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Legislation #: 200216 Introduction Date: 3/19/2020
Type: Ordinance Effective Date: 3/20/2020
Sponsor: None
Title: Amending Ordinance No. 200152 by repealing and reenacting Sections 101, 202, 202a, 204, 205, 209, 211, 212, 302, 507, 812, 813, 814, 815, 816 and 817, repealing and reenacting Exhibit A and Exhibit C, and adding Section 213 in order to provide the City with the option to sell the bonds through a method of sale that will result in the most favorable terms to the City given the municipal bond market volatility caused by the COVID-19 outbreak; and recognizing this ordinance as having an accelerated effective date.

Legislation History
DateMinutesDescription
3/18/2020 Filed by the Clerk's office
3/19/2020 Councilmember O'Neill (Second by Lucas) Move To Consider
3/19/2020 Councilmember O'Neill (Second by Lucas) Move to Advance
3/19/2020 Passed

View Attachments
FileTypeSizeDescription
FTC (incl Exhibits).pdf Other 5217K Federal Tax Certificate
Authenticated Ordinance 200216.pdf Authenticated 1176K Authenticated Ordinance 200216
Fact Sheet for Amended Ordinance No 200152.pdf Fact Sheet 366K Fact Sheet
Accounting Forms for Amendment to GO Ordinance.pdf Other 219K Accounting Forms
Fiscal Note for Amended Ordinance No. 200152.pdf Fiscal Note 198K Fiscal Note

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ORDINANCE NO. 200216

 

Amending Ordinance No. 200152 by repealing and reenacting Sections 101, 202, 202a, 204, 205, 209, 211, 212, 302, 507, 812, 813, 814, 815, 816 and 817, repealing and reenacting Exhibit A and Exhibit C, and adding Section 213 in order to provide the City with the option to sell the bonds through a method of sale that will result in the most favorable terms to the City given the municipal bond market volatility caused by the COVID-19 outbreak; and recognizing this ordinance as having an accelerated effective date.

WHEREAS, the City Council previously passed Ordinance No. 200152 (“Ordinance No. 200152”) authorizing the City to issue General Obligation Bonds, Series 2020A (the “Bonds”), in a principal amount not to exceed $60,000,000 through a competitive sale process pursuant to which financial institutions would competitively bid for the purchase of the City’s Bonds; and

 

WHEREAS, due to volatile market conditions caused by the COVID-19 outbreak, the City has determined it is necessary and desirable to amend certain sections of Ordinance No. 200152 in order to provide the City with the option to sell the Bonds through either a competitive sale process, a negotiated sale process or a private placement sale process to ensure the City can effectively sell the Bonds at the most favorable terms to the City; NOW, THEREFORE,

 

BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:

 

Section A. That Ordinance No. 200152 is hereby amended by repealing Article I, Definitions, Section 101 and enacting a new Article I, Definitions, Section 101 in its place, to read as follows:

 

Section 101. Definitions of Words and Terms. In addition to words and terms defined elsewhere herein, the following words and terms as used in this Ordinance shall have the following meanings:

 

“Bond Counsel” means Gilmore & Bell, P.C., Kansas City, Missouri, Clayborn & Associates, LLC, Kansas City, Missouri, or other attorneys or firm of attorneys with a nationally recognized standing in the field of municipal bond financing selected by the City.

 

“Bond Payment Date” means any date on which principal of or interest on any Bond is payable.

 

“Bond Register” means the books for the registration, transfer and exchange of Bonds kept at the office of the Paying Agent.

 

“Bondowner,” “Owner” or “Registered Owner” when used with respect to any Bond means the Person in whose name such Bond is registered on the Bond Register.

 

“Bonds” means the General Obligation Bonds, Series 2020A, authorized and issued by the City pursuant to this Ordinance.

 

“Business Day” means a day other than a Saturday, Sunday or holiday on which the Paying Agent is scheduled in the normal course of its operations to be open to the public for conduct of its banking operations.

 

“Cede & Co.” means Cede & Co., as nominee name of The Depository Trust Company, New York, New York.

 

“Certificate of Final Terms” means Exhibit B, executed and delivered by the Mayor pursuant to Section 211 hereof, in substantially the form attached as Exhibit C.

 

City” means the City of Kansas City, Missouri, and any successors or assigns.

 

“Code” means the Internal Revenue Code of 1986, as amended, and the applicable regulations of the Treasury Department proposed or promulgated thereunder.

 

“Costs of Issuance Fund” means the Costs of Issuance Fund created in

Section 501.

 

“Debt Service Fund” means the Series 2020A Debt Service Fund created in Section 501.

 

“Defaulted Interest” means interest on any Bond which is payable but not paid on any Interest Payment Date.

 

“Defeasance Obligations” means any of the following obligations:

 

(a) United States Government Obligations that are not subject to redemption in advance of their maturity dates; or

 

(b) obligations of any state or political subdivision of any state, the interest on which is excluded from gross income for federal income tax purposes and which meet the following conditions:

 

(1) the obligations are (i) not subject to redemption prior to maturity, or (ii) the trustee for such obligations has been given irrevocable instructions concerning their calling and redemption and the issuer of such obligations has covenanted not to redeem such obligations other than as set forth in such instructions;

 

(2) the obligations are secured by cash or United States Government Obligations that may be applied only to principal of, premium, if any, and interest payments on such obligations;

 

(3) such cash and the principal of and interest on such United States Government Obligations (plus any cash in the escrow fund) are sufficient to meet the liabilities of the obligations;

 

(4) such cash and United States Government Obligations serving as security for the obligations are held in an escrow fund by an escrow agent or a trustee irrevocably in trust;

 

(5) such cash and United States Government Obligations are not available to satisfy any other claims, including those against the trustee or escrow agent; and

 

(6) the obligations are rated in the highest rating category by Moody’s (presently “Aaa”) or Standard & Poor’s Ratings Services (presently “AAA”).

 

“Director of Finance” means the Director or any Acting Director of the Department of Finance of the City.

 

“Federal Tax Certificate” means the City’s Federal Tax Certificate relating to the Bonds as the same may be amended or supplemented in accordance with the provisions thereof.

 

“Flood Control Project” means, without limitation, the acquisition, construction, equipping and reconstruction of flood control projects including, but not limited to, projects partially funded with federal grants and other projects authorized by the Flood Control Question approved by the voters of the City at the 2017 Election.

 

“Interest Payment Date” means the Stated Maturity of an installment of interest on any Bond.

 

“Maturity” when used with respect to any Bond means the date on which the principal of such Bond becomes due and payable as therein and herein provided, whether at the Stated Maturity thereof or by call for redemption or otherwise.

 

“Notice of Bond Sale” means the Notice of Bond Sale authorized by Section 212 hereof.

 

“Ordinance” means this Ordinance as from time to time amended in accordance with the terms hereof.

