding Bonds, Series 2020-B, of the City in the principal amount of $8,450,000, for the purpose of providing funds to: (a) pay the costs of the Improvements; (b) pay costs of issuance of the Bonds; (c) prepay the Refunded Loan; and (d) refund the Refunded 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 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 balance of the principal and interest on the Bonds is 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.

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.

Section 5. Levy and Collection of Annual Tax. The Governing Body 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 for the Bonds. 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 City 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, Director of Finance, lerk 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 and publication of the Ordinance or a summary thereof in the official City newspaper.

[BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK]

PASSED by the City Commission on October 19, 2020 and SIGNED by the Mayor.



(SEAL)
Michael L. Hoppock, Mayor

ATTEST:


Shandi Wicks, CMC, City Clerk


(PUBLISHED IN THE SALINA JOURNAL ON OCTOBER 23, 2020)

SUMMARY OF ORDINANCE NO. 20-11041

On October 19, 2020, the governing body of the City of Salina, Kansas passed an ordinance entitled:

AN ORDINANCE AUTHORIZING AND PROVIDING FOR THE ISSUANCE OF GENERAL OBLIGATION IMPROVEMENT AND REFUNDING BONDS, SERIES 2020-B, OF THE CITY OF SALINA, KANSAS; 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.

The Series 2020-B Bonds approved by the Ordinance are being issued in the principal amount of $8,450,000, to pay a portion of the costs of certain public improvements and to refund previously issued general obligation bonds and a KDHE loan of the City, and constitute general obligations of the City payable as to both principal and interest, to the extent necessary, 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. A complete text of the Ordinance may be obtained or viewed free of charge at the office of the City Clerk, 300 West Ash Street, Salina, Kansas 67402. A reproduction of the Ordinance is available for not less than 7 days following the publication date of this Summary at www.salina-ks.gov.

This Summary is hereby certified to be legally accurate and sufficient pursuant to the laws of the State of Kansas.

DATED: October 19, 2020.


City Attorney