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
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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
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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.
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