HomeMy WebLinkAboutORDINANCE 0972-1984��- T.'
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CITY OF KENAI
ALASKA
ORDINANCE NO. 972-84
AN ORDINANCE OF THE CITY OF KENAI, ALASKA,
PROVIDING FOR THE ISSUANCE OF $2,850,000
GENERAL OBLIGATION BONDS OF THE CITY AND FIX-
ING DETAILS OF SAID BONDS.
WHEREAS, pursuant. to Resolution No. 83-116 of the City
of Kenai, Alaska (the "City") passed and approved on August 17,
1983, the following question:
PROPOSITION
Improvements to City's Road, Sewer and Water Systems
Pursuant to Resolution 83-116 shall the City
of Kenai, Alaska, be authorized to incur in-
debtedness and to issue its general obliga-
tion bonds or other such evidence of indebt-
edness in an amount or amounts as needed, and
not to exceed in the aggregate FOUR MILLION
DOLLhRS ($4,000,000), for the purpose of pro-
viding a portion of the funds for planning,
designing, acquiring and constructing im-
provements to the road, sewer and water sys-
tems and related capital improvements in the
City, and to pledge the full faith and credit
of the City for the payment of the principal
and interest on the bonds or other such evi-
dence of indebtedness? Said general obliga-
tion bonds or other such evidence of indebt-
edness are to mature within 30 years from the
date of issue and are to bear interest at a
rate not to exceed the maximum rate permitted
by law.
(herein called the "Proposition") was passed and approved by a
vote of 566 for and 275 against the Proposition at the general
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CITY OF KENAI, ALASKA Page 2.
ORDINANCE NO. '972•-84
election held in the City on October 4, 1983, and said election
has been duly canvassed and the results thereof certified and
confirmed in accordance with law; and
WHEREAS, the City Council of the City has determined
and does hereby determine that it is necessary to proceed with
the planning, designing, acquiring and constructing improvements
to the road, sewer and water systems and related capital improve-
ments in the City (all hereinafter collectively referred to as
the "Project"); and
WHEREAS, it is deemed necessary and advisable and in
the best interests of the City and its inhabitants that
$2,850,000 principal amount of the general obligation bonds,
referred to in the Proposition, be issued at this time in a '
single series, as hereinafter fixed and determined, for the pur-
pose of raising funds to pay the cost of constructing and acquir-
ing the Project;
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE
CITY OF KENAI, ALASKA, AS FOLLOWS:
Section 1. Definitions. The following terms shall
have the following meanings in the Ordinance:
(a) "Bonds" shall mean any of the City of Kenai Gener-
al Obligation Bonds, 1984 Series A, issued pursu-
ant to the Ordinance as the evidence of the in-
debtedness referred to in the Proposition.
CITY OF KENAI, ALASKA
ORDINANCE NO. 972-•84
Page 3.
(b) "City" shall mean the City of Kenai, a municipal
corporation of the State of Alaska, organized as a
home rule city pursuant to Title 29 of the Alaska
Statutes and the Charter of the City of Kenai,
Alaska.
(c) "Cost" shall mean the cost of acquiring and devel-
oping the Project, including interest on the Bonds
prior to and during the period of acquiring and
developing the Project, and reasonable fees of the
Paying Agents for the payment of such interest,
the cost whether incurred by the City or another
of field surveys and advance planning undertaken
in connection with the Project properly allocable
to the Project and the cost of acquisition of any
land or interest therein required as the site of
the Project or for use in connection therewith,
the cost of preparation of the site of the Project
and of any land to be used in connection there-
with, the cost of any indemnity and surety bonds
and premiums on insurance incurred in connection
with the Project prior to or during construction
thereof and all related direct administrative and
inspection expenses whether incurred by it or by
another in connection with the Project prior to or
c,
CITY OF KENAI, ALASKA
ORDINANCE NO. 972-84
(d)
(e)
Page 4.
during construction thereof and allocable portions
of direct costs of the City, legal fees, fees and
expenses of the Paying Agents, cost of issuance of
the Bonds by the City and financing charges and
fees and expenses of bond counsel, financial ad-
visors and consultants in connection therewith,
costs of audits, the cost of all machinery, appa-
ratus and equipment, cost of engineering, archi-
tectural services, desicyn, plans, specifications
and surveys, estimates of cost, the reimbursement
of all moneys advanced from whatever source, for
the payment of any item or items of cost of the
Project, and all other expenses necessary or Inci-
dent to determining the feasibility or practic-
ability of the Project, and such other expenses
not specified herein as may be necessary or inci-
dent to the acquisition and development of the
Project, the financing thereof and the placing of
the same in use and operation.
