(Published in The Ellsworth County Independent Reporter, July 26, 2007)
ORDINANCE NO. 2987
AN ORDINANCE AUTHORIZING AND PROVIDING FOR THE ISSUANCE OF NOT EXCEEDING $1,250,000 PRINCIPAL AMOUNT OF TRANSPORTATION DEVELOPMENT DISTRICT SALES TAX REVENUE BONDS (KUNKLE, DEES AND O'DONNELL TDD PROJECT), OF THE CITY OF ELLSWORTH, KANSAS, FOR THE PURPOSE OF PROVIDING FUNDS TO PAY THE COSTS OF CERTAIN TRANSPORTATION PROJECTS IN THE CITY; AUTHORIZING EXECUTION OF A BOND TRUST INDENTURE BY AND BETWEEN THE CITY AND CITIZENS STATE BANK AND TRUST COMPANY, ELLSWORTH, KANSAS, AS TRUSTEE; ; AUTHORIZING THE EXECUTION OF THE BOND PURCHASE AGREEMENT FOR THE BONDS BY AND BETWEEN THE CITY AND PIPER JAFFRAY & CO., LEAWOOD, KANSAS, AS PURCHASER OF THE BONDS; MAKING CERTAIN COVENANTS AND AGREEMENTS TO PROVIDE FOR THE PAYMENT AND SECURITY OF THE BONDS AND AUTHORIZING CERTAIN OTHER DOCUMENTS AND ACTIONS IN CONNECTION THEREWITH.
THE GOVERNING BODY OF THE CITY OF ELLSWORTH, KANSAS HAS FOUND AND DETERMINED:
A The City of Ellsworth, Kansas (the "Issuer") is a city of the third class, duly created, organized and existing under the Constitution and laws of the State; and
B. The Issuer, under the provisions of the K.S.A. 12-17,140 et seq. (the "Act"), has by Ordinance No. 2954, as amended and supplemented by Ordinance No. 2982 (jointly, the "Creation Ordinance"), created a transportation development district ("Transportation District") within the Issuer; and
C. The Issuer is authorized under the provisions of the Act to construct in the Transportation District the transportation projects described in the Creation Ordinance (the "Transportation Project"); and
D. The Issuer is authorized under the provisions of the Act and the Creation Ordinance to impose a transportation district sales tax in an amount of 1% on the selling of tangible personal property at retail or rendering or furnishing services within the Transportation District (the "TDD Sales Tax") and to issue transportation district sales tax revenue bonds of the City in a principal amount not exceeding $1,250,000 to pay the costs of the Transportation Project, including associated reserves and financing costs; and
E. The Issuer's governing body finds that it is necessary and advisable to issue its Transportation Development District Sales Tax Revenue Bonds (Kunkle, Dees and O'Donnell TDD Project), Series 2007, in a principal amount not exceeding $1,250,000 (the "Revenue Bonds") to pay the costs of the Transportation Project, including associated reserves and financing costs; and
F. The Issuer's governing body finds that it is necessary and advisable in connection with the issuance of the Revenue Bonds to execute and deliver the following documents (collectively, the "Bond Documents"):
(i) a Bond Trust Indenture dated as of August 15, 2007 (the "Indenture"), with Citizens State Bank and Trust Company, Ellsworth, Kansas, as Trustee (the "Trustee"), prescribing the terms and conditions of issuing and securing the Revenue Bonds;
(ii) a Bond Purchase Agreement (the "Bond Purchase Agreement") providing for the sale of the Revenue Bonds by the Issuer to Piper Jaffray & Co., Leawood, Kansas;
(iii) a Tax Compliance Agreement (the "Tax Compliance Agreement") to be entered into between the Issuer and the Trustee; and
(iv) a Continuing Disclosure Agreement (the "Continuing Disclosure Agreement") to be entered into between the Issuer and the Trustee.
NOW, THEREFORE, BE IT ORDAINED BY THE GOVERNING BODY OF THE CITY OF ELLSWORTH, KANSAS:
Section 1. Definition of Terms. All terms and phrases not otherwise defined in this ordinance will have the meanings set forth in the Indenture.
Section 2. Authorization of the Revenue Bonds. There shall be issued and are hereby authorized and directed to be issued the Transportation Development District Sales Tax Revenue Bonds (Kunkle, Dees and O'Donnell TDD Project), Series 2007, in a principal amount not exceeding $1,250,000, for the purpose of providing funds to pay a portion of the costs of the Transportation Project. The issuance of the Revenue Bonds, the execution of the Bond Documents and the authority provided by this Ordinance is subject to the following parameters and conditions precedent: (a) the principal amount of the Revenue Bonds may not exceed $1,250,000; (b) the true interest cost of the Revenue Bonds does not exceed 5.50%; (c) the structure of Revenue Bond principal and interest payments shall be as set forth in the Indenture form presented herewith (gradually ascending annual debt service), with changes only associated with an increase or decrease in total principal amount of the Revenue Bonds and in anticipated interest rates; (d) the final maturity date of the Revenue Bonds shall be August 1, 2029; (e) the maximum underwriting discount for the Revenue Bonds shall be 1.75% of the total principal amount of the Revenue Bonds; (f) the first optional redemption date for the Revenue Bonds shall not be later August 1, 2020; and (g) the amount of Revenue Bond proceeds available for deposit in the Project Fund to pay Transportation Project costs shall be at least $1,000,000.
