City of Troy, Kansas                                  Created Jan 14, 2011

City of Troy
137 West Walnut St
PO Box 506
Troy, KS 66087

ph: 785-985-2101
fax: 785-985-3871
alt: 785-985-2265

cityoftroy@yahoo.com

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ORD 720

-AlanM.Boeh,CityAttorney

CITY OF TROY, KANSAS ORDINANCE NO. 720

AN ORDINANCE AUTHORIZING THE EXECUTION OF A LOAN AGREEMENTBETWEENTHECITYOFTROY,KANSASANDTHESTATE OFKANSAS,ACTINGBYANDTHROUGHTHEKANSASDEPARTMENTOF HEALTH AND ENVIRONMENT FOR THE PURPOSE OF OBTAINING A LOAN FROM THE KANSAS PUBLIC WATER SUPPLY PROJECT; ESTABLISHING A DEDICATED SOURCE OF REVENUE FOR REPAYMENT OF SUCH LOAN, AUTHORIZING AND APPROVING CERTAIN DOCUMENTS IN CONNECTION THEREWITH; AND AUTHORIZING CERTAIN OTHER ACTIONS IN CONNECTION WITH THE LOAN AGREEMENT.

 

WHEREAS,theSafeDrinkingWaterActAmendmentsof1996[PL104-182] totheSafeDrinkingWaterAct(the"FederalAct")establishedtheDrinkingWaterLoan Fundtoassistpublicwatersupplysystemsinfinancingthecostsof infrastructureneeded toachieveormaintaincompliancewiththeFederalActandtoprotectthepublichealth and authorized the Environmental Protection Agency (the "EPA") to administer a revolving loan program operated by the individual states;and

 

WHEREAS, to fund the state revolving fund program, the EPA will make annualcapitalizationgrantstothestates,ontheconditionthateachstateprovideastate match for such state's revolving fund;and

 

WHEREAS, by passage of the Kansas Public Water Supply Loan Act, K.S.A. 65-163d et seq., as amended (the "Loan Act"), the State of Kansas (the "State") has established the Kansas Public Water Supply Loan Fund (the "Revolving Fund") for purposes of the Federal Act; and

 

WHEREAS, under the Loan Act, the Secretary of the Kansas Department of Health and Environment ("KDHE") is given the responsibility for administration and management of the Revolving Fund; and

 

WHEREAS,theKansasDepartmentFinanceAuthority(the"Authority")and KDHEhaveenteredintoaMasterIndenture(the"MasterIndenture")pursuanttowhich KDHE agrees to enter into Loan Agreements with Municipalities for public water supplyprojects(the"Projects")andtopledgetheLoanRepayments(asdefinedinthe MasterIndenture)receivedpursuanttosuchLoanAgreementstotheAuthority;and

 

WHEREAS,theAuthorityisauthorizedunderK.S.A.74-8905(a)andtheLoan Act to issue revenue bonds (the "Bonds") for the purpose of providing funds to implementtheState'srequirementsundertheFederalActandtoloanthesame,together with available funds from the EPA capitalization grants, to Municipalities withinthe


State for the payment of Project  Costs (as said  terms are defined  in the Loan Act);and

 

WHEREAS,theCityofTroy,Kansas(the"Municipality")isamunicipalityas saidtermisdefinedintheLoanActwhichoperatesawatersystem(the"System";and

 

WHEREAS, the System is a Public Water Supply System, as said term is defined in the Loan Act; and

 

WHEREAS, the Municipality has, pursuant to the Loan Act, submitted an ApplicationtoKDHEtoobtainaloanfromtheRevolvingFundtofinancethecostsof improvements to its System consisting of thefollowing:

 

The City of Troy is proposing the construction of discharging lagoon to manage waste from its water treatment plant.