 

“Outstanding” means, when used with reference to Bonds, as of any particular date of determination, all Bonds theretofore authenticated and delivered hereunder, except the following Bonds:

 

(a) Bonds theretofore cancelled by the Paying Agent or delivered to the Paying Agent for cancellation;

 

(b) Bonds deemed to be paid in accordance with the provisions of Section 701 hereof; and

 

(c) Bonds in exchange for or in lieu of which other Bonds have been authenticated and delivered hereunder.

 

“Participants” means those financial institutions for whom the Securities Depository effects book-entry transfers and pledges of securities deposited with the Securities Depository, as such listing of participants exists at the time of such reference.

 

“Paying Agent” means the paying agent designated in Section 203 hereof and any successors or assigns thereto.

 

“Permitted Investments” means any of the following securities, if and to the extent the same are at the time legal for investment of the moneys held in the funds and accounts listed in Section 501 hereof:

 

(a) United States Treasury Securities (Bills, Notes, Bonds and Strips).

 

(b) United States Agency/GSE Securities. The City may invest in obligations issued or guaranteed by any agency of the United States Government and in obligations issued by any government sponsored enterprise (GSE) which have a liquid market and a readily determinable market value that are described as follows:

 

(1) U.S. Govt. Agency Coupon and Zero Coupon Securities.

 

(2) U.S. Govt. Agency Discount Notes.

 

(3) U.S. Govt. Agency Callable Securities. Restricted to securities callable at par only.

 

(4) U.S. Govt. Agency Step-Up Securities. The coupon rate is fixed for an initial term. At the step-up date, the coupon rate rises to a new, higher fixed interest rate.

 

(5) U.S. Govt. Agency Floating Rate Securities. Restricted to coupons with no interim caps that reset at least quarterly and that float off of only one index.

 

(6) U.S. Govt. Agency/GSE Mortgage Backed Securities (MBS, CMO, Pass-Thru Securities). Restricted to securities with final maturities of five (5) years or less or have the final projected payment no greater than five (5) years when analyzed in a +300 basis point interest rate environment.

 

(c) Repurchase Agreements. The City may invest in contractual agreements between the City and commercial banks or primary government securities dealers. The Securities Industry & Financial Markets Association’s (or any successor’s) guidelines for the Master Repurchase Agreement will be used and will govern all repurchase agreement transactions. All repurchase agreement transactions will be either physical delivery or tri-party.

 

(d) Bankers’ Acceptances. The City may invest in bankers’ acceptances issued by domestic commercial banks possessing the highest credit rating issued by Moody’s Investor Services, Inc. or Standard and Poor’s Corporation.

 

(e) Commercial Paper. The City may invest in commercial paper issued by domestic corporations, which has received the highest short-term credit rating issued by Moody’s Investor Services, Inc. or Standard and Poor’s Corporation. Eligible paper is further limited to issuing corporations that have total assets in excess of five hundred million dollars ($500,000,000) and are not listed on Credit Watch with negative implications by any nationally recognized credit rating agency at the time of purchase.

 

(f) Municipal Securities (State and Local Government Obligations). The City may invest in municipal obligations that are issued in either tax-exempt or taxable form.

 

(1) Any full faith and credit obligations of the State of Missouri rated at least A or A2 by Standard & Poor’s or Moody’s.

 

(2) Any full faith and credit obligations of any city, county or school district in the state of Missouri rated at least AA or Aa2 by Standard & Poor’s or Moody’s.

 

(3) Any full faith and credit obligations, revenue, or special obligation bonds of the City of Kansas City, Missouri rated at least A or A2 by Standard & Poor’s or Moody’s.

 

(4) Any full faith and credit obligation of any state or territory of the United States of America rated at least AA or Aa2 by Standard & Poor’s or Moody’s.

 

(5) Any full faith and credit obligations of any city, county or school district in any state or territory of the United States of America rated AAA or Aaa by Standard & Poor’s or Moody’s.

 

(6) Any revenue bonds issued by the Missouri Department of Transportation rated at least AA or Aa2 by Standard & Poor’s or Moody’s.

 

(7) Any municipal obligation that is pre-refunded or escrowed to maturity as to both principal and interest with escrow securities that are fully guaranteed by the United States Government, without regard to rating by Standard & Poor’s or Moody’s.

 

(8) Money market mutual funds registered under the Federal Investment Company Act of 1940, whose shares are registered under the Federal Securities Act of 1933, rated in either of the two highest categories by Moody’s and Standard & Poor’s (in either case without regard to any modifier).

 

(9) Such other investments not described above that are allowed pursuant to Missouri law and approved in the Charter.

 

“Person” means any natural person, corporation, partnership, joint venture, association, firm, joint-stock company, trust, unincorporated organization, or government or any agency or political subdivision thereof or other public body.

 

“Private Placement Purchase Contract” means, in the event the Bonds are sold pursuant to a Private Placement as permitted by Section 211(a)(3) hereof, the Private Placement Purchase Contract relating to the Bonds between the City and the Purchaser.

 

“Project Fund” means the Series 2020A Project Fund created in Section 501.

 

“Public Buildings Project” means, without limitation, the acquisition, construction, equipping and improvement of public buildings, facilities and structures including, but not limited to, the Animal Shelter and for Americans with Disabilities Act improvements to public buildings and other projects authorized by the Public Buildings Question approved by the voters of the City at the 2017 Election.

 

“Purchase Contract” means, in the event the Bonds are sold pursuant to a Negotiated Sale as permitted by Section 211(a)(2) hereof, the Purchase Contract relating to the Bonds between the City and the Purchaser.

 

“Purchaser” means the original purchaser or purchasers of the Bonds selected by the City in accordance with Section 211 hereof and specified in the Certificate of Final Terms.

 

“Qualified Institutional Buyer” has the meaning set forth in Rule 144A (17 C.F.R. §230.144A(a)(i)) promulgated under the Securities Act of 1933, as amended.

 

“Rebate Fund” means the fund by that name referred to in Section 501.

 

“Record Date” for the interest payable on any Interest Payment Date means the 15th day (whether or not a Business Day) of the calendar month next preceding such Interest Payment Date.

 

Redemption Date” when used with respect to any Bond to be redeemed means the date fixed for such redemption pursuant to the terms of this Ordinance.

 

“Redemption Price” when used with respect to any Bond to be redeemed means the price at which such Bond is to be redeemed pursuant to the terms of this Ordinance, including the applicable redemption premium, if any, but excluding installments of interest whose Stated Maturity is on or before the Redemption Date.

 

“Replacement Bonds” means Bonds issued to the beneficial owners of the Bonds in accordance with Section 210(b).

 

“Securities Depository” means, initially, The Depository Trust Company, New York, New York, and its successors and assigns.

 

“Special Record Date” means the date fixed by the Paying Agent pursuant to Section 204 hereof for the payment of Defaulted Interest.

