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Legislation #: 950622 Introduction Date: 5/11/1995
Type: Ordinance Effective Date: 6/4/1995
Sponsor: None
Title: An ordinance authorizing and directing the issuance and delivery of $3,700,000.00 principal amount of Public Safety Bonds, Series 1995, of the City of Kansas City, Missouri, for the purpose of acquiring sites, constructing police and fire stations and facilities and acquiring communications and other equipment for the Police and Fire Departments; prescribing the form and details of said bonds; and 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.

Legislation History
DateMinutesDescription
5/11/1995

Prepare to Introduce

5/11/1995

Referred Finance Committee

5/17/1995

Do Pass

5/18/1995

Assigned to Third Read Calendar

5/25/1995

Passed


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ORDINANCE NO. 950622

 

An ordinance authorizing and directing the issuance and delivery of $3,700,000.00 principal amount of Public Safety Bonds, Series 1995, of the City of Kansas City, Missouri, for the purpose of acquiring sites, constructing police and fire stations and facilities and acquiring communications and other equipment for the Police and Fire Departments; prescribing the form and details of said bonds; and 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.

 

WHEREAS, the City of Kansas City, Missouri (the "City"), is a constitutional charter city and political subdivision of the State of Missouri, duly created, organized and existing under and by virtue of the Constitution and laws of the State of Missouri; and

 

WHEREAS, the City is authorized under the provisions of Article VI, Section 26 of the Constitution of Missouri, 1945, as amended, and Section 95.115 et seq., RSMo. 1994, as amended, to incur indebtedness and issue and sell general obligation bonds of the City to evidence such indebtedness for any lawful purpose upon obtaining the approval of at least four-sevenths of the qualified electors of the City voting on the question to incur indebtedness at the municipal, primary or general election; and

 

WHEREAS, pursuant to such authority, a special election was duly held in the City at the general election on Tuesday, November 8, 1988, on the question whether to issue the general obligation bonds of the City in the amount of $39,700,000.00 for the purpose of acquiring sites, constructing police and fire stations and facilities and acquiring communications and other equipment for the police and fire departments (the "Public Safety Improvements"); and

 

WHEREAS, the votes cast at said election on said question were duly canvassed as provided by law, and it was found and declared that more than four-sevenths of the qualified voters of the City voting at said election on said question voted in favor of the issuance of said bonds, the vote on said question having been 95,401 votes for the issuance of said bonds and 41,959 votes against the issuance of said bonds; and

 

WHEREAS, the City has heretofore issued $36,000,000.00 of the general obligation bonds authorized by said election, and the City desires to issue the remaining $3,700,000.00 of bonds so authorized at said election; and

 

WHEREAS, $3,700,000.00 principal amount of the bonds so authorized have been duly sold at competitive public sale, and it is necessary at this time to authorize the issuance and delivery of said bonds for the purpose aforesaid; NOW, THEREFORE,

 

BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:

 

ARTICLE I

 

DEFINITIONS

 

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

 

"Bond Counsel" means an attorney or firm of attorneys with nationally recognized standing in the field of municipal bond financing approved by the City.

 

"Bond Register" means the books for the registration, transfer and exchange of Series 1995 Bonds kept at the office of the Paying Agent.

 

"Bondowner" shall have the same meaning as the term Owner.

 

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

 

"Co-Bond Counsel" means the Hardwick Law Firm, Kansas City, Missouri, Burke, Williams, Sorensen & Gaar, Overland Park, Kansas and Lathrop & Norquist, L.C., Kansas City, Missouri.

 

"Code" means the Internal Revenue Code of 1986, as amended, together with any regulations promulgated thereunder by the United States Department of the Treasury, and the regulations promulgated under the predecessor to the Code, the Internal Revenue Code of 1954, as amended.

 

"Costs of Issuance" means all costs of issuing the Series 1995 Bonds, including all publication, printing, signing and mailing expenses in connection therewith, registration fees, all legal fees and expenses of Co-Bond Counsel and other legal counsel, the fees and the expenses of the Financial Advisor, accounting expenses incurred in connection with determining Yield on the Series 1995 Bonds or investment of the proceeds thereof, and municipal bond insurance or ratings on the Series 1995 Bonds.

 

"Financial Advisor" means George K. Baum & Company and Samuel A. Ramirez & Co., Inc.

 

"General Debt and Interest Fund" means the debt service fund established in the financial accounts and records of the City and maintained and administered by the Director of Finance for the retirement of general obligation bonds of the City.

 

"Interest Payment Date" means June 1 and December 1 of each year, commencing December 1, 1995 and ending June 1, 2005, or such other time as the principal of the Series 1995 Bonds and the interest thereon are paid or provision is made therefor. "Maturity" with respect to any Series 1995 Bond means the date on which the principal of such Series 1995 Bond becomes due and payable as herein provided, whether at the Stated Maturity thereof or by acceleration, call for redemption or otherwise.

 

"Ordinance" or "Series 1995 Bond Ordinance" means this Ordinance adopted by the City Council, authorizing the issuance of the Series 1995 Bonds.

