Loading...
04OFFICIAL STATEMENTDATEDFEBRUARY 62014 New Issue Fitch Rating AA Book-EntryOnly Moodys Rating Aa2 Standard Poors Rating AA See Ratings herein In the opinion of Bond Counsel based onan analysisof existing statutesregulations rulings and court decisions and assuming among other things complianceby the BondBank and the Governmental Units with covenants relating to certain requirements in the Internal RevenueCode of 1986 as amended the Code9 interest on the 2014A Series OneBonds is excludable from gross income of owners thereof forfederal income tax purposes Interest on the 2014A Series OneBonds is nottreated as tax preference item for purposes of either the individual orcorporate alternative minimumtax However interest on the 2014A Series OneBonds is taken into account in determining adjusted current earnings for purposes of computing the federal alternative minimum tax imposed on certain corporations Interest on the 2014B Series One Bonds is not excludable from gross income of the owners thereofforfederal tax purposes See TAX MATTERS herein $61205000 ALASKA MUNICIPAL BOND BANK General Obligation Bonds 2014 Series One $47205000 $14000000 General Obligation Bonds General Obligation Bonds 2014A Series One 2014B Series One Tax-Exempt Taxable Dated Date of Delivery Due Asshown on inside cover The Alaska Municipal BondBank the Bond Bank is issuing $47205000 principal amount of General Obligation Bonds 2014A Series One Tax-Exempt the 2014A Series One Bonds and $14000000 principal amount of General Obligation Bonds 2014B Series One Taxable the 2014B Series One Bonds and together withthe 2014A Series One Bonds the 2014 Series One Bonds The 2014 Series OneBonds initially will be issued as fully registered bonds in book- entry form only registered in the name of Cede Co as nominee of The Depository Trust Company DTC which will serveas depository for the 2014 Series One Bonds Individual purchases ofthe 2014 Series OneBonds will be made in principal amounts of $5000 or integral multiples thereofwithin single maturity of sub-series Purchasers ofthe 2014 Series OneBonds will notreceive certificates representing their beneficial ownership interests in the 2014 Series One Bonds interest on the 2014 Series OneBonds will accrue from the date of delivery ofthe 2014 Series One Bonds or from the most recent interest payment date to which interest has been pald and is payable oneachMarchand September commencing September 2014 TheBank of New York Mellon Trust Company NA of Seattle Washington as the Trustee and Paying Agent for the 2014 Series One Bonds will make principal and interest payments to DTC Disbursement of such payments to DTC Participants is the responsibility of DTC Disbursement of such payments to theBeneficial Owners is the responsibility of the DTC Participants See DESCRIPTION OF THE 2014 SERIES ONE BONDS and APPENDIX DTC AND BOOK- ENTRY SYSTEM The 2014 Series OneBonds aresubjectto redemption prior to their stated maturity dates See DESCRIPTION OF THE 2014 SERIES ONE BONDS Optional Redemption Mandatory Redemption The 2014 Series OneBonds are generalobligations ofthe Bond Bank and the full falth and credit ofthe BondBank are pledged for the punctual payment ofthe principal of and interest on the 2014 Series One Bonds The 2014 Series OneBonds are equally and ratably secured by the pledge and assignment of all Municipal Bonds acquired by the BondBank under the Bond Banks 2005 General Bond Resolution on parity withother Bonds of the BondBank heretofore or hereafterissued under the 2005 General Bond Resolution The 2014 Series OneBonds are the twenty-eighth seriesof Bonds issued under the 2005 General Obligation Bond Resolution The 2014 Series One Bonds do not constitute debt orother liabifity of the State of Alaska and the 2014 Series One Bonds do not directlyindirectly or contingently obligate theState of Alaska to levy any form of taxation or make any appropriation for the payment of the 2014 Series One Bonds Neitherthe faith and credit northe taxing power of theState of Alaska is pledged for the payment of the 2014 Series One Bonds TheBond Bank has no taxing power See SECURITY FORTHE 2014 SERIES ONE BONDS The 2014 Series OneBonds areoffered when as and if issuedsubjecttothe approving legal opinion of WohlforthBrecht Cartledge Brooking of Anchorage Alaska Bond Counsel Certain legal matters will be passed upon for the Governmental Units by their respective bond counsel and for theUnderwriters by their counsel Foster Pepper PLLC of Seattle Washington It is expected thatthe 2014 Series One Bonds in definitive form will be issued and available by Fast Automated Securities Transfer for delivery through the facilities of DTC in New York New York on or about February 20 2014 RBC Capital Markets J.P Morgan Sole Underwriter for the 2014A Series One Bonds Sole Underwriter for the 2014B Series One Bonds $61205000 Alaska Municipal BondBank General Obligation Bonds 2014 Series One consisting of 2014A Series One Tax-Exempt MATUIUTIES AMOUNTS INTEREST RATES YIELDS AND CUSIP NUMBERS CUSIP CUSIP Interest Number Interest Number Due March Amount Rate Yield 01179RDueMarch Amount Rate Yield 01179R 2015 875000 2.00%0.23%CW1 2025 $3680000 3.125%3.125%DG5 2016 930000 3.00%0.38%CX9 2026 3800000 5.00%3.15%DH3 2017 960000 4.00%0.61%CY7 2027 3985000 5.00%3.31%DJ9 2018 1000000 5.00%0.95%CZ4 2028 4190000 5.00%343%DK6 2019 1045000 2.00%1.25%DA8 2029 4395000 5.00%3.52%DL4 2020 1070000 2.00%1.71%DB6 2030 1660000 5.00%3.61%DM2 2021 1085000 5.00%2.06%DC4 2031 1740000 4.50%3.92%DNO 2022 2400000 5.00%2.41%DD2 2034 2005000 5.00%3.91%DQ3 2023 3340000 5.00%2.66%DEO 2035 335000 4.00%4.08%DS9 2024 3505000 5.00%2.85%DF7 $3735000 5.00%Term Bond due March 2033 yield 3.86% CUSIP Number 011 79R DP5 $1470000 4.00%Term Bond due March 2039 yield 4.25% CUSIP Number 01 179R DR1 2014B Series One Taxable MATIJRITIES AMOUNTS INTEREST RATES PRICES AND CUSIP NUMBERS CUSIP CUSIP Interest Number Interest Number DueMarch Amount Rate Price 01179RDueMarch Amount Rate Price 01179R 2015 $1800000 0.38%100%CN1 2019 $1905000 2.10%100%CSO 2016 1840000 0.64%100%CP6 2020 1945000 2.62%100%CT8 2017 1850000 1.06%100%CQ4 2021 1995000 2.92%100%CU5 2018 1870000 1.69%100%CR2 2022 795000 3.22%100%CV3 Copyright 2014 CUSIP Global Services CUSIP is registered trademark ofthe American Bankers Association CUSIP Global Services is managed on behalfofthe American Bankers Association by Standard Poors These numbers are not intended to create database and do not serve in any way as substitute for the CUSIP Service CUSIP numbers are provided for the convenience ofreference only CUSIP numbers are subject to change TheBondBank takes no responsibility for the accuracy of such CUSIP numbers Calculated to the first par call date of March2024 This Official Statement is furnished by the BondBank to provide information regarding the sale of the 2014 Series OneBonds referred to herein and may not be reproduced or be used in whole or in part for any other purpose The delivery of thisOfficial Statement does not imply that information herein is correct as of any time subsequent to the date hereof No dealer salesman or any other person has been authorized by the BondBank or the Underwriters to give any informationor to make any representation other than as contained inthisOfficial Statement in connection with the offering described herein and if given or made such otherinformation or representation must not be relied upon as having been authorized by the foregoing This Official Statement does not constitute an offer of any securities other thanthosedescribed on the cover page or an offerto sell or solicitation of an offerto buy in any jurisdiction in which it is unlawful to make suchan offer solicitation orsale The information and expressions of opinion set forth inthisOfficial Statement havebeen furnished by the Bond Bankand includeinformationfrom other sources that the BondBank believes to be reliable Neither thisOfficial Statement nor any statement which may havebeen made orally is to be construed as contractwith the owners of any of the 2014 Series One Bonds The Underwriters have provided the following sentence for inclusion inthis Official Statement The Underwriters have reviewed the information set forth inthisOfficial Statement in accordance with and as part of their responsibilities to investors under the federalsecurities laws as applied to thefacts and circumstances of this transaction but the Underwriters do not guarantee the accuracy or completeness of such information UPON ISSUANCE THE 2014 SERIES ONE BONDS WILL NOT BEREGISTERED UNDER THE SECURITIES ACTOF 1933 AS AMENDED AND WILL NOT BE LISTED ONANY STOCK OROTHER SECURITIES EXCHANGE NEITHER THE SECURITIES ANDEXCHANGE COMMISSION NORANY OTHER FEDERAL STATE OR OTHERGOVERNMENTAL ENTITY OR AGENCYOTHERTHAN THE BOND BANK WILL HAVE PASSED ON THE ACCURACYOR DETERMINED THE ADEQUACY OF THIS OFFICIAL STATEMENT OR APPROVEDTHE 2014 SERIES ONE BONDS FOR SALE THE 2005 GENERALBOND RESOLUTION WILL NOT BE QUALIFIED UNDER THETRUST INDENTURE ACTOF 1939 AS AMENDED The remainder of this page has intentionally been left blank ALASKA MUNICIPAL BOND BANK 333 Willoughby Avenue 11th Floor P.O Box 110405 Juneau Alaska 99811-0405 907 465-2388 http//www.revenue.state.ak.us/treasury/ambba/ Board of Directors Mark Pfeffer Chair Luke WellesVice Chair Gregory Gursey Member Susan Bell Member Ted Leonard First Delegate to Susan Bell Angela Rodell Member Pamela Leary First Delegate to Angela Rodell Executive Director Deven Mitchell Bond Counsel WohlforthBrecht CartledgeBrooking Anchorage Alaska Trustee The Bank of New York Mellon Trust Company N.A Seattle Washington Financial Advisor Western Financial Group LLC Portland Oregon The reference above to the Bond Banks website is contact information provided only for convenience The reference is not hyperlink and by this reference the Bond Banks website is not incorporated into thisOfficial Statement TABLEOF CONTENTS Introduction Purpose of the 2014 Series One Bonds Authorization and Purpose The2014 Series One Bonds Description of the 2014 Series OneBonds General Description 2014 Series One Bonds Optional Redemption MandatoryRedemption Notice of Redemption Selection of 2014 Series OneBonds for Redemption Security for the 2014 Series OneBonds General Pledge Effected by the 2005 General Bond Resolution Municipal Bonds 2005 General Bond Resolution Reserve Fund State Payments Pledge ofthe State The Alaska Municipal BondBank Organization Board ofDirectors Management Future Financing Plans Debt Payment Record Bonds Outstanding 10 1976 General Bond Resolution 10 2005 General Bond Resolution 10 2010 MunicipalObligation Bond Resolution 10 RevenueBond Resolutions 10 Coastal Energy Impact Program 10 Direct Loans 11 Loans by theState of Alaska 11 Total BondBankBonds Issued and Outstanding as of January 2014 12 Remaining Debt Capacity After the Issuance ofthe 2014 Series OneBonds 12 Debt Service Requirements of Outstanding 2005 General Bond Resolution General Obligation Bonds and the 2014 Series OneBonds 13 Summary ofthe 2005 General Bond Resolution 14 2005 General Bond ResolutionConstitutesContract 14 Obligation of Bonds 14 Pledge 14 Power to Issue Bonds and Make Pledges 14 General 14 Waiver of Laws is Loan Agreement Provisions 15 Modificationof Loan Agreement Terms 16 Enforcement of Municipal Bonds 16 Funds and Accounts 16 Security for Deposits 18 Payment of Bonds 18 Feesand Charges 18 Issuance ofAdditional Obligations 18 Defeasance 19 Supplements and Amendments 19 Events ofDefault and Remedies 20 Excess Eamings 21 Modifications to the 2005 General Bond Resolution 21 Litigation .22 Certain Legal Matters 22 Underwriting 22 FinancialAdvisor 23 Financial Statements 23 Tax Matters 23 Ratings 29 Continuing Disclosure Undertaking 29 Prior Compliance with Continuing Disclosure Undertakings Under the Rule 31 Sources ofCertainInformation 31 Defmitions 32 Miscellaneous 33 Official Statement 34 APPENDIX Form of Legal Opinion APPENDIX State Payments to Governmental Units APPENDIX Government Unit Statistics Regarding Participation in the BondBank APPENDIX Summaries of Borrowers Representing 10%or More of Outstanding Principal APPENDIX Financial Statements ofthe Alaska Municipal BondBank for the Year Ended June 30 2013 APPENDIX 2005 General Obligation Bond Resolution APPENDIX DTC and Book-Entry System OFFICIAL STATEMENT $61205000 ALASKA MUNICIPAL BOND BANK GENERAL OBLIGATION BONDS 2014 SERIES ONE INTRODUCTION This Official Statement is furnished by the Alaska Municipal BondBank the Bond Bank to provide information regarding the BondBank in connection with thesale of its $47205000 principal amount of General Obligation Bonds 20 14A Series One Tax-Exempt the 20 14A Series One Bonds and $14000000 principal amount of General Obligation Bonds 2014B Series One Taxable the 2014B Series One Bonds and together with the 2014A Series One Bonds the 2014 Series One Bonds The BondBank was created pursuant to Alaska Statutes 44.85.005 44.85.420 as amended the Act for the primary purpose of lending money to Governmental Units in theState of Alaska the State including the purchase of Municipal Bonds issued by suchGovernmental Units Certain capitalized terms used in this Official Statement and nototherwisedefined herein are defmedunder DEFfNTTIONS All referenceshereinto agreements and documents are qualified intheir entirety by referencetothe defmitive forms thereof and all referencestothe 2014 Series One Bonds are further qualified by reference to the informationwith respect thereto contained in the 2005 General Obligation Bond Resolution adoptedby the Board of Directors of the BondBank on July 132005 as amended on August 19 2009 the 2005 General Bond Resolution and SeriesResolution No 2014-01 adoptedby the Board of Directors of the BondBank on January 2014 the Series Resolution and together with the 2005 General Bond Resolution the Bond Resolution All bondswhich are issued under and pursuant to the terms of the 2005 General Bond Resolution are hereafterreferred to as the Bonds Any statements or information which includematters of opinion or estimates are represented as opinions orestimates in good faith but no assurance can be given thatthe facts will materialize asso opined or estimated Appendix contains financial economic