"Ordinance" shall mean this Ordinance of the City.
"Paying Agent" and "Principal Paying Agent" shall
mean the banks, trust companies, or national bank-
ing associations appointed by the City pursuant to
Section 18 hereof.
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CITY OF KENAI, ALASKA
ORDINANCE NO. 972-84
Page 5.
Section 2. Authority for Ordinance. The City has
ascertained and hereby determines that each and every matter and
thing as to which provision is made in this Ordinance is neces-
sary in order to carry out and effectuate the purposes of the
City in accordance with the Constitution and statutes of the
State of Alaska and the Charter of the City, and •to incur the
indebtedness and issue the Bonds as referred to in the Proposi-
tion.
Section 3. Purpose and Authorization of Bonds. For
the purpose of raising funds to pay the cost of acquiring and
developing the Project as authorized by the Proposition which, in
accordance with the Proposition is hereby determined to be neces-
sary, general obligation bonds of the City referred to in the
Proposition, each to be designated "City of Kenai General Obliga-
tion Bond, 1984 Series A", shall be issued in the aggregate prin-
cipal amount of TWO MILLION EIGHT HUNDRED FIFTY THOUSAND DOLLARS
($2,850,000) as a single issue and sold at public sale or at
private sale including sale to the Alaska Municipal Bond Bank on
a date to be set by resolution of the Council passed prior to the
sale.
Section 4. Date and Maturities of Bonds. The Bonds
shall mature on October 1 in the following amounts in the years
set opposite such amounts:
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CITY OF KENAI, ALASKA Page 6.
ORDINANCE NO. 972-84
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Maturity
October 1 Amounts
1985 $140,000
1986 140,000
1987 140,000
1988 140,000
1989 140,000
1990 140,000
1991 140,000
1992 140,000
1992 140,000
1994 140,000
1995 145,000
1996 145,000
1997 145,000
1998 145,000
1999 145,000
2000 145,000
2002 145,000
2002 145,000
2003 145,000
' 2004 145,000
Section 5. Payment Dates, Form and Numbering of Bonds.
Each Bond shall bear interest from its date payable on the first
' days of October and April in each year beginning April 1, 1985 at
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such rate or rates per annum as may be fixed and determined by
k.
e. resolution adopted prior to the delivery thereof.
The Bonds shall be in registered form as herein provi-
ded, or, in the case of sale to the Alaska Municipal Bond Bank,
in the form of one fully registered bond, and payable to the
Alaska Municipal Bond Bank. The Bonds shall each be of the
denomination of Five Thousand Dollars ($5,000). The Bonds shall
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ClrY OF KENAI, ALASKA Page 7.
i ORDINANCE No. 972•-84
be substantially in the form of such Bond hereinafter set forth
with such appropriate variations, omissions or insertions as are
permitted or required by this Ordinance or any resolution of the
City adopted pursuant to the provisions of this Ordinance and may
have endorsed thereon such legends or text as may be necessary or
appropriate tr, conform to the rules and regulations of any
governmental authority, or any usage or requirement of law with
respect tbareto.
Section 6. Details of Bonds. The registered Bond
shall bear interest from its date, and shall be dated as of the
date of its issuance, or as of October 1, 1984 at the election of
the City.
Each of the Bonds shall be signed by the manual or fac-
simile signature of the Mayor, and the official seal of the City
(or a facsimile thereof) shall be affixed, imprinted or otherwise
reproduced on the Bonds, and attested by the manual or facsimile
signature of the City Clerk. In case any officer whose signature
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or facsimile of whose signature shall appear on any Bond shall
cease to be such officer before the delivery of such Bond, such
signature or such facsimile shall nevertheless be valid and suf-
ficient for all purposes the same as if he had remained in office
until such delivery.
In the event both the signature of the Mayor and the
signature of the Clerk are in facsimile form, the Bonds shall
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CITY OF KENAI, ALASKA Page S.