 

"Outstanding Series 1995 Bonds" means, as of the date of determination, all Series 1995 Bonds theretofore executed, authenticated and delivered under this Ordinance, except:

 

(a) Series 1995 Bonds theretofore fully paid by the Paying Agent to the registered Owners or cancelled by the Paying Agent or delivered to the Paying Agent for

cancellation;

 

(b) Series 1995 Bonds that have been defeased by the deposit of funds or qualified securities with a qualified bank or trust company in compliance with this Ordinance;

and

 

(c) Series 1995 Bonds, in exchange for or in lieu of, which other Series 1995 Bonds have been authenticated and delivered pursuant to this Ordinance.

 

"Owner" or "Registered Owner" when used with respect to any Series 1995 Bond means the person in whose name such Series 1995 Bond is registered on the Bond Register.

 

"Paying Agent" means the Office of the Director of Finance of the City or a bank or trust company (and any successors thereto) duly appointed by the Director of Finance to act as paying agent for the payment of the principal of, premium, if any, and interest on the Series 1995 Bonds and as registrar and transfer agent for the registration, transfer and exchange of Series 1995 Bonds.

 

"Public Safety Improvements" means the acquiring of sites, constructing police and fire stations and facilities and acquiring communications and other equipment for the police and fire departments.

 

"Public Safety Series 1995 Fund" means the fund by that name referred to in Section 501 of this Ordinance.

 

"Rebate Fund" means the fund by that name created by Section 703 of this Ordinance.

 

"Record Date" for the interest payable on any Interest Payment Date means the fifteenth (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 Series 1995 Bond to be redeemed means the date fixed for redemption pursuant to this Ordinance.

 

"Redemption Price" when used with respect to any Series 1995 Bond to be redeemed means the price at which it is to be redeemed pursuant to this Ordinance.

 

"Registration Date" means the effective date of registration of a Series 1995 Bond as evidenced by the Paying Agent in the Certificate of Authentication appearing on the Series 1995 Bond.

 

"Series 1995 Bonds" means $3,700,000.00 principal amount of Public Safety Bonds, Series 1995, authorized and issued by the City pursuant to this Ordinance.

 

"Stated Maturity" means the date specified in Section 202 of this Ordinance as the fixed date on which the principal of such Series 1995 Bond is due and payable.

 

"Yield" means yield as defined in Section 148(h) of the Code and the regulations promulgated thereunder.

 

ARTICLE II

 

AUTHORIZATION OF SERIES 1995 BONDS

 

Section 201. Authorization of Series 1995 Bonds. There shall be issued and hereby are authorized and directed to be issued the Public Safety Bonds, Series 1995 (the "Series 1995 Bonds"), of the City in the principal amount of $3,700,000.00 for the purpose of funding the Public Safety Improvements and the Costs of Issuance.

 

Section 202. Description of the Series 1995 Bonds. The Public Safety Series 1995 Bonds shall consist of fully registered certificated or uncertificated bonds in the denomination of $5,000.00 or any integral multiple thereof and shall be numbered in such manner as the Bond Registrar may determine. The Series 1995 Bonds shall be dated June 1, 1995, and shall have the Stated Maturities, as follows:

 

MATURITY PRINCIPAL JUNE 1 AMOUNT

 

1996 $ 275,000.00 1997 300,000.00 1998 325,000.00 1999 325,000.00 2000 350,000.00 2001 375,000.00 2002 400,000.00 2003 425,000.00 2004 450,000.00 2005 475,000.00

 

The Series 1995 Bonds shall bear interest from the most recent Interest Payment Date to which interest has been paid in full or, if no interest has been paid, from June 1, 1995. Interest on the Series 1995 Bonds shall be payable semiannually on June 1 and December 1 in each year, commencing December 1, 1995.

 

Section 203. Designation of Paying Agent; Method and Place of Payment of Principal of and Interest on the Series 1995 Bonds; Interest Rights Preserved. A commercial bank located in the City of Kansas City, Missouri, designated by the Director of Finance, or the Director of Finance may be designated as the Paying Agent. Upon the issuance of the Series 1995 Bonds, the Director of Finance shall act as Paying Agent. The principal of, and interest (computed on the basis of a 360-day year of twelve 30-day months) on the Series 1995 Bonds shall be payable in such coin or currency of the United States of America as at the time of payment is legal tender for the payment of public and private debts. The Paying Agent, if a commercial bank, may be removed at any time without cause by the City. The Paying Agent shall furnish a list of the Owners to the City within ten (10) days after receipt of a written request from the City. Payment of the interest on each Series 1995 Bond shall be made by the Paying Agent on each Interest Payment Date to the person appearing as the Owner thereof in the Bond Register at the close of business on the Record Date next preceding said Interest Payment Date, by check or draft, or, upon request, by electronic transfer of funds, mailed to the Owner's address as it appears in the Bond Register. The principal of each Series 1995 Bond shall be payable to or for the account of the Owner upon the presentation and surrender of such Series 1995 Bond at its maturity, or earlier redemption, at the principal office of the Paying Agent in the City of Kansas City, Missouri.

 

Payment of principal of and interest on the Series 1995 Bonds may, at the request of an Owner of at least $1,000,000.00 principal amount of such Series 1995 Bonds given in writing to the Paying Agent, be made by such other method of transferring funds as may be requested by such Owner of the Series 1995 Bonds.

