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[COMMITTEE SUBSTITUTE FOR] ORDINANCE NO. 230184
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Sponsor: Director of the Finance Department
Establishing Fund No. 3823, the General Obligation Series Bond Series 2023A Q1-22 Projects Fund in the records of the City of Kansas City; estimating revenues in the amount of $40,600,000.00 in Fund No. 3823, the General Obligation Series Bond Series 2023A Q1-22 Projects Fund and appropriating the same; designating requisitioning authorities; authorizing the Director of Finance to modify revenue estimates and appropriations as required and to close project accounts upon completion.
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WHEREAS, the City of Kansas City, Missouri (the “City”), is authorized under the provisions of Article VI, Section 26 of the Constitution of Missouri, 1945, as amended, and its charter (the “General Obligation Bond Law”) to incur indebtedness and issue and sell general obligation bonds of the City to evidence such indebtedness for lawful purposes, upon obtaining the approval of the required majority of the qualified electors of the City voting on the question to incur such indebtedness; and
WHEREAS, pursuant to General Obligation Bond Law, a special election was also duly held in the City on Tuesday, November 8, 2022 (the “2022 Election”), on the question of whether to issue general obligation bonds of the City in an amount not to exceed $125,000,000 for the purpose of paying for the acquisition, construction, renovation, improvement, equipping, and furnishing of City parks, recreation, and entertainment facilities (the “Parks and Entertainment Facilities Question”); and
WHEREAS, the City has not previously issued any of the general obligation bonds authorized pursuant to the 2022 Election and now proposes to issue general obligation for the purpose of financing $35,000,000 improvements to parks and entertainment facilities as so authorized at the 2022 Election by the approval of the Parks and Entertainment Facilities Question; and
WHEREAS, pursuant to Ordinance No. 220918, As Amended, the total amount to be issued for City Parks projects is $5.25 million and these projects represent the Citywide allocation of projects and the required in-district allocations will be handled in future bond issuances; and
WHEREAS, the Board of Parks and Recreation has approved the $5.25 million Citywide allocation; and
WHEREAS the cost of the projects will be funded with the issuance of general obligation bonds in Spring 2023 and scheduled debt service payments on the bonds will be made from ad valorum taxes over a successive twenty (20) year period with the first payments beginning in fiscal year 2024; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:
Section 1. That Fund No. 3823 is hereby established as the General Obligation Series Bond Series 2023A Q1-22 Projects Fund in the books and records of the City of Kansas City, Missouri.
Section 2. That the revenue in the following accounts of Fund No. 3823, the General Obligation Series Bond Series 2023A Q1-22 Projects Fund, is hereby estimated in the following amounts:
AL-3823-120000-590000 Bond Proceeds $35,000,000.00
AL-3823-120000-485100 Premium on Sale of Bonds 5,600,000.00
TOTAL $40,600,000.00
Section 3. That the sum of $40,600,000.00 is hereby appropriated from the Unappropriated Fund Balance of the General Obligation Series Bond Series 2023A Q1-22 Projects Fund to the following accounts:
AL-3823-707567-B-70204994 SECC Pool Conversion $ 3,500,000.00
AL-3823-707567-B-70232310 Community Ctr. Facility Study 450,000.00
AL-3823-707567-B-70235002 BRW Connecting Park Design 350,000.00
AL-3823-707567-B-70225031 MLK Jr. Park Parking Lot 450,000.00
AL-3823-707567-B-70232201 MLK Jr. Brush Creek Bridge 500,000.00
AL-3823-638027-B-63CARPT23 Bartle Hall Carpet Replacement 475,000.00
