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HomeMy WebLinkAbout79-9-1791369 ORDINANCE NO. 79-9-1791 AN ORDINANCE OF THE CITY OF PADUCAH, KENTUCKY, AUTHORIZING THE ISSUANCE OF "CITY OF PADUCAH SCHOOL BUILDING REVENUE BONDS, SERIES OF OCTOBER 1, 1979", IN ACCORDANCE WITH A REQUEST OF THE BOARD OF EDUCATION OF PADUCAH, KENTUCKY; AND IN ACCORDANCE WITH A RESOLUTION PREVIOUSLY ADOPTED BY THE CITY'S BOARD OF COMMISSIONERS IN CONNECTION THEREWITH; DETERMINING THE PRINCIPAL AMOUNT OF SAID BOND ISSUE, THE SCHEDULE OF PRINCIPAL MATURITIES, AND THE SCHEDULE OF RENTALS TO BE PAID TO THE CITY BY THE BOARD OF EDUCATION OF PADUCAH, KENTUCKY, IN CONNECTION THEREWITH; INCORPORATING BY REFERENCE ALL OF THE TERMS AND PROVISIONS OF SAID IDENTIFIED RESOLUTION HERETOFORE ADOPTED BY THE BOARD OF COMMISSIONERS IN CONNECTION THEREWITH; AND PROVIDING FOR THE SALE OF SAID BONDS AT AN ADVERTISED PUBLIC COMPETITIVE SALE. WHEREAS, the Board of Education of Paducah, Kentucky (the "Board of Education") according to a Resolution shown to have been adopted at a meeting held on September 6, 1979, has heretofore requested that the City of Paducah cooperate with it in the authorization and issuance of certain "City of Paducah School Building Revenue Bonds, Series of October 1, 197911, to be dated October 1, 1979 (hereinafter, sometimes, the "October 1, 1979 Revenue Bonds") , according to authority of KRS 162.120 to 162.290, inclusive; and it was caused to appear that it was the intent of the Board of Education that the purposes to be accomplished by the aforesaid October 1, 1979 Revenue Bonds should encompass and include the financing of a school building program for the construction of new school buildings, and for the reconstruction of and additions to existing school buildings upon the sites of (a) Paducah Tilghman Senior High School and (b) Brazelton Elementary School (to be converted into a Middle School); and WHEREAS, in that connection the City's Board of Commissioners at a regular meet- ing -held on September 11, 1979, officially adopted and caused to be recorded in the office of the City Clerk a certain Resoltuion which is identified by its title or caption, as follows: A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE CITY OF PADUCAH, KENTUCKY, ACKNOWLEDGING AS A MATTER OF OFFICIAL RECORD AN AGREEMENT OF THE CITY OF PADUCAH AND THIS BOARD OF COMMISSIONERS TO COOPERATE WITH THE BOARD OF EDUCATION OF PADUCAH, KENTUCKY, IN THE ISSUANCE OF "CITY OF PADUCAH SCHOOL BUILDING REVENUE BONDS, SERIES OF OCTOBER 1, 1979", IN AN AGGREGATE PRINCIPAL AMOUNT WHICH WILL BE DETER- MINED WHEN CONSTRUCTION BIDS HAVE BEEN PUBLICLY RECEIVED AND COMPARED, AND SAID BOARD OF EDUCATION SHALL HAVE MADE ITS NEEDS KNOWN TO THE CITY; IDENTIFYING AND DESCRIBING THE SITES TO BE CONVEYED BY THE BOARD OF OF EDUCATION TO THE CITY PURSUANT TO KRS 162.120 AND AGREEING TO ACCEPT 370 ONE OR MORE DEEDS OF CONVEYANCE THEREOF WHEN TENDERED; AGREEING TO EXECUTE WITH SAID BOARD OF EDUCATION A "CONTRACT OF LEASE AND RENT" CONFORMING TO THE REQUIREMENTS OF KRS 162.140 IN ORDER TO PRODUCE TO THE CITY RENTAL REVENUES FROM WHICH THE PRINCIPAL OF AND INTEREST ON THE BONDS WILL BE PAID; DESCRIBING IN GENERAL TERMS THE SCHOOL BUILDING PRO- JECTS TO BE CONSTRUCTED AND RECONSTRUCTED UPON THE RESPECTIVE SITES AND FINANCED THROUGH THE ISSUANCE OF SUCH BONDS; PRESCRIBING THE FORMS OF THE BONDS AND INTEREST COUPONS; NAMING THE BANK WHERE PRINCIPAL AND INTEREST WILL BE PAYABLE; PROVIDING FOR THE RECEIPT OF RENTALS PURSUANT TO THE "CONTRACT OF LEASE AND RENT" AND THE CUSTODY AND DISPOSITION THEREOF; PRESCRIBING THE COVENANTS TO BE MADE WITH THE HOLDERS OF THE BONDS AND COUPONS, AND ARBITRAGE COVENANTS TO COMPLY WITH REGULATIONS OF THE INTERNAL REVENUE SERVICE; PROVIDING FOR THE CUSTODY, SAFEKEEPING AND DISBURSEMENT OF THE PROCEEDS OF THE BONDS; AUTHORIZING ADVERTISE- MENT OF THE