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HomeMy WebLinkAbout77-2-1391427 ORDINANCE NO. 77-2-1391 AN MIMM AUTHORIZING THE ISSUANCE OF UP TO ' $300, 000 OF- - ASSESSMENT BONDS OF THE CITY OF PADUCAH, KENTUCKY, TO THE EXTENT THAT ASSESSMENTS ARE NOT PAID BY THE PROPERTY OWNERS WITH REFERENCE TO THE TOWNLIFT PROJECT, AND PROVIDING FOR THE ISSUANCE, SALE AND DELIVERY THEREOF; AND IN ANTICIPATION OF THE ISSUANCE OF SUCH BONDS AND/OR THE PAYMENT OF SUCH ASSESSMENTS, AUTHORIZING THE ISSUANCE OF ASSESSMENT BONDS ANTICIPATION NOTES IN A MANNER AUTHORIZED BY KRS 56.513, AS -PERMITTED BY KRS 58.150 (6) SAME TO BE PAYABLE AS TO PRINCIPAL .FROM THE PROCEEDS OF SUCH ASSESSMENT . BONDS AND/OR SUCH ASSESSMENTS (OR FROM THE PROCEEDS OF RENEWAL NOTES OR IN PART FROM THE PROCEEDS HEREIN PROVIDED THEREFOR AND IN PART FROM THE PROCEEDS OF RENEWAL NOTES) , AND AS TO INTEREST FROM THE SOURCES HEREIN PROVIDED THERFOR . WHEREAS, the City of Paducah (the "City") , has heretofore taken steps to finance a public improvement known as the Townlift Project by the issuance of assessment bonds therefor, to the extent that assessments are not paid by the property owners within the time required, and WHEREAS, it has become necessary to make payments with reference to the construction work involved in such Project prior to the time the final assessments are made and prior to the time any assessment bonds are issued, and WHEREAS, it is desired to authorize up to $300,000 of -assessment bonds and in anticipation of the issuance thereof or in anticipation of the payment of such assessments to authorize up to $300,000 of Assessment Bonds Anticipation Notes (the "Notes?'), NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF COMMISSIONERS OF THE CITY OF PADUCAH, KENTUCKY, AS FOLLOWS: 1. That it is confirmed that steps have been taken previously to establish a project known as the Townlift Project, which is to be financed by assessing the benefited property owners, and to the extent that assessments are not paid within the time provided, assessment bonds of the City are to be issued in anticipation of the col- lection of such assessments. 2. That it has become necessary to provide for interim financing in anticipation of the collection of such assessments and the issuance of such Bonds, in order that amounts owing for the construction of such Project may be paid as they become due. E, PW] 3. That all of the steps previously taken in connection with such Town - lift Project are hereby reconfirmed, and it is agreed that all steps shall be taken which may be required in the future to complete such Project, to collect sufficient assessments from the properties benefited by such Project, which will be sufficient, when added to other funds furnished by the City, to pay for the total cost of such Project, and that to the extent that such assessments are not paid within the time first provided for the pay- ment of such assessments, all necessary steps shall be taken in order to issue assessment bonds of the City pursuant to the provisions , of KRS 94.291-94.354 and to sell and deliver a sufficient amount of such Bonds as shall be sufficient, when added to the other funds of the City furnished for such purpose, to finance such Project and to repay all of the principal of and the interest on obligations incurred by the City as interim financing in anticipation of the collection of such assessments and of the issuance of assessment bonds. That if it should be determined at any time that the amount of any interest on such interim financing cannot be paid from the collection of such assessments or from the pro- ceeds of such Assessment Bonds, such interest shall be paid from other .funds of the City, it being declared that the City has sufficient funds within its budget for the current year not budgeted for other purposes of paying such interest. 4. It being anticipated that interim financing shall be effected through the issuance of Notes,g iven in. favor of one, or ,_ _ more banks.,it is hereby provided that if such Notes are issued, then upon the collection of such assessments and/or upon the sale and issuance of such Assessment Bonds the entire proceeds thereof shall be deposited to the extent necessary with the financial institution, designated as the place of payment of the Notes (or of any Renewal Notes which may be issued in renewal thereof) in escrow, in a special fund (hereinafter to be called the "Notes Payment Account") upon such terms as shall provide that the aggregate amount of the principal of and interest on the Notes and Renewal Notes, if any, shall be payable therefrom and as a first lien and charge thereon. That the place of payment of such Note or Notes shall be the financial institution which holds the largest face amount of Note or Notes issued for the purpose of such interim financing. If two financial institutions shall hold the same amount of such Notes, the City shall determine at which of such two institutions, such Notes shall be payable. That to the extent that the proceeds of the assessments collected and/or the proceeds of the Bonds as deposited in the Notes Payment Account, shall be surplus to all requirements as to the payment of the Notes (or Renewal Notes) , both principal and interest, there shall be transferred from said Notes Payment Account to the Fund estab- 429 lished for the payment of the Assessment Bonds an amount, if any, equal to the accrued interest paid in connection with the sale and delivery of the Assessment Bonds, and the balance, if any, shall be paid into the Fund which shall be established for payment of costs in connection with such Townlift Project. 