1989-15 Authorizing Refunding of the 1980-B General Obligation School Bond Issue.ATTEST:
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!Resolution No. 89 -15 -R
Pane 1 of 1
By:
Recommended by:
Introduced:
Adopted:
Mayor Selby
Finance Officer
3/02/89
3/02!89
KODIAK ISLAND BOROUGH
RESOLUTION NO. 89 -15 -R
A RESOLUTION OF THE KODIAK ISLAND BOROUGH ASSEMBLY AUTHORIZING
THE REFUNDING OF THE 1980 GENERAL OBLIGATION SCHOOL BOND ISSUE
WHEREAS, the Kodiak Island Borough did issue a general obligation
school bond issue on August 1, 1980, through the Alaska Bond Bank in the
amount of $ and
WHEREAS, such bonds carry an interest rate of 7.30% to 9.00% for
each semi - annual repayment through the year 2000 and such debt service is
currently reimbursed by the Alaska Department of Education at a rate of 90%
with a two year lag, and
WHEREAS, staff and the underwriter have shown that through
restructuring this debt the following improvements to the Borough financial
position will occur:
1 . The bond rating will be increased from Baa -1 to Aaa.
2. Savings for the Kodiak Island Borough can be realized
from swapping a 90% state reimbursement with a two year
lag to an 80% current reimbursement.
3. Debt service reimbursement from the state can be
accelerated by two years thus keeping current throughout
the payoff period and be repaid a full two years sooner.
4 . As a result of this debt restructure, the Kodiak Island
Borough can realize an actual savings in excess of
$
NOW, THEREFORE, BE IT RESOLVED that staff is hereby author-
'ized and directed to consummate this general obligation bond refunding at
such time as it is determined to be the most favorable market opportunity for
;!the Borough.
PASSED AND APPROVED THIS 2nd DAY OF MARCH, 1989.
KODIAK ISLAND BOROUGH
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