ORDINANCE NO. 1105
AN ORDINANCE OF THE GOVERNING BODY OF THE CITY OF HILLSBORO, KANSAS, DECLARING IT NECESSARY TO ACQUIRE AND CONSTRUCT CERTAIN IMPROVEMENTS TO, AND OTHERWISE RECONSTRUCT, IMPROVE, EQUIP, REHABILITATE AND EXTEND THE MUNICIPAL WATER SYSTEM IN THE CITY; AUTHORIZING AND DIRECTING THE ACQUISITION AND CONSTRUCTION OF SAID IMPROVEMENTS, AND THE RECONSTRUCTION, IMPROVEMENT, EQUIPPING, REHABILITATION AND EXTENSION OF SAID SYSTEM AND PROVIDING FOR THE PAYMENT OF THE COSTS THEREOF; AND AUTHORIZING; PROVIDING FOR THE ISSUANCE OF TEMPORARY IMPROVEMENT NOTES FROM TIME TO TIME AS FUNDS ARE NEEDED FOR THE ORDERLY CONSTRUCTION OF SAID IMPROVEMENTS.
WHEREAS, the governing body of the City of Hillsboro, Kansas (the “City”) is authorized under the laws of the State of Kansas, to own, operate and maintain a municipal water system and the City has previously acquired, constructed and maintains such a municipal water system (the “Water System”); and
WHEREAS, said Water System constitutes a “public water supply system” within the meaning of K.S.A. 65-162a and the governing body of said city hereby finds and determines it necessary and advisable to acquire and construct certain improvements to, and otherwise reconstruct improve, equip, rehabilitate and extend the Water System, including particularly the acquisition, construction and installation of improvements to the water treatment plant, together with all necessary appurtenances therefor and thereto (the “Project”); and
WHEREAS, the City is authorized by K.S.A. 65-162a et seq., as amended and supplemented, K.S.A. 10-101 et seq., as amended and supplemented and K.S.A. 10-123 (collectively the “Act”), to acquire, construct and install the Project; to issue the City’s general obligation bonds for the purpose of paying all or part of any costs thereof and provide for the issuance of temporary improvement notes from time to time as funds are needed for the orderly construction of the Project.
NOW, THEREFORE, BE IT ORDAINED BY THE GOVERNING BODY OF THE CITY OF HILLSBORO, KANSAS:
Section 1. It is hereby found and determined to be necessary and advisable to acquire, construct and install the Project in accordance with certain plans and specifications as prepared by Reiss & Goodness Engineers, Wichita, Kansas, and presented before the governing body of the City this date.
Section 2. It is hereby authorized, ordered and directed that the Project be acquired, constructed and installed, all as hereinbefore described, at a total estimated cost of Three Million Four Hundred Seventy Thousand Dollars ($3,470,000), which estimate includes all fees and expenses of financing the Project.
Section 3. It is hereby further authorized, ordered and directed that the costs of acquiring, constructing and installing the Project shall be paid in part from the proceeds of a grant from the United States Department of Agriculture/Rural Development (the “Agency”) in the amount of $1,550,000 (the “Agency Grant”) and the balance of said costs to be paid from the proceeds of the City’s general obligation bonds to be issued by the City in an amount which shall not exceed $1,920,000.
Section 4. It is hereby further authorized, ordered and directed that the governing body shall issue such general obligation bonds of the City, payable over a period of Forty (40) years in order to provide the necessary financing for a portion of the costs of the Project, which general obligation bonds shall be payable first from revenues collected from the rates and fees charged for the services of the System, however, in the event such revenues should be insufficient, the full faith, credit and resources of the City shall be pledged to secure the payment of the principal of and the interest on the bonds as the same severally become due and payable. It is anticipated that such general obligation bonds shall be sold to The United States Department of Agriculture acting through the Rural Utilities Service, United States Department of Agriculture (RUS), its successors and assigns (the “Federal Agency”) and shall evidence the City’s obligation to repay a like amount to be received from said Federal Agency.
Section 5. It is hereby further authorized, ordered and directed that in the absence of otherwise available funds, in order to temporarily finance a portion of the estimated costs of the Project until general obligation bonds are issued, there may be issued temporary improvement notes (the “Notes”) in the aggregate amount of which shall not exceed $1,920,000, such notes to be issued from time to time upon subsequent resolution or resolutions of the City which shall provide and set forth the details of the Notes, including the fixing of the dates, terms, denominations, interest rates and maturity dates (not exceeding four years from the date of the notes and redeemable at any time prior to the stated maturity thereof). Such Notes shall be issued and provision shall be made therefor as funds are needed and required for the orderly construction of the Project; and the Mayor and City Clerk are hereby authorized, ordered and directed to prepare and execute each of such Notes in accordance with the terms of this Ordinance and the terms of the subsequent resolution or resolutions providing for same; and shall deliver the Notes to persons having claims against the City in connection with the Improvements, or may sell the Notes at private or public sale and apply the proceeds therefrom to the payment of the actual costs and expenses of the Project. Any Notes issued under the authority of this Section shall be issued under and will contain a recital that they are issued under the authority of K.S.A. 10-123 and K.S.A. 65-162a, inclusive, as amended and supplemented, and shall contain all other usual and required recitals and covenants and be in the form required therefor by said K.S.A. 10-123; and said Notes may be issued in combinations with any other temporary notes being issued by the City as shall be determined by the governing body at the time of such issuance to be in the City’s best interest.
Section 6. Effective Date. This Ordinance shall be in full force and take effect from and after its adoption and approval, and its publication one time in the official newspaper of the City.
PASSED, ADOPTED AND APPROVED by the governing body of the City of Hillsboro, Kansas, on May 17, 2005.
CITY OF HILLSBORO, KANSAS[seal]
By /s/ Delores Dalke
Delores Dalke, Mayor
By /s Janice K. Meisinger
Janice K. Meisinger, City Clerk 29-1tc