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Legislation #: 090118 Introduction Date: 2/12/2009
Type: Ordinance Effective Date: 3/1/2009
Sponsor: None
Title: Providing for a substitute of a Syncora Guarantee Inc. surety bond policy issued to meet the debt service reserve requirement of the Land Clearance for Redevelopment Authority of Kansas City, Missouri Improvement and Refunding Bonds, Series 2005E; estimating and appropriating bond proceeds in the amount of $3,385,000.00 in the STIF 12th and Wyandotte Fund; designating requisitioning authorities; authorizing the Director of Finance to close project accounts upon completion; and recognizing an emergency.

Legislation History
DateMinutesDescription
2/10/2009 Filed by the Clerk's office
2/12/2009 Referred to Finance and Audit Committee
2/18/2009 Advance and Do Pass, Debate
2/19/2009 Passed

View Attachments
FileTypeSizeDescription
090118.pdf Authenticated 107K authenticated
http://kansascity.granicus.com/ViewSearchResults.php?view_id=2&keywords=090118 Video Link 0K http://kansascity.granicus.com/ViewSearchResults.php?view_id=2&keywords=090118
Approp Admin IDA e a v1.xls Other 493K Approp and Admin form
fiscal notes-Surety replacement ordinance v1.xls Advertise Notice 64K Fiscal Note
LCRA 2005E Surety funding ordinance fact sheet v1.xls Fact Sheet 48K Fact Sheet

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ORDINANCE NO. 090118

 

Providing for a substitute of a Syncora Guarantee Inc. surety bond policy issued to meet the debt service reserve requirement of the Land Clearance for Redevelopment Authority of Kansas City, Missouri Improvement and Refunding Bonds, Series 2005E; estimating and appropriating bond proceeds in the amount of $3,385,000.00 in the STIF 12th and Wyandotte Fund; designating requisitioning authorities; authorizing the Director of Finance to close project accounts upon completion; and recognizing an emergency.

 

WHEREAS, the Land Clearance for Redevelopment Authority of Kansas City, Missouri, issued its Improvement and Refunding Bonds, Series 2005E, to refund bonds issued in 1995 to finance the 12th and Wyandotte Hotel and Municipal Auditorium Renovation Projects and to finance certain improvements to the Municipal Auditorium Garage; and

 

WHEREAS, $33,130,000.00 of fixed rate interest Series 2005E Bonds were issued with a surety policy from Synacore Guarantee, Inc. ("Synacora"), which satisfied the debt service requirement for the Series 2005E Bonds; and

 

WHEREAS, Synacora was downgraded in February 2008, leaving it with no rating by a nationally recognized rating agency in the highest rating category; and

 

WHEREAS, the indenture requires that a surety replacement or fully funded debt service reserve fund be in place within 12 months of the downgrade; NOW, THEREFORE

 

BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:

 

Section 1. That the revenue in the following account of Fund No. 5170 the STIF 12th and Wyandotte Fund is hereby reestimated in the following amount:

 

09-5170-120000-590000 Proceeds from Sale of Bonds $3,385,000.00

Section 2. That the sum of $3,385,000.00 is hereby appropriated from the Unappropriated Fund Balance of Fund No. 5170, the STIF 12th and Wyandotte Fund, to the following accounts in the STIF 12th and Wyandotte Fund:

 

09-5170-129620-B Bond Issue Expense $ 41,535.00

09-5170-129631-B Underwriter Discount 30,465.00

09-5170-129611-B Debt Service Reserve 3,313,000.00

TOTAL $3,385,000.00

 

Section 3. That the Director of Finance is hereby designated as the requisitioning authority for Account Nos. 09-5170-129620, 09-5170-129631, and 09-5170-129611.

 

Section 4. That the Director of Finance is hereby authorized to close project accounts upon project completion and return the unspent portion of the appropriation to the Fund Balance from which it came.

 

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 ordinance with respect to the LCRA Series 2005E debt service reserve requirement with the proceeds of bonds expected to be issued by the City or through one of its statutory agencies. The maximum principal amount of bonds expected to be issued is $3,385,000.00. This constitutes a declaration of official intent under Treasury Regulation 1-150-2.

 

Section 6. The City recognizes an emergency under the provisions of Section 503(c) of the Charter of Kansas City, in that this ordinance appropriates money, with this ordinance taking 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.

 

 

_____________________________

Jeffrey A. Yates

Director of Finance

 

Approved as to form and legality:

 

 

_____________________________

Heather A. Brown

Assistant City Attorney