5. That it is hereby determined that interim financing shall be effected through the issuance of Assessment Bonds Anticipation Notes under the authority of KRS 56.513, as permitted by KRS 58.150(6). Such Notes are hereby authorized to be issued in anticipation of the collection of such assessments and/or of the later issuance at a proper time of the Assessment Bonds which are authorized in this Ordinance. That the Notes shall be dated as of or near the date of their delivery, shall be issued in an aggregate principal amount not to exceed $300,000, shall be in such denomination or denominations as may be requested by the purchaser or purchasers thereof in their purchase proposals, shall mature on the day of , 19 , and shall bear interest at the lowest rate or rates as may be offered by one or more banks in connection with the issuance of such Notes. 6. Each Note shall be executed on behalf of the City by the manual signature of the Mayor, with the Seal of the City affixed, attested by the manual signature of the City Clerk. No. 7. That the Notes shall be in substantially the following form: CITY OF PADUCAH ASSESSMENT BONDS ANTICIPATION NOTE (TOWNLIFT PROJECT) The City of Paducah, Kentucky, a public body corporate acting under the. authority of pertinent provisions of Chapter 56 of the Kentucky Revised Statutes (including Section 56.513) , as authorized by KRS 58.150 (6) , for value received hereby .promises to pay to bearer the principal sum of Thousand Dollars ($ ) on the _ day of 19 , and to pay interest on said principal sum at the rate of per cent ( o) per annum payable at maturity. The obligations of the City for the payment of this Note, and interest thereon, are limited to payment from the proceeds of the collection of assess- ments which have been agreed or shall be agreed to .be made in connection with the financing of the City's Townlift Project and/or from the proceeds of Assessment Bonds - which the City has agreed shall be issued to the extent that .assessments are not paid by the properties .benefited by such Project within .the time first stated for the payment of such assessments, except to the extent provision shall previously have been made for payment from the proceeds of Renewal Notes, as authorized and permitted by law, and - 430 except that it is provided that to the extent it should ever be determined that interest, to any extent on this Note cannot be paid from the proceeds of such assessments or such Assessment Bonds, the City of Paducah shall pay such interest from other available funds which it has for the current fiscal year and which have not been budgeted for other purposes. The principal of this Note, and interest thereon, are payable in lawful money of the United States of America at the principal office of in the City of The City represents to the bearer of this Note that it has taken all proper steps to initiate a Townlift Project, as such Project has been defined in previous official proceedings of the Board of Commissioners of the City of Paducah and in the Ordinance authorizing this Note, heretofore established, and that it has made of record the determination that the work already done and the completion of the ]to j ect shall be financed (to the extent funds are not otherwide provided) by the collection of assessments against the properties benefited by such Project, and to the extent such assessments are not paid within the time originally stated for the payment of such assessments, by the issuance of the City's Assessment Bonds, which Assessment Bonds will not constitute an indebtedness of the City or of the Commonwealth of Kentucky, but shall be payable solely from the assessments collected and the interest thereon which shall be made in connection with the financing of such Project, and that it has agreed to make such assessments, to issue such Assessment Bonds and/or to pay interest from other funds of the City available for such purpose and not budgeted for other purposes to the extent necessary to retire all of the principal of and the interest on the Note or Notes which has or have been issued in anticipation of the making of such assessments and/or the issuance of such Assessment Bonds. The procedure which