 

“Stated Maturity” when used with respect to any Bond or any installment of interest thereon means the date specified in such Bond and this Ordinance as the fixed date on which the principal of such Bond or such installment of interest is due and payable.

 

“Street, Sidewalk and Bridge Project” means, without limitation, the construction and reconstruction of streets, bridges and sidewalks and other projects authorized by the Street, Sidewalk & Bridge Question approved by the voters of the City at the 2017 Election.

 

“United States Government Obligations” means bonds, notes, certificates of indebtedness, treasury bills or other securities constituting direct obligations of, or obligations the principal of and interest on which are fully and unconditionally guaranteed as to full and timely payment by the United States of America, including evidences of a direct ownership interest in future interest or principal payments on obligations issued or guaranteed by the United States of America (including the interest component of obligations of the Resolution Funding Corporation).

 

Section B. That Ordinance No. 200152 is hereby amended by repealing Article II, Authorization of Bonds, Section 202 and enacting a new Article II, Authorization of Bonds, Section 202 in its place, to read as follows:

 

Section 202. Description of Bonds. The Bonds shall consist of fully registered bonds without coupons, numbered in a manner determined by the Paying Agent, in denominations as set forth in the Certificate of Final Terms. The Bonds shall be substantially in the form set forth in Section 202A hereto, and shall be subject to registration, transfer and exchange as provided in Section 205. The Bonds shall be dated the date of their issuance, shall become due in the amounts on the Stated Maturities set forth therein, subject to redemption and payment prior to their Stated Maturities at the option of the City, as provided in Article III, and shall bear interest at the rates per annum to be determined upon the sale of the Bonds as set forth in the Certificate of Final Terms.

 

At the election of the Purchaser, term Bonds may be issued in lieu of all or a portion of serial Bonds with Stated Maturities with mandatory sinking fund redemption payments and final payments at maturity in the amounts set forth in the Certificate of Final Terms, subject to the following conditions: all Bonds selected as a term Bond shall bear the same rate of interest; and not less than all Bonds of the same Stated Maturity shall be converted to a term Bond with mandatory redemption requirements.

 

The Bonds shall bear interest (computed on the basis of a 360-day year of twelve 30-day months) from the dated date thereof or from the most recent Interest Payment Date to which interest has been paid or duly provided for, payable semiannually on February 1 and August 1 in each year, beginning on the date set forth in the Certificate of Final Terms.

 

Section C. That Ordinance No. 200152 is hereby amended by repealing Article II, Authorization of Bonds, Section 202A and enacting a new Article II, Authorization of Bonds, Section 202A in its place, to read as follows:

 

Section 202A. Form of Bond. The Bonds will be in substantially the following form, with appropriate insertions and deletions as are approved by the Mayor, which approval will be conclusively evidenced by the Mayor’s signature on the Bond:

 

FORM OF BOND

 

[*EXCEPT AS OTHERWISE PROVIDED IN THE ORDINANCE (DESCRIBED HEREIN), THIS GLOBAL BOND MAY BE TRANSFERRED, IN WHOLE BUT NOT IN PART, ONLY TO ANOTHER NOMINEE OF THE SECURITIES DEPOSITORY (DESCRIBED HEREIN) OR TO A SUCCESSOR SECURITIES DEPOSITORY OR TO A NOMINEE OF A SUCCESSOR SECURITIES DEPOSITORY.*]

 

[**THIS BOND MAY ONLY BE TRANSFERRED IN ACCORDANCE WITH THE RESTRICTIONS APPLICABLE TO TRANSFERS AS PROVIDED IN THE ORDINANCE. THE PAYING AGENT SHALL KEEP A RECORD OF PRINCIPAL AND INTEREST PAID WITH RESPECT TO THE BOND. THE RECORDS MAINTAINED BY THE PAYING AGENT AS TO SUCH AMOUNTS PAID, AND THE AMOUNT OF PRINCIPAL OUTSTANDING FROM TIME TO TIME SHALL BE THE OFFICIAL RECORD OF THE PRINCIPAL AND INTEREST OF THE BOND FOR ALL PURPOSES, ABSENT MANIFEST ERROR**]

 

UNITED STATES OF AMERICA

STATE OF MISSOURI

 

Registered Registered

No. ______ $_______

 

CITY OF KANSAS CITY, MISSOURI

 

GENERAL OBLIGATION BOND

SERIES 2020A

 

Interest Rate Maturity Date Dated Date CUSIP Number

 

February 1, 20___ __________ ___, 2020

 

REGISTERED OWNER: CEDE & CO.

 

PRINCIPAL AMOUNT: __________ DOLLARS

 

THE CITY OF KANSAS CITY, MISSOURI, for value received, hereby acknowledges itself to be indebted and promises to pay to the Registered Owner shown above, or registered assigns, the Principal Amount shown above on the Maturity Date shown above, unless called for redemption prior to said Maturity Date, and to pay interest thereon at the Interest Rate per annum shown above (computed on the basis of a 360‑day year of twelve 30‑day months) from the Dated Date shown above or from the most recent Interest Payment Date to which interest has been paid or duly provided for, payable semiannually on February 1 and August 1 in each year, beginning on [_____________ 1, 20___], until said Principal Amount has been paid.

 

The Principal Amount or Redemption Price of this Bond shall be paid at Maturity or upon earlier redemption by check or draft to the Person in whose name this Bond is registered at the Maturity or Redemption Date thereof, upon presentation and surrender of this Bond at the payment office of U.S. Bank National Association, St. Louis, Missouri (the “Paying Agent”). The interest payable on this Bond on any Interest Payment Date shall be paid to the Person in whose name this Bond is registered on the Bond Register maintained by the Paying Agent at the close of business on the Record Date for such interest by check or draft mailed by the Paying Agent to the address of such Registered Owner shown on the Bond Register or, in the case of an interest payment to any Registered Owner of $500,000 or more in aggregate principal amount of Bonds, by electronic transfer to such Registered Owner upon written notice given to the Paying Agent by such Owner not less than 15 days prior to the Record Date for such interest, containing the electronic transfer instructions including the bank (which shall be in the continental United States), ABA routing number and account number to which such Registered Owner wishes to have such transfer directed.

 

This Bond is one of an authorized series of bonds of the City designated “General Obligation Bonds, Series 2020A,” aggregating the principal amount of $[_____________] (the “Bonds”), issued by the City for the purpose of paying (a) a portion of the costs of the Street, Sidewalk and Bridge Project as authorized by the voters of the City at an election duly held in the City on April 4, 2017 (the “2017 Election”), (b) a portion of the costs of the Flood Control Project as duly authorized by the voters of the City at the 2017 Election, (c) a portion of the costs of the costs of the Public Buildings Project as duly authorized by the voters of the City at the 2017 Election and (d) the costs of issuing the Bonds, under the authority of and in full compliance with the Constitution and laws of the State of Missouri, and pursuant to an Ordinance duly passed (the “Ordinance”) and proceedings duly and legally had by the Council of the City. Capitalized terms used herein and not otherwise defined herein shall have the meanings assigned to such terms in the Ordinance.