and demographic summary information relating to the Governmental Units whose Municipal Bonds represent 10 percent or more of the Loan Obligationsoutstanding under the 2005 General Bond Resolution PURPOSE OF THE 2014 SERIES ONEBONDS Authorization and Purpose The 2014 Series One Bonds are being issued pursuant tothe terms of the Bond Resolution and are the twenty-eighth series of Bonds issued under the 2005 General Bond Resolution The 2014 Series One Bonds The 2014 Series OneBond proceeds are being used for the following purposes to make threeloansto Governmental Units and iito pay portion of the costs of issuance of the 2014 Series One Bonds portion of the proceeds of the 2014 Series One Bonds will be loaned tothe City and Borough of Juneau to fund improvements tothe City and Boroughs seawalk tothe Kodiak Island Borough to fundcontinued renovation and expansion of the Kodiak HighSchool and tothe Kenai Peninsula Borough for construction of Specialty Clinic Building adjacent totheCentral PeninsulaGeneral Hospital The table below presents the sources and uses of funds relatedtothe 2014 Series One Bonds Sources of Funds 2014A 2014B Total Par Amount of 2014 Series One Bonds $47205000 $14000000$61205000 Net Original Issue Premium 5332470 5332470 Alaska Municipal BondBank Contribution 2179666 5466082726274 Total Sources of Funds $54717136$14546608$69263744 Uses of Funds Loan to the City and Borough of Juneau 6409823 6409823 Loan to the Kenai Peninsula Borough 20924307 $1394785934872166 Loan to the Kodiak Island Borough 25000463 25000463 Deposit tothe Bond Bank Reserve Fund 21796665466082726274 Costs of Issuance 64195 16805 81000 Underwriters Discount 138.682 35336 174.018 Total Uses of Funds $54717136$14546608$69263744 Includes Governmental Units costs of issuance DESCRIPTION OF THE 2014 SERIES ONEBONDS General Description The2014 Series One Bonds are issuable only as fully registered bonds registered in the name of Cede Co as nominee for The Depository Trust Company New York New York DTC as securities depository for the 2014 Series One Bonds Principal of and interest on the 2014 Series One Bonds are payable by The Bank of New York Mellon Trust Company N.A of Seattle Washington as Trustee under the 2005 General Bond Resolution to DTC which in turn is obligated todisburse such principal and interest payments to its participants the DTC Participants in accordance with DTC procedures See Appendix DTC and Book-Entry System 2014 Series One Bonds The 2014 Series One Bonds mature on the dates and bear interest at the ratesset forthon theinside cover page of this Official Statement The2014 Series One Bonds areissuable in denominations of $5000 or any integral multiple thereofwithin single maturity of sub-series are datedas of the date of delivery and bear interest from their date payable on September 2014 and semiannually thereafter oneach March and September to their date of maturity or prior redemption whichever may occur first Optional Redemption 2014A Series One Bonds The 201 4A Series One Bonds maturing on or after March 2025 are subject to redemption in whole or in part at the option of the BondBank on any date on or after March 2024 at price of 100%of the principal amount thereofto be redeemed plus accrued interest to the date fixed for redemption The Govermnental Units may prepay their loans on terms identical tothe optional redemption provisions associated with the 2014 Series One Bonds 2014B Series One Bonds The 2014B Series One Bonds arenot subject to redemption prior to maturity Mandatory Redemption 2014A Series One Bonds The 20 14A Series One Bonds maturing on March 2033 are subject to mandatory sinking fund redemption on March of the years and in the principal amounts set forth in the following table Any such redemption shall be at price equal to 100 percent of the principal amount to be redeemed plus accrued and unpaid interest thereon to the date fixed for redemption but without premium Principal Date Amount March 2032 $1825000 March 2033 1910000 Maturity The 2014A Series One Bonds maturing on March 2039 are subject to mandatory sinking fund redemption on March of the years and in the principal amounts set forth in the following table Any such redemption shall be at price equal to 100 percent of the principal amount to be redeemed plus accrued and unpaid interest thereon to the date fixed for redemption but without premium Principal Date Amount March 2036 $345000 March 2037 360000 March 2038 375000 March 2039 390000 Maturity Notice of Redemption At least 30 days butnot more than 60 days prior tothe date upon which any 2014 Series One Bonds are to be redeemed the Trustee will mail notice of redemption to the registered owner of any 2014 Series OneBond all or portion of which is to be redeemed at the owners last address appearing on the registration books of the BondBank kept by the Trustee When all of the 2014 Series One Bonds are held under the DTC book-entry system such notice will be sentto DTC and any noticetothebeneficial owners of the 2014 Series One Bonds will be the responsibility of DTC Participants Neitherthe BondBank nor the Trustee will provide redemption noticestothebeneficial owners Selection of 2014 Series One Bonds for Redemption If fewer than all ofsub-series of the 2014 Series One Bonds areto be redeemed prior to maturity the BondBank may selectthe maturity or maturities of such sub-series to be redeemed at the option ofthe Bond Bank If at the time notice of redemption is given the 2014 Series One Bonds are in book-entry form then DTC will selectthe 2014 Series One Bonds for redemption within maturity in accordance with theLetter of Representations The 2005 General Bond Resolution provides that if less than all of the Bonds of any one maturity of Seriesarecalled for redemption and the Bonds arenot in book-entry form the Bonds to be redeemed areto be selected by lot by the Trustee or in any manner as the Trustee in its sole discretion may deem appropriate and fair See Appendix DTC and Book-Entry System The remainder of this page has intentionally been left blank SECURITY FORTHE 2014 SERIES ONEBONDS General The 2014 Series One Bonds constitute generalobligations of the Bond Bank and the full faith and credit of the BondBank are pledged tothe payment of the principal of and interest on the 2014 Series One Bonds The 2014 Series One Bonds do not constitute an indebtedness orother liability of the State of Alaska and the 2014 Series One Bondsdo not directly indirectly or contingently obligate theState of Alaska to levy any form of taxation or make any appropriation for the payment of the 2014 Series One Bonds Neither the faith and credit nor the taxing power of the State of Alaska is pledged for the payment of the 2014 Series One Bonds TheBond Bank has no taxing power As of January 2014 not taking into account the issuance of the 2014 Series One Bonds the BondBank has outstanding $58580000 of generalobligation bonds issued under its 1976 General Bond Resolution $768820000 of Bonds issued under its 2005 General Bond Resolution and $4435000 of general obligation bonds issued under its 2010 Municipal Obligation Bond Resolution As additional security for payment of principal of and interest on the 2014 Series One Bonds and other Bonds issued under the 2005 General Bond Resolution the BondBank has established common Reserve Fund See SECURITY FOR THE 2014 SERIES ONE BONDS 2005 General Bond Resolution Reserve Fund The Act provides that in order to ensure the maintenance of the Reserve Fund Requirement the Chairof the Bond Bank is annuallyrequired before each January 30 to make and deliver tothe Governor and to theState Legislature certificate stating the amount if any required to restorethe Reserve Fund tothe amount of the Reserve Fund Requirement Money received by the BondBank from theState pursuant to such certification will totheextent such certification was occasioned by thefactthatthe amount in the Reserve Fund was less than the Reserve Fund Requirement be deposited in the Reserve Fund The State Legislature is legally authorized butnot legally obligated to appropriate such sums during the then currentState fiscal year This provision of the Act does notcreate debt obligation on behalf of theStateor legally enforceable obligation of theState Beginning in 2009 and continuing through the current fiscal year 2014 the BondBank has been obligated to seek and has obtained standingappropriation withinthe Statesannual operating budget to replenish the Reserve Fund if necessary No such replenishment from State appropriation has been necessary If the BondBank must draw on the Reserve Fund because of default byGovernmental Unit an amount equal to the amountdrawn from the Reserve Fund is appropriated from the States General Fund tothe Reserve Fund There is no guarantee thatthe Bond Bank will be able to secure future standing appropriations withinthe States operating budget for replenishment of the Reserve Fund Pledge Effected by the 2005 General Bond Resolution Pursuant to the 2005 General Bond Resolution all Municipal Bonds all Municipal Bonds Payments the investments thereof and the proceeds of such investments and all funds and accounts established by the 2005 General Bond Resolution are pledged and assigned tothe Trustee equally and ratably to secure the payment of the principal of redemption premium if any and interest on all Bonds subjectonly tothe provisions of the 2005 General Bond Resolution permitting the application thereof for the purposes andon the terms and conditions specified in the 2005 General Bond Resolution The Act and the 2005 General Bond Resolution provide among other things that any pledge made in respect of the Bonds will be valid and binding from the time the pledge is made ii the Municipal Bonds the Municipal Bonds Payments and all other money and securities so pledged and thereafter received by the Bond Bai-ik immediately will be subject to the lien of such pledge without any further act and iii the lien of any such pledge will be valid and binding against all parties having any claims of any kind in tort contract or otherwise against the BondBank irrespective of whether the parties have notice Municipal Bonds Under the provisions of the Act and the 2005 General Bond Resolution the BondBank can purchase Municipal Bonds from any Governmental Unit The 2005 General Bond Resolution defmes Municipal Bonds as general obligation bonds revenue bonds notes orother evidences of debt issued by any Governmental Unit as now orhereafterdefined in the Act which have heretofore been or will hereafter be acquired by the BondBank as evidence of Loan tothe Governmental Unit pursuant to the Act For each issue of Municipal Bonds thatthe BondBank purchases the BondBank will obtain bond counsels opinion stating that such Municipal Bonds are valid debt obligations of such Governmental Unit as required by the Act and Loan Agreement has been duly authorized and executed between the BondBank and the Governmental Unit thatconstitutes valid and binding obligation of the Governmental Unit Each Loan Agreement obligates Governmental Unit to make interest payments on its Municipal Bond sufficient in amount and at such timesto provide the Bond Bank funds to meet interest payments on its Loan Obligations as they become due and make principal payments on its Municipal Bond sufficient in amount and at such timesto provide the BondBank funds to meet principal payments on its Loan Obligations as they become due Pursuant tothe Loan Agreement the Governmental Unit may be required to pay fees and charges tothe BondBank to meet the Governmental Units allocable portion of certain expenses Each Loan Agreement alsocontains restrictions on thesale or redemption of Municipal Bonds 2005 General Bond Resolution Reserve Fund The 2005 General Bond Resolution establishedthe Reserve Fund to be held by the Trustee and maintained at an amount equal to the Reserve Fund Requirement The Reserve Fund Requirement is equal tothe least of the following 10%of the initial principal amount of each Series of Bonds then Outstanding ii Maximum AnnualDebt Service with respect to all Bonds Outstanding iii 125%of Average AnnualDebt Service on all Bonds Outstanding or iv such lower amount as may be required by law See DEFINITIONS Required Debt Service Reserve The Reserve Fund has been funded with Bond proceeds and cash deposits from the BondBank The Reserve Fund does notcontain any surety policies orother forms of liquidityfacility The Reserve Fund Requirement may however be satisfied entirely or in part by letter of credit line of credit credit facility surety bond bond insurance or any otherinstrument or arrangement obtained in connection withthe issuance of Series of BondsAs of December 31 2013 the accreted valuation was approximately $43.0 million unaudited an amount sufficient to satisfy the Reserve Fund Requirement As of that date approximately 61%of theassets in the Reserve Fund were funded from cash deposits by the BondBank from the Custodian Fund The 2005 General Bond Resolution requires the BondBank to annually submit totheState budget request for an appropriation to replenish the reservetothe Reserve Fund Requirement in the event thatthere is deficiency as result of default by borrower Since 2009 and continuing through fiscal year 2014 theState has included in its operating budget standing appropriation to replenish the Reserve Fund if necessary While the BondBank has been obligated to seek and has obtained such standingappropriation withinthe Statesannual operating budget theState is not obligated legally or otherwise to includethe appropriation in its annual operating budget This credit feature is in addition to the moral obligation feature discussed below On orbefore December 31 of each year and subject tothe requirements of the 2005 General Bond Resolution the Trustee will transfer from the Reserve Fund any amounts remaining in the Reserve Fund derived from income or interest earned and profits realized by the Reserve Fund due to investments thereoftothe Operating Fund but only to the extentthatthere remains after such transfer an amount in the Reserve Fund equal to the Required Debt Service Reserve See SUIvIIvIARY OF THE 2005 GENERAL BOND RESOLUTION Funds and Accounts Reserve Fund