HomeMy Public PortalAboutOrd 226 Water Rev Bond B 1993
GILMORE & BELL, P.C.
03/25/93
(PUBLISHED IN THE ARK VALLEY NEWS ON APRIL
, 1993)
ORDINANCE NO.
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AN ORDINANCE AUTHORIZING THE ISSUANCE AND DELIVERY OF
$295,000* PRINCIPAL AMOUNT OF WATERWORKS SYSTEM
REFUNDING REVENUE BONDS, SERIES B, 1993, OF BEL AIRE,
KANSAS, FOR THE PURPOSE OF PROVIDING FUNDS TO REFUND
THE CITY'S OUTSTANDING WATERWORKS SYSTEM REVENUE
BONDS; AND MAKING CERTAIN COVENANTS AND AGREEMENTS
WITH RESPECT THERETO.
WHEREAS, the City of Bel Aire, Kansas (the "City"), is a
municipal corporation. duly created, organized and existing
under the laws of the State of Kansas; and
WHEREAS, the City has heretofore assumed the obligation of
the Refunded Bonds; and
WHEREAS, the City is authorized by K.S.A. 10-l16a. to issue
refunding revenue 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, to reduce debt service
requirements of the Issuer for certain years, to restructure
the debt payments on the Refunded Bonds, and to provide an
orderly plan of finance for the City, it has become desirable
and in the best interest of the Ci ty and its inhabi tants to
refund the Refunded Bonds.
NOW, THEREFORE, BE IT ORDAINED BY THE GOVERNING BODY OF THE
CITY OF BEL AIRE, KANSAS, AS FOLLOWS:
Section 1. Definitions of Words and Terms. In addition to
the words and terms defined elsewhere in this Ordinance and in
the Resolution, which are incorporated herein by reference as
though fully set forth herein, the following words and terms as
used in this Ordinance shall have the following meanings:
"Act" shall mean the Constitution and Statutes of the State
of Kansas including K.S.A. 10-101 to 10-125, inclusive, K.S.A.
10-620 et ~., as amended and supplemented, K.S.A. 10-ll6a and
K.S.A. 10-1201 et ~.
"Additional Bonds" shall mean any bonds hereinafter issued
pursuant to Article X of the Resolution.
"Bonds" means the City's Waterworks System Refunding
Revenue Bonds, Series B, 1993, dated April 1, 1993, in the
aggregate principal amount of $295,000* authorized and issued
pursuant to this Ordinance, and any Additional Bonds.
"City" means the City of Bel Aire, Kansas.
"City Clerk" shall mean the duly appointed and acting City
Clerk or, in the City Clerk's absence, the duly appointed
Deputy City Clerk or Acting City Clerk of the City.
"Code" means the Internal Revenue Code of 1986, as amended,
together with any regulations applicable thereto or promulgated
thereunder by the United States Department of the Treasury.
"Current Expenses" means all necessary expenses of
operation, maintenance and repair of the System, including,
current maintenance charges, expenses of reasonable upkeep and
repairs, properly allocated share of charges for insurance, and
all other expenses incident to the operation of the System, but
shall exclude depreciation, all general administrative expenses
of the City not related to the operation of the System[, and
the payments into the Bond Reserve Account and Depreciation and
Replacement Account provided for in the Resolution] .
"Gross Revenues" means all charges,
revenues (including interest earnings and
Surplus Account to the Revenue Fund of Net
a prior Fiscal Year) derived and collected
operation and ownership of the System.
fees, income and
transfers from the
Revenues derived in
by the City from the
"Net Revenues" means Gross Revenues less Current Expenses.
"Ordiriance" means this ordinance as from time to time
amended in accordance with the terms hereof.
"Parity Bonds" means the Bonds and any bonds hereinafter
issued pursuant to Sections 1002 or 1004 of the Resolution.
"Refunded Bonds" means the Series A, 1980 Bonds maturing in
the years 1993 and thereafter, in the aggregate principal
amount of $270,000.
"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.
"Series A, 1980 Bonds" means the Waterworks System Revenue
Bonds, Series A, 1980, dated May 1, 1980 of the Bel Aire
Improvement District.
"Series A, 1980 Resolution" means the Resolution adopted
April 14, 1980, which authorized the Series A, 1980 Bonds.
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"System" means the Waterworks System of the Ci ty together
with all repairs, alterations, extensions, reconstructions,
enlargements or improvements hereafter made or acquired by the
City.