is being followed by the City and which it agrees to continue to follow in order to carry out the intent of the provisions contained in this Note, in the Ordinance authorizing this Note and in the proceedings which have been already taken in connection with such Project are all in accordance with the provisions of KRS 94.291-94.354, and the City agrees to take any and all further pro- ceedings which may be necessary in order that there will be available funds to pay the principal of and the interest on this Note. The City represents that it has made all such determinations as are required preliminary to interim financing in anticipation of the City's collection of such assessments and of the issuance of such Assessment Bonds. The City covenants with the bearer of this Note that at the proper time or times, it shall take all proper and necessary action under existing statutory. authority to provide the definitive provisions governing the making of such assessments 431 and/or the issuance of such Assessment Bonds, to offer at public sale, issue and deliver such Assessment Bonds hereinabove identified, to the extent that the City has the legal power to issue such Bonds and to the extent that the issuance of such Bonds shall be necessary, to the extent funds are not otherwise provided, in order to pay the principal of and the interest on this Note. The City covenants with the bearer of this Note that when the proceeds of such assessments and/or such Assessment Bonds are received, the same shall be de- posited in a special escrow account with the financial institution hereinabove named as the place of payment of principal and interest, upon such terms as will provide that the escrow agent shall pay from said proceeds to the respective bearers of all of the Note or Notes issued as constituting the series herein referred to the principal amount thereof, together with the interest as herein provided (unless and to the extent that such interest shall previously have been paid or provision for payment of interest shall have been made from one or more of the other sources herein provided in that connection) , as a first charge upon said proceeds; and thereafter to remit the balance of such proceeds to the City for disposition in accordance with the provisions of the proceedings pursuant to which such assessments and such Assessment Bonds have been authorized to be made or to be issued. This Note is either a single note or a series of notes in the aggregate principal amount not exceeding $300,000, bearing interest at a rate or rates, but otherwise of the same tenor and effect and alike as to date of maturity, issued by the City in anticipation of the collection of assessments and/or of the issuance of Assessment Bonds and for the purpose of providing interim funds to be applied solely toward interest on the Notes, the costs of acquisition and construction of the Townlift Project and proper expenses, all being done under and in strict conformity with the Constitution and applicable statutes of the Commonwealth of Kentucky, particular reference being made to Chapters 56 and 58 of the Kentucky Revised Statutes, now in full force and effect. Neither this Note, nor the interest thereon, shall constitute or evidence an indebtedness of the Commonwealth of Kentucky, or of the City, but the same are payable solely from the proceeds of such above -identified assessments and/or Assess- ment Bonds and/or from the proceeds of the Notes, or of Renewal Notes, or from other sources, as aforesaid. Pursuant to the statute authorizing the issuance hereof, this Note, and the receipt of interest hereon, are exempt from all taxation by the Common- wealth of Kentucky and all of its subdivisions, municipalities and taxing authorities. The City agrees that the proceeds of the Note or Notes, less proper expenses, C,ttya if any, shall be deposited in a special fund or account which has been designated the "Assessment Bonds Anticipation Notes - Proceeds Account," from which dis- bursements will be made solely for proper costs of the above-mentioned Project or to replace other funds which may have been used to pay the costs of such Project;- and that as additional sources of payment of interest on the Note or Notes the City has pledged the aforesaid "Assessment Bonds Anticipation Notes - Proceeds Account," pending proper and authorized disbursements therefrom. It is agreed by the City that the proceeds or purchase price of this Note shall be paid by the purchaser hereof to the City by means of a check certified by a bank or by a cashier's, treasurer's or official check issued by a bank, the same to be payable to the Treasurer of the City and delivered to said Treasurer. It is hereby certified, recited and declared by the City that all acts, conditions and things required to exist, to happen and to be performed precedent to and in the issuance and delivery of this Note, do exist, have happened and