 

Section 204. Registration, Transfer and Exchange of Series 1995 Bonds. The City covenants that it will, as long as any of the Series 1995 Bonds remain outstanding, cause to be kept at the office of the Paying Agent books for the registration, transfer and exchange of Series 1995 Bonds as herein provided (the "Bond Register").

 

Each Series 1995 Bond when issued shall be registered in the name of the owner thereof on the Bond Register kept by the Paying Agent.

 

Series 1995 Bonds may be transferred and exchanged only upon the Bond Register maintained by the Paying Agent as provided in this Section.

 

Upon surrender thereof at the principal office of the Paying Agent, the Paying Agent shall transfer or exchange any Series 1995 Bond for a new Series 1995 Bond or Series 1995 Bonds in any authorized denomination of the same maturity and in the same aggregate principal amount as the Series 1995 Bond which was presented for transfer or exchange. All Series 1995 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. All Series 1995 Bonds presented for transfer or exchange shall be surrendered to the Paying Agent for cancellation.

 

In all cases in which the privilege of transferring or exchanging the Series 1995 Bonds is exercised, the Paying Agent shall authenticate and deliver the Series 1995 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 Series 1995 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 Owners.

 

The City and the Paying Agent shall not be required (a) to issue, transfer or exchange any Series 1995 Bond during a period beginning at the opening of business fifteen (15) days preceding the date of mailing of a notice of redemption for Series 1995 Bonds selected for redemption under Section 302 and ending at the close of business on the day of such mailing; or (b) to transfer or exchange any Series 1995 Bond so selected for redemption in whole or in part.

 

Section 205. Execution, Authentication and Delivery of Series 1995 Bonds. Each of the Series 1995 Bonds shall be signed by the manual or facsimile signature of the Mayor, attested by the manual or facsimile signature of the City Clerk, countersigned by the manual or facsimile signature of the Director of Finance and shall have the official seal of the City affixed or imprinted thereon. In case any officer whose signature or facsimile thereof appears on any Series 1995 Bonds shall cease to be such officer before the delivery of such Series 1995 Bonds, such signature or facsimile thereof shall nevertheless be valid and sufficient for all purposes, the same as if such person had remained in office until delivery. Any Series 1995 Bond signed by such persons who at the actual time of the execution of such Series 1995 Bond were the proper officers, shall be the proper officers to sign such Series 1995 Bond although at the date of such Series 1995 Bond such persons may not have been such officers.

 

The Mayor, the City Clerk and the Director of Finance are hereby authorized and directed to prepare and execute the Series 1995 Bonds in the manner hereinbefore specified, and, when duly executed and registered, to deliver the Series 1995 Bonds to the Paying Agent for authentication, and the Director of Finance is hereby authorized to deliver the Series 1995 Bonds to the original purchaser of the Series 1995 Bonds, upon payment of the purchase price, which purchase price shall be not less than 100% of the principal amount of the Series 1995 Bonds plus accrued interest thereon to the date of their delivery.

 

The Series 1995 Bonds shall have endorsed thereon a certificate of authentication substantially in the form set forth on Exhibit A hereof, which shall be manually executed by the Paying Agent. No Series 1995 Bond shall be entitled to any security or benefit under this Ordinance or be valid or obligatory for any purpose unless and until such certificate of authentication shall have been duly executed by the Paying Agent. Such executed certificate of authentication upon any Series 1995 Bond shall be conclusive evidence that such Series 1995 Bond has been duly authenticated and delivered under this Ordinance. The certificate of authentication on any Series 1995 Bond shall be deemed to have been duly executed if signed by any authorized officer or employee of the Paying Agent, but it shall not be necessary that the same officer or employee sign the certificate of authentication on all of the Series 1995 Bonds that may be issued hereunder at any one time.

 

Section 206. Persons Deemed Owners of Series 1995 Bonds. The person in whose name any Series 1995 Bond shall be registered in the Bond Register shall be deemed and regarded by the City and the Paying Agent as the absolute Owner thereof, whether such Series 1995 Bond shall be overdue or not, for the purpose of receiving payment therefor or on account thereof and for all purposes, and neither the City nor the Paying Agent shall be affected by notice to the contrary. Payment of or on account of the principal of, premium, if any, and interest on any Series 1995 Bond shall be made only to or upon the order of the Owner thereof or such Owner's legal representative. All such payments shall be valid and effectual to satisfy and discharge the liability upon such Series 1995 Bond, including the interest thereon, to the extent of the sum or sums so paid.

 

Section 207. Mutilated, Lost, Stolen or Destroyed Series 1995 Bonds. In the event any Series 1995 Bond shall become mutilated, or be lost, stolen or destroyed, the City shall execute and the Paying Agent shall authenticate and deliver a new Series 1995 Bond of like date and tenor as the Series 1995 Bond mutilated, lost, stolen or destroyed; provided that, in the case of any mutilated Series 1995 Bond, such mutilated Series 1995 Bond shall first be surrendered to the Paying Agent, and in the case of any lost, stolen or destroyed Series 1995 Bond, there shall be first furnished to the City and the Paying Agent evidence of such loss, theft or destruction satisfactory to the City and the Paying Agent, together with indemnity satisfactory to each of them to save each of them harmless, and provided further that any applicable statutory requirements pertaining to mutilated, lost, stolen or destroyed Series 1995 Bonds are met. In the event any such Series 1995 Bond shall have matured, instead of issuing a substitute Series 1995 Bond the City may pay or authorize the payment of the same without surrender thereof. Upon the issuance of any substitute Series 1995 Bond, the City and the Paying Agent may require the payment of an amount sufficient to reimburse the City and the Paying Agent for any tax or other governmental charge that may be imposed in relation thereto and any other reasonable fees and expenses incurred in connection therewith. The provisions of this Section are exclusive and shall preclude (to the extent lawful) all other rights and remedies with respect to the replacement or payment of mutilated, lost, stolen or destroyed Series 1995 Bonds.

