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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. ;{,2?> 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. -2- 02J78 "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 -3- 02378 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 -4- 02378 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. >I' ()i: E\:.' . It , . If ,;f~""'\ . .............~."";., !' ~~(~;1<I ~~~. ~,. r 'c... !\..~.I t_" . \ ' ..., (. IT' \ ') t ' 1#," I Ii "T' _ .... -< ,...-' ,I, l Jt , .\ '.AT:r,EST: ':. ,:;. . ~(~ '. n I~) ,- : r n "l" >1 I r' , ... , , \ r \:1 r ,~) .., '.,' 1 "/" . ' '( \ ~ \!hd/I C:(C ~{~~ ~\ ~ ~ ~~'r/;~' Mayor APPROVED AS TO FORM ONLY: City Attorney -5- 02378