VIWINANUE NO. 972-84
contain a certificate of a Paying Agent certifying the authenti-
cation of such signatures in the following form:
PAYING AGENT'S CERTIFICATE
OF AUTHENTICATION
This Bond is one of the Bonds described in
the within mentioned Ordinance and the signa-
tures imprinted hereon are the authentic
signatures in facsimile of the Mayor and
Clerk of the City.
Paying Agent
By___
Authorized Officer
Both the principal and redemption price of and the
interest on the Bonds shall be payable in any coin or currency of
the United States of America which, at the respective dates of
payment thereof, is legai tender for the payment of public and
private debts.
The principal and the interest on all Bonds shall be
payable at the principal office of the Paying Agents, or if sold
to the Alaska Municipal Bond Bank to the Bond Bank or its regis-
tered assigns. Any registered Bond may thereafter be transferred
only upon an assignment duly executed by the registered owner or
t his attorney in such form as shall be satisfactory to the Princi-
pal Paying Agent such transfer to be made on such books and en-
dorsed on the Bond by the Principal Paying Agent.
CITY OF KENAI, ALASKA
ORDINANCE NO. 972-84
Page 9.
Section 7. Ownership of Bonds. The person in whose
name the same shall be registered shall be deemed and regarded as
the absolute owner thereof for all purposes, and payment of or on
account of the principal on such Bond and the interest on the
Bond shall be made only to or upon the order of the registered
owner thereof or his legal representative, but such registration
may be changed as hereinabove provided. All such payments shall
be valid and effectual to satisfy and discharge the liability
upon such Bond, including the interest thereon to the extent of
the sum or sums so paid.
Section S. Mutilated, Destroyed, Stolen or host Bonds.
In case any Bond shall become mutilated or be destroyed, stolen,
or lost, the City may cause to be executed, and delivered, a new
Bond of like interest rate, principal amount and maturity in ex-
change and substitution for and upon cancellation of such mutila-
ted Bond, in lieu of and in substitution for such Bond destroyed,
stolen, or lost, upon the holder paying the reasonable expenses
and charges of the City in connection therewith and, in the case
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of a Bond destroyed, stolen, or lost, his filing with the City
l evidence satisfactory to it that such Bond was destroyed, stolen,
or lost, and of his ownership thereof, and furnishing the City
with indemnity satisfactory to it. Any new Bond so delivered may
bear a lrl+mber differing from the number on the Bond it replaces.
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CITY OF KENAI, ALASKA Page 10.
ORDINANCE NO. 972-84
Section 9. Exchange of Bonds. The City shall make
i provision for the excnange of Bonds at the principal office of
the Principal Paying Agent, and shall cause books to be kept by
the Principal Paying Agent, as Bond Registrar, for the registra-
tion and transfer of Bonds as provided in this Ordinance, except
that t3he books for the registered Bond shall be kept at the
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office of the City.
Section 10. Redemption of Bonds. The Bonds maturing
on or after October 1, 1995, shall be subject to redemption by or
on behalf of the City prior to maturity and upon notice as here-
innfter provided, as a whole or in part in inverse order of
maturity on any interest payment date on or after October 1,
1994, at a redemption price equal to the principal amount nf each
Bond to be redeemed, together with interest accrued thereon to
the redemption date.
If less than all of the Bonds of like maturity are to
be redeemea, the particular Bonds to be redeemed shall be selec-
ted in inverse numerical order.
Section 11. Notice of Redemption. When the City
determines to rodeem any Bonds, it shall give notice of such
redemption, which notice shall state the redemption date and
identify the Bonds to be redeemed by reference to their numbers
and further state that on such redemption date there shall become
due and payable upon each such Bond the principal amount thereof
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CITY OF KENAI, ALASKA
ORDINANCE NO. 972-84
Page 11.
(hereinafter in this Ordinance referred to as the "Redemption
Price") together with interest accrued to the redemption date,
and that from and after such date interest thereon shall cease to
accrue. Such notice shall be given by mailing notice to the
registered owner of each Bond at the address kept on the books of
the City.
