Loading...
HomeMy WebLinkAboutORDINANCE 0505-1979_ _ _,,. _ ~ ~ ~ CITY OF KENAZ ORDINANCE NO. 505-79 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAZ, ALASKA ESTABLISHING A PROCEDURE FOR RECEIVING APPLICATIONS FOR FINANCING BY THE ISSUANCE OF MUNICIPAL INDUSTRIAL DEVELOP- MENT BONDS. WHEREAS, tine citizens of the City of Kenai have recently enacted a Charter amendment authorizing the issuance of munic- ipal bonds for the purpose ~f financing industrial development, and WHEREAS, some type of written procedure is now required to handle applications by those interested in industrial development in the Kenai area through the use of financing secured through the issuance of municipal industrial development bonds. NOW, THEREFORE, be it enacted by the Council of the City of Kenai, Alaska that the Code of the City of Kenai, Alaska is hereby amended by adding a new Chapter 35 to TitlQ 7 "Financing" entitle! "Procedures for Municipal Bond Financing Applications" a copy of which is attached hereto and made a part of this Ordinance. PASSED BY THE COUNCIL OF THE CITY gF KENAI, ALASKA this 5th day of July, 1979. ~~ VINCENT O'REILL Q ATTEST : C~-~Y . e C. Peter, C ty Clerk First Reading: June 20, 1979 Second Reading: July 5, 1979 Effective Date: August 5, 1979 F~: -` - ., J~ .-.J L) ~~ ._~ ~, 7.35.010 PROCEDURES FOR MUNICIPAL BONG FINANCING APPLICATIONS; Scope of Procedures: Th s ::hapter aj~pl~es to all applications for financing of a project through the issuance of municipal industrial bond, as authorized by 6'3 and 6-5 of the Charter of zhe City of Kenai. 7.35.020 Application: An application for financing of a project must: 1. provide the amount of financing (in excess of $1,000,000) requested; 2. provide a general description of the proposed project; 3. provide a complete description of the purposes of the issue of any bonds and of haw the proceeds of any bond issue will be used; 4. provide financial statements, including balance sheets and profit-and-loss statements, certified by an independent certified public accountant for the last 3 fiscal years of the applicant's business or all fiscal years of applicant's operation if less than 3 years, unlesR waived by the City Council by resolution; these financial statements must be provided for both the applicant's business and any party or parties acting as guarantors for the financing contemplated; 5. provide a business history of persons owning 10$ or more of the applicant's business; and 6. provide any additional information or documentation requested by the City Manager. Applications must be submitted to the City Manager, City Hall Offices, Box 580, Kenai, Ak 99611. 7.35.030 Review b Cit Council: Upon determination by the City Manager that the appl cation requirements of this chapter have been met, the application, along with the recommendation of the City Manager and any other information considerEtd relevant by the City Manager, must be transmitted to the City Council for its review. In its discretion, the City Council will request addi- tional information itself or through its City Manager and will postpone action on an application which in its judgment requires additional information. If the City Council disapproves an application, it will instruct its City Manager to notify the applicant of the disapproval. If the City Council approves an application, the applicant shall enter into a reimbursement agreement with the City pursuant to Section 050 and the project will proceed pursuant to the bond counsel's and financial advisor's recommendations. 7.35.040 Ins eation of Facords: An applicant shall -. make its book_a an xecor s ava l~ab~ for inspection at a reasonable time by the City Council, its City Manager, or its agents, upon receipt of a written request to inspect the -~~ applicant's books and records. ~__ _ 7.35.050 Costs and k'inancin~ Fees: inn applicant t~hall pay or agree to pay the direct costs of evaluatin~~ its application in advance unless this c:~at is waived by resolution of the City Council foz good cause. The City Council or its City Manager will determine the direct cost of evaluating the application. No application will be finally considered until the cost is fully paid. A contractual agreement may be authorized and entered into by the City Council whereby the applicant shall guarantee a sum certain to cover the direct costs and fees in evaluating the application by the City's bond counsel and its financial advisor. Said contract may provide for the payment of a retainage to the City to insure the availability of funds to pay for the aforementioned services. An applicant may also be required to pay a financing fee equal to a certain percentage of the total amount of financing as determined by the City Council to defray expenses of the City except that the City Council may elect to waive such a fee should the circumstances so warrant. Renumeration of costs and fees in this section does not constitute a limitation upon other costs and fees that may be prescribed by law or contract. 7.35.060 Su ervision of Proceeds of Bond Issue: So long as there is any outstand ng on rema n ng to a redeemed under a bond issue, the City Council will, in its discretion, require that the applicant whose financing of a project is approved shall, whenever requested by the authority: 1. permit an audit or examination of itu books and records by an independent firm of certified public acaauntants at a reasonable time to determine whether the provisions of the bond issue have been complied with and pay the cost of this audit or examination. (The applicant may be required to provide a retainage with the City to issue the payment of such an audit) 2. permit the City Council or its agents access to the applicant's books and records at a reasonable time; 3. submit, on written request of the City Council, a sworn statement by a responsible officer of the applicant as to the purposes to which bond proceeds have been applied.