 

Section 208. Cancellation and Destruction of Series 1995 Bonds Upon Payment. All Series 1995 Bonds which are to be paid or redeemed, either at or before maturity, shall be surrendered to the Paying Agent and immediately cancelled and destroyed by the Paying Agent upon the payment or redemption of such Series 1995 Bonds. The Paying Agent shall execute a certificate in duplicate describing the Series 1995 Bonds so cancelled and destroyed, and shall file an executed counterpart of such certificate with the City within 30 days of such action.

 

Section 209. Temporary Series 1995 Bonds. Until definitive Series 1995 Bonds are prepared, the City may execute, in the same manner as is provided in this Ordinance, and, upon the request of the City, the Paying Agent shall authenticate and deliver, in lieu of definitive Series 1995 Bonds, and subject to the same provisions, limitations and conditions as the definitive Series 1995 Bonds, one or more temporary Series 1995 Bonds substantially of the tenor of the definitive Series 1995 Bonds in lieu of which such temporary Series 1995 Bond or Series 1995 Bonds are issued, in denominations authorized in Section 202 hereof, and with such omissions, insertions and variations as may be appropriate to such temporary Series 1995 Bonds. The City at its own expense shall prepare and execute and, upon the surrender of such temporary Series 1995 Bonds for exchange and upon the cancellation of such surrendered temporary Series 1995 Bonds, the Paying Agent shall authenticate and, without charge to the Owner thereof, deliver in exchange therefor definitive Series 1995 Bonds of the same principal amount and maturity as the temporary Series 1995 Bonds surrendered and in such authorized denominations as shall be requested by the Owners.

 

If the City shall authorize the issuance of temporary Series 1995 Bonds in more than one denomination, the Owner of any temporary Series 1995 Bond or Series 1995 Bonds may, at such Owner's option, surrender the same to the Paying Agent in exchange for another temporary Series 1995 Bond or Series 1995 Bonds of like principal amount and maturity of any other authorized denomination or denominations, and thereupon the City shall execute and the Paying Agent shall authenticate and, upon payment of any applicable taxes, fees and charges, shall deliver a temporary Series 1995 Bond or Series 1995 Bonds of like principal amount and maturity in such other authorized denomination or denominations as shall be requested by such Owner.

 

All temporary Series 1995 Bonds surrendered in exchange either for another temporary Series 1995 Bond or Series 1995 Bonds or for a definitive Series 1995 Bond or Series 1995 Bonds shall be forthwith canceled by the Paying Agent.

 

ARTICLE III

 

REDEMPTION OF SERIES 1995 BONDS

 

Section 301. Optional Redemption. At the option of the City, the Series 1995 Bonds or portions thereof maturing on June 1, 2003, and thereafter may be called for redemption and payment prior to their Stated Maturities on June 1, 2002, and thereafter as a whole or in part at any time at the discretion of the City (Series 1995 Bonds of less than a single maturity shall be selected by lot in multiples of $5,000.00 principal amount by the Paying Agent in such equitable manner as it shall designate) at the redemption price of 100% of the principal amount thereof, plus accrued interest thereon to the redemption date, without premium. Section 302. Selection of Series 1995 Bonds to Be Redeemed. In the case of a partial redemption of Series 1995 Bonds when Series 1995 Bonds of denominations greater than $5,000.00 are then Outstanding, then for all purposes in connection with such redemption, each $5,000.00 of par value shall be treated as though it were a separate Series 1995 Bond of the denomination of $5,000.00. If it is determined that one or more, but not all, of the $5,000.00 units of par value represented by any Series 1995 Bond is selected for redemption, then upon notice of intention to redeem such $5,000.00 unit or units, the Owner of such Series 1995 Bond or the Owner's duly authorized agent shall forthwith present and surrender such Series 1995 Bond to the Paying Agent (1) for payment of the redemption price (including the interest to the redemption date) of the $5,000.00 unit or units of par value called for redemption, and (2) for exchange, without charge to the Owner thereof, for a new Series 1995 Bond or Series 1995 Bonds of the aggregate principal amount of the unredeemed portion of the principal amount of such Series 1995 Bond. If the Owner of any such Series 1995 Bond of a denomination greater than $5,000.00 shall fail to present such Series 1995 Bond to the Paying Agent for payment and exchange as aforesaid, such Series 1995 Bond shall, nevertheless, become due and payable on the redemption date to the extent of the $5,000.00 unit or units of face value called for redemption (and to that extent only).

 

Section 303. Notice and Effect of Call for Redemption. Unless waived by any Owner of the Series 1995 Bonds to be redeemed, official notice of any such redemption shall be given by the Paying Agent on behalf of the City by mailing a copy of an official redemption notice by first-class, United States mail, postage prepaid, at least thirty (30) days prior to the date fixed for redemption to the original purchaser of the Series 1995 Bonds and to the Owner of the Series 1995 Bond or Series 1995 Bonds to be redeemed at the address shown on the Bond Register or at such other address as is furnished in writing by such Owner to the Paying Agent.