 

At the option of the City, Bonds or portions thereof maturing on [February 1, 20___], and thereafter may be called for redemption and payment prior to their Stated Maturity on [February 1, 20___], and thereafter in whole or in part at any time in such amounts for each Stated Maturity as shall be determined by the City at a Redemption Price equal to 100% of the principal amount, plus accrued interest thereon to the Redemption Date.

 

[Bonds maturing on February 1, 20___, are subject to mandatory redemption and payment prior to maturity pursuant to the mandatory redemption requirements of the Ordinance on February 1, _____, and on each February 1 thereafter prior to maturity, at a redemption price equal to 100% of the Principal Amount thereof plus accrued interest to the Redemption Date.]

 

Notice of redemption, unless waived, is to be given by the Paying Agent by mailing an official redemption notice by first class mail at least 30 days prior to the Redemption Date to the State Auditor of Missouri, the original purchaser of the Bonds and to each Registered Owner of each of the Bonds to be redeemed at the address shown on the Bond Register maintained by the Paying Agent. Notice of redemption having been given as aforesaid, the Bonds or portions of Bonds to be redeemed shall, on the Redemption Date, become due and payable at the Redemption Price therein specified, and from and after such date (unless the City defaults in the payment of the Redemption Price) such Bonds or portions of Bonds shall cease to bear interest.

 

[*The Bonds are being issued by means of a book-entry system with no physical distribution of bond certificates to be made except as provided in the Ordinance. One Bond certificate with respect to each date on which the Bonds are stated to mature, registered in the nominee name of the Securities Depository, is being issued and required to be delivered to the Securities Depository and immobilized in its custody or delivered to the Paying Agent as the Securities Depository’s “FAST Agent.” The book-entry system will evidence positions held in the Bonds by the Securities Depository’s participants, beneficial ownership of the Bonds in authorized denominations being evidenced in the records of such participants. Transfers of ownership shall be affected on the records of the Securities Depository and its participants pursuant to rules and procedures established by the Securities Depository and its participants. The City, the Bond Registrar and the Paying Agent will recognize the Securities Depository nominee, while the registered owner of this Bond, as the owner of this Bond for all purposes, including (i) payments of principal of, and redemption premium, if any, and interest on, this Bond, (ii) notice, and (iii) voting. Transfers of principal, interest and any redemption premium payments to participants of the Securities Depository, and transfers of principal, interest and any redemption premium payments to beneficial owners of the Bonds by participants of the Securities Depository will be the responsibility of such participants and other nominees of such beneficial owners. The City and the Paying Agent will not be responsible or liable for such transfers of payments or for maintaining, supervising or reviewing the records maintained by the Securities Depository, the Securities Depository nominee, its participants or persons acting through such participants. While the Securities Depository nominee is the owner of this bond, notwithstanding the provision hereinabove contained, payments of principal of and interest on this Bond shall be made in accordance with existing arrangements among the City, the Paying Agent and the Securities Depository.*]

 

The Bonds constitute 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 irrevocably pledged for the prompt payment of the principal of and interest on the Bonds as the same become due.

 

This Bond may be transferred or exchanged, as provided in the Ordinance, only on the Bond Register kept for that purpose at the principal payment office of the Paying Agent, [*subject to the following limitations:

 

(1) the Bond may be transferred only in whole, and any Bond issued in exchange therefor shall be in the full principal amount of the Outstanding and unpaid aggregate principal amount of the Bond;

 

(2) the Bond and any beneficial ownership interest in the Bond may be transferred only to (i) an affiliate of the Registered Owner or (ii) a “Qualified Institutional Buyer” as defined in Rule 144A (17 C.F.R. §230.144A(a)(i)) promulgated under the Securities Act of 1933, as amended;

 

(3) there shall have been delivered to the Paying Agent and the City a transferee representations letter, in substantially the form attached to the Private Placement Purchase Contract, with only such material variations from the form as are evidenced in writing to be acceptable to the Paying Agent and the City.

 

such transfer shall be made only*] upon surrender of this Bond together with a written instrument of transfer or authorization for exchange satisfactory to the Paying Agent duly executed by the Registered Owner or the Registered Owner’s duly authorized agent, and thereupon a new Bond or Bonds in any authorized denomination having the same Maturity Date and in the same aggregate principal amount shall be issued to the transferee in exchange therefor as provided in the Ordinance and upon payment of the charges therein prescribed. The City and the Paying Agent may deem and treat the person in whose name this Bond is registered on the Bond Register as the absolute owner hereof for the purpose of receiving payment of, or on account of, the principal or Redemption Price hereof and interest due hereon and for all other purposes.

 

This Bond shall not be valid or become obligatory for any purpose or be entitled to any security or benefit under the Ordinance until the Certificate of Authentication hereon has been executed by the Paying Agent.

 

IT IS HEREBY CERTIFIED AND DECLARED that all acts, conditions and things required to exist, happen and be performed precedent to and in the issuance of the Bonds have existed, happened and been performed in due time, form and manner as required by law; that a direct annual tax upon all taxable tangible property situated in the City has been levied for the purpose of paying the principal of and interest on the Bonds when due; and that the total indebtedness of the City, including this Bond and the series of which it is one, does not exceed any constitutional or statutory limitation.

 

IN WITNESS WHEREOF, THE CITY OF KANSAS CITY, MISSOURI, has caused this Bond to be executed by the manual or facsimile signature of its Mayor and attested by the manual or facsimile signature of its City Clerk and its official seal to be affixed or imprinted hereon.

 

CERTIFICATE OF AUTHENTICATION CITY OF KANSAS CITY, MISSOURI

 

This Bond is one of the Bonds of the issue

described in the within-mentioned Ordinance.

By:

Mayor

 

Registration Date: [SEAL]

 

U.S. Bank National Association

Paying Agent ATTEST:

 

 

By: By:

Title: Authorized Officer or Signatory City Clerk

 

 

 

ASSIGNMENT

 

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto _____________________________________________________________________

Print or Type Name, Address and Social Security Number

or other Taxpayer Identification Number of Transferee

 

the within Bond and all rights thereunder, and hereby irrevocably constitutes and appoints ______________ agent to transfer the within Bond on the Bond Register kept by the Paying Agent for the registration thereof, with full power of substitution in the premises.

 

 

 

Dated:

NOTICE: The signature to this assignment must correspond with the name of the Registered Owner as it appears upon the face of the within Bond in every particular.

