Kanopolis Ordinance to issue General Obligation Bonds
(First Published in the Ellsworth County Independent
Reporter, April 23, 2020)
ORDINANCE NO. 2020-O-02
AN ORDINANCE AUTHORIZING AND PROVIDING
FOR THE ISSUANCE OF GENERAL OBLIGATION BONDS, SERIES 2020, OF THE CITY OF KANOPOLIS, 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 Kanopolis, Kansas (the “City”) is a city of the third class, duly created, organized and existing under the Constitution and laws of the State; and
WHEREAS, pursuant to K.S.A. 65-163d through 65-163u, as amended, and other provisions of the laws of the State of Kansas applicable thereto, by proceedings duly had, the City Council of the City (the “Governing Body”) has authorized the following improvements (the “Improvements”) to be made in the City, to-wit:
Project Description Public Water Supply System
Improvements
Res. No. 2018-R-06
Authority (K.S.A.) 65-163d through 65-163u
Amount $2,198,000
WHEREAS, the Issuer desires to issue its general obligation bonds in order to permanently finance the costs of such Improvements and to retire the following temporary notes of the Issuer which were issued to temporarily finance a portion of the costs of the Improvements (the “Refunded Notes”):
Series 2019
Dated Date March 27, 2019
Maturity Date March 26, 2020
Original Amount $1,500,000
Outstanding Amount $1,500,000
Redemption Date March 26, 2020
WHEREAS, all legal requirements pertaining to the Improvements have been complied with, and the Governing Body now finds and determines that the total cost of the Improvements (including interest on temporary notes of the City and issuance costs of the general obligation bonds) and related expenses are at least $2,198,000, with $1,558,000 to be paid for by the issuance of general obligation bonds; and
WHEREAS, the Governing Body is authorized by law to issue general obligation bonds of the City to pay a portion of the costs of the Improvements; and
WHEREAS, none of such general obligation bonds heretofore authorized have been issued and the City proposes to issue $1,558,000 of its general obligation bonds to pay a portion of the costs of the Improvements; and
WHEREAS, the City has received a commitment from the United States of America, acting through the Department of Agriculture – Rural Development (“RD/USDA”) to purchase the City's general obligation bonds in an amount of $1,558,000, the proceeds of which, together with funds derived from a Community Development Block Grant in the amount of $600,000, a Pre-Development Planning Grant in the amount of $30,000 and available City funds in the amount of $10,000 will be used to fund the Improvements, all pursuant to a letter of conditions dated March 22, 2018, and an approval letter dated March 30, 2018.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF KANOPOLIS, 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. 10-620 et seq., and K.S.A. 65-163d through 65-163u, 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 prescribing the terms and details of the Bonds and making covenants with respect thereto.
“Bonds” means the Issuer's General Obligation Bonds, Series 2020, in the aggregate principal amount of $1,558,000, and dated as of the Dated Date, authorized by this Ordinance.
“City” means the City of Kanopolis, Kansas.
“Clerk” means the duly appointed and acting Clerk of the City or, in the Clerk's absence, the duly appointed Deputy, Assistant or Acting Clerk.
“Governing Body” means the City Council of the City.
“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 Vice Mayor or Acting Mayor of the City.
“Ordinance” means this Ordinance authorizing the issuance of the Bonds.
“Owner” when used with respect to any Bond means the Person in whose name such Bond is registered on the Bond Register.
“Paying Agent” means the State Treasurer, and any successors and assigns.
“RD/USDA” means Rural Development, United States Department of Agriculture.
“Refunded Notes” means the Series 2019 Notes in the aggregate principal amount of $1,500,000.
“Series 2019 Notes” means the City's General Obligation Temporary Notes, Series 2019, dated March 27, 2019.
“State” means the State of Kansas.
Section 2. Authorization of the Bonds. There shall be issued and hereby are authorized and directed to be issued the General Obligation Bonds, Series 2020, of the City in the principal amount of $1,558,000, for the purpose of providing funds to: (a) pay a portion of the costs of the Improvements; (b) pay costs of issuance of the Bonds; and (c) 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 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.
Section 5. Levy and Collection of Annual Tax. The Governing Body 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 upon all of the taxable tangible property within the City in the manner provided by law.
The taxes 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 for the Bonds. The proceeds derived from said taxes shall be deposited in the Bond and Interest Fund.
If at any time said taxes are not collected in time to pay the principal of or interest on the Bonds when due, the City 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 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, approval by the Mayor, and publication of the Ordinance or a summary thereof in the official City newspaper.
[BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK]
PASSED by the City Council on March 10, 2020 and APPROVED AND SIGNED by the Mayor.
(SEAL)
/s/ Anthony Hopkins, Mayor
ATTEST:
/s/ Debbie Kralik, Clerk
2t 4/30