 

(the "Project"); and

 

WHEREAS, the Municipality has taken all steps necessary and has complied with the provisions of the Loan Act and the provisions of K.A.R. 28-15-50 through 28- 15-65 (the "Regulations") applicable thereto necessary to qualify for the loan; and

 

WHEREAS,KDHEhasinformedtheMunicipalitythatithasbeenapproved foraloaninamountnottoexceed$367,918(the"Loan")inordertofinancetheProject; and

 

WHEREAS, the governing body of the Municipality hereby finds and determines that it is necessary and desirable to accept the Loan and to enter into a loan agreement and certain other documents relating thereto, and to take certain actions required in order to implement the Loan Agreement.

 

THEREFORE, BE IT ORDAINED BY THE GOVERNING BODY OF THE CITY OF TROY, KANSAS

 

Section 1. Authorization of Loan Agreement. The Municipality is hereby authorized to accept the Loan and to enter into a certain Loan Agreement, with an effectivedateofFebruary8,2021,withtheStateofKansasactingbyandthroughthe KansasDepartmentofHealthandEnvironment(the"LoanAgreement")tofinancethe Project Costs (as defined in the Loan Agreement). The Mayor and Clerk are hereby authorized to execute the Loan Agreement in substantially the form presented to the governing body this date, with such changed or modifications thereto as may be approvedbytheMayorandtheMunicipality'slegalcounsel,theMayor'sexecutionof the Loan Agreement being conclusive evidence of suchapproval.

 

Section 2. Establishment of Dedicated Source of Revenue forRepayment of Loan. Pursuant to the Loan Act, the Municipality hereby establishes adedicated


source of revenue for repayment of the Loan. In accordance therewith, the Municipality shall impose and collect such rates, fees and charges for the use and services furnished by or through the System, including all improvements and additions thereto hereafter constructed or acquired by the Municipality as will provide System Revenues (as defined in the Loan Agreement" sufficient to (a) pay the cost of the operation and maintenanceoftheSystem,(b)paytheprincipalofandinterest ontheLoanasandwhen the same become due, (c) pay all other amounts due at any time under the Loan Agreement, and (d) pay the principal of and interest on Additional Revenue Obligations (as defined in the Loan Agreement) as and when the same become due; provided, however, the pledge of the System Revenues contained herein and in the Loan Agreement (I) shall be subject to reasonable expenses of operation and maintenance of the System, and (ii) shall be junior and subordinate in all respects to the pledge of System Revenues to any Additional Revenue Obligations. In the event that the System Revenues are insufficient to meet the obligations under the Loan and the Loan Agreement, the Municipality shall levy ad valorem taxes without limitation as to rate or amount upon all the taxable tangible property, real or personal, within the territorial limits of the Municipality to produce the amounts necessary for the prompt payment of the obligations under the Loan and Loan Agreement. In accordance with the Loan Act, the obligations under the Loan and the Loan Agreement shall not be included within any limitation of the bonded indebtedness of theMunicipality.

 

Section 3. :Further Authority. The Mayor, Clerk and other City officials and legal counsel are hereby further authorized and directed to execute any and all documents and take such actions as they may deem necessary or advisable in order to carry out and perform the purposes of the Ordinance, and to make alterations, changes or additions in the foregoing agreements, statements, instruments and other documents herein approved, authorized and co firmed which they may approve, and the execution or taking of such action shall be conclusive evidence of such necessity oradvisability.

 

Section 4. Governing Law. The Ordinance and the Loan Agreement shall be governed exclusively by and construed in accordance with the applicable laws of the State of Kansas .

 

Section 5. Effective Date. This Ordinance shall take effect and be in full force from and after its passage by the governing body of the City and publication in the official City newspaper.


 

PASSED by the governing body of the City of Troy, Kansas on March 16, 2021 and signed and APPROVED by the Mayor.

 

 

(SEAL)

 

             Sarah Boeh-Cerra, Mayor

 

                   

 

 

 

 

                 

 

 

 

James Richardson, Clerk APPROVED AS TO FORM ONLY



Copyright 2011 City of Troy. All rights reserved.

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City of Troy
137 West Walnut St
PO Box 506
Troy, KS 66087

ph: 785-985-2101
fax: 785-985-3871
alt: 785-985-2265

cityoftroy@yahoo.com