BONDS, WHEN AUTHORIZED BY ORDINANCE, AT AN ADVERTISED PUBLIC COMPETITIVE SALE IN ACCORDANCE WITH THE REQUIREMENTS OF KRS CHAPTER 424; ALL TO THE END THAT THE SUBSTANCE AND DETAILS OF THIS RESOLUTION MAY BE INCORPORATED BY REFERENCE IN THE ORDINANCE, TO BE ADOPTED LATER, AUTHORIZING THE ISSUANCE OF SAID BONDS, IN ORDER TO EN- ABLE THE CITY TO SELL AND DELIVER SUCH BONDS WITHIN THE VERY LIMITED PERIOD OF TIME WHICH WILL BE AVAILABLE; AND RECITING THE LEGAL AUTHORITY FOR PROCEEDING IN THE ANNOUNCED AND INTENDED MANNER. NOW, THEREFORE, THE BOARD OF COMMISSIONERS PADUCAH, KENTUCKY, DOES HEREBY ORDAIN, AS FOLLOWS: SECTION 1. There shall be issued, and there are hereby authorized to be issued by the City of Paducah, Kentucky, its "City of Paducah School Building Revenue Bonds, Series of October 1, 197911, to be dated October 1, 1979, in the principal amount of Three Million Three Hundred Thousand Dollars ($3,300,000). SECTION 2. There is hereby incorporated into this Ordinance by reference, and hereby made a part of this Ordinance, the entire text of the Resolution which was adopted by the Board of Commissioners on September 11, 1979, and which is identified by quotation of its title or caption in the preamble hereof; and in accordance therewith the herein authorized $3,300,000 "City of Paducah School Building Revenue Bonds, Series of October 1, 197911, shall comprise bonds in the denomination of Five Thousand Dollars ($5,000), shall be numbered consecutively from 1 to 660, inclusive, in order of maturity, and such bonds shall mature as to principal on October 1 in each of the respective years, as follows: $70,000 in 1980; $75,000 in 1981; $80,000 in 1982; $85,000 in 1983; $90,000 in 1984; $95,000 in 1985; $100,000 in 1986; $110,000 in 1987; $115,000 OF THE CITY 371 in 1988; $125,000 in 1989; $130,000 in 1990; $140,000 in 1991; $150,000 in 1992; $160,000 in 1993; $170,000 in 1994; $180,000 in 1995; $195,000 in 1996; $75,000 in 1997; $80,000 in 1998; $85,000 in 1999; $90,000 in 2000; $95,000 in 2001; $100,000 in 2002; $110,000 in 2003; $130,000 in 2004; $240,000 in 2005; and $225,000 in 2006. SECTION 3. The rentals to be paid by the Board of Education to the City under the terms and conditions of the "Contract of Lease and Rent", the form of which has heretofore been approved, shall be, as follows: For the initial period ending the last day of September, 1980 (partly from accrued interest received from the purchaser, the balance from rentals) $291,100; and thereafter the following amounts from rentals, in each of the fiscal years ending September 30: $291,410 for the year ending September 30, 1981; $291,385 for the year ending September 30, 1982; $291,025 for the year end- ing September 30, 1983; $290,330 for the year ending September 30, 1984; $289,300 for the year ending September 30, 1985; $287,935 for the year ending September 30, 1986; $291,235 for the year ending September 30, 1987; $288,865 for the year ending September 30, 1988; $291,160 for the year ending September 30, 1989; $287,785 for the year ending September 30, 1990; $289,075 for the year ending September 30, 1991; $289,695 for the year ending September 30, 1992; $289,645 for the year ending September 30, 1993; $288,925 for the year ending September 30, 1994; $287,535 for the year ending September 30, 1995; $290,475 for the year ending September 30, 1996; $157,410 for the year ending September 30, 1997; $157,385 for the year ending September 1, 1998; $157,025 for the year ending September 30, 1999; $156,330 for the year ending September 30, 2000; $155,300 for the year ending September 30, 2001; $153,935 for the year ending September 30, 2002; $157,235 for the year ending September 30, 2003; $169,865 for the year ending September 30, 2004; $271,155 for the year ending September 30, 2005; and $240,075 for the year ending September 30, 2006; provided, however, as