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7/7/2015 - Ordinance No. 15-10783 Issuance of Bonds

ORDINANCE NO. 15-10783

AN ORDINANCE AUTHORIZING AND PROVIDING FOR THE ISSUANCE OF GENERAL OBLIGATION REFUNDING AND INTERNAL IMPROVEMENT BONDS, SERIES 2015-A, 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, pursuant to K.S.A. 12-6a01 et seq. and K.S.A. 12-1736 et seq. as amended, and other provisions of the laws of the State of Kansas applicable thereto, by proceedings duly had, the governing body of the City has authorized the following improvements (the “Improvements”) to be made in the City, to-wit:

Project Description 
Ord./Res. No. 
Authority Allocable Principal Amount
Magnolia Hills Phase IV Res. 13-7016 K.S.A. 12-6a01 et seq. $735,000
Bicentennial Center Res. 13-6988 &
Res. 14-7087 K.S.A. 12-1736 et seq.  4,945,000
   Total: $5,680,000

 WHEREAS, the governing body of the City is authorized by law to issue general obligation bonds of the City to pay a portion of the costs of the Improvements; 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., K.S.A. 12-6a01 et seq. and K.S.A. 12-1736 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 and Internal Improvement Bonds, Series 2015-A, dated July 29, 2015, 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.

 “Improvements” means the improvements referred to in the preamble to this Ordinance and any Substitute Improvements.

 “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 the Series 2006-A Bonds maturing in the years 2016 to 2026, inclusive, in the aggregate principal amount of $1,210,000.

“Refunded Bonds Redemption Date” means October 1, 2015, for the Series 2006-A Bonds.

 “Refunded Notes” means the Series 2014-1 Notes maturing on August 1, 2015 in the aggregate principal amount of $5,000,000.

“Series 2006-A Bonds” means the City's General Obligation Internal Improvement Bonds, Series 2006-A, dated April 1, 2006.
 
“Series 2014-1 Notes” means the City’s General Obligation Temporary Notes, Series 2014-1, dated July 30, 2014.

 “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 Refunding and Internal Improvement Bonds, Series 2015-A, of the City in the principal amount of $6,825,000, for the purpose of providing funds to: (a) pay a portion of the costs of the Improvements; (b) refund the Refunded Bonds; (c) pay costs of issuance of the Bonds; and (d) retire the Refunded Notes.

 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 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 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.

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 PASSED by the governing body of the City on July 6, 2015 and APPROVED AND SIGNED by the Mayor.


(SEAL)             
        Mayor

ATTEST:


      
 Clerk