2004-04 General Obligation Bonds $7,185,000KODIAK ISLAND BOROUGH
ORDINANCE NO. 2004 -04
Introduced by:
Requested by:
Drafted by: Manager
Introduced:
Public Hearing:
Adopted:
Manager Carlson
Assembly
Carlson /Bond Attorney
03/09/2004
03/18/2004
03/18/2004
AN ORDINANCE O THE - KODIAK ISLAND BOROUGH- ASSEMBLY
AUTHORIZING THE BOROUGH TO ISSUE GENERAL OBLIGATION BONDS IN
THE PRINCIPAL AMOUNT OF NOT TO EXCEED $7,185,000 TO FINANCE THE
PLANNING, DESIGN AND CONSTRUCTION OF SCHOOL AND RELATED
CAPITAL IMPROVEMENTS, INCLUDING WITHOUT LIMITATION KODIAK HIGH
SCHOOL HEATING AND VENTILATION UPGRADES; EAST SCHOOL HEATING
AND VENTILATION UPGRADES; KODIAK HIGH SCHOOL EXTERIOR
INSULATION AND WINDOW REPLACEMENT; KODIAK HIGH SCHOOL AND
MIDDLE SCHOOL ROOF REPAIRS; OLD HARBOR GYM/VOC -ED
RENOVATION; OUZINKIE GYM RENOVATION; AND LEARNING CENTER
RENOVATION; AND TO SUBMIT THE QUESTION OF THE ISSUANCE OF SUCH
BONDS TO THE QUALIFIED VOTERS OF THE BOROUGH AT THE APRIL 20,
2004 SPECIAL 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 seventy percent (70 %) of debt service on bonds issued by the Borough to pay
costs of the Old Harbor Gym /Voc -Ed renovation and Ouzinkie Gym renovation, and not less
than sixty percent (60 %) of debt service on the eligible portion of bonds issued by the Borough to
pay costs of other 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 Seven Million One Hundred Eighty Five
Thousand Dollars ($7,185,000) 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 Seven Million One Hundred Eighty
Five Thousand Dollars ($7,185,000) 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 the Old
Harbor Gym /Voc -Ed renovation and Ouzinkie Gym renovation unless those
projects are eligible for debt service reimbursement of at least seventy percent (70 %)
by the State of Alaska, and bonds may not be issued for any other project unless the
Kodiak Island Borough, Alaska Ordinance No. 2004 -04
Page 1 of 3
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 .L the April IlA 2004 .1 Borough Borough at he April 20, 2004 special Borough election. The proposition must
- receive an front a majority - of the qualified voters voting - on
question to be approved.
Section 5:
PROPOSITION NO. 2
YES 0
NO 0
PROPOSITION NO. 2
GENERAL OBLIGATION BONDS FOR ENERGY /RENOVATION
PROJECTS
Shall the Kodiak Island Borough incur debt and issue general
obligation bonds in an amount not to exceed Seven Million One
Hundred Eighty Five Thousand Dollars ($7,185,000) 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
Kodiak High School heating and ventilation upgrades
East School heating and ventilation upgrades
Kodiak High School exterior insulation
and window replacement
Kodiak High School and Middle School roof repair
Old Harbor Gym /Voc -Ed renovation
Ouzinkie Gym renovation
Learning Center renovation
$ 250,000
$ 520,000
$ 596,020
$ 523,504
$2,251 ,315
$1,858,255
$1,182,336
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 projects above is $80.16 per year, and to pay the Borough
share of debt service for the projects with full State debt service
reimbursement is $27.46 per year.
The bonds shall be secured by a pledge of the full faith and credit
of the Borough. (Ordinance No. 2004 -04)
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 and next to a square provided for
making the ballot for voting by hand or machine:
Kodiak Island Borough, Alaska Ordinance No. 2004 -04
Page 2 of 3
Section 6:
ATTEST:
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 April 20, 2004 special 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 EIGHTEENTH DAY OF MARCH, 2004
l
Judith A. Nielsen, C(VIC, Borough Clerk
KODIAK ISLAND BOROUGH
.6)
Gabrielle LeDoux, orough Mayor
Kodiak Island Borough, Alaska Ordinance No. 2004 -04
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