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Legislation #: 140371 Introduction Date: 5/8/2014
Type: Ordinance Effective Date: none
Sponsor: None
Title: Approving the issuance by the City of Kansas City Missouri of its special obligation bond anticipation bonds (the “Series 2014D Bonds”), to finance preliminary work related to the Streetcar System Expansion Project in the aggregate principal amount not to exceed $10,075,500.00; approving and authorizing certain documents and actions relating to the issuance of the Series 2014D Bonds; estimating and appropriating revenues in the amount of $10,075,500.00 in Fund No. 3432, the 2014D Special Obligation Bond Anticipation Bond Fund; designating requisitioning authority; authorizing the Director of Finance to close project accounts; declaring the City’s intent to reimburse itself from bond proceeds; and recognizing an accelerated effective date.

Legislation History
DateMinutesDescription
5/7/2014 Filed by the Clerk's office
5/8/2014 Referred to Finance, Governance & Ethics Committee
5/14/2014 Advance and Do Pass, Debate
5/15/2014 Passed

View Attachments
FileTypeSizeDescription
SO 2014D Certificate of Final Terms.pdf Other 28K 140371 Certificate of Final Terms
140371.pdf Authenticated 382K Authenticated
140371 Fiscal Note.pdf Fiscal Note 168K Fiscal Note
140371 Fact Sheet.pdf Fact Sheet 249K Fact Sheet
Approp SO 2014D EA 4-10-14.pdf Other 94K 2014D Approp
SO 2014D approp 4-10-14.pdf Other 11K 2014D Admin

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ORDINANCE NO. 140371

 

Approving the issuance by the City of Kansas City Missouri of its special obligation bond anticipation bonds (the “Series 2014D Bonds”), to finance preliminary work related to the Streetcar System Expansion Project in the aggregate principal amount not to exceed $10,075,500.00; approving and authorizing certain documents and actions relating to the issuance of the Series 2014D Bonds; estimating and appropriating revenues in the amount of $10,075,500.00 in Fund No. 3432, the 2014D Special Obligation Bond Anticipation Bond Fund; designating requisitioning authority; authorizing the Director of Finance to close project accounts; declaring the City’s intent to reimburse itself from bond proceeds; and recognizing an accelerated effective date.

 

WHEREAS, the City of Kansas City, Missouri (the “City”) is authorized under its charter to issue its notes, bonds or other obligations in evidence thereof; and

WHEREAS, the City proposes to issue its Special Obligation Bond Anticipation Bonds (Streetcar System Expansion Project), which shall be designated the Series 2014D Bonds or such other series designation as the Director of Finance shall determine, to provide funds: (a) to pay the cost of environmental and conceptual engineering work constituting preliminary work related to the Phase II expansion of the City’s Streetcar System (the “Streetcar System Expansion Project”) within the corporate limits of the City and (b) to pay certain costs related to the issuance of the Series 2014D Bonds; and

WHEREAS, in Committee Substitute for Resolution No. 130842 adopted on October 31, 2013 (the “Resolution”), the governing body of the City directed the City Manager to solicit bids for a $10 million loan or line of credit to finance environmental work and advanced conceptual engineering for the Phase II expansion of the City’s Streetcar System; and

WHEREAS, in accordance with the Resolution, the City solicited bids for the private placement of the Series 2014D Bonds and selected PNC Bank, National Association as the purchaser of the Series 2014D Bonds; and

WHEREAS, the Series 2014D Bonds shall be issued pursuant to a Bond Issuance and Purchase Agreement (the “Bond Issuance Agreement”), by and between the City and PNC Bank, National Association, as the purchaser of the Series 2014D Bonds (the “Purchaser”); and

WHEREAS, the City has found and determined that the financing of the Streetcar System Expansion Project as described above will benefit the citizens of the City; and

WHEREAS, in order to accomplish the foregoing, it is necessary and desirable that the City approve the transactions described in this Ordinance and the execution and delivery of the financing documents and certain other matters in connection with the transaction, as herein provided; NOW, THEREFORE,

BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:

Section 1. Authorization of Series 2014D Bonds; Authorization and Execution of Bond Issuance Agreement and Certificate of Final Terms. The City hereby authorizes the issuance of its Series 2014D Bonds in the aggregate principal amount not to exceed $10,075,500.00, for the purpose of providing funds for the following: (a) to finance preliminary work related to the Streetcar System Expansion Project and (b) to pay certain costs of issuance of the Series 2014D Bonds. The Series 2014D Bonds shall be dated the date set forth in the Bond Issuance Agreement and form of Bond. The Series 2014D Bonds shall have such other terms and provisions as shall be provided in the Bond Issuance Agreement approved by the Director of Finance.

The Director of Finance is authorized and directed to approve the principal amounts by maturity, the interest rates, the terms of credit enhancement, if any, and the other final terms of the Series 2014D Bonds, including applicable redemption provisions, subject to the limitations set forth in this Section, and in that connection, to execute and deliver, for the Series 2014D Bonds, the Certificate of Final Terms for and on behalf of and as the act and deed of the City, which approval will be conclusively evidenced by the Director of Finance’s execution of the Certificate of Final Terms. Upon execution, the Certificate of Final Terms for the Series 2014D Bonds will be attached to this Ordinance as Exhibit A, and the City Clerk is hereby authorized to file such Certificate of Final Terms with this Ordinance.

