RESOLUTION NO. 021077

Authorizing the development of a financing for various improvements to the sanitary sewer and waterworks systems through the issuance of tax-exempt sewer and water revenue bonds by the City in an approximate principal amounts not to exceed $10,000,000.00 and $2,000,000.00, respectively, and authorizing certain other actions pursuant thereto.

WHEREAS, an ordinance was duly passed by the City Council of the City of Kansas City, Missouri (the City), whereby a special election (the Sewer System Election) was ordered to be held on November 4, 1997, at which election a majority of the qualified voters voted in favor of issuing $125,000,000.00 of revenue bonds for the purpose of paying the cost of extending and improving the sanitary sewer system of the City; and

WHEREAS, pursuant to Ordinance Nos. 980253, 990589, 000309, 001386, 011446, as amended, and Committee Substitute for Ordinance No. 020418, the City has heretofore issued and delivered $9,200,000.00, $6,000,000.00, $13,000,000.00, $11,750,000.00, $17,000,000.00, and $12,000,000.00 respectively, principal amount of sanitary sewer system revenue bonds authorized by the voters at the Sewer System Election; and

WHEREAS, it is now necessary that the City proceeds with the development of a financing in an approximate principal amount of $10,000,000.00, Series 2002J (the Sewer Bonds), to pay the costs of extending and improving the Citys sanitary sewer system, the Bonds being a part of the $125,000,000.00 principal amount of sewer revenue bonds authorized by the voters of the City at the Sewer System Election; and

WHEREAS, an ordinance was duly passed by the Council of the City of Kansas City, Missouri (the City), whereby a special election (the Water System Election) was duly held on August 6, 1996, at which the voters authorized the issuance of the Citys water revenue bonds in the aggregate principal amount of $150,000,000.00 for the purpose of extending and improving the waterworks system of the City; and

WHEREAS, pursuant to Ordinance No. 961462, Committee Substitute for Ordinance No. 980296, as amended, Ordinance No. 000037, as amended, and Committee Substitute for Ordinance No. 020325, the City has heretofore issued and delivered $28,000,000.00, $14,410,000.00, $25,000,000.00, and $17,500,000.00 respectively, principal amount of Water Revenue Bonds, authorized by the voters at the Water System Election; and

WHEREAS, it is now necessary for the City to proceed with the development of a financing in an approximate principal amount of $2,000,000.00, Series 2002K (the Water Bonds), to pay the costs of extending and improving the Citys waterworks system, the Bonds being a part of the $150,000,000.00 principal amount of water revenue bonds authorized by the voters of the City at the Water System Election; and

WHEREAS, the City has selected Gilmore & Bell, P.C. and the Martinez Law Firm to act as the co-bond counsel in connection with the issuance of bonds to finance the Projects; NOW, THEREFORE,

BE IT RESOLVED BY THE COUNCIL OF KANSAS CITY:

Section 1. That the Council expresses its intention to provide for the financing of the improvements to the sanitary sewer and waterworks systems, and states its intention to issue its tax-exempt sewer and water revenue bonds in approximate principal amounts not to exceed $10,000,000.00 and $2,000,000.00, respectively, to provide funds to pay the cost of the improvements.

Section 2. That the Council states that such improvements are for the benefit of the public health, safety and welfare and constitute a public purpose.

Section 3. That the Council authorizes and directs that the financing arrangements referred to in this resolution and the negotiation of the financial terms and other provisions of such arrangements be developed by the Director of Finance and City Attorney for presentation to and approval by the Council.

Section 4. That the City declares its intent to reimburse itself for certain expenditures made within sixty (60) days prior to or on and after the date of this resolution with respect to improvements made to the sanitary sewer and waterworks systems (the Projects) with the proceeds of bonds expected to be issued by the City. The maximum principal amounts of the sewer and water revenue bonds expected to be issued for the Projects are not to exceed $10,000,000.00 and $2,000,000.00, respectively. This constitutes a declaration of official intent under Treasury Regulation 1-150-2.

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