Moral Obligation TheBondBank is required to deliver statement tothe Governor and theState Legislature annually before January 30 stating the amount if any necessary torestorethe Reserve Fund tothe Required Debt Service Reserve resulting from draw on the Reserve Fund at any time during the prior year The State Legislature may but is under no legal obligation to appropriate money sufficient to restore the Reserve Fund to the Required Debt Service Reserve TheBondBank has never reporteddeficiency in any of thereserve funds held by the Bond Bank Custodian Account Money not held by the Trustee in the Reserve Fund or in reserves for bonds issued under other bond resolutions is maintained by the BondBank in an account hereinreferred to as the Custodian Account the Custodian Account The Custodian Account contains direct and indirect State appropriations prior year retained earnings not subject tothe statutory annual earnings transfer and current year investment earnings As of June 30 2013 the Custodian Accountcash and cash equivalents and investments at fair value balance audited was $23365797 As of December 31 2013 the Custodian Account market valuebalance unaudited was $24226154 The Act requires that earnings on funds directly appropriated by theState to the BondBank be transferred to theState in the following fiscal year However starting in fiscal year 2009 and continuing through fiscal year 2014 all prior fiscal year earnings due tothe States general fund by statute havebeen appropriated tothe Bond Banks custodian account The State Legislature may but is under no legal obligation to appropriate statutory earnings back to the Bond Bank The entire Custodian Account balance is available for appropriation at any time by theState Legislature State Payments The Act provides that any department or agency of the State after notice from the BondBank that Governmental Unit is in default on the payment of the principal of or interest on its Municipal Bonds then heldor owned by the Bond Bank will withhold the payment of money held by it and payable to suchGovernmental Unit and pay over such money tothe BondBank for the purpose of paying principal of and interest on the bonds of the Bond Bank State payments to Governmental Unitsinclude payments through the SchoolDebtReimbursement Program and Education Support Funding through the Department of Education and Early Development and community jail funding through the Department of Corrections table appears in Appendix that presents the amount of State payments to communities that have borrowed from the BondBank as well as the maximum annual loan payments and associated estimated coverage provided by those State payments There is no guarantee thatState payments will continue or remain at thecurrentlevels The payment and amount of such State payments is uncertain and Legislative authorization for such payments is subject to appropriation and amendment or repeal See APPENDIX STATE PAYMENTSTO GOVERNMENTAL UNITS The BondBank has never implemented theState payment intercept remedy Pledge of theState Pursuant tothe Act the State has pledged and agreed with theholders of the Bonds that it will not limit or restrict the rights vested in the BondBank by the Act to among other things purchase hold and dispose of Municipal Bonds and fulfill the terms of an agreement including the 2005 General Bond Resolution made by the BondBank with such holders or in any way impair the rights or remedies of such holders until the Bonds including interest on the Bonds and interest on unpaid installments of interest and all costs and expenses in connection with an action or proceeding by or on behalf of such holders are fully met paid and discharged THE ALASKA MUNICIPAL BOND BANK Organization The powers of the BondBank are vested in theDirectors The membership of the BondBank consists of five Directorsthe Commissioners of the Department of Revenueand the Department of Commerce Community and Economic Development of theState and three Directors appointed by the Governor The three appointees serve four-year staggered terms and must be qualified voting residents of theState The Commissioners of the Department of Revenue and the Department of Commerce Community and Economic Development may appoint delegates tothe BondBank Board of Directorsto serve intheir absence The Directors elect one of their members as chair and one of their members as vice-chair and alsoelect secretary and treasurer who need not be Directors Action may be taken and motions and resolutions adoptedby the BondBank at any meeting by the affirmative vote of atleast threeDirectors The Directors appoint an Executive Directorto manage the business of the BondBank Board ofDirectors The Bond Banks Board of Directorsincludes members listed below Mark Pfeffer Chair Term expiresJuly 15 2017 Mr Pfeffer was originally appointed tothe Board on October 10 2001 Mr Pfeffer is registered architect whoowns an architectural practice in Anchorage Alaska He is active in the development design and management of commercial real estate projects many of which include public/privatepartnerships He is President of Pfeffer Development LLCMr Pfeffer received Bachelor of Architecture Degree from the University of Nebraska in 1980 Luke Welles Vice-Chair Term expiresJuly 15 2015 Mr Welles was originally appointed tothe Board on May 21 2008 Mr Welles became Vice President of Finance of theArctic Slope Native Association Ltd in March2011 Prior to his current job he served as Chief Financial Officer of LifeMed Alaska LLC which provides medivac services in Alaska Previously Mr Welles was the Chief Financial Officer for the Yukon Kuskokwim Healthcare Corporation which administershealthcare in 52 rural communities including hospital located in Bethel Alaska He has management experience in healthcare civil construction and commercial real estate Over the past 15 years he hasserved on several economic development commissions in the State as city council member in Homer Alaska and on multiple boards Mr Welles received Bachelor of Arts Degree in Foreign Service and International Business from Baylor University in 1989 Gregory Gursey Member Term expiresJuly 15 2014 Mr Gursey was appointed tothe Board on June 22 2009 Mr Gursey became President of Benefit Brokers Inc in 2001 after working as Vice President of Investments for Wedbush Morgan Securities for 11 years Mr Gursey also servesas FINRA industry arbitrator in both civil and industry arbitration cases After graduating from the University of Alaska Anchorage with degree in finance Mr Gursey became involved with the University of AlaskaFoundation He served as the first Chairman of the UAA College of Fellows served asTrustee tothe UA Foundation and was member of the Investment Committee tothe UA Foundation Mr Gursey hasserved on both theState of Alaska Dental Examiners Board and the U.S Treasury DepartmentsTaxpayer Advocacy Panel He served on the Investment Commission for the Municipality of Anchorage and severalother local boards Ted Leonard Member Mr Leonard is the first delegate for Susan Bell Commissioner of the Department of Commerce Community and Economic Development Mr Leonard was appointed Executive Director of the Alaska Industrial Development and Export Authority AIDEA on May 19 2008 He was most recently the Deputy Commissioner of the Department of Commerce Community and Economic Development In the Deputy Commissioner capacity he oversaw the regulatory divisions of the department which includedthe Division of Insurance the Divisionof Banking and Securities and theDivision of Corporations Business and Professional Licensing He servedas the Commissioners designee on the boards of the Alaska Housing Finance Corporation Alaska AerospaceDevelopment Corporation and Alaska Community Service Commission Mr Leonard has worked for the last 19 years in both the government and private sector in the areas of finance and accounting in Alaska including the Mat-Su and LowerKuskokwim School Districts as well as the City of Dillingham He also served as the Director of Finance and Administrative Services for the City of Wasilla He received his undergraduate degree from the College of Idaho and Masters of Management fromWillamette University He is Certified Management Accountant and SeniorProfessional in Human Resources Pamela Leary Member Ms Leary is the first delegate for Angela Rodell Commissioner of the Department of Revenue She has been chosen to lead the Treasury Division as the state treasurer Shehad served as state comptroller since 2007 Ms Leary began hercareer as an auditor with Price Waterhouse and became partner in the firm PricewaterhouseCoopers After moving to Alaska Leary owned and operated business before reentering the accounting profession with the Alaska Permanent Fund Corporation She holds bachelors degree in economics from the Wharton School University of Pennsylvania and is certified public accountant in the State of Alaska Management Deven Mitchell who also serves as State Debt Manager and Investment Officer in the Department of Revenue Division of Treasury was appointed Executive Director of the BondBank in 1999 Mr Mitchell has worked for the State Department of Revenue since 1992 He previously heldseveral positions in Alaska financial institutions Mr Mitchellholds Bachelor of Science Degree in Business Administration fromNorthernArizona University Rather than employ staff the BondBank contracts in the private sector for wide range of professional services The Executive Directorcoordinatesthe activities of these professionals which include bond counsel financial advisor accountants auditors fund trustees bond trustees and investment managers Future Financing Plans TheBondBank anticipatesissuing additional bonds pursuant to its 2005 General Bond Resolutionorother bond resolutionswithinthenext 12 months The principal amount of such additional bonds depends on the number and size of the applications for BondBank fmancing from Governmental Units The total amount of BondBank bonds and notes outstanding at any one time may not exceed $1 billion As of Januaiy 2014 the total principal amount of the Bond Banks bonds and notes outstanding not including the 2014 Series One Bonds was $846801495 Debt Payment Record TheBondBank has always made principal and interest payments on its generalobligation and revenue bonds when due No deficiencies have arisen in any BondBank debt service fund orreserve fund nor has there beenneed to exercisethe provision requiring thatState payments to Governmental Units be paid to the Bond Bank BONDS OUTSTANDING Under the provisions of the Act the BondBank can issue additional series of Bonds under its 2005 General Bond Resolution or issue bondsunder otherresolutions The BondBank currently has bonds outstanding under the following resolutions 1976 General Bond Resolution As of January 2014 the BondBank has issued $721985000 of general obligation bondsunder the 1976 General Bond Resolution $58580000 of which remain outstanding 2005 General Bond Resolution The 2014 Series One Bonds are the twenty-eighth issue of Bonds under the 2005 General Bond Resolution As of January 2014 the BondBank has issued $864305000 of general obligation bonds under the 2005 General Bond Resolution not including the principal amount of the 2014 Series One Bonds $768820000 of which remains outstanding 2010 Municipal Obligation Bond Resolution On November 2010 the Bond Banks Board of Directors approved the 2010 Municipal Obligation Bond Resolution 2010 Resolution Bonds issued pursuant tothe terms of the 2010 Resolution are generalobligation bonds equally and ratably secured by pledge and assignment of all obligations acquired by the Bond Bank under the 2010 Resolution As of January 2014 the BondBank has issued $4765000 of generalobligation bonds under the 2010 Resolution $4435000 of which remains outstanding RevenueBond Resolutions The Authority with respect tothe issuance of revenue bonds the BondBank is referredto as the Authority has issued revenue bonds under stand-alone revenue bond resolutions The proceeds of these revenue bonds are applied toward the purchase of revenuebonds issued by municipal borrowers list of the outstanding revenue bond resolutions amount of bonds outstanding and obligated municipal borrowers appears in thetable titled TOTAL BOND BANK BONDS ISSUED AND OUTSTANDiNG ASOF JANUARY 2014 herein Coastal EnergyImpactProgram TheBond Bank issued bonds to provide loansto local governments that qualified for aid under theCoastal Energy Impact Program CEIP CEIP is federal program designed to provide fmancialassistance to coastal states and municipalities facing impacts from offshore oil development The United States Department of Commerce National Oceanic and Atmospheric Administration NOAA and the BondBank entered into an agreementwhereby the Bond Bank was the direct lending agency for the CEIP in the State with $50 million availableto make loans to local governments orto establish reserves for loans to local governments The Bond Bank issued CEIP bonds the proceeds of which were used to purchase bonds issued by the Kenai Peninsula Borough the City of Seward the City of Nome and the City of St Paul The total amount of CEIP bonds outstanding as of December 31 2013 under theCoastal Energy Impact Loan Program was $10581495 consisting of loanstothe City of StPaul and the City of Nome The CEIP loans areadministered directly by NOAA without involvement of the BondBank Bonds issued for the CEIP arenot secured by pledge of any amounts held by or payable to the BondBank under the 2005 General Bond Resolution including the Reserve Fund nor are they secured directly or indirectly by any reserve account created under the Act 10 Direct Loans TheBondBank has purchased certain bond anticipation notes and defeased certain BondBank bonds with money from the Custodian Account while retaining underlying communities bonds As of January 2014 the BondBank holds $1728287 of City of Galena Utility RevenueBondsand $187934 of City of Galena appropriationobligations in its fmancial portfolio Loans by theState of Alaska The BondBank has the statutoiyauthority to borrow funds from theState of Alaskas general fund at the discretion of the Commissioner orthe Department of Revenue In November 2010and