 

Signature Guaranteed By:

 

 

 

(Name of Eligible Guarantor Institution as defined by SEC Rule 17 Ad-15 (17 CFR 240.17 Ad-15))

 

 

 

By:

Title:

 

 

 

Section D. That Ordinance No. 200152 is hereby amended by repealing Article II, Authorization of Bonds, Section 204 and enacting a new Article II, Authorization of Bonds, Section 204 in its place, to read as follows:

 

Section 204. Method and Place of Payment of Bonds. The principal of or Redemption Price and interest on the Bonds shall be payable in any coin or currency of the United States of America that, on the respective dates of payment thereof, is legal tender for the payment of public and private debts.

 

The principal of or Redemption Price of each Bond shall be paid at Maturity by check or draft to the Person in whose name such Bond is registered on the Bond Register at the Maturity thereof, upon presentation and surrender of such Bond at the principal payment office of the Paying Agent. Notwithstanding the foregoing, in the event the Bonds are purchased pursuant to a Private Placement as set forth in Section 211(a)(3) and the Certificate of Final Terms and the Purchaser elects not to register the Bonds with the Securities Depository in accordance with Section 210 hereof, the records maintained by the Paying Agent shall be the official records of the principal and interest of the Bonds for all purposes, absent manifest error, and presentation and surrender of the Bonds shall not be a requirement for any payment of principal or interest.

 

The interest payable on each Bond on any Interest Payment Date shall be paid to the Registered Owner of such Bond as shown on the Bond Register at the close of business on the Record Date for such interest by check or draft mailed by the Paying Agent to the address of such Registered Owner shown on the Bond Register or, in the case of an interest payment to any Registered Owner of $500,000 or more in aggregate principal amount of Bonds, by electronic transfer to such Registered Owner upon written notice given to the Paying Agent by such Registered Owner signed by such Registered Owner not less than 15 days prior to the Record Date for such interest, containing the electronic transfer instructions including the bank (which shall be in the continental United States), ABA routing number and account number to which such Registered Owner wishes to have such transfer directed.

 

Notwithstanding the foregoing provisions of this Section, any Defaulted Interest with respect to any Bond shall cease to be payable to the Registered Owner of such Bond on the relevant Record Date and shall be payable to the Registered Owner in whose name such Bond is registered at the close of business on the Special Record Date for the payment of such Defaulted Interest, which Special Record Date shall be fixed as hereinafter specified in this paragraph. The City shall notify the Paying Agent in writing of the amount of Defaulted Interest proposed to be paid on each Bond and the date of the proposed payment (which date shall be at least 30 days after receipt of such notice by the Paying Agent) and shall deposit with the Paying Agent at the time of such notice an amount of money equal to the aggregate amount proposed to be paid in respect of such Defaulted Interest or shall make arrangements satisfactory to the Paying Agent for such deposit prior to the date of the proposed payment. Following receipt of such funds the Paying Agent shall fix a Special Record Date for the payment of such Defaulted Interest which shall be not more than 15 nor less than 10 days prior to the date of the proposed payment. The Paying Agent shall promptly notify the City of such Special Record Date and, in the name and at the expense of the City, shall cause notice of the proposed payment of such Defaulted Interest and the Special Record Date therefor to be mailed, by first class mail, postage prepaid, to each Registered Owner of a Bond entitled to such notice at the address of such Registered Owner as it appears on the Bond Register not less than 10 days prior to such Special Record Date.

 

The Paying Agent shall keep a record of payment of principal and Redemption Price of and interest on all Bonds and at least annually upon request shall forward a copy or summary of such records to the City.

 

Section E. That Ordinance No. 200152 is hereby amended by repealing Article II, Authorization of Bonds, Section 205 and enacting a new Article II, Authorization of Bonds, Section 205 in its place, to read as follows:

 

Section 205. Registration, Transfer and Exchange of Bonds. The City covenants that, as long as any of the Bonds remain Outstanding, it will cause the Bond Register to be kept at the office of the Paying Agent as herein provided. Each Bond when issued shall be registered in the name of the owner thereof on the Bond Register.

 

Bonds may be transferred and exchanged only on the Bond Register as provided in this Section. Upon surrender of any Bond at the principal payment office of the Paying Agent, the Paying Agent shall transfer or exchange such Bond for a new Bond or Bonds in any authorized denomination of the same Stated Maturity and in the same aggregate principal amount as the Bond that was presented for transfer or exchange. Bonds presented for transfer or exchange shall be accompanied by a written instrument or instruments of transfer or authorization for exchange, in a form and with guarantee of signature satisfactory to the Paying Agent, duly executed by the Registered Owner thereof or by the Registered Owner’s duly authorized agent. Notwithstanding the foregoing, in the event the (a) Bonds are purchased pursuant to a Private Placement as set forth in Section 211(a)(3) and the Certificate of Final Terms and (b) the Purchaser elects not to register the Bonds with the Securities Depository in accordance with Section 210 hereof, no such transfer shall be effective unless the Registered Owner has delivered to the City and the Paying Agent the name and address of the transferee and such transfer shall only be made to (i) an affiliate of the Registered Owner or (ii) a Qualified Institutional Buyer upon the transferee providing an investor letter in substantially the same form and substance as executed by the Purchaser pursuant to the Private Placement Purchase Contract.

In all cases in which the privilege of transferring or exchanging Bonds is exercised, the Paying Agent shall authenticate and deliver Bonds in accordance with the provisions of this Ordinance. The City shall pay the fees and expenses of the Paying Agent for the registration, transfer and exchange of Bonds provided for by this Ordinance and the cost of printing a reasonable supply of registered bond blanks. Any additional costs or fees that might be incurred in the secondary market, other than fees of the Paying Agent, are the responsibility of the Registered Owners of the Bonds. In the event any Registered Owner fails to provide a correct taxpayer identification number to the Paying Agent, the Paying Agent may make a charge against such Registered Owner sufficient to pay any governmental charge required to be paid as a result of such failure. In compliance with Section 3406 of the Code, such amount may be deducted by the Paying Agent from amounts otherwise payable to such Registered Owner hereunder or under the Bonds.

 

The City and the Paying Agent shall not be required (a) to register the transfer or exchange of any Bond after notice calling such bond or portion thereof for redemption has been mailed by the Paying Agent pursuant to Section 303 and during the period of 15 days next preceding the date of mailing of such notice of redemption; or (b) to register the transfer or exchange of any Bond during a period beginning at the opening of business on the day after receiving written notice from the City of its intent to pay Defaulted Interest and ending at the close of business on the date fixed for the payment of Defaulted Interest pursuant to Section 204.

 

The City and the Paying Agent may deem and treat the Person in whose name any Bond is registered on the Bond Register as the absolute owner of such Bond, whether such Bond is overdue or not, for the purpose of receiving payment of, or on account of, the principal or Redemption Price of and interest on said Bond and for all other purposes. All payments so made to any such Registered Owner or upon the Registered Owner’s order shall be valid and effective to satisfy and discharge the liability upon such Bond to the extent of the sum or sums so paid, and neither the City nor the Paying Agent shall be affected by any notice to the contrary.