Section 2. Limited Obligations. The Series 2014D Bonds and the interest thereon shall be special, limited obligations of the City payable solely out of Appropriated Moneys (as defined in the Bond Issuance Agreement) and moneys in the funds and accounts established under the Bond Issuance Agreement (other than the Rebate Fund). The Series 2014D Bonds and interest thereon shall not be deemed to constitute a debt or liability of the City within the meaning of any constitutional, statutory or charter limitation or provision, and shall not constitute a pledge of the full faith and credit of the City, but shall be payable solely from the funds provided for in the Bond Issuance Agreement. The issuance of the Series 2014D Bonds shall not, directly, indirectly or contingently, obligate the City to levy any form of taxation therefor or to make any appropriation for their payment.

Section 3. Authorization and Approval of Financing Documents. The proposed documents relating to the financing (the “Financing Documents”) are hereby approved in substantially the forms submitted to the City Council, and the Director of Finance is authorized to execute and deliver the Financing Documents with such changes therein and additions thereto as the Director of Finance deems necessary or appropriate.

Bond Issuance Agreement.

Tax Compliance Certificate of the City, which sets forth certain representations, facts, expectations, terms and conditions relating to the use and investment of the proceeds of the Series 2014D Bonds, to establish and maintain the exclusion of interest on such Series 2014D Bonds from gross income for federal income tax purposes, and to provide guidance for complying with the arbitrage rebate provisions of § 148(f) of the Internal Revenue Code.

The City Council further approves the execution and delivery by the City of any documents which may be required in connection with the execution and delivery by the City of the Bond Issuance Agreement and issuance of the Series 2014D Bonds and of such other documents as the Director of Finance deems necessary or appropriate in connection with the transactions authorized by this Ordinance.

Section 4. Approval of Selection of Professionals. The City approves the selection of First Southwest Company and Moody Reid Financial Advisors to act as Co-Financial Advisors in connection with the issuance of the Series 2014D Bonds. The City approves the selection of Kutak Rock LLP and the Hardwick Law Firm LLC to act as Co-Bond Counsel in connection with the issuance of the Series 2014D Bonds. The City approves the selection of PNC Bank, National Association as the Purchaser of the Series 2014D Bonds.

Section 5. Establishment of Fund No. 3432. Fund No. 3432, the 2014D Special Obligation Bond Anticipation Bond Fund, is hereby established in the records of the City of Kansas City, Missouri.

Section 6. Estimation of Revenue. The revenue in the following account of the Fund No. 3432, the 2014D Special Obligation Bond Anticipation Bond Fund, is hereby estimated in the following amount:

AL-3432-120000-590000 Proceeds from Sale of Bonds $10,075,500.00

Section 7. Appropriation. The sum of $10,075,500.00 is hereby appropriated from the Unappropriated Fund Balance of Fund No. 3432, the 2014D Special Obligation Bond Anticipation Bond Fund, to the following accounts:

AL-3432-898044-B Streetcar System Expansion Project $10,000,000.00

AL-3432-129620-B Bond Issuance Expense 70,500.00

AL-3432-129686-B Arbitrage Rebate Calculation ____5,000.00

TOTAL $10,075,500.00

Section 8. Requisitioning Authority. The Director of Finance is hereby designated as requisitioning authority for Account Nos. AL-3432-129620 and AL-3432-129686 and the Director of the Public Works Department is hereby designated as the requisitioning authority for Account No. AL-3432-898044.

Section 9. Closing Project Accounts. The Director of Finance is hereby authorized to close project accounts upon completion and return the unspent portion of the appropriation to the Fund Balance from which it came.

Section 10. Declaration of Intent. The City anticipates issuing the Series 2014D Bonds for the purpose of financing the Streetcar System Expansion Project and 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 Streetcar System Expansion 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 Streetcar System Expansion Project is not to exceed $10,075,500.00. This constitutes a declaration of official intent under Treasury Regulation Section 1.150-2.

Section 11. Further Authority. The officials of the City are further authorized and directed to execute such documents, instruments and certificates and to take such further actions on behalf of the City as shall be necessary or desirable to effect the terms and provisions of this Ordinance.

Section 12. Recognition of Accelerated Effective Date. 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 Section 503, City Charter.

_____________________________________________

 

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:

 

 

___________________________________

Sarah Baxter

Assistant City Attorney

 


EXHIBIT A
CERTIFICATE OF FINAL TERMS
SERIES 2014D BONDS

 

The undersigned Director of Finance of the City of Kansas City, Missouri (the “City”), in connection with the issuance of the City’s $_________ Special Obligation Bond Anticipation Bonds (Streetcar System Expansion Project) Series 2014D (the “Series 2014D Bonds”), certifies pursuant to Section 1 of Ordinance No. ______ of the City (the “Ordinance”), as follows:

 

1. Original Principal Amount. The Series 2014D Bonds are issued in the original principal amount of $_________.

 

2. Maturity Schedule. The Series 2014D Bonds will mature on the dates and in the amounts and bear interest at the rates as set forth in the Bond Issuance and Purchase Agreement dated as of June 1, 2014 (the “Bond Issuance Agreement”) by and between the City and PNC Bank, National Association, as Purchaser, and as summarized on Schedule __ to this Certificate.

 

3. Optional Redemption. The Series 2014D Bonds are subject to optional redemption pursuant to the Bond Issuance Agreement on the dates and in the amounts as set forth therein.

 

The terms set forth in this Certificate of Final Terms are within the limitations of Section 1 of the Ordinance.

 

Delivered this ____ day of June, 2014.

 

CITY OF KANSAS CITY, MISSOURI

 

 

By: _______________________________

Randall J. Landes, Director of Finance