AL-3823-638027-B-MCADARR23 Convention Restroom Renovations 1,200,000.00
AL-3823-638027-B- 63ADAGB23 Grand Ballroom ADA 230,000.00
AL-3823-638027-B-63CHAIR23 Chair Replacement 759,000.00
AL-3823-638027-B-MCADAEL23 Municipal & Conventions Elevator
ADA Improvements 4,000,000.00
AL-3823-638027-B-63EXNTW23 Wireless Network Upgrade 3,000,000.00
AL-3823-638027-B- 63INTNT23 Internet Upgrade 1,195,343.00
AL-3823-638027-B- 63AUDEQ23 Audio Equipment Upgrade 400,000.00
AL-3823-638027-B- 63EBESC23 East Escalator Replacement 935,314.00
AL-3823-638027-B- 63GBLIT23 Grand Ballroom - Lighting 1,195,343.00
AL-3823-638027-B- 63NDOCP23 North Dock Pad Remodel 1,300,000.00
AL-3823-638027-B- MAMHADA24 Music Hall - ADA Remodel 400,000.00
AL-3823-638027-B- MABHSEC24 Municipal & Bartle - Security
Camera Upgrade 300,000.00
AL-3823-638027-B- 63STEXL23 Bartle Hall Exterior Lighting 1,200,000.00
AL-3823-638027-B- 63UTLFP24 Bartle Hall Utility Floor Port 600,000.00
AL-3823-638027-B- 63TABST24 Bartle Hall Staging/Table R
Replacement 300,000.00
AL-3823-638027-B-63FIRSU24 Conventions Fire Suppression
Improvements 450,000.00
AL-3823-638027-B- 63BCEXL23 Broadway Exterior Lighting 1,300,000.00
AL-3823-638027-B- 63RRADA25 Restroom & ADA Renovations 2,750,000.00
AL-3823-638027-B- MADAIMP25 Municipal Arena ADA
Improvements 2,100,000.00
AL-3823-638027-B- MHFRTEL23 Music Hall Freight Elevator
Replacement 2,500,000.00
AL-3823-638027-B- 63DISIG23 Meeting Room Digital Signage 160,000.00
AL-3823-638027-B-63AIRWL25 Bartle Hall Airwall Replacement Halls 3,000,000.00
AL-3823-129620-G Cost of Issuance 700,000.00
AL-3823-129631-G Underwriter’s Discount 800,000.00
AL-3823-129632-G Discount on Sale of Bonds 4,090,000.00
AL-3823-129686-B Arbitrage Rebate Calculation 10,000.00
TOTAL $40,600,000.00
Section 6. That the Director of Parks and Recreation is designated as the requisitioning authority for Account No. AL-3823-707567-B, that the Director of Conventions and Entertainment Facilities is designated as requisitioning authority for Account No. AL-3823-638027-B and that the Director of Finance is designated as the requisitioning authority for Account Nos. AL-3823-129620-B, AL-3823-129631-B, AL-3823-129632-B and AL-3823-129686-B.
Section 7. That the City Council hereby declares its official intent to reimburse itself for certain expenditures made within sixty (60) days prior to or on and after the date of this Ordinance with respect to appropriations in Section 3 (the “Appropriation”) with the proceeds of bonds expected to be issued by the City. The maximum principal amount of bonds expected to be issued for the Appropriation is not to exceed $40,600,000.00. This constitutes a declaration of official intent under Treasury Regulation 1.150-2.
Section 8. That the Director of Finance is hereby authorized to modify the previously approved estimated revenues and appropriations in Section 3 as required to correctly record the budgetary amounts finalized through the sale of the Series 2023A Bonds into the marketplace.
Section 9. That the Director of Finance is hereby authorized to close project accounts, encumbrances and retainage related to the accounts in Section 3 and return the unspent portion to the fund balance from which it came upon the earliest of: (i) Project’s completion; (ii) final maturity of financing, or (iii) five years after issuance.
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I hereby certify that there is a balance, otherwise unencumbered, to the credit of the appropriation to which the foregoing expenditure is to be charged, and a cash balance, otherwise unencumbered, in the treasury, to the credit of the fund from which payment is to be made, each sufficient to meet the obligation hereby incurred.
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Tammy L. Queen
Director of Finance
Approved as to form:
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Katherine Chandler
Senior Associate City Attorney