ELLY GRIMM
• Leader & Times
The Liberal City Commission will be looking to keep things short and sweet for its next meeting this evening starting at 5:30. Tonight’s meeting will be in the commission chambers in the Liberal Recreation Center at 950 S. Grant Ave.
The lone item of new business on the commission’s agenda will be discussion of Resolution No. 2420 concerning the solar project and authorizing issuance of temporary notes.
“At the commission’s Aug. 13 meeting, Larry Kleeman with Ranson Financial Group, LLC was in attendance to review with the Liberal City Commission the financial progression of the solar energy project,” the agenda information noted. “We are now ready to move forward with bids and a resolution authorizing and directing the issuance, sale, and delivery of General Obligation Temporary Notes, Series 2024. According to our financing schedule, bids were taken through Sept. 10, and Henry Schmidt with Ranson Financial Group, LLC is here to present these to the Commission. Following review of his presentation, the desired bid will need to be selected. Following the bid selection, Resolution No. 2420 will authorize the issuance, sale, and delivery of General Obligation Temporary Notes, Series 2024. Staff requests the commission’s consideration to approve the bid in the best interest of the city, followed by the approval of the resolution authorizing the issuance, sale, and delivery of General Obligation Temporary Notes, Series 2024.”
The agreement is outlined in more detail in the agenda packet.
“WHEREAS, pursuant to the provisions of the laws of the State of Kansas applicable thereto, by proceedings duly had, the governing body of the Issuer has caused the following improvements (the ‘Improvements’) to be made in the City, to-wit: public building improvements – solar energy generation; authority amount – K.S.A. 13-1024a, as amended $3,800,000 by Charter Ordinance No. 37,” the agreement noted. “WHEREAS, the governing body of the Issuer is authorized by law to issue general obligation bonds to pay the costs of the Improvements; and WHEREAS, it is necessary for the Issuer to provide cash funds (from time to time) to meet its obligations incurred in constructing the Improvements prior to the completion thereof and the issuance of the Issuer's general obligation bonds, and it is desirable and in the interest of the Issuer that such funds be raised by the issuance of temporary notes of the Issuer pursuant to the Act; and WHEREAS, none of such temporary notes heretofore authorized have been issued and the Issuer proposes to issue its temporary notes to pay a portion of the costs of the Improvements; and WHEREAS, the governing body of the Issuer has advertised the sale of the Notes and at a meeting held in the City on this date, awarded the sale of such Notes to the best bidder; and WHEREAS, the governing body of the Issuer hereby finds and determines that it is necessary for the Issuer to authorize the issuance and delivery of the Notes in the principal amount of $3,400,000* to pay a portion of the costs of the Improvements.”
The agreement also goes into more detail about the notes themselves.
“There shall be issued and hereby are authorized and directed to be issued the General Obligation Temporary Notes, Series 2024, of the Issuer in the principal amount of $3,400,000*, for the purpose of providing funds to: (a) pay a portion of the costs of the Improvements; and (b) pay Costs of Issuance,” the agreement noted. “The Notes shall consist of fully registered notes in Authorized Denominations, and shall be numbered in such manner as the Note Registrar shall determine. All of the Notes shall be dated as of the Dated Date, shall become due in the amounts on the Stated Maturity, subject to redemption and payment prior to the Stated Maturity as provided in Article III hereof, and shall bear interest at the rates per annum. The Notes shall bear interest at the above specified rates (computed on the basis of a 360-day year of twelve 30-day months) from the later of the Dated Date or the most recent Interest Payment Date to which interest has been paid on the Interest Payment Dates in the manner set forth in Section 204 hereof. Each of the Notes, as originally issued or issued upon transfer, exchange or substitution, shall be printed in accordance with the format required by the Attorney General of the State and shall be substantially in the form attached hereto as EXHIBIT A or as may be required by the Attorney General pursuant to the Notice of Systems of Registration for Kansas Municipal Bonds, 2 Kan. Reg. 921 (1983), in accordance with the Kansas Bond Registration Law.”
The agreement also talks about those in city leadership who will be in charge of the notes.
“Each of the Notes, including any Notes issued in exchange or as substitutions for the Notes initially delivered, shall be executed for and on behalf of the Issuer by the manual, electronic or facsimile signature of the Mayor, attested by the manual, electronic or facsimile signature of the Clerk and the seal of the Issuer shall be affixed thereto or imprinted thereon,” the agreement noted. “The Mayor and Clerk are hereby authorized and directed to prepare and execute the Notes in the manner herein specified, and to cause the Notes to be registered in the office of the Clerk, which registration shall be evidenced by the manual, electronic or facsimile signature of the Clerk with the seal of the Issuer affixed thereto or imprinted thereon. The Notes shall also be registered in the office of the State Treasurer, which registration shall be evidenced by the manual, electronic or facsimile signature of the State Treasurer with the seal of the State Treasurer affixed thereto or imprinted thereon. The Notes shall be countersigned by the manual, electronic or facsimile signature of the Clerk and the seal of the Issuer shall be affixed or imprinted adjacent thereto following registration of the Notes by the Treasurer of the State of Kansas. In case any officer whose signature appears on any Notes ceases to be such officer before the delivery of such Notes, such signature shall nevertheless be valid and sufficient for all purposes, as if such person had remained in office until delivery. Any Note may be signed by such persons who at the actual time of the execution of such Note are the proper officers to sign such Note although at the date of such Note such persons may not have been such officers. The Mayor and Clerk are hereby authorized and directed to prepare and execute the Notes as herein specified, and when duly executed, to deliver the Notes to the Note Registrar for authentication.”
City Manager Rusty Varnado also announced the staff had completed the budget process and would be presenting the budget to the commission for approval. The budget includes a reduction in spending from 2024 and about a four mill reduction.
