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FY2005-04 General Obligation Bonds PoolIntroduced by: Manager Carlson Requested by: Assembly Drafted by: Borough Clerk /Bond Attorney Introduced: 08/19/2004 Public Hearing: 09/02/2004 Amended: 09/02/2004 Adopted: 09/02/2004 KODIAK ISLAND BOROUGH ORDINANCE NO. FY 2005 -04 AN ORDINANCE OF THE KODIAK ISLAND BOROUGH ASSEMBLY AUTHORIZING THE BOROUGH TO ISSUE GENERAL OBLIGATION BONDS IN THE PRINCIPAL AMOUNT OF NOT TO EXCEED $6,210,000 TO FINANCE THE PLANNING, DESIGN, AND CONSTRUCTION OF SCHOOL AND RELATED CAPITAL IMPROVEMENTS, INCLUDING WITHOUT LIMITATION A NEW SCHOOL POOL 6 -LANE, 1 DIVING BOARD; AND TO SUBMIT THE QUESTION OF THE ISSUANCE OF SUCH BONDS TO THE QUALIFIED VOTERS OF THE BOROUGH AT THE OCTOBER 5, 2004 REGULAR BOROUGH ELECTION WHEREAS, the Alaska legislature adopted a new plan for school debt reimbursement during the 2002 special session; and WHEREAS, this debt service reimbursement plan provides that the State of Alaska will reimburse the Borough for not less than sixty percent (60 %) of debt service on the eligible portion of bonds authorized by the qualified voters of the Borough on or after June 30, 1999, but before January 1, 2005, to pay costs of school construction, additions to schools, and major rehabilitation projects and education - related facilities; and WHEREAS, under the provisions of AS 29.47.190, a municipality may incur general obligation debt only after a bond authorization ordinance is approved by a majority of those voting on the question at a regular or special election; and WHEREAS, the Borough views the school and related capital improvements authorized herein as necessary and beneficial to the community; NOW, THEREFORE, BE IT ORDAINED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THAT: Section 1: This ordinance is not of a general and permanent nature and shall not become a part of the Kodiak Island Borough Code of Ordinances. Section 2: It is hereby determined to be for a public purpose and in the public interest of the Kodiak Island Borough (the `Borough ") to incur general obligation bonded indebtedness in an amount not to exceed Six Million Two Hundred Ten Thousand Dollars ($6,210,000) for the purpose of paying the cost of planning, designing, and constructing school and related capital improvements in the Borough. Section 3: The Borough is authorized to borrow the sum of Six Million Two Hundred Ten Thousand Dollars ($6,210,000) to finance the capital improvements described in Section 4, and the borrowing shall be evidenced by the issuance of general obligation bonds of the Borough; p r ov id e d that bonds may __t be issued rut . N�..��..�u that ��� rte, � t.ay not vG I�sueu for any project unless the project is eligible for debt service reimbursement of at least sixty percent (60 %) by the State of Alaska. The full faith and credit of the Borough are pledged for payment of the principal of and interest on the bonds, and ad valorem taxes upon all taxable property in the Borough shall be levied without limitation as to rate or amount to pay the principal of and interest on the bonds when due. Section 4: The Borough shall submit the following proposition to the qualified voters of the Borough at the October 5, 2004 regular Borough election. The proposition must receive an affirmative vote from a majority of the qualified voters voting on the question to be approved. Kodiak Island Borough, Alaska Ordinance No. FY2005.04 Page 1 oft PROPOSITION NO. 1 GENERAL OBLIGATION BONDS FOR NEW SCHOOL POOL 6 -LANE, 1 DIVING BOARD Shall the Kodiak Island Borough incur debt and issue general obligation bonds in an amount not to exceed Six Million Two Hundred Ten Thousand Dollars ($6,210,000) to finance the planning, design, and construction of school and related capital improvements in the Borough, including without limitation the projects described below? Project Estimated Cost New School Pool 6 -lane, 1 diving board $6,210,000 Bonds may not be issued to pay costs of a project unless the project is eligible for debt service reimbursement by the State of Alaska. The approximate amount of taxes on $100,000 of assessed real and personal property value (based on total 2004 assessed valuation) required to pay 100% of the debt service for the project above is $ 66.62 per year, and to pay the Borough share of debt service for the project with full State debt service reimbursement is $ 26.65 per year. The bonds shall be secured by a pledge of the full faith and credit of the Borough. (Ordinance No. FY2005 -04) Section 5: The proposition, both for paper ballots and machine ballots, shall be printed on a ballot which may set forth other general obligation bond propositions, and the following words shall be added as appropriate next to an oval provided for marking the ballot for voting by hand or machine: Section 6: ATTEST: PROPOSITION NO. 1 YES O NO 0 Sections 2 and 3 of this ordinance shall become effective only if the proposition described in Section 4 is approved by a majority of the qualified voters voting on the proposition at the October 5, 2004 regular Borough election. The remaining sections of this ordinance shall become effective upon adoption by the Kodiak Island Borough Assembly. ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THIS SECOND DAY OF SEPTEMBER 2004 4/,‘ ‘tiae/Li udith A. Nielsen, CM , Borough Clerk KODIAK ISLAND BOROUGH Gabrielle LeDoux, Borough Itayor Kodiak Island Borough, Alaska Ordinance No. FY2005.04 Page 2 of 2