 

(a) All official notices of redemption shall be dated and shall state:

 

(b) the Series 1995 Bond number,

 

(c) the principal amount,

 

(d) the date of issue of the Series 1995 Bonds as originally issued,

 

(e) the rate of interest borne by each Series 1995 Bond being redeemed,

 

(f) the redemption date,

 

(g) CUSIP number and maturity,

 

(h) if less than all Outstanding Series 1995 Bonds are to be redeemed, the identification (and, in the case of partial redemption, the respective principal amounts) of the

Series 1995 Bonds to be redeemed,

(i) that on the redemption date the redemption price will become due and payable upon each such Series 1995 Bond or portion thereof called for redemption, and that interest

thereon shall cease to accrue from and after said date, and

 

(j) the place where such Series 1995 Bonds are to be surrendered for payment of the redemption price, which place of payment shall be the principal office of the Paying

Agent.

 

Neither the failure of any Owner to receive any notice so mailed nor any defect therein will affect the sufficiency of the proceedings for redemption of any Series 1995 Bond nor the cessation of accrual of interest thereon.

 

On or prior to any redemption date, the City shall deposit with the Paying Agent an amount of money sufficient to pay the redemption price of all the Series 1995 Bonds or portions of Series 1995 Bonds which are to be redeemed on that date.

 

Official notice of redemption having been given as aforesaid, the Series 1995 Bonds or portions of Series 1995 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, such Series 1995 Bonds or portion of Series 1995 Bonds shall cease to bear interest. Upon surrender of such Series 1995 Bonds for redemption in accordance with said notice, such Series 1995 Bonds shall be paid by the Paying Agent at the redemption price. Installments of interest due on or prior to the redemption date shall be payable as herein provided for payment of interest. Upon surrender for any partial redemption of any Series 1995 Bond, there shall be prepared for the Owner a new Series 1995 Bond or Series 1995 Bonds of the same maturity in the amount of the unpaid principal. All Series 1995 Bonds which have been redeemed shall be cancelled and destroyed by the Paying Agent and shall not be reissued.

 

ARTICLE IV

 

FORM OF SERIES 1995 BONDS

 

Section 401. Form of Series 1995 Bonds. Each of the Series 1995 Bonds, as originally issued or issued upon transfer, exchange or substitution, shall be in substantially the form as set out on Exhibit A attached hereto.

 

ARTICLE V

 

APPLICATION OF SERIES 1995 BOND PROCEEDS

 

Section 501. Establishment of Funds. There is hereby created and ordered to be established among the financial accounts and records of the City the following special fund in the name of the City to be designated as follows:

 

The "City of Kansas City, Missouri, Public Safety Series 1995 Fund" (the "Public Safety Series 1995 Fund")

 

Section 502. Disposition of Series 1995 Bond Proceeds. All of the proceeds derived from the sale of the Series 1995 Bonds, including accrued interest and premium, if any, received from the sale of the Series 1995 Bonds, shall be deposited in the Public Safety Series 1995 Fund, established in the City treasury and held by the Director of Finance and shall be applied in accordance with Section 503 hereof.

 

Section 503. Application of Moneys in the Public Safety Series 1995 Fund. Moneys in the Public Safety Series 1995 Fund shall be used by the City solely for the purpose of paying the Costs of issuance and acquiring and constructing the Public Safety Improvements in accordance with the plans and specifications developed and prepared by the Director of Public Works and filed in the office of the City Clerk.

 

The Director of Finance shall make withdrawals from the Public Safety Series 1995 Fund only upon duly authorized and executed order of the Council therefor accompanied by a certificate executed by the appropriate City Department Director that such payment is being made for a purpose within the scope of this Ordinance and that the amount of such payment represents only the contract price of the property, equipment, labor, materials or service being paid for or, if such payment is not being made pursuant to an express contract, that such payment is not in excess of the reasonable value thereof.

 

Upon completion of the Public Safety Improvements, any surplus money remaining in the Public Safety Series 1995 Fund shall be transferred and deposited in the General Debt and Interest Fund of the City.

 

ARTICLE VI

 

PAYMENT OF SERIES 1995 BONDS

 

Section 601. Security for Series 1995 Bonds. The Series 1995 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 Series 1995 Bonds as the same become due.

 

Section 602. Levy and Collection of Annual Tax. For the purpose of providing for the payment of the principal of and interest on the Series 1995 Bonds as the same become due, there is hereby levied upon all of the taxable tangible property within the City a direct annual tax sufficient to produce the amounts necessary for the payment of such principal and interest as the same becomes due and payable in each year.

 

The taxes referred to above 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 other taxes of the City are levied and collected. The proceeds derived from said taxes shall be deposited in the General Debt and Interest Fund, shall be kept separate and apart from all other funds of the City and shall be used for the payment of the principal of and interest on the Series 1995 Bonds as and when the same shall become due and the fees and expenses of the Paying Agent.

 

If at any time said taxes are not collected in time to pay the principal of or interest on the Series 1995 Bonds when due, the Director of Finance 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 such money when said taxes are collected.