August 2011 the BondBank borrowed $6.0 million and $7.0 million respectively from theState for authorized uses of the BondBank The State of Alaskas fiscal year 2013 capital budget converted the 2010 and2011 loansto grants through $13.2 million appropriation to the BondBank that was effective April 15 2012 This amount reflectedthe original loan amounts plus interest accrued on those loans The Bond Bank does not have any loans from theState at this time The remainder of this page is intentionally left blank 11 TOTAL BOND BANK BONDS ISSUED AND OUTSTANDING AS OFJANUARY 2014 Original Amount Amount Issued Outstanding Total 2005 General Bond Resolution G.OBonds $925510000$830025000 II Total 1976 General Bond Resolution G.O Bonds 721985000 58580000 III Total 2010 Resolution G.O Bonds 4765000 4435000 IV RevenueBonds Municipal Borrower 2004B Resolution Municipality of Anchorage Coastal Energy Impact Loan Program REMAINING DEBT CAPACITY AFTER THE ISSUANCE OF THE 2014 SERIES ONE BONDS Debt Limit Section44.85.180 of the Act 1000000000 Less Outstanding Bonds General Obligation Bonds 1976 General Bond Resolution 2010 Resolution 2005 General Bond Resolution RevenueBonds Coastal Energy Loan Program ________ Total Outstanding Debt Remaining Debt Capacity __________ Includes the 2014 Series One Bonds The limit applies to all outstanding bonds or notes issued by the Bond Bank 5365000 35456046 4385000 10581495 $58580000 4435000 830025000 $893040000 4385000 10581495 $908006495 S91993.505 12 DEBT SERVICE REQUIREMENTS OF OUTSTANDIING 2005 GENERAL BOND RESOLUTION GENERAL OBLIGATION BONDS ANDTHE 2014 SERIES ONE BONDS Fiscal Years Ending June 30 2014A Series 2014A Series 2014B Series 2014B Series Fiscal Existing One One One One Total Year Debt Service Principal Interest Principal Interest Debt Service 2014 $63478784 $63478784 2015 76228819 875000$2212191$1800000$25212181368131 2016 76999074 930000 2129100 184000023780682135980 2017 75023273 960000 2101200 185000022603080160503 2018 766588881000000 2062800 1870000 20642081798108 2019 726859191045000 2012800190500017481777823536 2020 68688253 10700001991900194500013481273829965 2021 65563805 1085000197050019950008385370698158 2022 6245255124000001916250 7950002559967589400 2023 6435216533400001796250 69488415 2024 5775361435050001629250 62887864 2025 480368733680000 1454000 53170873 2026 43409984 38000001339000 48548984 2027 4165930339850001149000 46793303 2028 424809374190000 949750 47620687 2029 377210954395000 740250 42856345 2030 32307321 1660000 520500 34487821 2031 313293121740000 437500 33506812 2032 264241481825000 359200 28608348 2033 259202031910000 267950 28098153 2034 18030297 2005000 172450 20207747 2035 13032960 335000 72200 13440160 2036 13044481 345000 58800 13448281 2037 8697702 360000 45000 9102702 2038 8417360 375000 30600 8822960 2039 6802853 390000 15600 7208453 2040 5427750 5427750 2041 5428250 5428250 2042 5429750 5429750 2043 5431500 5431500 2044 5433250 5433250 2045 5429500 5429500 2046 5429750 5429750 2047 5428500 5428500 2048 2155000 2155000 2049 2152500 2152500 $1204945724$47205000$27434041$14000000 1341458$1294926223 Totals may not foot due to rounding The 2014 Series One Bonds are the twenty-eighth Series of Bonds issued under the 2005 General Bond Resolution 13 SUMMARY OF THE 2005 GENERAL BOND RESOLUTION The following is summary of certain provisions of the 2005 General Bond ResolutionFor complete statement of the provisions or contents of the 2005 General Bond Resolution see Appendix Words and terms used in this summary are defined in the above-mentioneddocument and will have the same meanings herein as contained in that document except as defined in this Official Statement 2005 General Bond Resolution Constitutes Contract The 2005 General Bond Resolution constitutes contract between the Bond Bank the Trustee and the owners of the Bonds and the pledges made in the 2005 General Bond Resolution and the covenants and agreements therein set forth to be performed by the BondBank will be for the equal and proportionatebenefit protection and security of the holders of any and all of the Bonds all of which will be of equal rank without preference priority or distinction Obligation of Bonds The Bonds are general obligations of the Bond Bank and the full faith and credit of the BondBank are pledged for the payment of the principal or redemption price of interest onand sinking fund installments for the Bonds solely from the sources provided in the 2005 General Bond Resolution and any Series Resolution The State will not be liable for payment on the Bonds and the Bonds will not be debt or liability orconstitute pledge or loan of the faith and credit of theState Pledge The Municipal Bonds and the Municipal Bonds Payments the investments thereof and the proceeds of such investments if any and all funds and accounts established by the 2005 General Bond Resolution to be held by the Trustee are pledged and assigned for the payment of the principal of redemption price of interest on and sinking fund installments for the Bonds in accordance with the terms and provisions of the 2005 General Bond Resolution subjectonly to the provisions of the 2005 General Bond Resolution permitting the application thereof for the purposes and on the terms and conditions set forth in the 2005 General Bond Resolution The Municipal Bonds and the Municipal Bonds Payments and all other money and securities pledged pursuant tothe 2005 General Bond Resolution immediately will be subject tothe lien of such pledge without any further act and such lien will be valid and binding as against all parties having claims of any kind in tort contractorotherwise against the Bond Bank regardless of whethersuch parties have notice thereof Power toIssue Bonds and Make Pledges TheBond Bank covenants that it is duly authorized by law toissue the Bonds and to pledge the Municipal Bonds Payments the Municipal Bonds and other money securities funds and propertypurported to be pledged by the 2005 General Bond Resolution which will be free and clear of any pledge lien charge or encumbrance thereon or with respect thereto prior to or of equal rank with the pledge created by the 2005 General Bond Resolution except for the liens in favor of the Trustee and Paying Agent as provided in the 2005 General Bond Resolution TheBondBank will at all times to the extent permitted by law defend preserve and protect the pledge of the Municipal Bonds Payments the Municipal Bonds and other money securities funds and property pledged under the 2005 General Bond Resolution and all the rights of the Bondholdersunder the 2005 General Bond Resolution against all claims and demands of all persons whomsoever General TheBondBank will doand perform or cause to bedoneand performed all acts and things required to be done or performed by or on behalf of the Bond Bank under law and the 2005 General Bond Resolution in accordance with the terms thereof 14 TheBondBank pledges and agrees with the Holders of the Bonds that it will not cause theStateto limit or alter the rights vested by the Act in the BondBank to fulfill the terms of anyagreements made with Bondholders or in any way impair the rights and remedies of such Bondholders until the Bonds together with the interest thereon with interest on any unpaid installments of interest and all costs and expenses in connection with any action or proceeding by or on behalf of such Holders are fully met and discharged Waiver of Laws TheBondBank will not at any time insist upon or plead in any manner whatsoever or claim or take the benefit or advantage of any stay orextension of law now or at any time hereafter in force which may affectthe covenants and agreements contained in the 2005 General Bond Resolution or in any Series Resolution or in the Bonds and all benefit or advantage of any such law or laws is hereby expressly waived by the Bond Bank Loan Agreement Provisions No loan will be made by the BondBank from proceeds of thesale of Bonds and no Bonds will be issued for the purpose of providing funds with which to make loan unlessthe Loan Agreement underwhichsuch loan is to be made will comply with butnot be limited to the following The Governmental Unit which is party to such Loan Agreement must be Governmental Unit as defined by the 2005 General Bond Resolution and the Loan Agreement must be executed in accordance with existing laws The Governmental Unit prior to or simultaneously with the issuance of Bonds will issue Municipal Bonds which are valid debt obligations of the Governmental Unit as required by the Act The Municipal Bonds Payment to be made by the Governmental Unit undersuch Loan Agreement will be notless than the interest and principal payments the BondBank is required to make on the Loan Obligations and will be scheduled by the BondBank in such manner and at such times as to provide funds sufficient to pay principal and interest on the Loan Obligations as the same become due The Governmental Unit will be obligated to pay Fees and Charges tothe Bond Bank at thetimes and in the amountswhich will enable the BondBank to comply with the provisions of the 2005 General Bond Resolution The Governmental Unit will agree that in the event the Municipal Bonds Payment is not paid by it tothe BondBank on or beforethetimes specified in the Loan Agreement any money payable tothe Governmental Unit by any department or agency of the State will be withheldfrom suchGovernmental Unit and paid over directly tothe Trustee acting under the 2005 General Bond Resolution TheBondBank will not sell and the Governmental Unit will not redeem prior to maturity any of the Municipal Bonds with respect to which the Loan is made in an amount greater than the Outstanding Bonds issued with respect to such Loan which are then redeemable and any such saleor redemption of such Municipal Bond will be in an amount not less than the aggregate of the principal amount of the Loan Obligation to be redeemed ii the interest to accrue on the Loan Obligation so to be redeemed tothenext redemption date iii the applicable redemption premium and iv thecosts and expenses of the Bond Bank in effecting the redemption of the Loan Obligation 15 The Government Unit must give the BondBank at least fifty 50 days notice of its intent to redeem its Municipal Bonds Modificationof Loan Agreement Terms TheBondBank will not consent tothemodification of or modify therates of interest of or the amount or timeof payment of any installment of principal of or interest on any Municipal Bonds evidencing Loan or the amount or time of payment of any Fees and Charges payable with respect to such Loan or the security for or any terms or provisions of such Loan or the Municipal Bonds evidencing the same in manner which adversely affectsordiminishesthe rights of the Bondholders Enforcement of Municipal Bonds TheBondBank will diligently enforce and take all reasonable steps actions and proceedings necessary for the enforcement of all terms covenants and conditions of all Loan Agreements and the Municipal Bonds including the prompt collection and the giving of noticetothe Commissioner of Revenue Commissioner of Commerce Community and Economic Development and the Commissioner ofAdministration and any other department or agency of theState which is custodian of any money payable tothe Governmental Unitof any failure or default of the Governmental Unit in the payment of its Municipal Bonds Payments and will promptly transfer any such money upon receipt thereof tothe Trustee and the Trustee will deposit any such money in the Principal Account and Interest Account in place of said unpaidMunicipal Bonds Payments or in the event deficiencies in said Accounts created by such default will havebeen made up by the Reserve Fund into the Reserve Fund totheextent of such deficiencies Fundsand Accounts The 2005 General Bond Resolution established Debt Service Fund consisting of an Interest Account Principal Account and Redemption Account Reserve Fund Rebate Fund which consists of separate sub- account for each Series of Bonds and an Operating Fund The Debt Service Fund the Rebate Fund and the Reserve Fund are held by the Trustee The Operating Fund is held by the Bond Bank Debt Service Fund The Trustee will deposit Municipal Bonds Interest Payments and any other money available for the payment of interest in the Interest Account upon receipt thereof The Trustee will on orbefore each interest payment date pay out of the Interest Account the amounts required for the payment of the interest becoming due on each series of Bondson such interest payment date The Trustee will deposit Municipal Bonds Principal Payments and any other money available for the payment of principal in the Principal Account upon receipt thereof The Trustee will on orbefore each principal payment date or Sinking Fund Installment date pay out of the Principal Account the amounts required for the payment of the principal or Sinking Fund Installment due on each series of Bonds on such date The Trustee establishes in the Redemption Account separate sub-account for each Series of Bonds Any money deposited into the Redemption Account from any source other than pursuant to Section 607 or Section 916 of the 2005 General Bond Resolution will be applied to the purchase or redemption of Bonds Any money deposited into the Redemption Account from the Reserve Fund because of reduction in the Required Debt Service Reserve will be applied to the purchase or redemption of Reserve Fund Obligations Reserve Fund Monthly the Trustee will set aside from amounts in the Reserve Fund derived from investment earnings and profits realized by the Reserve Fund due to investments thereof an amount which when added to the amounts theretofore set aside for such purpose and not paid into the Interest Account will on such date be equal to the unpaid interest on the Reserve Fund Obligations accrued and to accrue tothe last day of such month 16 On orbefore each principal payment date and Sinking Fund Installment payment date of Reserve Fund Obligations the Trustee will withdrawfrom amounts in the Reserve Fund and deposit in the Principal Account an amount which when added tothe amount then on deposit in the Principal Account and derived from sources other than Municipal Bonds Payments will be equal