Ordinance Authorizing Issuance of General Obligation Bonds
(First Published in the Ellsworth County Independent/
Reporter, March 29, 2018)
ORDINANCE NO. 841
AN ORDINANCE AUTHORIZING AND PROVIDING
FOR THE ISSUANCE OF GENERAL OBLIGATION BONDS, SERIES 2018-A AND GENERAL OBLIGATION BONDS,
SERIES 2018-B, OF THE CITY OF WILSON, 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 Wilson, 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 the laws of the State of Kansas applicable thereto, by proceedings duly had, the governing body of the City has authorized the following improvements (the “Improvements”) to be made in the City, to-wit:
Project Description Res. No.
Street improvements 3-2017
Authority
Charter Ord. 04-2016 and Article 12 Section 5 of the Kansas
Constitution
Estimated Amount*
$320,000
; 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, Series 2018-A in an aggregate amount of $125,000, and the City’s General Obligation Bonds, Series 2018-B in the aggregate principal amount of $75,000 the proceeds of which, will be used to fund the Improvements, all pursuant a letter of conditions dated May 10, 2016, an approval letter dated June 9, 2016, a supplemental letter of conditions dated March 27, 2017 and a supplemental approval letter dated April 3, 2017; and
WHEREAS, the governing body of the City is authorized by law to issue general obligation bonds of the City to pay a portion of the costs of the Improvements; and
WHEREAS, the governing body of the Issuer hereby finds and determines that it is necessary for the Issuer to authorize the issuance and delivery of the Series 2018-A Bonds (as defined herein) in the principal amount of $125,000 and the Series 2018-B Bonds (as defined herein) in the principal amount of $75,000, to pay a portion of the costs of the Improvements.
WHEREAS, none of such general obligation bonds heretofore authorized have been issued and the City proposes to issue its general obligation bonds to finance a portion of the Improvements.
NOW, THEREFORE, BE IT ORDAINED BY THE GOVERNING BODY OF THE CITY OF WILSON, 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 following 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., K.S.A. 12-101 et seq., Article 12, Section 5 of the Kansas Constitution and Charter Ordinance No. 04-2016 of the City, 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 of the City prescribing the terms and details of the Bonds and making covenants with respect thereto.
“Bonds” means, jointly, the Issuer’s General Obligation Bonds, Series 2018-A and the Issuer’s General Obligation Bonds, Series 2018-B, in the aggregate principal amounts of $125,000 and $75,000, respectively, dated as of the Dated Date, authorized by this Ordinance.
“City” means the City of Wilson, 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.
“Dated Date” means April 9, 2018.
“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.
“Series 2018-A Bonds” means the Issuer’s General Obligation Bonds, Series 2018-A, in the aggregate principal amount of $125,000, and dated as of the Dated Date, authorized by this Ordinance.
“Series 2018-B Bonds” means the Issuer’s General Obligation Bonds, Series 2018-B, in the aggregate principal amount of $75,000, and dated as of the Dated Date, authorized by this Ordinance.
“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 2018-A, of the City in the principal amount of $125,000, and the General Obligation Bonds, Series 2018-B of the City in the principal amount of $75,000, for the purpose of providing funds to: (a) pay a portion of the costs of the Improvements; and (b) pay costs of issuance of the Bonds.
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 of the City.
Section 5. 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 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. 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 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 of the City, approval by the Mayor and publication in the official City newspaper.
PASSED by the governing body of the City on March 19, 2018 and APPROVED AND SIGNED by the Mayor.
(SEAL) /s/Larry Ptacek, Mayor
ATTEST:
/s/Susan Kriley, Clerk
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