 

At reasonable times and under reasonable regulations established by the Paying Agent, the Bond Register may be inspected and copied by the Registered Owners of 10% or more in principal amount of the Bonds then Outstanding or any designated representative of such Registered Owners whose authority is evidenced to the satisfaction of the Paying Agent.

 

Section F. That Ordinance No. 200152 is hereby amended by repealing Article II, Authorization of Bonds, Section 209 and enacting a new Article II, Authorization of Bonds, Section 209 in its place, to read as follows:

 

Section 209. Preliminary and Final Official Statement. The use and public distribution of the Preliminary Official Statement dated the date thereof in connection with a Negotiated Sale or Competitive Sale of the Bonds, as set forth in Section 211(a)(1) and (a)(2) hereof, is hereby ratified and approved, and the final Official Statement is hereby authorized and approved 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 Director of Finance 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 City 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.

 

For the purpose of enabling the Purchaser to comply with the requirements of Rule 15c2‑12(b)(1) of the Securities and Exchange Commission, the City hereby deems the information regarding the City contained in the Preliminary Official Statement to be “final” as of its date, except for the omission of such information as is permitted by Rule 15c2‑12(b)(1), and the appropriate officers of the City are hereby authorized, if requested, to provide the Purchaser a letter or certification to such effect and to take such other actions or execute such other documents as such officers in their reasonable judgment deem necessary to enable the Purchaser to comply with the requirement of such Rule.

 

The City 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 G. That Ordinance No. 200152 is hereby amended by repealing Article II, Authorization of Bonds, Section 211 and enacting a new Article II, Authorization of Bonds, Section 211 in its place, to read as follows:

 

Section 211. Sale and Terms of Bonds; Authorization and Execution of Purchase Contract and Certificate of Final Terms.

 

(a) Upon the advice and recommendation of Hilltop Securities Inc. and Moody Reid Financial Advisors as the City’s co-financial advisors (the “Co-Financial Advisors”), the City is hereby authorized to sell the Bonds utilizing one of the following methods:

 

(1) a competitive public sale (“Competitive Sale”) pursuant to which the City will sell the Bonds to the bidder offering to purchase the Bonds, based on the principal amounts and maturities set forth in the Notice of Bond Sale, submitting the lowest “true interest cost” as defined therein, subject to the limitations set forth in this Section and Exhibit A hereto. If the City sells the Bonds via a Competitive Sale, the City is authorized to accept the best bid in accordance with the Certificate of Final Terms, and the Director of Finance is authorized to accept the best bid for and on behalf of and as the act and deed of the City.

 

(2) a negotiated sale (“Negotiated Sale”) pursuant to which the City will sell the Bonds to Barclays Capital, Inc., as senior-managing underwriter, acting on its own behalf and on behalf of Valdes & Moreno, Inc., Stifel, Nicolaus & Company, Incorporated, and Robert. W. Baird & Company, Incorporated, as co-managing underwriters, under the terms of the Purchase Contract. The selection of Barclays Capital, Inc., as senior-managing underwriter and representative of the co-managing underwriters, for a Negotiated Sale of the Bonds is hereby approved and the City ratifies all contracts in connection with such selections. If the City sells the Bonds via a Negotiated Sale, the City is authorized to enter into the Purchase Contract in accordance with the Certificate of Final Terms, and the Director of Finance is authorized to execute the Purchase Contract for and on behalf of and as the act and deed of the City.

(3) a private placement (“Private Placement”) pursuant to which the City will sell the Bonds to the Purchaser to be selected by the City under the terms of the Private Placement Purchase Contract. If the City sells the Bonds via a Private Placement, the City is authorized to enter into the Private Placement Purchase Contract in accordance with the Certificate of Final Terms, and the Director of Finance is authorized to execute the Private Placement Purchase Contract for and on behalf of and as the act and deed of the City.

 

(b) The Mayor is authorized and directed to approve the purchase price for the Bonds, the principal amounts by maturity, the interest rates, the terms of credit enhancement, if any, and the other final terms of the Bonds, including applicable redemption provisions, subject to the limitations set forth in this Section and Exhibit A hereto, and in connection therewith, to execute and deliver the Certificate of Final Terms for and on behalf of and as the act and deed of the City, which approval will be conclusively evidenced by the Mayor’s execution of the Certificate of Final Terms. Upon execution, the Certificate of Final Terms will be attached to this Ordinance as Exhibit B, and the City Clerk is hereby authorized to file the Certificate of Final Terms with this Ordinance.

 

Section H. That Ordinance No. 200152 is hereby amended by repealing Article II, Authorization of Bonds, Section 212 and enacting a new Article II, Authorization of Bonds, Section 212 in its place, to read as follows:

 

Section 212. Notice of Bond Sale. In the event the City determines to sell the Bonds via a Competitive Sale as set forth in Section 211(a)(1) hereof, the Director of Finance is hereby authorized to execute the Notice of Bond Sale, and the use and public distribution of the Notice of Bond Sale in connection with a Competitive Sale of the Bonds is hereby authorized.

 

Section I. That Ordinance No. 200152 is hereby amended by enacting and adding a new Article II, Authorization of Bonds, Section 213 therein, to read as follows:

 

Section 213. Private Placement. In the event the City determines to sell the Bonds via a Private Placement as set forth in Section 211(a)(3) hereof, Sections 209 and 210 of this Ordinance shall not apply to the Bonds and shall be of no force and effect.

 

Section J. That Ordinance No. 200152 is hereby amended by repealing Article II, Authorization of Bonds, Section 302 and enacting a new Article II, Authorization of Bonds, Section 302 in its place, to read as follows:

 

Section 302. Selection of Bonds to be Redeemed.

 

(a) The Paying Agent shall call Bonds for redemption and payment and shall give notice of such redemption as herein provided upon receipt by the Paying Agent at least 45 days prior to the Redemption Date of written instructions from the City specifying the principal amount, Stated Maturities, Redemption Date and Redemption Prices of the Bonds to be called for redemption. If the Bonds are refunded more than 90 days in advance of such Redemption Date, any escrow agreement entered into by the City in connection with such refunding shall provide that such written instructions to the Paying Agent shall be given by the escrow agent on behalf of the City not more than 90 days prior to the Redemption Date. The Paying Agent may in its discretion waive such notice period so long as the notice requirements set forth in Section 303 are met. The foregoing provisions of this paragraph shall not apply to any mandatory redemption of Bonds hereunder, and Bonds shall be called by the Paying Agent for redemption pursuant to such mandatory redemption requirements without the necessity of any action by the City and whether or not the Paying Agent shall hold in the Debt Service Fund moneys available and sufficient to effect the required redemption.

