FY2007-05 - Bonds for New Swimming PoolIntroduced by Manager Gifford
Requested by: Assembly
Drafted by: Finance Director
Introduced: 8/03/2008
Public Heating: 08/172008
Amended: 08/172008
Adopted: 08/17/2006
KODIAK ISLAND BOROUGH
ORDINANCE NO. FY 2007 -05
AN ORDINANCE OF THE KODIAK ISLAND BOROUGH ASSEMBLY
AUTHORIZING THE BOROUGH TO ISSUE GENERAL OBLIGATION BONDS IN
THE PRINCIPAL AMOUNT OF NOT TO EXCEED $8,000,000 TO FINANCE
PLANNING, DESIGN, AND CONSTRUCTION OF A NEW SWIMMING POOL AND RELATED
CAPITAL IMPROVEMENTS AND TO SUBMIT THE QUESTION OF THE ISSUANCE OF SUCH
BONDS TO THE QUALIFIED VOTERS OF THE BOROUGH AT THE
OCTOBER 3, 2006 REGULAR BOROUGH ELECTION
WHEREAS, the Alaska legislature extended the current plan for school debt reimbursement during the 2006
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 October 1, 2006 but before December 1, 2008, to pay costs of
school construction, additions to schools, and major rehabilitation projects and education - related facilities;
and
WHEREAS,the Borough issued $6,210,000 in bonds on November 16, 2004 to construct a new six lane
swimming pool; and
WHEREAS, the current estimate to construct the swimming pool has exceeded the original estimate by
$8,000,000; and
WHEREAS, the Borough is researching and applying for grants which will lessen the amount of bonds which
will need to be sold; and
WHEREAS, because the amount of any additional funding is unknown at this time, the Borough needs the
authority to sell an amount of bonds that is adequate to finish the facility; and
WHEREAS, if additional funding is found, the Borough only needs to sell enough bonds to pay for the
unfunded part of the project; 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 swimming pool 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.
Kodiak Island Borough, Alaska
Ordinance No. FY2007 -05,
Page 1 of 3
Section 2:
Section 3:
Section 4:
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 Eight Million Dollars ($8,000,000) for the purpose of paying the cost of
planning, designing, and constructing a new swimming pool and related capital
improvements in the Borough.
The Borough is authorized to borrow the sum of Eight Million Dollars ($8,000,000) 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; provided that bonds may not be issued
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.
The Borough shall submit the following proposition to the qualified voters of the Borough at
the October 3, 2006 regular Borough election. The proposition must receive an affirmative
vote from a majority of the qualified voters voting on the question to be approâ– ed.
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 Eight Million Dollars ($8,000,000) to
finance the planning, design, and construction of a new swimming pool 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 $8,000,000
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 2006 assessed valuation) required to pay
100% of the debt service for the project above is $80.37 per year, and to pay
the Borough share of debt service for the project with full State debt service
reimbursement is $32.15 per year.
If additional funding, grants, or otherwise becomes available, only enough
bonds to finish the project will be sold.
These bonds are in addition to the $6,210,000 bonds sold on November 16,
2004 for a new swimming pool.
The bonds shall be secured by a pledge of the full faith and credit of the
Borough. (Ordinance No. FY2007 -05)
Kodiak Island Borough, Alaska Ordinance No. FY2007 -05
Page 2 of 3
Section 5:
Section 6:
ATTEST:
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:
PROPOSITION NO. 1
o YES
o NO
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 3, 2006 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 SEVENTEENTH DAY OF AUGUST 2006
Nova M Javier, CMC, = orough Clerk
KODIAK ISLAND BOROUGH
Kodiak Island Borough, Alaska Ordinance No. FY2007 -05
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