 

Section 603. Application of Moneys in General Debt and Interest Fund. All amounts paid and credited to the General Debt and Interest Fund shall be expended and used by the City for the purpose of paying the principal of and interest on the Series 1995 Bonds as and when the same become due, and the usual and customary fees and expenses of the Paying Agent. The Director of Finance is authorized and directed to withdraw from the General Debt and Interest Fund and forward to the Paying Agent sums sufficient to pay both principal of and interest on the Series 1995 Bonds as and when the same become due, and also to pay fees and expenses of the Paying Agent. If, through the lapse of time, or otherwise, the Owners of Series 1995 Bonds shall no longer be entitled to enforce payment of their obligations, it shall be the duty of the Paying Agent forthwith to return said funds to the City. All moneys deposited with the Paying Agent shall be deemed to be deposited in accordance with and subject to all of the provisions contained in this Ordinance.

 

Any moneys or investments remaining in the General Debt and Interest Fund after the retirement of the indebtedness for which the Series 1995 Bonds were issued and all other indebtedness of the City shall be transferred and paid into the general fund of the City.

 

ARTICLE VII

 

DEPOSIT AND INVESTMENT OF MONEYS

 

Section 701. Deposits of Moneys. Cash moneys in each of the funds and accounts created by and referred to in this Ordinance shall be deposited in a bank or banks located in the City of Kansas City, Missouri which are members of the Federal Deposit Insurance Corporation, and all such bank deposits shall be continuously and adequately secured by the banks holding such deposits as provided by the laws of the State of Missouri and the City's Charter and Administrative Code. All moneys held in the funds and accounts created by this Ordinance shall be kept separate and apart from all other funds of the City so that there shall be no commingling of such funds with any other funds of the City.

 

Section 702. Investment of Moneys. Moneys held in any fund or account referred to in this Ordinance may be invested by the Director of Finance, in bonds or other direct obligations of, or obligations the principal of and interest on which are unconditionally guaranteed by, the United States of America having fixed redemption value or becoming due within five (5) years from the date of purchase, or in such other obligations as may be permitted by law and the City's Charter and Administrative Code; provided, however, that no such investment shall be made for a period extending longer than to the date when the moneys invested may be needed for the purpose for which such fund or account was created. The City may pool moneys for investment purposes, except moneys held in the yield restricted portion of any Fund, which shall be invested separately. All earnings on any investments held in any fund or account created by or referred to in this Ordinance shall accrue to and become a part of such fund or account. In determining the amount held in any fund or account under any of the provisions of this Ordinance, obligations of the United States Government shall be valued at the market value thereof.

 

Section 703. Application of Moneys in the Rebate Fund.

 

(a) There is hereby authorized and ordered established in the custody of the Director of Finance a special trust fund in the name of the City to be designated "The City of

Kansas City, Missouri Rebate Fund -- Public Safety Bonds, Series 1995" (herein

called the "Rebate Fund"). There shall be deposited in the Rebate Fund such

amounts as are required to be rebated to the United States pursuant to this Section

and Section 1001. All money at any time deposited in the Rebate Fund shall be held

in trust, to the extent required to pay rebatable arbitrage to the United States of

America, and neither the City nor the Owner of any Series 1995 Bonds shall have

any rights in or claim to such money. All amounts deposited into or on deposit in the

Rebate Fund shall be governed by this Section, by Section 702 and by Section 1001.

 

(b) The City shall periodically determine the amounts subject to rebate under Section 148(f) of the Code, and the City shall make payments to the United States

at the times and in the amounts determined under Section 148(f) of the Code and any

temporary, proposed or final Treasury Regulations as may be applicable to the

Series 1995 Bonds from time to time. Any funds remaining in the Rebate Fund after

redemption and payment of all of the Series 1995 Bonds and payment and

satisfaction of any rebatable arbitrage, or provision made therefor, shall be

transferred and paid into the general fund of the City.

 

(c) Notwithstanding any other provision of this Ordinance, including in particular Article IX hereof, the obligation to pay rebatable arbitrage to the United States and

to comply with all other requirements of this Section, Section 702 and the Arbitrage

Instructions shall survive the defeasance or payment in full of the Series 1995 Bonds.

 

The City shall maintain records designed to show compliance with the provisions of this Article VII for at least six (6) years after the payment of all of the Series 1995 Bonds.

 

ARTICLE VIII

 

DEFAULT AND REMEDIES

 

Section 801. Remedies. The provisions of this Ordinance, including the covenants and agreements herein contained, shall constitute a contract between the City and the Owners of the Series 1995 Bonds. The Bondowners of not less than twenty-five percent (25%) of the Series 1995 Bonds at the time outstanding shall have the right, for the equal benefit and protection of all Bondowners similarly situated:

 

(a) by mandamus or other suit, action or proceedings at law or in equity to enforce the rights of such Bondowners against the City and its officers, agents and employees,

and to require and compel duties and obligations required by the provisions of this

Ordinance or by the Constitution and laws of the State of Missouri;

 

(b) by suit, action or other proceedings in equity or at law to require the City, its officers, agents and employees to account as if they were the trustees of an express trust; and

 

(c) by suit, action or other proceedings in equity or at law to enjoin any acts or things which may be unlawful or in violation of the rights of the Bondowners.