Section 12. Payment of Redeemed Bonds. Notice of
redemption having been given in the manner provided in Section
12, the Bonds so called for redemption shah become due and pay-
able on the redemption elate stated in said notice at the applic-
able Redemption Price on said date plus interest accrued and un-
paid to the redemption date, and, upon presentation and surrender
thereof, at the principal office of the Paying Agent or in the
case of the registered Bond, at the office of the City, together
with, in the case of Bonds registered otherwise than to bearer, a
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written instrument of transfer duly executed by the registered
owner or his duly authorized attorney.
Section 13. Form of Fully Registered Bond. The fully
registered Bond shall be in substantially %lie form set forth
below with such insertions or variations as may be required or
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permitted by the Ordinance:
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CITY OF KENAI, ALA£KA Page 12.
ORDINANCE NO. 972-84
UNITED STATES OF AMERICA
STATE OF AL•ASKA
CITY OF KENAI
(A Municipal Corporation of the State of Alaska)
The City of Kenai, a municipal corporation of the State
of Alaska (the "City"), for value received acknowledges itself
indebted and hereby promises to pay to Alaska Municipal Bond Bank
or registered assigns, the principal sum of Two Million Eight
Hundred. Fifty Thousand Dollars ($2,850,000) in the following
installments on October 1 of each of the following years, and to
pay to the registered owner hereof interest on each such install-
ment from the date hereof until the City's obligation with
respect to the payment of such installment shall be discharged,
on the first days of October and April of each year, beginning
April 1, 1985, as follows:
Maturity Interest
October 1 Amount .ate
1985 $140,000
1986 140,000
1987 140,000
1988 140,000
1989 140,000
1990 140,000
1991 140,000
1992 140,000
1993 140,000
1994 140,000
1995 145,000
1996 145,000
1997 145,000
1998 145,000
1999 145,000
2000 145,000
2001 145,000
2002 145,000
2003 145,000
2004 145,000
CITY OF KENAI, ALASKA Page 13.
ORDINANCE NO. 972-84
This Bond, as to principal and interest when due, will
be payable at the office of the City in any coin or currency of
the United States of America which at the time of payment is
legal tender for the payment of public and private debts.
This Bond is the single registered Bond of the series
of Bonds entitled General Obligation Bons'., 1984 Series A, of the
City of Kenai, Alaska, aggregating $2,850,000 in principal amount
authorized for the purpose of providing funds to pay a portion of
the cost of planning, designing, acquiring and constructing im-
provements to the road, sewer and water systems and related
capital improvements in the City, with the question of their
issuance for such purposes approved and ratified by majority vote
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of the qualified voters of the City who voted on a Proposition
authorizing the Bonds at the general election held on October 4,
1983, and is issued pursuant to Ordinance No. 972-84 of the City
entitled: An Ordinance of the City of Kenai, Alaska Providing For
the Issuance of $2,850,000 General Obligation Fonds arid Fixing
Details of Said Bonds (herein called the "Ordinance"). The Bonds
are to be numbered from one consecutively upwards in order of
maturity.
The installments of this Bond becoming due on or after
October 1, 1995, are subject to redemption by or on behalf of the
City prior to maturity and upon notice as set forth in the
Ordinance as a whole or in part in inverse order of maturity on
any ini-pract r-j..._..t datc on or =ftca Cctotpai 1, 1774
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CITY OF KENAI, ALASKA
ORDYNANCE NO. 972-84
Page 14.
redemption price calculated with respect to each installment or
portion thereof to be redeemed equal to the amount thereof, plus
accrued intereat. to the date of redemption.
This Bond is transferable, as provided .in the
Ordinance, only upon the books of the City kept for that purpose
at the principal office of the City by the registered owner
hereof in person or by his attorney duly authorized in writing
upon surrender hereof together with a written instrument of
transfer satisfactory to the City duly executed by the registered
owner or such duly authorized attorney. The City may treat and
consider the person in whose name this Bond is registered as the
holder and absolute owner hereof for the purpose of receiving
payment of, or on account of, the principal hereof and interest
due hereon and for all other purposes whatsoever.
This Bond is a general obligation of the City of Kenai,
Alaska, and the full faith and credit of the City are pledged for
the payment of the principal of and interest on this Bond as the
same shall become due.