tothe Principal Installment of the Reserve Fund Obligations falling due on such date On orbefore December 31 of each year after satisfying the deposit requirements set forth above the Trustee will withdrawfrom the Reserve Fund any amount remaining thereinderived frominvestment earnings or profits due to investments thereof and pay over said amount tothe BondBank for deposit in the Operating Fund but only totheextentthatthere remains after such withdrawal an amount in the Reserve Fund at least equal to the Reserve Fund Requirement TheBondBank will pay into the Reserve Fund money made available by theState and paid by the State for the purpose of the Alaska Municipal BondBank Reserve Fund created by the Act in the amount provided by Series Resolution all money paid tothe BondBank pursuant to the Act -for the purpose of restoring the Reserve Fund to the amount of the Reserve Fund Requirement such portion of the proceeds of sale of Bonds if any as will be provided by any Series Resolution Credit Enhancement and any other money which may be made availabletothe BondBank for the purposes of the Reserve Fund from any other source or sources The Reserve Fund Requirement may be satisfied entirely or in part by letter of credit line of credit credit facility surety bond or any otherinstrumentor arrangement obtained in connection with the issuance of Series of Bonds provided however any credit enhancement satisfying all or any part of the Reserve Fund Requirement after the initial issuance of BOnds or issued in substitution of any prior credit enhancement previously issued will not by itself cause withdrawal or downward revision of the ratings maintained by any Rating Agency with respect tothe Bonds Inthe event there will be deficiency in the Interest Account or in the Principal Account the Trustee will make up such deficiencies from the Reserve Fund Administration of Reserve Fund Money and securities held in the Reserve Fund will not be withdrawn therefrom at any time in suchamount as wouldreduce the amount in such Fund to an amount less than the Reserve Fund Requirement except for the payment when due of debt service on Reserve Fund Obligations and to cure deficiency in the Principal Account or the Interest Account Rebate Fund There will be deposited in the Rebate Fund the amount of the Rebate Requirement for each Series of Bonds and the Trustee will pay over tothe United States Governmentsuch amounts as determined by the BondBank and as set forth in the 2005 General Bond Resolution All amounts held in the Rebate Fund including incomeearned frominvestment of the Rebate Fund shall be held by the Trustee free and clear of the lien of the 2005 General Bond Resolution Operating Fund There will be deposited in the Operating Fund all Fees and Charges to the extentnot otherwise encumbered or pledged and any other money which may be made available to the BondBank therefor from any other source or sources Money at any time held for the credit of the Operating Fund will be used for and applied solely tothe following purposes to pay theAdministrative Expenses of the Bond Bank to pay thefees and expenses of the Trustee and any Paying Agent to payfmancing costsincurred with respect to Series of Bonds and to payanyexpenses incurred in carrying out any other purpose then authorized by the Act All amounts in the Operating Fund will be free and clear of any lien or pledge created by the 2005 General Bond Resolution 17 Security for Deposits All money held by the Trustee will be continuously and fully secured for thebenefit of the BondBank and the Bondholders in such maimer as may then be required or permitted by applicable Stateorfederal laws and regulations regarding the security for or granting preference in the case of the deposit of trust funds It will not be necessary for the Trustee or any paying agent to givesecurity for the deposit of any money with them held in trust for the payment of the principal or Redemption Price of or interest on any Bonds or for the Trustee to give security for any money which will be represented by obligations purchased under the provisions of the 2005 General Bond Resolution as an investment of such money Payment of Bonds TheBondBank will duly and punctually pay or cause to be paid the principal or Redemption Price if any of every Bond and the interest thereon at the dates and places and in the manner provided in the Bonds according to thetrue intent and meaning thereof and will duly and punctually satisf all Sinking Fund Installments if any becoming payable with respect to any Series of Bonds Fees and Charges TheBondBank may charge suchFees and Charges to each Governmental Unit to which Loan is made and will revise suchFees and Charges if necessary so that such Fees and Charges actually collected from each such Governmental Unit will at all times produce money which together with such Governmental Units Allocable Proportion of other money available under the provisions of the 2005 General Bond Resolution and other money available therefor will be atleast sufficient to pay as the samebecome due the Governmental Units Allocable Proportion of theAdministrative Expenses of the BondBank and of thefees and expenses of the Trustee and any Paying Agent Issuance of Additional Obligations TheBond Bank may issue additional Bonds and refunding Bonds pursuant tothe terms of the 2005 General Bond Resolution however no additionalseries of Bonds will be issued unless the aggregate principal amount of Bondsand Notes Outstanding at the timeof issuance and delivery of such additional Bonds including the principal amount of such additional Bonds will not exceed any limit thereon imposedby State law there is at the timeof the issuance of such additional Bonds no deficiency in the amounts required by the 2005 General Bond Resolution or any Series Resolution to be paid into the Debt Service Fund and into the Reserve Fund the amount of the Reserve Fund upon the issuance and delivery of such additional Bonds will not be less than the Required Debt Service Reserve and the maturities of or Sinking Fund Installments for theadditional Bonds representing Loan Obligations unless such additional Bonds are being issued to refund Outstanding Bonds will be equal tothe scheduled Municipal Bonds Principal Payments to be made in respect of the Loans with respect to whichsuch additional Bonds areto be issued TheBondBank expressly reservesthe right to adopt other general bond resolutions and reserves the right to issue notes and any other obligations so long as the same arenot charge or lien on the Municipal Bonds the Municipal Bonds Payments and the Fees and Charges or payable from the Debt Service Fund or the Reserve Fund 18 Defeasance If the BondBank will pay or cause to be paid totheholders of all Bonds then Outstanding the principal and interest and/or Redemption Price if any to become due thereon at thetimes and in the manner stipulated therein and in the 2005 General Bond Resolution and also will pay or cause to be paid all other sums payable under the 2005 General Bond Resolution including any amounts payable tothe United States then at the option of the Bond Bank as expressed in an instrument in writing signed by an Authorized Officer and deliveredtothe Trustee the covenants agreements and other obligations of the BondBank tothe Bondholders will be discharged and satisfied All Outstanding Bonds of any Series will prior tothe maturity or redemption date thereof be deemed to havebeen paid if in case any of said Bonds are to be redeemed on any date prior to their maturity the BondBank will have given tothe Trustee in form satisfactory to it irrevocable instructions to publish notice of redemption on said date of such Bonds and there will have been deposited with the Trustee either monies in an amountwhich will be sufficient or Investment Securities which arenot subject to redemption prior tothe dates on whichamounts will beneeded to make payments on the Bonds and described in clause of the definition thereof the principal of and the interest on which when due will provide money which together with the money if any deposited with the Trustee or Paying Agent at the same time will be sufficient to pay when due the principal or Redemption Price if applicable and interest dueand to become dueon said Bonds on and prior tothe redemption date or maturity date thereof as may be the case If the BondBank defeases any 2014B Series One Bond such 2014B Series OneBond may be deemed to be retired and reissued for federal income tax purposes as result of the defeasance In such event the Owner of 201 4B Series OneBond would recognize gain or loss at the time of the defeasance See TAX MATTERS 2014B Series One Bonds Supplements andAmendments The BondBank may adopt Series Resolution or Supplemental Resolutionwithout the consent of the Bondholders or the Trustee for various purposes notinconsistent with the 2005 General Bond Resolution to provide for the issuance of additionalSeries of Bonds to impose additional limitations or restrictions on the issuance of Bonds to impose other restrictions on the Bond Bank to surrender any right power or privilege or to confirm any pledge of or lien upon the Municipal Bonds orthe Municipal Bonds Payments or any other funds TheBondBank may also supplement the 2005 General Bond Resolution to cure any ambiguity or defect in the 2005 General Bond Resolution provided such modifications arenot contrary to or inconsistent with the 2005 General Bond Resolution as theretofore in effect Any modificationor amendment of the 2005 General Bond Resolution and of the rights and obligations of the BondBank and of the Bondholders may be made with the written consent of theholders of atleast two-thirds in principal amount of the Bonds Outstanding at the time such consent is given or in case less than all of theseveralSeries of Bonds then Outstanding are affected by the modificationor amendment of theholders of atleast two-thirds in principal amount of the Bonds of each Series so affected and Outstanding at the time such consent is givenprovided however that such modificationor amendment will not permit change in the terms of redemption or maturity of the principal of any outstanding Bond or of any installment of interest thereon or Sinking Fund Installment therefor ii reduction in the principal amount orthe Redemption Pricethereof or in therate of interest thereon iii reduction of the percentage of the Holders of which is required toeffect any such modification or amendment or iv thecreation of any lien prior to or on parity with the lien created by the 2005 General Bond Resolution except in the manner provided by the 2005 General Bond Resolution or deprive the Bondholders of the lien created by the 2005 General Bond Resolution without the consent of theholders of all the Bonds Outstanding or of theSeries of Bonds affected by such modificationor amendment To theextent thatthe full payment of the interest and principal of Bonds of Series is secured by Credit Enhancement the Credit Enhancement Agency will be considered to be the Bondholder of all the Bonds of theSeries for purposes of exercising any rights with respect to supplements and amendments tothe 2005 General Bond Resolution if the Credit Enhancement so provides 19 Events of Default and Remedies Each of the following events is an Event of Default under the 2005 General Bond Resolution the Bond Bank defaults in the payment of the principal or Redemption Price of Sinking Fund Installment for or interest on any Bondwhen and as the same will become due whether at maturity or upon call for redemption or otherwise the BondBank fails or refusesto comply with the provisions of the Act regarding the certification of deficiencies in the 2005 General Bond Resolution Reserve Fund or such amounts as will be certified tothe Governor and to the Legislature pursuant tothe Act will not be appropriated and paid to the BondBank prior tothe termination of the then currentState fiscal year or the BondBank fails or refusesto comply with the provisions of the Act other thanas provided in above ordefaults in the performance or observance of any other of the covenants agreements orconditions on its part in the 2005 General Bond Resolution any Series Resolution any SupplementalResolution or in the Bonds contained and such failure refusal ordefault will continue for period of 45 days after written notice thereof by the Trustee or the Holders of not less than 25 percent in principal amount of the Outstanding Bonds provided however that an event of default will not be deemed to exist under the provisions of clause above upon the failure of the BondBank to make and collect Fees and Charges required to be made and collected by the 2005 General Bond Resolution or upon the failure of the BondBank to enforce any obligation undertaken by Governmental Unit pursuant to Loan Agreement including the making of the stipulated Municipal Bonds Payments so long as the BondBank may be otherwisedirected by law and so long as the Bond Bank will be provided with money from theState or otherwise other thanwithdrawals from or reimbursements of the Reserve Fund sufficient in amount to pay the principal of and interest on all Bonds as the same will become due during the period for which the BondBank will be directed by law toabstain from making and collecting suchFees and Charges and from enforcing the obligations of Governmental Unit under the applicable Loan Agreement Upon the happening and continuance of any event of default specified in paragraph above the Trustee will proceed or upon the happening and continuance of any event of default specified in paragraphs and above the Trustee may proceed and upon the written request of the holders of not less than 25 percent in principal amount of the Outstanding Bonds will proceed in its own name to protect and enforce its rights and the rights of the Bondholders by such of the following remedies as the Trustee being advised by counsel will deem most effectualto protect and enforce such rights by mandamus orother suit action or proceeding at law or in equity enforce all rights of the Bondholders including the right to require the BondBank to make and collect Fees and Charges and Municipal Bonds Payments adequate to carry outthe