Section 2. Authorization of the Bonds. There shall be
issued and are hereby authorized and directed to be issued the
Waterworks System Refunding Revenue Bonds, Series B, 1993, of
the City in the aggregate principal amount of $295,000* for the
purpose of providing funds to refund the Refunded Ordinance.
Section 3. Security for the Bonds. The Bonds shall be
special obligations of the City payable solely from, and
secured as to the payment of principal and interest by a pledge
of, the Net Revenues. The taxing power of the Ci ty is not
pledged to the payment of the Bonds either as to principal or
interest. The Bonds shall not be or constitute a general
obligation of the City, nor shall they constitute an
indebtedness of the -City within the meaning of any
constitutional, statutory or charter provision, limitation or
restriction.
The Bonds shall stand on a parity and are equally and
ratably secured wi th respect to the payment of principal and
interest from the Net Revenues derived by the City from the
operation of the System and in all other respects wi th the
Parity Bonds. The covenants and agreements of the City
contained herein, in the Resolution and in the Bonds shall be
for the equal benefit, protection, and security of the legal
Owners of any or all of the Bonds, all of which Bonds shall be
of equa 1 rank and wi thout preference or priori ty of one Bond
over any other Bond in the application of the funds herein
pledged to the payment of the principal of and the interest on
the Bonds~ or otherwise, except as to rate of interest, date of
maturity and right of prior redemption as provided in the
Resolution.
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 Resolution hereinafter adopted by the governing body of
the City. .
Section 5. Rate Covenant. The City will fix, establish,
maintain and collect such rates, fees and charges for the use
and services furnished by or through the System, including all
repairs, alterations, extensions, reconstructions, enlargements
or improvements thereto hereafter constructed or acqui red by
the Ci ty, as wi 11 produce revenues suff icient to (a) pay the
cost of the operation and maintenance of the System; (b) pay
the principal of and interest on the Bonds as and when the same
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become due; and (c) provide reasonable and adequate reserves
for the payment of the Bonds and the interest thereon and for
the protection and benefit of the System of the City as
provided in this Ordinance and the Resolution. The Resolution
may establish requirements in excess of the requi rements set
forth herein.
Section 6. Tax Covenants. The Ci ty covenants and agrees
that (1) it will comply with all appliable provisions of the
Code, including Sections 103 and 141 through 150, necessary to
maintain the exclusion from gross income for federal income tax
purposes of the interest on the Bonds and (2) it wi 11 not use
or permit the use of any proceeds of Bonds or any other funds
of the Ci ty not take 0 r permi t any othe r act ion, 0 r fai 1 to
take any action, if any such action or failure to take action
would adversely affect the exclusion from gross income of the
interest on the Bonds. The City will, in addition, adopt such
other ordinances or resolutions and take such other actions as
may be necessary to comply wi th the Code and wi th all other
applicable future laws, regulations, published rulings and
judicial decisions, in order to ensure that the interest on the
Bonds will remain excluded from federal gross income, to the
extent any such actions can be taken by the City.
(b) The City covenants and agrees that (1) it will comply
with all requirements of Section 148 of the Code to the extent
applicable to the Bonds, (2) it will use the proceeds of the
Bonds as soon as practicable and with all reasonable dispatch
for the purposes for which the Bonds are issued, and (3) it
will not invest or directly or indirectly use or permit the use
of any proceeds of the Bonds or any other funds of the City in
any manner, or take or omit to take any action, that would
cause the Bonds to be "arbi trage bonds" wi thin the meaning of
Section 148(a) of the Code.
(c) The City covenants and agrees that it will not use any
portion of the proceeds of the Bonds, including any investment
income ea rned on such proceeds, di rect ly or indi rect ly, (1) 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 7. Further Authority. The Mayor, Clerk and other
Ci ty off ici a Is a re hereby further au tho rized and di rected 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 to make a 1 te rat ions, changes 0 r
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 8. Governing Law. The Ordinance and
shall be governed exclusively by and construed in
with the applicable laws of the State of Kansas.
the Bonds
accordance
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Section 9.
effect and be
governing body
newspaper.
Effective Date. This Ordinance shall take
in full force from and after its passage by the
of the City and publication in the official City
PASSED by the governing body of the Ci ty [and approved by
the ~aVof~on April 6, 1993.
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Mayor
APPROVED AS TO FORM ONLY:
City Attorney
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