have been performed according to law; that neither the principal of nor the interest on this Note shall constitute an indebtedness of the Commonwealth of Kentucky or of the City; and that provision has been made, and shall be made, for (a) the payment of the principal hereof from the proceeds of the above -identified assessments collected and/or Assessment Bonds, from the proceeds of Renewal Notes, if any, or from the sources hereinabove recited, and (b) for the payment of interest hereon from the sources as hereinabove recited; in each instance as a first charge thereon, as pro- vided aforesaid and in the Ordinance authorizing the Note or Notes. IN TESTIMONY. WHEREOF, the City has caused this Note to be executed in its name and on its behalf by the manual signature of its Mayor, with the Seal of the City affixed, attested by the manual signature of the Clerk of the City, all being done as of the day of , 1977. CITY OF PADUCAH By Mayor (Seal of City) Attest: City Clerk 8. Disposition of the proceeds of the Note or Notes shall . be made as pro- vided in this Section. The City hereby creates and establishes the "Assessment Bonds Anticipation Notes - Proceeds Account" (the "Special Proceeds Account") . 433 The entire proceeds of the Note or Notes shall be deposited by the Treasurer of .the City in the aforesaid Special Proceeds Account. The Treasurer of the City is authorized to make payment from said Special Proceeds Account of the expenses, if any, incurred in connection with the issuance of the Note or Notes. The balance remaining thereafter in said Special Proceeds Account is hereby declared to be available for application to the costs of the Townlift Project or to replace other funds which may have been used to pay the cost of such Project, and shall be used only for such purposes. 9. As. and for the security for the payment of interest on the Note or Notes becoming due at the maturity thereof, the City hereby pledges (i) all interest income which may be realized from investments, if any, made for the Special Proceeds Account pending disbursement thereof and (ii) to any extent which may be necessary other funds of the City which are available for such purpose and which have not been budgeted for other purposes within the current fiscal year, .it being declared that the City has sufficient funds for such purpose on hand during its current fiscal year which have not been budgeted for other purposes. 10. The City, acting through its Treasurer, shall comply with the require- ments of Section 56.513 of Kentucky, Revised Statutes by soliciting proposals for the interim financing herein authorized from at least three (3) responsible lenders, which may be a bank or banks . of the City of Paducah and/or _other financial institutions, and in receiving,, considering, and accepting or rejecting proposal as to such Note or Notes and in taking all other action in connection with such matter and in selecting from among the proposals received those which are deemed the best thereof, consistent with sound financial: practices.. That such Treasurer ,is -hereby authorized to proceed as hereinbefore „provided and to consummate_ the sale and issuance of such Note or Notes up to an amount not exceeding $300,000 for the purposes aforesaid, at an interest rate or rates not exceeding o per annum, without any further action being necessary to be taken by the Board of Commissioners of the City. 11. That the provisions of this Ordinance shall constitute a contract between the City and the holders of the Assessment Bonds and the Notes herein authorized to be issued, and after the issuance of such Assessment Bonds and/or Notes no changes, additions, or alterations of any kind shall be made hereto, until all of said Bonds and/or Notes and the interest thereon shall have been paid in full, or unless and until provision shall have been made for the payment thereof, or unless any holder of any outstanding Bonds and/or Notes agrees to same in writing. 12. That if any section, paragraph, clause or provision of this Ordinance shall be held invalid, the invalidity of such section, paragraph, clause or provision shall not affect any of the other provisions of this Ordinance. 13. That all ordinances, resolutions or orders, or parts thereof, in conflict with the provisions of this Ordinance are, to the extent of such conflict, hereby repealed. 14. An emergency is declared to exist and this ordinance shall therefore be introduced and remain on file for public inspection for at least one week in the completed form in which it shall be put upon its final passage, and if adopted shall be in full force and effect immediately thereafter. Ordinance given its first reading on the 15th day of February, 1977. Ordinance given its second reading and adopted on the 22nd day of February, 1977. Ordinance effective on the day of February, 1977. (Seal of City) Attest: Secretary - s Mayor, City of Paducah, Ke uc 434