 

(b) Bonds shall be redeemed only in the principal amount of $5,000 or any integral multiple thereof. Bonds of less than a full Stated Maturity shall be selected by the Paying Agent in $5,000 units of principal amount in such equitable manner as the Paying Agent may determine. Notwithstanding the foregoing, in the event the Bonds are purchased pursuant to a Private Placement as set forth in Section 211(a)(3) and the Certificate of Final Terms, the Bonds shall be redeemed in the principal amount of $1,000 or any integral multiple thereof and Bonds of less than a full Stated Maturity shall be selected by the Paying Agent in $1,000 units of principal amount in such equitable manner as the Paying Agent may determine.

 

(c) In the case of a partial redemption of Bonds at the time outstanding in denominations greater than $5,000, then for all purposes in connection with such redemption each $5,000 of face value shall be treated as though it were a separate Bond of the denomination of $5,000. If it is determined that one or more, but not all, of the $5,000 units of face value represented by any Bond are selected for redemption, then upon notice of intention to redeem such $5,000 unit or units, the Registered Owner of such Bond or the Registered Owner’s duly authorized agent shall present and surrender such Bond to the Paying Agent (1) for payment of the Redemption Price and interest to the Redemption Date of such $5,000 unit or units of face value called for redemption, and (2) for exchange, without charge to the Registered Owner thereof, for a new Bond or Bonds of the aggregate principal amount of the unredeemed portion of the principal amount of such Bond. If the Registered Owner of any such Bond fails to present such Bond to the Paying Agent for payment and exchange as aforesaid, such Bond shall, nevertheless, become due and payable on the redemption date to the extent of the $5,000 unit or units of face value called for redemption (and to that extent only). Notwithstanding the foregoing, in the event the Bonds are purchased pursuant to a Private Placement as set forth in Section 211(a)(3) and the Certificate of Final Terms, if less than all of the then outstanding principal amount of the Bonds are called for redemption, then, upon notice of the City’s intention to redeem a certain portion of the outstanding principal amount of the Bond, the Registered Owner of the Bond or the Registered Owner’s duly authorized agent may, at the Registered Owner’s option, present and surrender the Bond to the Paying Agent for exchange, without charge to the Registered Owner thereof, for a new Bond in a principal amount equal to the aggregate unredeemed principal installments of the Bond.

 

Section K. That Ordinance No. 200152 is hereby amended by repealing Article V, Establishment of Funds; Deposit and Application of Moneys, Section 507 and enacting a new Article V, Establishment of Funds; Deposit and Application of Moneys, Section 507 in its place, to read as follows:

 

Section 507. Nonpresentment of Bonds. If any Bond is not presented for payment when the principal thereof becomes due at Maturity, if funds sufficient to pay such Bond have been made available to the Paying Agent all liability of the City to the Registered Owner thereof for the payment of such Bond shall forthwith cease, determine and be completely discharged, and thereupon it shall be the duty of the Paying Agent to hold such funds, without liability for interest thereon, for the benefit of the Registered Owner of such Bond, who shall thereafter be restricted exclusively to such funds for any claim of whatever nature on his part under this Ordinance or on, or with respect to, said Bond. If any Bond is not presented for payment within four years following the date when such Bond becomes due at Maturity, the Paying Agent shall repay to the City the funds theretofore held by it for payment of such Bond, and such Bond shall, subject to the defense of any applicable statute of limitation, thereafter be an unsecured obligation of the City, and the Registered Owner thereof shall be entitled to look only to the City for payment, and then only to the extent of the amount so repaid to it by the Paying Agent, and the City shall not be liable for any interest thereon and shall not be regarded as a trustee of such money. Notwithstanding the foregoing, in the event the Bonds are purchased pursuant to a Private Placement as set forth in Section 211(a)(3) and the Certificate of Final Terms, presentation and surrender of the Bonds shall not be a requirement for any payment of principal or interest.

 

Section L. That Ordinance No. 200152 is hereby amended by repealing Article VIII, Miscellaneous Provisions, Section 812 and enacting a new Article VIII, Miscellaneous Provisions, Section 812 in its place, to read as follows:

 

Section 812. That revenue of $1,815,606.70 is hereby increased in Fund 3520, the GO Bond 2020 Q1 Fund, in the following account:

 

AL-3520-120000-590000 Bond Proceeds $ 455,400.00

AL-3520-120000-485100 Premium on Sale of Bonds 1,360,206.70

TOTAL $1,815,606.70

 

Section M. That Ordinance No. 200152 is hereby amended by repealing Article VIII, Miscellaneous Provisions, Section 813 and enacting a new Article VIII, Miscellaneous Provisions, Section 813 in its place, to read as follows:

 

Section 813. That the sum of $1,815,606.70 is hereby appropriated from the Unappropriated Fund Balance of Fund No. 3520, the GO Bond 2020 Q1 Fund, to the following accounts:

 

AL-3520-129620-B Cost of Issuance $ 134,022.65

AL-3520-129686-B Arbitrage Rebate Calculation 5,000.00

AL-3520-129631-B Underwriters’ Discount 641,875.00

AL-3520-129632-B Discount on Sale of Bonds 582,709.05

AL-3520-071254-B Municipal Arts Commission 452,000.00

TOTAL $1,815,606.70

Section N. That Ordinance No. 200152 is hereby amended by repealing Article VIII, Miscellaneous Provisions, Section 814 and enacting a new Article VIII, Miscellaneous Provisions, Section 814 in its place, to read as follows:

 

Section 814. That revenue of $ 812,680.70 is hereby increased in Fund 3620, the GO Bond 2020 Q2 Fund, in the following account:

 

AL-3620-120000-590000 Bond Proceeds $124,174.00

AL-3620-120000-485100 Premium on Sale of Bonds 688,506.70

TOTAL $812,680.70

 

Section O. That Ordinance No. 200152 is hereby amended by repealing Article VIII, Miscellaneous Provisions, Section 815 and enacting a new Article VIII, Miscellaneous Provisions, Section 814 in its place, to read as follows:

 

Section 815. That the sum of $812,680.70 is hereby appropriated from the Unappropriated Fund Balance of Fund No. 3620, the GO Bond 2020 Q2 Fund, to the following accounts:

 

AL-3620-129620-B Cost of Issuance $ 69,328.30

AL-3620-129686-B Arbitrage Rebate Calculation 2,500.00

AL-3620-129631-B Underwriters’ Discount 324,875.00

AL-3620-129632-B Discount on Sale of Bonds 242,977.40

AL-3620-071254-B Municipal Arts Commission 173,000.00

TOTAL $812,680.70

 

Section P. That Ordinance No. 200152 is hereby amended by repealing Article VIII, Miscellaneous Provisions, Section 816 and enacting a new Article VIII, Miscellaneous Provisions, Section 816 in its place, to read as follows:

