ORDINANCE
NO. 180512
Authorizing the Director of Finance
to borrow $9.1 million from the Kansas City Water Services Department in order
to provide local matching funds for a flood control project being constructed
by the United States Army Corps of Engineers (“Corps”) pursuant to a Project
Partnership Agreement (“PPA”); establishing Fund No. 3321, the 2018 Flood
Control Fund; appropriating $9.1 million from the Unappropriated Fund Balance
of the Water Fund; estimating and appropriating $9.1 million in the 2018 Flood
Control Fund; authorizing the Director of Water services to expend up to $6.1
million towards the PPA; designating requisitioning authority; declaring the
intent of the City to reimburse itself from bond proceeds for certain
expenditures; authorizing the Director of Finance to close project accounts,
and recognizing this ordinance as having an accelerated effective date.
WHEREAS, pursuant
to Ordinance No. 110283, the City authorized the Director of Water Services to
enter into the Swope Park Industrial Area Flood Reduction Project (“Swope Park Industrial Area
Project”) PPA with the Corps; and
WHEREAS, the Corps will construct a levee to provide protection
from up to the 1% flood from the Blue River as a part of the Swope Park
Industrial Area Project. The City will be required to relocate a City-owned
pump station and adjacent sanitary lines in order to build the levee. The
current vehicular access to the Swope Park Industrial Area Project is
frequently blocked by trains. The City will construct a flyover bridge which
will allow businesses to have access to the Industrial Area and eliminate the
at-grade railroad crossing. A western embankment will also be constructed; and
WHEREAS, the Corps
has requested that the City provide local matching funds (“Match”) of $6.1
million for the completion of the levee pursuant to the PPA; and
WHEREAS, the City
will require an additional $3 million for relocation of utilities, the western
embankment and flyover bridge (“Additional Improvements”); and
WHEREAS, the City
intends to fund the Match and Additional Improvements through an Memorandum of
Understanding (MOU) between the Finance and Water Services Departments of the
City of Kansas City, Missouri; and
WHEREAS, the City
intends to reimburse the principal of the inter-fund borrowing through proceeds
of general obligation bonds issued in fiscal years 2020-2021; NOW THEREFORE,
BE IT ORDAINED BY
THE COUNCIL OF KANSAS CITY:
Section 1. That
the Director of Finance is hereby authorized to borrow an amount not to exceed
of $9,100,000.00 from the Water Fund at an interest rate of 2.75%, to be repaid
pursuant to one or more MOU between the Finance and Water Services Department.
The Finance and Water Services Directors are hereby authorized to execute a MOU
setting forth the terms of the inter-fund borrowing. Proceeds pursuant to the
MOU shall be appropriated to provide the Match for construction of flood
control works by the Corps payable by August 1, 2018.
Section 2. That
Fund No. 3321, the 2018 Flood Control Fund, is hereby established in the
records of the City of Kansas City, Missouri.
Section 3. That
the sum of $9,100,000.00 is hereby appropriated from the Unappropriated Fund
Balance of the Water Fund to the following accounts:
19-8010-129998-903321 Transfer to the 2018 Flood Control
Fund $9,100,000.00
Section 4. That the revenue in the following account of
the 2018 Flood Control Fund, is hereby estimated in the following amount:
AL-3321-120000-508010 Transfer from the Water
Fund $9,100,000.00
Section 5. That
the sum of $9,100,000.00 is hereby appropriated from the Unappropriated Fund
Balance of the 2018 Flood Control Fund, to the following account:
AL-3321-808055-B-89002672 Swope Park Industrial
District $9,100,000.00
Section 6. That
the Director of Water Services is hereby authorized to expend up to
$6,100,000.00 towards the PPA.
Section 7. That the Director
of Finance is hereby designated as requisitioning authority for Account No.
19-8010-129998 and the Director of Water Services is hereby designated as
requisitioning authority for Account No. AL-3321-808055-89002672.
Section 8. That
the City hereby declares its official intent to reimburse itself for certain
expenditures made within sixty (60) days prior to or on and after the date of
this ordinance with respect to the appropriation listed in Section 5
(“Project”) with the proceeds of bonds expected to be issued by the City. The
maximum principal amount of bonds expected to be issued for the Project is not
to exceed $9,100,000.00. This constitutes a declaration of official intent
under Treasury Regulation Section 1.150-2.
Section 9. That
the Director of Finance is hereby authorized to close project accounts,
encumbrances, retainage balances and return any unspent project funds from
which it came upon the earliest of: (i) Project’s completion; (ii) final
maturity of financing or (iii) five years after issuance.
Section 10.
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.
___________________________________
Randall
J. Landes
Director
of Finance
Approved
as to form and legality:
___________________________________
Katherine
Chandler
Assistant City Attorney