COMMITTEE SUBSTITUTE FOR RESOLUTION NO. 040582

Providing authorization to proceed with the development of financing for various city-wide strategic public improvements and capital maintenance projects through the issuance of tax-exempt general obligation bonds by the City in an approximate principal amount not to exceed $95,700,000.00; directing the Public Improvements Advisory Committee to prioritize recommended projects; authorizing certain other actions pursuant thereto; making a declaration of official intent to reimburse; and thanking the Bond Financial Advisory Committee for its work.

WHEREAS, an ordinance was duly passed by the Council of the City of Kansas City, Missouri (the City), authorizing a special election which was duly held on April 6, 2004, at which the voters authorized the issuance of the Citys general obligation bonds in the aggregate principal amount not to exceed $250,000,000.00 for the purpose of paying for deferred maintenance and basic capital infrastructure such as streets, bridges, catch basins and other projects (including construction, acquisition, renovation, equipping and furnishing costs) and as authorized under Article VI, Sections 26(b) and (c) of the Missouri Constitution (the Infrastructure Bonds); and

WHEREAS, an ordinance was duly passed by the Council of the City of Kansas City, Missouri (the City), authorizing a special election which was duly held on April 6, 2004, at which the voters authorized the issuance of the Citys general obligation bonds in the aggregate principal amount not to exceed $30,000,000.00 for the purpose of paying for deferred maintenance and capital infrastructure and improvements for the Kansas City Zoological Garden (including construction, acquisition, renovation, equipping, furnishing and other costs) as recommended by the Board of Parks and Recreation Commissioners and approved by the City Council and as authorized under Article VI, Sections 26(b) and (c) of the Missouri Constitution; and

WHEREAS, an ordinance was duly passed by the Council of the City of Kansas City, Missouri (the City), authorizing a special election which was duly held on April 6, 2004, at which the voters authorized the issuance of the Citys general obligation bonds in the aggregate principal amount not to exceed $20,000,000.00 for the purpose of paying for capital improvements for the World War I Museum Project at Liberty Memorial Museum Project (including construction, acquisition, renovation, equipping and furnishing and other costs for the museum, exhibits, library and educational facilities) as recommended by the Board of Parks and Recreation Commissioners and approved by the City Council and as authorized under Article VI, Sections 26(b) and (c) of the Missouri Constitution; and

WHEREAS, the Council desires to issue the Citys general obligation bonds in an amount not to exceed $80,000,000.00 as the first series of bonds to be issued under the three authorizations approved by the voters on April 6, 2004, collectively, the 2004 General Obligation Bonds; and

WHEREAS, an ordinance was duly passed by the Council of the City of Kansas City, Missouri (the City), authorizing a special election which was duly held on November 5, 2002 at which the voters authorized the issuance of the Citys general obligation bonds in the aggregate principal amount not to exceed $35,000,000.00 for the purpose of paying the cost of construction, acquisition, renovation, equipping and furnishing of strategic public improvements and capital maintenance (the Neighborhood/Downtown Projects), including streets, sidewalks, curbs, storm and sanitary sewer and waterworks systems, bridges, parks, parking facilities and other public improvements as authorized under Article VI, Sections 26(b) and (c) of the Missouri Constitution, with 45% of the proceeds to be used for downtown Kansas City and 55% for other neighborhoods; and

WHEREAS, the City has issued its General Obligation Bonds, Series 2003F in the amount of $20,000,000 to provide funds to pay the cost of constructing, acquiring, renovating, equipping and furnishing the Neighborhood/Downtown Projects, leaving $15,000,000.00 in remaining principal amount of authorized bonds for the project; and

WHEREAS, an ordinance was duly passed by the Council of the City of Kansas City, Missouri (the City), authorizing a special election which was duly held on August 6, 1996, at which the voters authorized the issuance of the Citys general obligation bonds in the amount of $10,800,000.00 for the purpose of designing and constructing a replacement Chouteau Bridge, including acquiring any necessary right of way; and

WHEREAS, the City has issued its General Obligation Bonds (Chouteau Bridge Project), Series 1996B in the amount of $10,100,000.00, leaving $700,000.00 in remaining principal amount of authorized bonds for the project; and

WHEREAS, the City desires to issue the second series of bonds for the Neighborhood/Downtown Projects in the approximate principal amount of $15,000,000.00 and the remaining $700,000.00 principal amount for the Chouteau Bridge Project conjunction with the 2004 General Obligation Bonds; and

WHEREAS, pursuant to Second Committee Substitute for Resolution No. 040143, the five-member Bond Financial Advisory Committee (the Committee), was appointed by the Mayor to advise the Mayor and Council on matters relating to the Infrastructure Bonds, and specifically to the following: timing of bond issuance, debt capacity, prevailing interest rates, municipal budget considerations and compliance with bond authorization ballot language approved by the voters on April 6, 2004; and

WHEREAS, the Committee met on April 23, April 30, May 5, May 7 and May 12, 2004, to consider the matters with which it was charged; and

WHEREAS, the Committee reached a consensus on its recommended sizing for the first series of Infrastructure Bonds to be issued from the voted authority which are anticipated to be issued during the summer of 2004, which is included in its Resolution No. 05-12-04, attached hereto as Exhibit A; and

WHEREAS, the Bond Financial Advisory Committee recommended that the first series of bonds under the April 2004 authorization be issued in an par amount not to exceed $80,000,000.00, including any bonds for the Liberty Memorial and Zoological Garden Projects, but did not specify the allocation of those amounts among the Infrastructure, Liberty Memorial and Zoological Garden Projects; NOW, THEREFORE,

BE IT RESOLVED BY THE COUNCIL OF KANSAS CITY:

Section 1.  That the Council does hereby express its intention to provide for the financing of the following projects throughout the City, and directs that funding therefore be effected through the issuance of Citys tax-exempt general obligation bonds, in an approximate principal amount not to exceed $95,700,000.00 to provide funds to pay the cost of the projects as follows:

Infrastructure Bonds $60,000,000.00

Kansas City Zoological Garden 10,000,000.00

Liberty Memorial Museum Project 10,000,000.00

Chouteau Bridge Project 700,000.00

Neighborhood/Downtown Projects 15,000,000.00

TOTAL $95,700,000.00

Section 2. That the Council directs the Public Improvements Advisory Committee to prioritize the projects recommended for funding with the proceeds of the first series of Infrastructure Bonds and to recommend projects in excess of $60,000,000.00 for consideration by the Council.

Section 3.  That the Council states that such Projects are for the benefit of the public health, safety and welfare and constitute a public purpose.

Section 4. That the Council does hereby authorize and direct 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 Acting Director of Finance and City Attorney for presentation to and approval by the Council.

Section 5. 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 the Projects with the proceeds of bonds expected to be issued by the City. The maximum principal amount of bonds to be issued for the Projects is not to exceed $95,700,000.00. This constitutes a declaration of official intent under Treasury Regulation 1-150-2.

Section 6. That the Mayor and Council thank the members of the Bond Financial Advisory Committee: Mark Thompson, Chair; Lee Derrough, Lester Johnson, Richard Jungck and Phillip Richter for their time and efforts on this matter and express their appreciation for the fine work done by the Committee.

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