covenants and agreements as to and pledge of suchFees and Charges and Municipal Bonds Payments and other properties and to require the BondBank to carry out any other covenant or agreement with Bondholders and to perform its duties under the Act by bringing suit upon the Bonds by actionor suit in equity require the BondBank to account as if it were the trustee of an express trust for theholders of the Bonds by action or suit in equity enjoin any acts or things which may be unlawful or in violation of the rights of theholders of the Bonds 20 Upon the occurrence of an event of default in the payment of principal of and interest on Bonds then Outstanding the Trustee may and upon the written request of theholders of not less than majority in aggregate principal amount of the Bonds at the time Outstanding will declarethe principal of all the Bonds then Outstanding and the interest accrued thereon to bedueand payable immediately and upon any such declaration the same will be immediately dueand payable This provision however is subject totheconditionthat if before anyjudgment or decree for the payment of the money due will have been obtained or entered the BondBank will deposit with the Trustee sum sufficient to pay all principal on the Bonds matured prior to such declaration and all matured installments of interest upon all the Bonds with interest on suchoverdue installments of principal at therate borne by the respective Bonds and the reasonable expenses of the Trustee and any and all other defaults known tothe Trustee will havebeen made good or cured tothe satisfaction of the Trustee or provision deemed by the Trustee to be adequate will havebeen made therefor then the holders of atleast majority in aggregate principal amount of the Bonds then outstanding may on behalf of the holders of all of the Bonds rescind and annul such declaration and its consequences and waivesuch default Bondholders Direction of Proceedings The holders of majority in principal amount of the Bonds then Outstanding will have the right to direct the method of conducting all remedial proceedings to be taken by the Trusteeprovided that such direction will not be otherwise than in accordance with law orthe 2005 General Bond Resolution and thatthe Trustee will have the right todeclinetofollow any such direction which in the opinion of the Trustee would be unjustlyprejudicial to Bondholders not parties to such direction Limitation on Rights of Bondholders No holder of any Bond will have any right to institute any suit action mandamus or other proceeding in equity or at law under the 2005 General Bond Resolution or for the protection or enforcement of any right under the 2005 General Bond Resolution or any right under law unless such holder will have given tothe Trustee written notice of the event of default or breach of duty on account of whichsuch suit actionor proceeding is to be taken and unless theholders of not less than 25 percent in principal amount of the Bonds then Outstanding will have made written request of the Trustee and will have affordedthe Trusteereasonable opportunity either to proceed toexercisethe powers granted under law or to institute such action suit or proceeding in its name and unless also there will havebeen offered tothe Trusteereasonable security and indemnity against the costs expenses and liabilities to be incurred thereby and the Trustee will have refusedor neglected to comply with such request within reasonable time No holder of the Bonds will have any right to affect disturb or prejudice the security of the 2005 General Bond Resolution orto enforce any right with respect to the Bonds orthe 2005 General Bond Resolution except in the manner provided in the 2005 General Bond Resolution and all proceedings at law or in equity will be instituted held and maintained in the manner herein provided and for thebenefit of all Bondholders Excess Earnings TheBondBank covenants and agrees tocalculate Rebatable Arbitrage and to pay Rebatable Arbitrage to the United States of America in the manner necessary to comply with the then applicable federaltax law Within 30 days after the end of every fifth Bond Year and within 60 days of the date when all of each Series of Bonds have been retired or at such other time or times as may then be required by the Code and the applicable Income Tax Regulations the Bond Bank will determine the Rebatable Arbitrage with respect to each Series of Bonds and pay rebate amounts due the United States of America with respectthereto as provided in Section 148f of the Code Modifications to the 2005 General Bond Resolution The 2005 General Bond Resolution authorizesmodifications of any provision set forth in the 2005 General Bond Resolution by the terms of SupplementalResolution with such modifications becoming effective after all Bonds of each Series Outstanding as of the date of such Supplemental Resolution authorizing such modification cease to be Outstanding first supplemental resolution the First Supplemental Resolution was approvedby the Board of Directors of the BondBank at meeting held on February 19 2013 21 The First Supplemental Resolution authorizesthe following modificationstothe 2005 General Bond Resolution toauthorizethe Trustee toreleasetothe BondBank amounts held in the Reserve Fund which exceed the Required Debt Service Reservewhenever there is reduction in the Required Debt Service Reserve ii to authorizethe Trustee torelease to the Bond Bank earnings and profits realized from investments in the Reserve Fund on orbefore June 30 of each year so long as the balance therein equals the Required Debt Service Reserve iii to allow for certain amendments and modifications to the 2005 General Bond Resolution to be effective upon securing the consent of Holders of atleast two-thirds in principal amount of Bonds then Outstanding and iv toestablishthat consent of Holders of Bonds when required under the terms of the 2005 General Bond Resolution specifically includesthe consent of an underwriter or purchaser of Series of Bonds at thetime such Bonds are issued The modifications to the 2005 General Bond Resolution set forth in the First Supplemental Resolution shall become effective after all Bonds issued prior to the 2013 Series One Bonds cease to be Outstanding and complianceby the Bank with certain requirements set forth in the 2005 General Bond Resolution at which time these modifications will apply to the 2014 Series One Bondsand govern the rights and obligations of the Holders thereof LITIGATION Upon the deliveiy of the 2014 Series One Bonds the BondBank will furnish certificateto theeffect that among other things there is no litigation pending in any courtto restrain or enjoin the issuance or deliveiy of the 2014 Series One Bonds or in any way contesting the validity or enforceability of the 2014 Series One Bonds the 2005 General Bond Resolution or any Bonds or money pledged under the 2005 General Bond Resolution CERTAIN LEGAL MATTERS Legal mattersincidenttothe authorization issuance and sale by the BondBank of the 2014 Series One Bonds are subject to the approving legal opinion of Wohllforth Brecht Cartledge Brooking of Anchorage Alaska Bond Counsel to the Bond Bank The proposed form of the opinion of Bond Counsel is includedherein as Appendix Certain legal matters will be passed upon for the City and Borough of Juneau by its bond counselKLGatesLLPofSeattleWashingtoniitheKenaiPeninsulaBoroughbyitsbondcounselWohlforthBrecht Cartledge Brooking of Anchorage Alaska and iii the Kodiak Island Borough by its co-bond counsel Foster Pepper PLLC of Seattle Washington and the Levesque Law Group LLC of Anchorage Alaska Certain legal matters will be passed upon for the Underwriters by their counsel Foster Pepper PLLC of Seattle Washington Any opinion of such firm will be delivered solely to the Underwriters will be limited in scope and cannot be relied upon by investors WohlforthBrecht Cartledge Brooking hassecured the consent of the BondBank and the Kenai Peninsula Borough regarding the multiple representations of clients inthis transaction Foster Pepper PLLC has secured the consent of the Underwriters and the Kodiak Island Borough regarding the multiple representations of clients in this transaction UNDERWRITING The 2014A Series One Bonds areto be purchasedby RBC Capital Markets LLC RBCCM from the Bond Bank at an aggregate purchase price of $52398788.10 equal tothe aggregate principal amount of the 2014A Series One Bonds plus net original issue premium of $5332469.80 less an underwriters discount of $138681.70 subject tothe terms of Bond Purchase Contract between the BondBank and RBCCM TheBond Purchase Contract provides that RBCCM will purchase all of the 20l4A Series One Bonds if any are purchased 22 and that the obligation to make such purchase is subject tocertain terms and conditions set forth in the Bond Purchase Contract including the approval by counsel of certain matters The 2014B Series One Bonds areto be purchasedby J.P Morgan Securities LLC JPMS from the BondBank at an aggregate purchase price of $13964664.35 equal tothe aggregate principal amount of the 2014B Series One Bonds less an underwriters discount of $35335.65 subject tothe terms of Bond Purchase Contract between the BondBank and JPMS TheBond Purchase Contract provides that JPMS will purchase all of the 201 4B Series One Bonds if any are purchased and thatthe obligation to make such purchase is subject to certain terms and conditions set forth in the Bond Purchase Contract including the approval by counsel of certain matters JPMS has entered into negotiated dealer agreement the Dealer Agreement with Charles Schwab Co Inc CSCo for the retail distribution of certain securities offerings at the original issue prices Pursuant tothe Dealer Agreement if applicable to this transaction CSCo will purchase 201 4B Series One Bonds from JPMS at the original issue price less negotiated portion of the selling concession applicable to any 201 4B Series One Bonds that CSCo sells The initial offering prices or prices corresponding to the yields set forth on theinside cover of this Official Statement may be changed from time to time by the Underwriterswithout prior noticeto any person after the date of thesale of the 2014 Series One Bonds The Underwriters may offer and sell the 2014 Series One Bonds to certain dealers unit investment trusts or money market funds at prices lowerthan the initial offering prices or prices corresponding tothe yields set forth on theinside cover of this Official Statement FINANCIAL ADVISOR Western Financial Group LLC hasacted as financial advisor the Financial Advisor to the BondBank in connection withthe issuance of the 2014 Series One Bonds The Financial Advisor is not obligated to undertake and has not undertaken to make an independent verification orto assume responsibility for the accuracy completeness or fairness of theinformation contained in this Official Statement Western Financial Group LLC is an independent advisory firm registered with theSecurities and Exchange Commission and is not engaged in the business of underwritingtrading or distributing municipal securities orother public securities The Financial Advisor also servesas financial advisor tothe City and Borough of JuneauWestern Financial Group has notified the BondBank and the City and Borough of Juneau of the multiple representations of clients in this transaction FINANCIAL STATEMENTS The financial statements of the BondBank included as Appendix to this Official Statement havebeen audited by BDO USA LLP independent certified public accounts to the extent and for the periods indicated in their report thereon Such fmancial statements havebeen included in reliance upon the report of BDO USA LLP TheBondBank has not requested BDO USA LLP to provide written consent for inclusion of the financial statements in this Official Statement TAX MATTERS 2014A Series One Bonds Tax-Exempt Inthe opinion of Bond Counsel based onan analysis of existing laws regulations rulings and court decisions and assuming among other things compliance with certain covenants interest on the 2014A Series One Bonds is excludable from gross income for federal income tax purposes Interest on the 2014A Series One Bonds is not an item of tax preference for purposes of determining alternative minimum taxable income for individualsor 23 corporations under the Code However interest on the 2014A Series One Bonds is taken into account in determiningadjusted current earnings for purposes of computing thefederalalternative minimum tax imposed on certain corporations Bond Counsel is also of the opinion based on existing laws of theState asenacted and construed that interest on the 2014A Series One Bonds is excludable from taxation by theState except for transfer estate and inheritance taxes TheCode imposes various restrictions conditions and requirements relating totheexclusion from gross income for federal income tax purposes of interest on obligations such as the 201 4A Series One Bonds The Bond Bank and Governmental Units have covenanted to comply with certain restrictions designed to assure that interest on the 2014A Series One Bonds is excludable from federal gross income Failure to comply with thesecovenants may result in interest on the 2014A Series One Bonds being included in federal gross income possibly from the date of issuance ofthe 2014A Series One Bonds Bond Counsels opinion is subject tothecondition that the Bond Bank and the Governmental Units comply with these covenants and in addition will rely on representations by the Bond Bank and the Governmental Units and their advisors with respect to matters solely withinthe knowledge of the Bond Bank the Governmental Units and their advisors respectively Bond Counsel has not undertaken to determine or to inform any person whether any actions taken or not taken or events occurring or not occurring after the date of issuance of the 2014A Series One Bonds may adversely affectthetax status of interest on the 201 4A Series One Bonds Although Bond Counsel hasrendered an opinion that interest on the 20 14A Series One Bonds is excludable from gross income for federal income tax purposes the ownership or disposition of ortheaccrualor receipt of interest on such 2014A Series One Bonds may