 

Section 816. That revenue of $ 719,857.20 is hereby increased in Fund 3720, the GO Bond 2020 Q3 Fund, in the following account:

 

AL-3720-120000-485100 Premium on Sale of Bonds $619,857.20

AL-3720-120000-590000 Bond Proceeds 100,000.00

TOTAL $719,857.20

 

Section Q. That Ordinance No. 200152 is hereby amended by repealing Article VIII, Miscellaneous Provisions, Section 817 and enacting a new Article VIII, Miscellaneous Provisions, Section 817 in its place, to read as follows:

 

Section 817. That the sum of $ 719,857.20 is hereby appropriated from the Unappropriated Fund Balance of Fund No. 3720, the GO Bond 2020 Q3 Fund, to the following accounts:

 

AL-3720-129620-B Cost of Issuance $ 66,002.35

AL-3720-129686-B Arbitrage Rebate Calculation 2,500.00

AL-3720-129631-B Underwriters’ Discount 309,125.00

AL-3720-129632-B Discount on Sale of Bonds 236,229.85

AL-3720-071254-B Municipal Arts Commission 106,000.00

TOTAL $719,857.20

 

Section R. That Ordinance No. 200152 is hereby amended by repealing Exhibit A and Exhibit C attached to Ordinance No. 200152 and replacing with Exhibit A and Exhibit C attached to this Ordinance.

 

Section S. That this Ordinance is recognized as an ordinance with an accelerated effective date as provided by Section 503(a)(3)(C) of the City Charter in that it appropriates money, and shall take effect in accordance with that section.

 

_____________________________________________

 

I hereby certify that there is a balance, otherwise unencumbered, to the credit of the appropriation to which the foregoing expenditure is to be charged, and a cash balance, otherwise unencumbered, in the treasury, to the credit of the fund from which payment is to be made, each sufficient to meet the obligation hereby incurred.

 

 

___________________________________

Tammy L. Queen

Director of Finance

 

Approved as to form and legality:

 

 

___________________________________

Katherine Chandler

Assistant City Attorney


EXHIBIT A

 

TERMS OF BONDS

 

 

1. Purchase Price: Not less than 95% of the Principal Amount.

 

2. Weighted Average Maturity of the Bonds: Not less than 9.6 years nor more than 13.6 years.

 

3. Costs of Issuance, not including the Purchaser’s Discount: Not to exceed $275,000.

 

4. True Interest Cost: Not to exceed 5.50%.

 

5. Optional Redemption: The Bonds shall be subject to redemption at the option of the City prior to their Stated Maturities on a date that is not later than February 1, 2030, at a Redemption Price not to exceed 100%.

 

6. Final Maturity: Not later than February 1, 2040.

 


EXHIBIT C

 

FORM OF CERTIFICATE OF FINAL TERMS

 

 

The undersigned Mayor of the City of Kansas City, Missouri (the “City”), in connection with the issuance of the City’s General Obligation Bonds, Series 2020A (the “Bonds”), certifies pursuant to Section 211 of Ordinance No. 200152, as amended by Ordinance No. 200________ (collectively, the “Ordinance”):

 

1. Principal Amount. The Bonds are issued in the Principal Amount of $__________.

 

2. First Interest Payment Date for the Bonds. [August 1/February 1], [20___].

 

3. Maturity Schedule. The Bonds will mature on the dates and in the amounts and bear interest at the rates as follows:

 

Maturity

February 1

Principal

Amount

Interest

Rate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Term Bond

 

4. Authorized Denominations. The Bonds shall be issued in [*denominations of $5,000 or any integral multiple thereof*][**in a single denomination of $_____________**]

 

5. Weighted Average Maturity of the Bonds. The weighted average maturity of the Bonds is _____ years, as shown on Schedule 1 to this Certificate.

 

6. True Interest Cost. The True Interest Cost of the Bonds is ______%, as shown on Schedule 2 to this Certificate.

 

7. Costs of Issuance (excluding underwriter’s discount). The costs of issuing the bonds, excluding any purchaser’s/underwriter’s discount, is $_____________.

 

8. Purchaser. [*Pursuant to Section 211(a)(1) of this Ordinance, the Bonds are being sold to ________________*, as the bidder submitting the lowest “true interest cost” in accordance with the Notice of Bond Sale*] [**Pursuant to Section 211(a)(2) of this Ordinance, the Bonds are being sold to ________________*, as representative of the underwriters of the Bonds in accordance with the Purchase Contract.**] [**Pursuant to Section 211(a)(3) of this Ordinance, the Bonds are being privately placed with ________________, [______________ and __________________], as purchaser(s) of the Bonds in accordance with the Private Placement Purchase Contract.**]

 

9. Purchase Price. The purchase price of the Bonds is $_________________, (representing the principal amount of $_________________, plus the premium of $_____________________, less the [underwriter’s discount] of $____________, plus accrued interest in the amount of $____________), which purchase price is _____% of the Principal Amount.

 

10. Optional Redemption. At the option of the City, Bonds or portions thereof maturing on February 1, 20___, and thereafter may be called for redemption and payment prior to their Stated Maturity on February 1, 20___, and thereafter in whole or in part at any time in such amounts for each Stated Maturity as shall be determined by the City at a Redemption Price equal to 100% of the principal amount, plus accrued interest thereon to the Redemption Date.

 

11. Mandatory Sinking Fund Redemption. [**There are no term Bonds subject to mandatory sinking fund redemption prior to maturity.**][**The term Bonds identified in paragraph 2 are subject to mandatory sinking fund redemption pursuant to Section 301(b) of the Ordinance on the dates and in the amounts as follows:**]

 

 

 

12. Deposit of Bond Proceeds. The net proceeds received from the sale of the Bonds shall be deposited simultaneously with the delivery of the Bonds as follows:

 

(a) The sum of $_____________ of the proceeds of the Bonds shall be deposited in the Series 2020A Compliance Account within the Rebate Fund.

 

(b) The sum of $______________ of the proceeds of the Bonds shall be deposited in the Costs of Issuance Fund to pay the costs of issuing the Bonds as authorized by the Director of Finance.

 

(c) The sum of $______________ of the proceeds of the Bonds shall be deposited in the Street, Sidewalk and Bridge Project Account of the Project Fund.

 

(d) The sum of $______________ of the proceeds of the Bonds shall be deposited in the Flood Control Project Account of the Project Fund.

 

(e) The sum of $______________ of the proceeds of the Bonds shall be deposited in the Public Buildings Project Account of the Project Fund.

 

The terms set forth in this Certificate of Final Terms are within the limitations of Exhibit A to the Ordinance.

 

Delivered this ____ day of ___________, 2020.

 

CITY OF KANSAS CITY, MISSOURI

 

 

 

By:

Mayor

 


Schedule 1

 


Schedule 2