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HomeMy Public PortalAboutOrd 179 GO Bond A 1991 GILMORE & BELL 5/7/91 (PUBLISHED IN THE ARK VALLEY NEWS ON MAY 9, 1991) ORDINANCE NO. 179 AN ORDINANCE AUTHORIZING THE ISSUANCE AND DELIVERY OF $251,965 PRINCIPAL AMOUNT OF GENERAL OBLIGATION INTERNAL IMPROVEMENT BONDS, SERIES A, 1991, OF BEL AIRE, KANSAS, FOR THE PURPOSE OF PAYING THE COSTS OF CONSTRUCTING CERTAIN INTERNAL IMPROVEMENTS; 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; AND MAKING CERTAIN COVENANTS WITH RESPECT THERETO. WHEREAS, the City is a city of the third class, duly created, organized and existing under the laws of the State of Kansas; and WHEREAS, pursuant to K.S.A. 12-6a01 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 Ci ty has caused the construction of sani ty sewer improvements (the -Improvements") to be made in the City pursuant to Resolution No. R-90-05 of the City; and WHEREAS, all legal requirements pertaining to the Improvements have been complied with, and the governing body of the City now finds and determines that the total cost of the Improvements (including interest on temporary notes of the City and issuance costs of the Bonds) and related expenses are at least $251,965, all of said cost to be paid by the owners of the property within the City benefited by the Improvements and wi th none of said cost to be paid by the Ci ty at large, and that the owners of the property benef i ted by the Improvements have paid -0- in cash into the City Treasury on account of the Improvements leaving $251,965 to be paid for by the issuance of general obligation bonds; and WHEREAS, the governing body of the Ci ty is authorized by law to issue general obligation bonds of the City to pay the costs of the Improvements; and WHEREAS, the governing body of the City has advertised the sale of its general obligation 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 lowest bidder; and " WHEREAS, the governing body of the City hereby finds and determines that it is necessary for the Ci ty to authorize the issuance and delivery of its general obligation bonds in the principal amount of $251,965 to pay the costs of the Improvements. NOW, THEREFORE, BE IT ORDAINED BY THE GOVERNING BODY OF BEL AIRE, KANSAS, AS FOLLOWS: Section 1. Definitions of Words and Terms. "Act" means 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 ~., and K.S.A. 12-6aOl et ~., as amended and supplemented. "Bond and Interest Fund" means the Bond and Interest Fund of the City for its general obligation bonds. "Bonds" means the Series A, 1991 Bonds authorized by the Ordinance in the aggregate principal amount of $251,965, and dated May 1, 1991. "City" means Bel Aire, Kansas. "Clerk" means the duly appointed and acting Clerk or, in the Clerk's absence, the duly appointed and/or elected Deputy Clerk or Acting Clerk of the City. "Code" means the Internal Revenue Code of 1986, as amended, and the applicable regulations proposed or promulgated thereunder of the United States Department of the Treasury. "Improvements" means the improvements referred to in the preamble to this Ordinance. "Mayor" means the duly elected and acting Mayor of the City or, in the Mayor' s. absence, the duly appointed and/or elected President of the Council of the City. "Ordinance" means this Ordinance authorizing the issuance of the Bonds. Section 2. Authorization of and Securi ty for the Bonds. There shall be issued and hereby are authorized and directed to be issued the General Obligation Internal Improvement Bonds, Series A, 1991, of the City in the principal amount of $251,965, for, the purpose of providing funds to pay the costs of the Improvements. The Bonds shall be general obligations as to both principal and interest from levied upon the property benefi ted by the Improvements and, if not so paid, from ad of the Ci ty payable special assessments construction of the valorem taxes which -2- 14518 ". may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, wi thin 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 3. 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 maturi ty thereof, and shall be issued and delivered in the manner prescribed and subject to the provisions, covenants and agreements set forth in a resolution hereinafter adopted by the governing body of the City. Section 4. 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, and the proceeds derived from said taxes and/or assessments shall be deposited in the Bond and Interest Fund. If at any time collected in time to Bonds when due, the directed to pay said funds of the City and so expended when said said taxes and/or assessments are not pay the principal of or interest on the Ci ty Treasurer is hereby authorized and principal or interest out of the general to reimburse said general funds-for money taxes and/or assessments are collected. Section 5. Tax Covenants. The City covenants and agrees that it will not take any action, or fail to take any action, if any such action or fai lure to take action would adversely affect the exclusion from gross income of the interest on the Bonds under Section 103 of the Code. The Ci ty covenants and agrees that it will use the proceeds of the Bonds as soon as practicable and wi th all reasonable dispatch for the purpose for which the Bonds are issued as hereinbefore set forth, and that it will not directly or indirectly use or permit the use of any proceeds of the Bonds or any other funds of the City, or take or omi t 'to take any action that would cause the Bonds to be "arbitrage bonds" within the meaning of Section 148(a) of the Code. To that end, the City will comply with all requirements of Section 148 of the Code to the extent applicable to the Bonds. In the event that at any time the -3- 14518 -, City is of the opinion that for purposes of this Section it is necessary to restrict or limi t the yield on the investment of any moneys held by the City under the Ordinance, the City shall take such action as may be necessary. Section 6. City officials execute any and deem necessary the purposes of Further Authority. The Mayor, Clerk and other are hereby further authorized and di rected to all documents and take such actions as they may or advisable in order to carry out and perform the Ordinance. Section 7. 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 Section 8. effect and be in governing body of newspaper. Effective Date. This Ordinance shall take full force from and after its passage by the the City and publication in the official City f~S D- .by the governing body of the Ci ty on May 7, an~':ta'P ~ di/9Y the Mayor. " " ,-, /,.' " .-,) ,'r' /<'1,< \;,~..., ',I" J V '.u. Ii, tf;' 7'...' (\ :'!'~/~- \" " '. 1 .:::SE "i~"'i~"" ' ~ .,~ ,~~~ ~,rr JF ,~ ~. \-~'.."- f" i J I: f~ ":'.<.\nT/ R:S ','[::q A'P;I:''E S t H fA S r". -' G ''"- /,'\ ,,'~.. ,'-i j' OF'IT.SC\'\\' 1991, ~~~4 "'-I~//~~ Clerk -4- 14S18