set forth in the aforesaid Resolution, said annual rentals are based upon the assumption that when the aforesaid "City of Paducah School Building Revenue Bonds, Series of October 1, 197911, are awarded at public sale a single uniform coupon rate of 6.7% will be established and made applicable thereto; but such annual rentals shall automatically be adjusted without further action on the part of the Board of Commissioners, to such amounts as may actually be required to meet the annual principal and interest requirements of said bonds, based upon the interest coupon rates which may be actually- -established and made applicable thereto when the same are awarded at public sale. SECTION 4. As requested by the Board of Education, and as contemplated in the text of Section 17 of the aforesaid Resolution which was adopted by the Board of Commissioners on September 11, 1979, the proceeds of the sale of the bonds shall be deposited in The Peoples First National Bank & Trust Company, Paducah, Kentucky (the 372 "Depository Bank") , in a separate account designated "City of Paducah School Building Revenue Bonds, Series of October 1, 1979, Construction Fund", and disbursements therefrom shall be made as provided in said Resolution. As contemplated in the text of Section 17 of said Resolution, the Board of Commissioners of the City of Paducah hereby determines that the amount of the bond proceeds will, from time to time, exceed the amount required to be disbursed in pay- ment of the costs of the school building construction, reconstruction and additions for which the bonds are authorized and issued; and accordingly the Depository Bank is hereby directed to invest all balances in said Construction Fund from time to time in short-term Bills of the U. S. Treasury, or otherwise as provided in the Resolution, in order that said funds shall not lie idle and unproductive of interest income. Whenever and to what- ever extent may be necessary, the Depository Bank is authorized and directed to convert such investments into cash; and if there be any expenses or losses resulting therefrom, the same shall be charged to the Construction Fund; and if there be any gain resulting therefrom, the same shall be credited to the Construction Fund. SECTION 5. The Board of Education and its Fiscal Agent having submitted suggested forms of the "Notice of Sale of Bonds", "Statement of Terms and Conditions of Bond Sale", and "Official Bid Form" and the same having been examined, the said forms are hereby approved and use thereof in connection with the public offering of the bonds as otherwise provided in the aforesaid Resolution is hereby authorized, ratified and confirmed. SECTION 6. This Ordinance shall be in full force and effect from and after its adoption, approval, publication and the passage of time as provided in KRS 89.590. INTRODUCED AND GIVEN FIRST READING APPROVAL at a regular meeting of the Board of Commissioners of the City of Paducah, Kentucky, held on September 11, 1979, and ordered held over in the office of the City Clerk for public inspection. GIVEN SECOND READING AND FINALLY ADOPTED by the Board of Commissioners of the City of Paducah, Kentucky, at a special meeting held on September 18, 1979, signed thereafter by the Mayor, and ordered to be recorded and published. SIGNED: (SEAL)_ Mayor ATTEST: P City Clerk City of Paducah, Kentucky CERTIFICATION The undersigned, City Clerk of the City of Paducah, Kentucky, hereby certifies that the foregoing is a true and complete copy of a certain Ordinance of said City, finally adopted on second reading by the Board of Commissioners at a properly convened meeting held on September 18, 1979, signed by the Mayor, recorded in my office, and duly delivered for publication as provided by law. WITNESS my signature and the seal of said City, this 19th day of Sept- ember, 1979. City Clerk (SEAL) 373