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FY2009-06 New High School Ballot MeasureKODIAK ISLAND BOROUGH ORDINANCE NO. FY 2009 -06 Introduced by: Manager Gifford Requested by: School District/Assembly Drafted by: Finance Director /Bond Counsel I ntroduced: 08/14/2008 Public Hearing: 08/21/2008 Amended: 08/21/2008 Adopted: 08/21/2008 AN ORDINANCE OF THE KODIAK ISLAND BOROUGH ASSEMBLY AUTHORIZING THE BOROUGH TO ISSUE GENERAL OBLIGATION BONDS IN THE PRINCIPAL AMOUNT OF NOT TO EXCEED $115,300,000 TO FINANCE THE PLANNING, DESIGN, AND CONSTRUCTION OF A NEW HIGH SCHOOL, THE RENOVATION OF THE EXISTING HIGH SCHOOL TO CREATE AN ADMINISTRATION BUILDING, DEMOLITION OF THE EXISTING BOROUGH BUILDING 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 7, 2008 REGULAR BOROUGH ELECTION 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 Kodiak Island Borough (the "Borough ") is in need of a new high school; and WHEREAS, the administrative offices for the Borough, the Kodiak Island Borough School District and the City of Kodiak are located in a remodeled high school dorm that is functionally obsolete, and has very high utility costs; and WHEREAS, the current 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 November 30, 2010, to pay costs of school construction, additions to schools, and major rehabilitation projects; and WHEREAS, the Borough views a new high school, renovation of part of the existing high school into an administration building, demolition of the Borough Building 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. FY2009 -06 Page 1 of 3 Section 2: It is hereby determined to be for a public purpose and in the public interest of the Borough to incur general obligation bonded indebtedness in an amount not to exceed One Hundred Fifteen Million, Three Hundred Thousand Dollars ($115,300,000) for the purpose of paying the cost of planning, designing, and constructing a new high school, renovating part of the existing high school into an administration building, demolition of the existing Borough Building and related capital improvements in the Borough. Section 3: The Borough is authorized to borrow the sum of One Hundred Fifteen Million, Three Hundred Thousand Dollars ($115,300,000) to finance the capital improvements described in Section 2, 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 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 7, 2008 regular Borough election. The proposition must receive an affirmative vote from a majority of the qualified voters voting on the question to be approved. PROPOSITION NO. 2 GENERAL OBLIGATION BONDS FOR A NEW HIGH SCHOOL ,RENOVATION OF PART OF THE EXISTING HIGH SCHOOL INTO AN ADMINISTRATION BUILDING AND DEMOLITION OF THE EXISTING BOROUGH BUILDING Shall the Kodiak Island Borough incur debt and issue general obligation bonds in an amount not to exceed One Hundred Fifteen Million Three Hundred Thousand Dollars ($115,300,000) to finance the planning, design and construction of school and other capital improvements in the Borough, including without limitation the projects described below? Project New High School Renovation of part of the existing High School into an Administration Building Demolition of the existing Borough Building Kodiak Island Borough, Alaska Estimated Cost $106,660,000 $ 6,530,000 $2,110,000 Ordinance No. FY2009 -06 Page 2 of 3 The approximate amount of taxes on $250,000 of assessed real and personal property value (based on total 2008 assessed valuation) required to pay 100% of the debt service for the projects above is $2,786.91 per year. The approximate amount of taxes on $250,000 of assessed real and personal property value (based on total 2008 assessed valuation) required to pay the Borough share of debt service with full State debt service reimbursement is $1,178.51 per year. This is $1,031.09 per year for the New High School, $102.77 per year for the renovation of part of the existing High School into an Administration Building and $44.65 for the demolition of the existing Borough Building. If additional funding, grants, or otherwise becomes available, only enough bonds to finish the project will be sold. The bonds shall be secured by a pledge of the full faith and credit of the Borough. (Ordinance No. FY 2009 -06) 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: 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 7, 2008 regular Borough election. The remaining sections of this ordinance shall become effective upon adoption by the Kodiak Island Borough Assembly. ATT T: ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THIS TWENTY FIRST DAY OF AUGUST, 2008 No "a M. Javier, , : orough Cler Kodiak Island Borough, Alaska PROPOSITION NO. 2 o YES o NO KODIAK ISLAND BOROUGH J ome Selby, B ----------_______)If' -ef • • _ _ o.r bit Ordinance No. FY2009 -06 Page 3 of 3