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HomeMy WebLinkAboutORDINANCE 1540-1993~! { , ~ . Suggested by: Finance City of Kenai ORDINANCE X10. 1540-93 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA AUTHORIZING AN AMENDMENT OF THE TERMS OF THE GENERAL OBLIGATION BONDS, 1984 SERIES A, AUTHORIZED BY ORDINANCE NO..' 972-84; AUTHORIZING THE EXECUTION OF AN AMENDMENT TO .LOAN AGREEMENT BETWEEN THE CITY OF KENAI AND THE ALASKA MUNICIPAL BOND BANK; AND PROVIDING FOR RELATED MATTERS. WHEREAS, the City of Kenai ("the City"), by Ordinance No. 972-84, as amended (the "Bond Ordinance"), authorized the issuance of not to exceed $2,850,000 of General Obligation Bonds, 1984 Series A of the City ("the Bonds"); and WHEREAS, Resolution No. 84-22 of the City authorized the sale of the Bonds to the Alaska Municipal Bond Bank (the "Sank) under the terms of a Loan Agreement dated as of October 1, 1984, and an Amendment to Loan Agreement dated August 1, 1986 (together, the "Loan Agreement") between the Bank and the City, and the Bank purchased the Bonds with the proceeds of its General Obligation Refunding Bonds, 1984 Series A (the "Bank Bonds"); and WHEREAS, the Bank has determined that a refunding of a portion of the Bank Bonds will reduce the combined principal and interest payments thereon and on the Bonds; and WHEREAS, after due consideration it appears to the City Council that it is advisable for the City to provide far the amendment of the terms of the Bonds and the Loan Agreement to conform to the terms of the refunding bonds to be issued by the Bank, in order to effect a savings of debt service on the Bonds; and WHEREAS, because the principal amounts and interest rates of the amended Bonds will not be known until the Bank sells its bonds to refund the Sank Bonds, the exact principal amounts of and interest rates on the Bonds as amended shall hereafter be fixed by the Mayor or City Manager subject to the provisions of this ordinance. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, as follows: Section 1. ~}iaendment of Bonds. The Mayor and City Manager each hereby is authorized to approve amendments to the Bonds maturing on and after October 1, 1997, to conform the principal amounts of, interest rates on, and redemption terms of, such Bonds to the principal amounts of, interest ,...: _ ~: :. ; r;;, ~! • Ordinance No. 1540-93 Page Two rates on, and redemption terms of, the corresponding bonds. of the Bank issued to refund the Bank Honds, provided that . (ij the true interest cost expressed as a percentage payable on the outstanding principal of the Bonds as amended shall not exceed 5.5$ per annum, and (fij the debt service savings to be realized through the amendment of the Bonds will equal at least 2.0$ of the principal amount of the amended maturities of the Bonds, net of all issuance costs and underwriting discount, on a present value basis. Section 2. Optional Redempt~,on. If any of the Sonda maturing on or before October 1, 2003, are amended pursuant to Section 1, such maturities of the Bonds shall not be subject to optional redemption by the City prior to their maturity. if the Bonds maturing on October i, 2004, are amended pursuant to Section 1, such Bonds shall be subject to redemption of the Cfty at the times, and on the terms, fixed by the Mayor or City Manager pursuant to Section 1. Section 3. Issuance and Exchancxe of Honds. The Mayor, City Manager and Clerk each hereby is authorized to execute Bonds amended pursuant to this ordinance and deliver such amended Bonds to the Bank in exchange for the original Bonds. In case any officer any amended Bond shall cease delivery of such Bond, such shall nevertheless be valid the same as if such officer such delivery. • whose signature shall appear on e to be such officer before the signature or such facsimile and sufficient for all purposes had remained in office until Section 4. Amendment of Loan Aaree~e~t. The Mayor, City Manager and Clerk each hereby is authorized to execute an Amendment to Loan Agreement in substantially the form submitted to and part of the records of this meeting, incorporating the amended terms of the Bonds as authorized by Sections 1 and 2. Section 5. Authority o: Off~cg~,s. The Mayor, City Manager, Finance Director and Clerk each hereby is authorized and directed to do and perform all things and determine all matters not determined by this ordinance, to the end that the City may carry out its obligations under the Bonds, the Loan Agreement and this ordinance. ,.. ,•~~ f~ ~ M i~ Ordinance No. 1540-93 Page Three PASl~ED SY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 19th dey of Me~y, 1993. .... ATTESTS v7 • '~;~i'~..G i?.~/ Carol L. Freas, C ty Cler Introduced: Adopted: Effective: Approved by Finance: r 4 kl/30/93j May 5, 1993 May i9, 1993 May 19, 1993 ~,