 

Section 802. Limitation on Rights of Bondowners. The covenants and agreements of the City contained herein and in the Series 1995 Bonds shall be for the equal benefit, protection, and security of the Bondowners, all of which Series 1995 Bonds shall be of equal rank and without preference or priority of one Series 1995 Bond over any other Series 1995 Bond in the application of the funds herein pledged to the payment of the principal of and the interest on the Series 1995 Bonds, or otherwise, except as to rate of interest, date of maturity and right of prior redemption as provided in this Ordinance. No one or more Bondowners secured hereby shall have any right in any manner whatsoever, by any action, to affect, disturb or prejudice the security granted and provided for herein, or to enforce any right hereunder, except in the manner herein provided, and all proceedings at law or in equity shall be instituted, had and maintained for the equal benefit of all Bondowners.

 

Section 803. Remedies Cumulative. No remedy conferred herein upon the Bondowners is intended to be exclusive of any other remedy, but each such remedy shall be cumulative and in addition to every other remedy and may be exercised without exhausting and without regard to any other remedy conferred herein. No waiver of any default or breach of duty or contract by any Bondowner shall extend to or affect any subsequent default or breach of duty or contract or shall impair any rights or remedies thereon. No delay or omission of any Bondowner to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver of any such default or acquiescence therein. Every substantive right and every remedy conferred upon the Bondowners by this Ordinance may be enforced and exercised from time to time and as often as may be deemed expedient. In case any suit, action or proceedings taken by any Bondowner on account of any default or to enforce any right or exercise any remedy shall have been discontinued or abandoned for any reason, or shall have been determined adversely to such Bondowner, then, and in every such case, the City and the Bondowners shall be restored to their former positions and rights hereunder, respectively, and all rights, remedies, powers and duties of the Bondowners shall continue as if no such suit, action or other proceedings had been brought or taken.

 

ARTICLE IX

 

DEFEASANCE

 

Section 901. Defeasance. When all of the Series 1995 Bonds shall have been paid and discharged, then the requirements contained in this Ordinance and the pledge of ad valorem taxes made hereunder and the pledge of the City's faith and credit made hereunder and all other rights granted hereby shall terminate. Series 1995 Bonds shall be deemed to have been paid and discharged within the meaning of this Ordinance if there shall have been deposited with the Paying Agent, or other bank or trust company located in the State of Missouri and having full trust powers, at or prior to the maturity or redemption date of the Series 1995 Bonds, in trust for and irrevocably appropriated thereto, moneys and/or direct obligations of, or obligations the principal of and interest on which are unconditionally guaranteed by, the United States of America which, together with the interest to be earned on any such obligations, will be sufficient for the payment of the principal of the Series 1995 Bonds and interest accrued to the date of maturity or redemption, as the case may be, or if default in such payment shall have occurred on such date, then to the date of the tender of such payments; provided always, that if any Series 1995 Bonds shall be redeemed prior to the maturity thereof, (a) the City shall have elected to redeem such Series 1995 Bonds, (b) either notice of such redemption shall have been given, or the City shall have given irrevocable instructions to the Paying Agent to redeem such Series 1995 Bonds; and (c) the City has received the opinion of Bond Counsel that such deposit will not adversely affect the exclusion of the interest on the Series 1995 Bonds from gross income for federal tax purposes. Any moneys and obligations which at any time shall be deposited with the Paying Agent or other bank by or on behalf of the City, for the purpose of paying and discharging any of the Series 1995 Bonds, shall be and are hereby assigned, transferred and set over to the Paying Agent or other bank in trust for the respective Owners of the Series 1995 Bonds, and such moneys shall be and are hereby irrevocably appropriated to the payment and discharge thereof. All moneys deposited with the Paying Agent or other bank shall be deemed to be deposited in accordance with and subject to all of the provisions contained in this Ordinance.

 

ARTICLE X

 

MISCELLANEOUS PROVISIONS

 

Section 1001. Tax Covenants. The City will comply with all applicable provisions of the Internal Revenue Code of 1986, as amended (the "Code"), including Sections 103 and 148 thereof, and the regulations of the Treasury Department thereunder, from time to time proposed or in effect, in order to maintain the exclusion from gross income for purposes of federal income taxation of the interest on the Series 1995 Bonds. The City covenants and agrees that it will not take any action, or fail to take any action, if any such action or failure to take action would adversely affect the exclusion from gross income of the interest on the Series 1995 Bonds under Section 103 of the Code.

 

The City covenants and agrees that it will use the proceeds of the Series 1995 Bonds as soon as practicable and with all reasonable dispatch for the purpose for which the Series 1995 Bonds are issued as hereinbefore set forth, and shall not invest any part of the proceeds of the Series 1995 Bonds except for the temporary period pending such use. The City further covenants and agrees that it will not directly or indirectly use or permit the use of any proceeds of the Series 1995 Bonds or any other funds of the City, or take or omit to take any action that would cause the Series 1995 Bonds to be "arbitrage bonds" within the meaning of Section 103(b)(2) or Section 148 of the Code or "private activity bonds" as defined in Section 141 of the Code. To that end, the City will comply with all requirements of the Code to the extent applicable to the Series 1995 Bonds. In the event that at any time the City is of the opinion that for purposes of this Section it is necessary to restrict or limit the yield on the investment of any moneys held by the City under this Ordinance, the City shall take such action as may be necessary.