Section 3. Security for the Revenue Bonds. The Revenue Bonds shall be special obligations of the Issuer payable solely from the TDD Sales Tax Revenues as described in the Indenture, and the Issuer hereby pledges said TDD Sales Tax Revenues to the payment of the principal of and interest on the Revenue Bonds. The Revenue Bonds are secured by a pledge and assignment of the Trust Estate to the Trustee in favor of the Bondowners, as provided in the Indenture. The Revenue Bonds shall not be or constitute a general obligation of the Issuer, nor shall they constitute an indebtedness of the Issuer within the meaning of any constitutional, statutory or charter provision, limitation or restriction, and the taxing power of the Issuer is not pledged to the payment of the Revenue Bonds, either as to principal or interest.
The covenants and agreements of the Issuer contained herein and in the Revenue Bonds shall be for the equal benefit, protection and security of the legal owners of any or all of the Revenue Bonds, all of which Revenue Bonds shall be of equal rank and without preference or priority 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 Revenue Bonds, or otherwise, except as to rate of interest, date of maturity and right of prior redemption as provided in the Indenture. The Revenue Bonds shall stand on a parity and be equally and ratably secured with respect to the payment of principal and interest from the TDD Sales Tax Revenues with any Additional Bonds. The Revenue Bonds shall not have any priority with respect to the payment of principal or interest from said TDD Sales Tax Revenues or otherwise over the Additional Bonds; and the Additional Bonds shall not have any priority with respect to the payment of principal or interest from said TDD Sales Tax Revenues or otherwise over the Revenue Bonds.
Section 4. Terms, Details and Conditions of the Revenue Bonds. The Revenue 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 Indenture.
Section 5. Authorization of Indenture. The Issuer is authorized to enter into the Indenture with the Trustee in the form approved in this Ordinance. The Issuer will pledge the Trust Estate described in the Indenture to the Trustee for the benefit of the owners of the Revenue Bonds on the terms and conditions in the Indenture.
Section 6. Covenant Not to Cancel TDD Sales Tax. So long as the Bonds remain Outstanding, the Issuer will take no action, and will contest any action or attempted action, to cancel the TDD Sales Tax.
Section 7. Execution of Bonds and Bond Documents. The Mayor of the Issuer is authorized and directed to execute the Revenue Bonds and deliver them to the Trustee for authentication on behalf of the Issuer in the manner provided by the Act and in the Indenture. The Mayor or member of the Issuer's governing body authorized by law to exercise the powers and duties of the Mayor in the Mayor's absence is further authorized and directed to execute and deliver the Bond Documents, including the Bond Purchase Agreement, in substantially the form presented with this Ordinance, on behalf of the, with such corrections or amendments as the Mayor or other person lawfully acting in the absence of the Mayor may approve, which approval shall be evidenced by his or her signature. The authorized signatory may all sign and deliver other documents, or certificates as may be necessary or desirable to carry out the purposes and intent of this ordinance and the Bond Documents. The City Clerk of the Issuer is hereby authorized and directed to attest the execution of the Revenue Bonds, the Bond Documents and such other documents, certificates and instruments as may be necessary or desirable to carry out the intent of this ordinance under the Issuer's corporate seal.
Section 8. Preliminary and Final Official Statement. The Preliminary Official Statement dated July 23, 2007 relating to the Revenue Bonds, is hereby ratified and approved.
The final Official Statement is hereby authorized to be prepared by supplementing, amending and completing the Preliminary Official Statement, with such changes and additions thereto as are necessary to conform to and describe the transaction. The Mayor is hereby authorized to execute the final Official Statement as so supplemented, amended and completed, and the use and public distribution of the final Official Statement by the Purchaser in connection with the reoffering of the Bonds is hereby authorized. The proper officials of the Issuer are hereby authorized to execute and deliver a certificate pertaining to such Official Statement as prescribed therein, dated as of the date of payment for and delivery of the Bonds.
The Issuer agrees to provide to the Purchaser within seven business days of the date of the sale of Bonds sufficient copies of the final Official Statement to enable the Purchaser to comply with the requirements of Rule 15c2‑12(b)(4) of the Securities and Exchange Commission and with the requirements of Rule G‑32 of the Municipal Securities Rulemaking Board.
Section 9. Further Authority. The Mayor, Clerk, and other Issuer 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 this Ordinance 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 10. Governing Law. This Ordinance and the Revenue Bonds shall be governed exclusively by and construed in accordance with the applicable laws of the State.
Section 11. Effective Date. This Ordinance shall take effect and be in full force from and after its passage by the governing body of the Issuer and publication in the official Issuer newspaper.
PASSED by the governing body of the City on July 23, 2007 and APPROVED and SIGNED by the Mayor.
(SEAL)
Mayor
ATTEST:
City Clerk