IT IS HEREBY CERTIFIED AND RECITED that all conditions,
acts or things required by the Constitution and laws of the State
of Alaska and the Charter of the City of Kenai to exist, to have
happened or to have been performed precedent to or in the issu-
ance of this Bond, exist, have happened and have been performed,
and that the issue of Bonds of which this is one, together with
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CITY OF KEW.I, ALASKA Page 15.
ORDINANCE NO. 972-84
all other indebtedness of the City, is within every debt and
other limit prescribed by said Constitution, statutes or Charter.
IN WITNESS WHEREOF, THE CITY OF KENAI, ALASKA has
caused this Bond to be signed in its name and on itrs behalf by
the manual facsimile signature of the Mayor and the official seal
of the City (or a facsimile thereof) to be affixed, imprinted, or
otherwise reproduced hereon, and attested by the manual or fac-
simile signature of the City Clerk, all as of the day of !_
19
Mayor
[SEAL)
ATTEST:
City Clerk
Section 14. Form of Reaistered Bond Not Sold To The
Alaska Municipal Bond Bank. Should the Bonds not be sold to the
Alaska Municipal Bond Bank, the Bonds shall be in substantially
the form hereinabove set forth except that the fist, second and
fourth paragraphs thereof shall be in substantially the following
forms respectively:
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CITY OF KENAI, ALASKA Page 16.
ORDINANCE NO. 97 2-84
FIRST PARAGRAPH
The City of Kenai, a municipal corporation of the State
of Alaska (the "City"), for value received, acknowledges itself
indebted and hereby promises to pay to
_ or registered assigns, on the first day of October, 19w, upon
presentation and surrender hereof, the principal sum of _
Dollars ($ _), and to pay
interest on such principal sum from the date hereof until its ob-
ligation with respect to the payment of such principal sum shall
be discharged, at the rate of per centum (i%) per
annum, payable on the first days of and
in each year. The principal, interest and redemption price of
this Bond shall be payable in any coin or currency of the United
States of America which at the time of payment is legal tender
for the payment of public and private debts. Principal shall be
paid to the registered owner or assigns upon presentation and
surrender of this Bond at the corporate trust offices of
(hereinafter called the "Principal Pay-
ing Agent") or (herein together
with the "Principal Paying Agent" collectively called the "Paying
Agents") or their successors.
SECOND PARAGRAPH
This Bond is one of the General Obligation Bonds, 1984
Series A, of the City of Kenai, of like tenor and effect except
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CITY OF KENA1, ALASKA Page 17.
ORDINANCE NO. 972-84
�! as to interest rates, serial number, and maturity, aggregating
j $2,850,000 in principal amount, and constituting bonds authorized
for the purpose of providing funds to pay a portion of the cost
of pianning, designing, acquiring and constructing improve.nents
to the road, sewer and water systems and related capital improve-
ments in the City, with the question of their issuance for such
purpose approved and ratified by a majority vote of the qualified
voters of the City of Kenai, who voted on a Proposition at an
election in the City on October 4, 1983, and is issued pursuant
i` to OrdinancR 972-84 of the City entitled:
AN ORDINANCE OF THE CITY OF KENAI, ALASKA,
PROVIDING FOR THE ISSUANCE OF $2,850,000
GENERAL OBLIGATION BONDS OF THE CITY AND "
FIXING DETAILS OF SAID BONDS.
(herein called the "Ordinance").
FOURTH PARAGRAPH
f The Bonds maturing on or after October 1, 1995 are
subject to redemption by or on behalf of the City prior to matur-
ity and upon notice as set forth in the Ordinance as a whole or
in art in inverse order of maturity on an interest
1� y y payment date
on or after October 1, 1994 at a redemption price equal to the
principal thereof plus interest accrued to the redemption date.
If less than all of the Bonds of like maturity are to be redeem-
ed, the particular Bonds to be redeemed shall be selected by lot
within such maturity as provided in the Ordinance.
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CITY OF KENAI, AUASkA
ORDINANCE NO. 972-84
Page 18.