otherwiseaffect 2014A Series OneBond Owners federal or State tax liability The nature and extent of these othertax consequences will depend upon the 201 4A Series OneBond Owners particular tax status and the 2014A Series OneBond Owners otheritems of income or deduction Bond Counsel expresses no opinion regarding any othertax consequences relating tothe ownership or disposition of or theaccrual or receipt of interest on the 2014A Series One BondsOwners of the 2014A Series One Bonds should consult their taxadvisors regarding the applicability of any collateral tax consequences of owning the 2014A Series One Bonds which may include original issue discount original issue premium purchase at market discount or at premium taxation upon sale redemption orother disposition and various withholding requirements Backup Withholding Interest on tax-exempt obligations such as the 2014A Series One Bonds is in many cases subject toinformation reporting in manner similar to interest paid on taxable obligations Backup withholding may be imposed on payments made after March 31 2007 to any bondholder who fails to provide certain required information including an accurate taxpayer identification number to any person required to collect such information pursuant to Section 6049 of the Code This reporting requirement does not in and of itself affector alter the excludability of interest on the 2014A Series One Bonds from gross income for federal income tax purposes or any otherfederaltax consequence of purchasing holding or selling tax-exempt obligations Original Issue Discount The20 14A Series One Bonds maturing March 2035and March 2039 the Discount Bonds are being sold at an original issue discount The difference between the initial public offering prices as set forth on the cover page of such Discount Bonds and their stated amounts to be paid at maturity constitutes original issuediscounttreated as interest which is excluded from gross income for federal income tax purposes tothe same extent as interest on the 2014 Series One Bonds The amount of original issuediscount which is treated as having accrued with respect to such Discount Bond is added to the costbasis of the owner in determining for federal income tax purposes gain or loss upon disposition of such Discount Bond including its sale redemption or payment at maturity Amounts received upon disposition of such Discount Bond which are attributable to accrued original issuediscount will be treated as tax exempt interest rather thanas taxable gain for federal income tax purposes 24 Original issue discount is treated as compounding semiannually atrate determined by referencetothe yield to maturity of each individual Discount Bond on days thatare determined by reference to the maturity date of such Discount Bond The amount treated as original issuediscount on such Discount Bond for particular semiannual accrual period is equal tothe product of the yield to maturity for such Discount Bond determined by compounding at theclose of each accrual period and ii the amountwhichwould havebeen thetaxbasis of such Discount Bond at the beginning of the particular accrual period if held by the original purchaser less the amount of any interest payable for such Discount Bond during theaccrual period The taxbasis is determined by adding to the initial public offering price on such Discount Bond the sum of the amounts that havebeen treated as original issue discount for such purposes during all prior periods If such Discount Bond is sold between semiannual compounding dates original issue discount whichwould havebeen accrued for that semiannual compounding period for federal income tax purposes is to be apportioned in equal amounts among the days in such compounding period Owners of Discount Bonds should consult their taxadvisors with respect tothedetermination and treatment of original issuediscount accrued as of any date and with respect tothe state and local tax consequences of owning Discount Bond Original Issue Premium The20 14A Series One Bonds maturing March 2015 through and including March 2024and March 2026 through and including March 2034 collectively the Premium Bonds are being sold at premium An amount equal tothe excess of theissue price of Premium Bond over its stated redemption price at maturity constitutes premium on such Premium Bond An initial purchaser of Premium Bond must amortize any premium over such PremiumBonds term using constant yieldprinciples based on the purchasers yield to maturity or in the case of Premium Bonds callable prior to their maturity by amortizing the premium tothe call date based on the purchasers yield tothe call date and giving effect to the call premium As premium is amortized the purchasers basis in such Premium Bond is reduced by corresponding amount resulting in an increase in the gain or decrease in the loss to be recognized for federal income tax purposes upon sale or disposition of such Premium Bond prior to its maturity Even though the purchasers basis may be reduced no federal income tax deduction is allowed Purchasers of the Premium Bonds should consult with their taxadvisors with respect to thedetermination and treatment of amortizable premium for federal income tax purposes and with respect to the state and local tax consequences of owning Premium Bond Changes in Federal Tax Law From timeto time there are legislative proposals in the Congress and in the states that if enacted could alter or amend thefederal and state taxmattersreferred to above or adversely affectthe market value of the 20 14A Series One Bonds It cannot be predicted whether or in what form any such proposal might be enacted or whether if enacted it would apply to bonds issued prior to enactment In addition regulatory actions are from timeto time announced or proposed and litigation is threatened or commenced which if implemented or concluded in particular manner could adversely affectthe market value of the 2014A Series One Bonds It cannot be predicted whether any such regulatory action will be implemented how any particular litigation or judicial action will be resolved or whether the 201 4A Series One Bonds or the market value thereof would be impacted thereby Purchasers of the 2014A Series One Bonds should consult their taxadvisors regarding any pending or proposed legislation regulatory initiatives or litigation The opinions expressed by Bond Counsel are based upon existinglegislation and regulations as interpreted by relevant judicial and regulatory authorities as of the date of issuance and delivery of the 201 4A Series One Bonds and Bond Counsel has expressed no opinion as of any date subsequent theretoor with respect to anypending legislation regulatory initiatives or litigation Bond Counsels opinion is not guarantee of result and is not binding on the Internal Revenue ServiceIRSrathertheopinionrepresentsitslegaljudgmentbaseduponitsreviewofexistingstatutesregulations published rulings and courtdecisions and the representations and covenants of the BondBank TheIRS has an ongoingprogram of auditing the tax-exempt status of the interest on governmental obligations If an audit of the 2014A Series One Bonds is commenced under current procedures the IRS is likely to treat the BondBank as the taxpayer and the owners of the 20 14A Series One Bonds the Owners would have no right to participate in the 25 audit process In responding toor defending an audit of the tax-exempt status of the interest on the 20 14A Series One Bonds the BondBank may have different or conflicting interests from the Owners Public awareness of any futureaudit of the 201 4A Series One Bonds could adversely affectthe value and liquidity of the 20 14A Series One Bonds during the pendency of the audit regardless of its ultimate outcome 2014B Series One Bonds Taxable This advice was written to support the promotion or marketing of the 2014B Series One Bonds and is not intended or written to be used and cannot be usedby taxpayer for the purpose of avoiding any penalties that may be imposed under the Code All taxpayers should seek advice based on such taxpayers particular circumstances from an independent tax advisor In General Inthe opinion of Bond Counsel based onan analysis of existing laws regulations rulings and court decision interest on the 2014B Series One Bonds is included in gross income for federal income tax purposes The following is summary of certain anticipated federal income tax consequences of the purchase ownership and disposition of the 2014B Series One Bonds under the Code and the Income Tax Regulations and the judicial and administrative rulings and courtdecisions now in effect all of which are subject to change or possible differing interpretations The summary does not purport to address all aspects of federal income taxationthat may affect particular investors in light of their individual circumstances nor certain types of investors subject to special treatment under the federal income tax laws Potential purchasers of the 2014B Series One Bonds should consult their own taxadvisors in determining the federal state or local tax consequences to them of the purchase holding and disposition of the 2014B Series One Bonds In general interest paid on the 2014B Series One Bonds original issue discount if any and market discount if any will be treated as ordinary income to the owners of the 201 4B Series One Bonds and principal payments excluding the portion of such payments if any characterized as original issuediscountor accrued market discount will be treated as return of capital Premium An investorthat acquires 201 4B Series OneBond for cost greater than its remaining stated redemption price at maturity and holdsthe 2014B Series OneBond as capital asset will be considered to have purchased the 2014B Series OneBond at premium and subject to prior election permitted by Section 171c of the Code may generally amortize such premium under the constant yield method Except as may be provided by regulation amortized premium will be allocated among and treated as an offset to interest payments The basisreduction requirements of Section 1016a5 of the Code apply toamortizable bond premium that reduces interest payments under Section 171 of the CodeBond premium is generally amortized over the bonds term using constant yield principles based on the purchasers yield to maturity Investors of any 2014 Series OneBond should consult their taxadvisors as totheeffect of such bond premium with respect to their own situation and as to treatment of bond premium for state tax purposes Market Discount An investorthat acquires 2014B Series OneBond for price less than the adjusted issue price of such 2014B Series OneBond or an investor who purchases 2014B Series OneBond in the initial offering at price less than theissue price may be subject tothe market discount rules of Sections 1276 through 1278 of the Code Under these sections and the principles applied by the Income Tax Regulations market discount means in the case of 2014B Series OneBond originally Issued at discount the amount by which theissue price of such 2014B Series One Bond increased by all accrued original issuediscount as if held sincetheissue date exceeds the initial tax 26 basis of the owner therein less any prior payments thatdidnotconstitute payments of qualified stated interest and in the case of 2014B Series OneBond not originally issued at discount the amount by which thestated redemption price of such 201 4B Series OneBond at maturity exceeds the initial taxbasis of the owner therein Under Section 1276 of the Code the owner of such 2014B Series OneBond will generally be required to allocate each principal payment to accrued market discountnot previously included in income and upon saleor other disposition of the 2014B Series One Bond to recognize the gain on such saleor disposition as ordinary income tothatextent of such cumulative amount of accrued market discount as of the date of sale or other disposition of such 2014B Series OneBond or ii toelect to include such market discount and income currently as it accrues on all market discount ii2struments acquired by such owner on or after the first day of thetaxable year to whichsuch election applies The Code authorizesthe Treasury Department toissue regulations providing for the method for accruing market discount on debt instrumentsthe principal of which is payable in more than one installment Until such time as regulations areissued by the Treasury Department certain rules described in the legislative history will apply Under those rules market discount will be included in income either on constant interest basisor in proportion to theaccrual of stated interest or in the case of 20 14B Series OneBond with original issue discount in proportion to theaccrual of original issue discount An owner of 2014B Series OneBond that acquired such 2014B Series One Bond at market discountalso may be required to defer until the maturity date of such 201 4B Series One Bond or its earlier disposition in taxable transaction the deduction of portion of the amount of interest that the owner paidor accrued during thetaxable year on indebtedness incurred or maintained to purchase or carry such 2014B Series OneBond in excess of the aggregate amount of interest including original issue discount includable in such owners gross income for the taxable year with respect to such 2014B Series One Bond The amount of such net interest expense deferred in taxable year may not exceed the amount of market discount accrued on the 2014B Series OneBond for the days during thetaxable year on which the owner held such 201 4B Series OneBond and in general would be deductible when such market discount is includable in income The amount of any remaining deferred deduction is to be taken into account in thetaxable year in which the 2014B Series OneBond matures or is disposed of in taxable transactionInthe case of disposition in which gain orloss is not recognized in whole or in part any remaining deferred deduction will be allowed totheextent gain is recognized on the disposition This deferral rule does not apply if the owner elects to include such market discount in income currently as it accrues on all market discount obligations acquired by such owner in thattaxable year or thereafter