 

Without limiting the generality of the foregoing, the City covenants and agrees to pay or cause to be paid to the United States, at the times and in the amounts determined under Section 703 all amounts required to be rebated to the United States pursuant to Section 148(f) of the Code and any temporary, proposed or final Treasury Regulations as may be applicable to the Series 1995 Bonds from time to time. This covenant shall survive payment in full or defeasance of the Series 1995 Bonds.

 

The City represents that (I) it is a governmental unit under Missouri law with general taxing powers, (ii) none of the Series 1995 Bonds is a private activity bond as defined in Section 141 of the Code and (iii) ninety-five percent (95%) or more of the net proceeds of the Series 1995 Bonds will be used for local governmental activities of the City.

 

Section 1002. Amendments. The City may from time to time, without the consent of or notice to any of the Owners, provide for amendment to the Series 1995 Bonds or this Ordinance, for any one or more of the following purposes:

 

(a) To cure any ambiguity or formal defect or omission in this Ordinance or to make any other change not materially prejudicial to the Owners;

 

(b) To grant to or confer upon the Owners any additional rights, remedies, powers or authority that may lawfully be granted to or conferred upon the Owners;

 

(c) To more precisely identify the Public Safety Improvements;

 

(d) To conform this Ordinance to the Code or other or future applicable federal law concerning tax-exempt obligations; and

 

(e) o provide for the issuance of coupon Series 1995 Bonds and the exchange of fully registered Series 1995 Bonds for coupon Series 1995 Bonds upon such terms and

conditions as the City shall determine provided, however, that no such amendments

shall become effective unless and until the City shall have received an opinion of

Bond Counsel in the form and substance satisfactory to the City, to the effect that the

issuance of such coupon Series 1995 Bonds or the exchange of Series 1995 Bonds

for such coupon Series 1995 Bonds will not cause the interest on the Series 1995

Bonds to be includable in the gross income of the recipients thereof under the

provisions of applicable federal law;

 

provided, however, that no such modification or amendment shall permit or be construed as permitting, without the consent of 100% of the Owners of the Series 1995 Bonds: (I) the extension of the maturity of the principal of any of the Series 1995 Bonds issued hereunder, or the extension of the maturity of any interest on any Series 1995 Bonds issued hereunder, or (ii) a reduction in the principal amount of any Series 1995 Bonds or the rate of interest thereon, or (iii) a privilege or priority of any Series 1995 Bond over any other Series 1995 Bond, or (iv) any modification of the redemption features of the Series 1995 Bonds, or (v) a reduction in the percentage of the Series 1995 Bonds required to adopt such amendment. Other modifications and amendments to the Series 1995 Bonds or the Ordinance, not otherwise provided herein, may be made with the written consent of the Owners of sixty percent (60%) in aggregate principal amount of the outstanding Series 1995 Bonds. Every amendment or modification of a provision of the Series 1995 Bonds or of this Ordinance to which the written consent of the Owners is given as above provided shall be expressed in an ordinance of the City amending or supplementing the provisions of this Ordinance and shall be deemed to be a part of this Ordinance. It shall not be necessary to note on any of the outstanding Series 1995 Bonds any reference to such amendment or modification, if any. A certified copy of every such amendatory or supplemental ordinance, if any, and a certified copy of this Ordinance shall always be kept on file in the Office of the City Clerk and shall be made available for inspection by the Bondowners or prospective purchasers of any Series 1995 Bond authorized by this Ordinance, and upon payment of the reasonable cost of preparing the same, a certified copy of any such amendatory or supplemental ordinance or of this Ordinance shall be sent by the City Clerk to any such Bondowner or prospective purchaser.

 

Section 1003. Preliminary Official Statement and Official Statement. The form and content of the Preliminary Official Statement relating to the Series 1995 Bonds, and the use and public distribution thereof in connection with the public sale of the Series 1995 Bonds, is hereby ratified, confirmed and approved, and the Director of Finance is hereby authorized to cause the final Official Statement to be completed by supplementing, completing and amending the Preliminary Official Statement and the Director of Finance is hereby authorized to execute the final Official Statement, and the use and public distribution of the final Official Statement by the original purchaser of the Series 1995 Bonds in connection with the reoffering of the Series 1995 Bonds is hereby authorized and approved. The proper officials of the City are hereby authorized to execute and deliver a certificate pertaining to the Preliminary Official Statement and the final Official Statement as prescribed therein, dated as of the date of payment for and delivery of the Series 1995 Bonds.

 

Section 1004. Further Authority. The officers of the City, including the Mayor, City Clerk and the Director of Finance, shall be, and they hereby are, authorized and directed to execute 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 and to make ministerial 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 1005. Severability. If any section or other part of this Ordinance, whether large or small, shall for any reason be held invalid, the invalidity thereof shall not affect the validity of the other provisions of this Ordinance.

 

Section 1006. Governing Law. This Ordinance shall be governed exclusively by and construed in accordance with the applicable laws of the State of Missouri.

 

Section 1007. Effective Date. This Ordinance shall take effect and be in full force and effect ten (10) days after its passage.

 

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Approved as to form and legality:

 

 

 

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Assistant City Attorney