Section; 15. Paying Agents. One or more Paying Agents
shall be appointed by a resolution adopted by the City prior to
the -time of sale of the Bonds;, unless the Bonds are sold at pri-
vate sale in the form of a single registered Bond to the Alaska
Municipal Bond Bank, in wr:,,ich case no Paying Agents need be
appointed by the City. The City shall indemnify and save harm-
less the Paying Agents against any liabilities which they may
incur in the exercise and performance of their powers and duties
as Paying Agents which are not due to their negligence or de-
fault, and shall pay their reasonable charges for their services
as Paying Agents. The Paying Agents may become the owners of or
may deal in Bonds, as fully and with the same rights as if they
were not Paying Agents.
Section 16. Authority of Officers. The Mayor, City
Manager, Finnnce Director and the City Clerk, are, and each of
them hereby is authorized and directed to do and perform all
things and determine all matters not determined by this Ordinance
or to be determined by a subsequent ordinance or resolution of
the City, to the end that the City may carry out its obligations
under the Bonds and this Ordinance.
Section 17. Miscellaneous.
(a) All payments made by the City of, or on account
of, the principal of or interest on the Bonds shall be made on
the several Bonds ratably and in proportion to the amount due
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CITY OF KENAI, ALASKA
ORDINANCE NO. 972-84
Page 19.
thereon respectively for principal or interest as the case may
be.
(b) No recourse shall be had for the payment of the
principal of or the interest on the Bonds or for any claim based
thereon or on this Ordinance against any member of the City Coun-
cil or officer of the City or any person executing the Bonds.
The Bonds are not and shall not be in any way a debt or liability
of the State of Alaska or of any political subdivision thereof,
except the City, and do not and shall not create or const�.tute
any indebtedness or obligation, either legal, moral or otherwise,
of said State or of any said political subdivision thereof, ex-
cept the City, and neither said State, nor any said political
subdivision, except the City, shall be liable on the Bonds, and
the Bonds are not and shall not be payable out of any funds other
than those of the City.
Section 18. Sale of Bonds. The Bonds shall be sold at
public or private sale, including sale to the Alaska Municipal
Bond Bank, upon such terms and conditions as may be fixed and
determined by a resolution adopted by the City Council prior to
the time of sale.
Section 19. Arbitrage Covenant. The City covenants
with the holders of all Bonds at any time outstanding that it
will make no use of the proceeds of the Bonds which will cause
the Bonds to be "arbitrage bonds" subject to federal income taxa-
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CITY OF KENAI, ALAS -.(A Page 20.
ORDINANCE NO. 972-84
tion by reason of Section 103(c) of the Internal Revenue Code of
1954. To that end, so long as any of the Bonds are outstanding,
the City, with respect to the proceeds of the Bonds, shall comply
with all requirements of said Section 103(c) and of all regula-
tions of the United States Department of the Treasury issued
thereunder, to the extent that such requirements are, at the
time, applicable and in effect.
Section 20. Variation of Terms. The amount, date,
maturities, payment dates and redemption provisions of the Bonds
may be -varied or changed by the City Council by resolution adop-
ted prior to the time of sale.
Section 21. Obligation of Bonds. The Bonds shall be
direct general obligations of the City and the full faith and
credit of the City are hereby pledged to the payment of the prin-
cipal of and interest on the Bonds.
Section 22. Pledge. The City hereby irrevocably
pledges and covenants that it will levy and collect taxes upon
all taxable property within the City without limitation as to
rate or amount, in amounts sufficient, together with other funds
qj available therefor, to pay principal and interest on the Bonds as
- the same become due and payable.
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CITY OF KENAI, ALASKA Page 21.
ORDINANCE NO. 972-84
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PASSED by the Council of the City of Kenai, Alaska,
this 5th day of 3eptember 1984.
ATTEST:
7
J T WHELAN, City Clerk
TOM or
First Reading: August 27, 1984
Second Reading: September 5, 1984
Effective Date: October 5, 1984
CITY OF KENAI
%od cap " 4 4"fo,
21O RDALOO KENAI. ALASKA Yob„
- TELEPHONE 263. 7535
MEMO TO: Kenai City Council
FROM: Charles A. Brown
SUBJECT: Bond Ordinance (#972-84)
DATE: August 29, 1984
A substitute ordinance has been provided. The only changes are
related to dates that the bonds mature or are callable:
Pages 6 and 12
2nd Paragraph, Page 10
Last Paragraph, Pages 13 and 17
The amendment discussed at the August 27, 1984 Special Council
meeting is not now needed. Please adopt the substitute.