Attention is called to the fact that Treasury regulations implementing the market discount rules have not yet been issued Therefore investors should consult their own taxadvisors regarding the application of these rules as well as the advisability of makingany of theelections with respect thereto Sales or Other Dispositions If the owner of 2014B Series OneBond sells such bonds such person will recognize gain or loss equal to the difference between the amount realized on thesale and suchowners basis in such bond Ordinarily such gain or loss will be treated as capital gain or loss If theterms of 201 4B Series OneBond were materially modified in certain circumstances new debt obligation would be deemed created and exchanged for the prior obligation in taxabletransaction Among the modificationsthat may be treated as material are those that relate to redemption provisions and in the case of non recourse obligation those which involvethe substitution of collateral Each potential owner of 2014B Series One Bond should .consult its own taxadvisor concerning the circumstances in whichsuch bond would be deemed to be reissued and the likely effects if any of such reissuance 27 Defeasance The legal defeasance of the 201 4B Series One Bonds may result in deemed sale or exchange of such bondsunder certain circumstances Owners of such 201 4B Series One Bonds should consult their taxadvisors as to thefederal income tax consequences of suchdefeasance Backup Withholding An owner of 2014B Series OneBond may be subject to backup withholding as the applicable rate determined by statute with respect to interest paid with respect to such bond if such owner upon issuance of the 201 4B Series One Bonds fails to provide to any person required to collect such information pursuant to Section 6049 of the Code with such ownerTs identification number furnishes an incorrect taxpayer identification number fails to report interest dividendsorother reportable payments as defmed by the Code properly or under certain circumstances fails to provide such persons with certified statement under penalty of perjury that such owner is not subject to backup withholding Foreign Investors An owner of 2014B Series OneBond that is not United States personas defined below and is not subject to federal income tax as result of any direct or indirect connection tothe United States of America in additionto its ownership of 2014B Series OneBond will generally not be subject to United States income or withholding tax in respect of payment on201 4B Series One Bond provided thatthe owner complies totheextent necessary withcertain identification requirements including delivery of statement signed by the ownerunder penalties of perjurycertifying that such owner is not United States person and providing the name and address of such owner For this purpose the term United States person means citizen orresident of the United States of America corporationpartnership orother entity created or organized in or under the laws of the United States of America or any political subdivision thereofor an estateor trust whose income from sources withinthe United States of America is includable in gross income for United States of Americaincome tax purposes regardless of its connection with the conduct of trade or business withinthe United States of America Except as explained in the preceding paragraph and subject tothe provisions of any applicable tax treaty 30%United States withholding tax will apply to interest paid and original issuediscount accruing on 20 14B Series One Bonds owned by foreign investorsIn those instances in which payments of interest on the 201 4B Series One Bonds continue to be subject to withholding special rules apply with respect tothe withholding of tax on payments of interest on orthesale or exchange of 2014B Series One Bonds having original issuediscount and held by foreign investorsPotentialinvestorsthat are foreign persons should consult their own taxadvisors regarding the specific tax consequences to them of owning 201 4B Series One Bond ERISA Considerations The Employee Retirement Income Security Act of 1974 as amended ERISA imposes certain requirements on employee benefit plans as defined in Section 33 of ERISA subject to ERISA including entities such as collective investmentfunds and separate accounts whose underlying assets include theassets of such plans collectively ERISA Plans and on those persons who are fiduciaries with respect to ERISA Plans Investments by ERISA Plans are subject to ERISAs general fiduciary requirements including the requirement of investment prudence and diversification and the requirement that an ERISA Plans investments be made in accordance with the documents governing the ERISA Plan The prudence of any investment by an ERISA Plan in the 2014B Series One Bonds must be determined by the responsible fiduciary of the ERISA Plan by taking into account the ERISA Plans particular circumstances and all of the facts and circumstances of the investment Government and non-electing church plans are generally not subject to ERISA However such plans may be subject to similar orother restrictions under state or local law 28 In addition ERISA and the Code generally prohibit certaintransactions between an ERISA Plan or qualified employee benefit plan under the Code and persons who with respect tothat plan are fiduciaries orother parties in interest withinthe meaning of ERISA or disqualified persons withinthe meaning of the Code Inthe absence of an applicable statutory classoradministrative exemption transactions between an ERTSA Plan and party in interest with respect to an ERISA Plan including the acquisition by one from theother of the 2014B Series One Bonds could be viewed as violating those prohibitions In addition Section 4975 of the Code prohibits transactions between certaintax-favored vehicles such as Individual Retirement Accounts and disqualified persons Section 503 of the Code includes similar restrictions with respect to governmental and church plans In this regard the BondBank or any dealer of the 2014B Series One Bonds might be considered or might become party in interest withinthe meaning of ERISA or disqualified person withinthe meaning of the Code with respect to an ERISA Plan or plan or arrangement subject to Sections 4975 or 503 of the Code Prohibited transactionswithin the meaning of ERISA and the Code may arise if the 2014B Series One Bonds are acquired by such plansor arrangements with respect to which the BondBank or any dealer is party in interest or disqualified person In all events fiduciaries of ERISA Plans and plans or arrangements subject tothe above sections of the Code in consultationwith their advisors should carefully considerthe impact of ERISA and the Code onan investment in the 2014B Series One Bonds The sale of the 2014B Series One Bonds to plan is in no respect representation by the BondBank ortheUnderwritersthat such an investment meets therelevant legal requirements with respect to benefit plansgenerallyor any particular plan Any plan proposing toinvest in the 2014B Series One Bonds should consult with its counsel to confirm that such investment is permitted under the plan documents and will not result in non-exempt prohibited transaction and will satisfy theother requirements of ERISA the Code and other applicable law RATINGS Moodys Investors Service Inc Moodys Fitch Ratings Fitch and Standard Poors Rating Services SP have assigned Aa2 AA and AA ratings respectively tothe 2014 Series One Bonds Such ratings reflect only the views of such organizations and any desired explanation of the significance of such ratings should be obtained from the rating agency furnishing the same at the following addresses Moodys WorldTrade Center 250 Greenwich Street New York New York 10007 212 553-0300 Fitch One StateStreet Plaza New York New York 10004 212 908-0500 SP 55 Water Street New York New York 10041 212 438-1000 Generally rating agency bases its rating on the information and materialsfurnished to it andon investigations studies and assumptions of its own There is no assurance that such ratings will continue for any givenperiod oftime or that such ratings will not be revised downward or withdrawn entirely by the rating agencies if in the judgment of such rating agencies circumstances so warrant Any such downward revision or withdrawal of such ratings may have an adverse effect on the market price of the 2014 Series One Bonds CONTINUINGDISCLOSURE uNDERTAKiNG Basic Undertaking to Provide Annual Financial Information and Notice of Material Events Continuing disclosure is provided for the benefit of beneficial owners Pursuant totheSecurities and Exchange Commission the SEC Rule15c2-12 the Rule the Bond Bank will agree to provide or cause to be provided to the Municipal Securities Rulemaking Board MSRB annualfmancial information and operating data as described below In addition if any Governmental Unit has outstanding with the Bond Bank an amount of bonds equal toor greater than 10 percent of all Bonds outstanding suchGovernmental Unit will be deemed an Obligated Person under the Rule and will be contractually required to provide updated financial information of the type included in Appendix hereof and annual financial statements prepared in accordance with generally accepted accounting principles applicable tothe governmental entities as such principles may be changed from time to time 29 Not later than 120 days after the end of each BondBank fiscal year the BondBank will notify each Governmental Unit that has or had an amount of bonds equal to or greater than 10 percent of all Bonds Outstanding of its continuing disclosure undertaking responsibility list of Governmental Units deemed Obligated Persons for the prior fiscal year will be included in the Bond Banks annual financial information filing TheBondBank will also undertake to provide or cause to be provided tothe MSRB notice of the occurrence of any of the following events specified by the Rule with respect to the 2014 Series One Bonds within ten business days of the occurrence of the event principal and interest payment delinquencies unscheduled draws on debt service reserves reflecting financial difficulties unscheduleddraws on credit enhancements reflecting financial difficulties substitution of credit or liquidity providers or their failure to perform adverse tax opinions or events affecting the tax-exempt status of the 2014A Series One Bonds defeasances rating changes tender offers bankruptcyinsolvency receivership or similar proceeding by the Bond Bank or obligated person TheBond Bank will also file with the MSRB notice of any of the following events with respect tothe 2014 Series One Bonds withinten business days of the occurrence of such event if material non-payment related defaults modificationto rights of holders of 2014 Series One Bonds bond calls other than mandatory scheduled redemptions nototherwise contingent on the occurrence of an event release substitution or sale of propertysecuring repayment of the 2014 Series One Bonds other than in the normal course of business the consummation of merger consolidationor acquisitioninvolving an obligated person orthesale of all or substantially all of theassets of the BondBank or obligated person orthe entry into definitive agreement to undertake such an action ortermination of definitive agreement relating to any such actions other than in accordance with its terms appointment of successor oradditionaltrustee or the change in name of the Trustee for the 2014 Series One Bonds The BondBank also will provide to the MSRB timely notice of its failure to provide required annual financial information on or beforethe date specified below Type ofAnnual Financial Information Undertaken to be Provided by the BondBankThe annual financial informationthatthe Bond Bank undertakes to provide will consist of annual financial statements for the Bond Bank prepared in accordance with generally accepted accounting principles applicable to governmental entities as such principles may be changed from time to time statement of authorized issued and outstanding bonded debt Reserve Fund balance and Governmental Unit statistics in substantially the same form as Appendix attached heretoThis information will be provided to the MSRB not later than 210 days after the end of each fiscal year of the BondBank currently the 12-month period ending June 30 as such fiscal year may be changed as required by State law commencing with the Bond Banks fiscal yearending June 30 2014 Amendment of Undertaking The Undertaking is subject to amendment after the primary offering of the 2014 Series One Bonds without the consent of any Beneficial Owner of any 2014 Series One Bond or any broker dealer municipal securities dealer participating underwriter rating agency or the MSRB if the amendment is made in counection with change in circumstances thatarises from change in legal requirements change in law or change in the identity natureorstatus of the Bond Bank the Undertaking as amended would have complied with the requirements of the Rule at the timeof the primary offering of the 2014 Series One Bonds after taking into account any amendments or interpretations of the Rule by the SEC and anychanges in circumstances the Bond Bank obtains an opinion of nationally recognized bond counsel totheeffectthatthe amendment will not adversely affectthe Bond Banks compliance with the Undertaking and Rule and the BondBank notifies and provides the MSRB with copies of the opinions and amendments Such amendment may be adopted without the consent of any Beneficial Owner of any of the 2014 Series One Bonds notwithstanding any other provision of the Undertakings orthe Bond Resolution The first annual reportcontaining amended operating data or financial information pursuant to an amendment of the Bond Bank continuing disclosure undertaking will explain in narrative form the reasons for the amendment and its effect on the type of operating data and financial information beingprovided 30 All notices financial information and operating data required by this undertaking to be provided tothe MSRB must be in electronic format as prescribed by the MSRB All documents provided tothe MSRB pursuant to this undertaking must be accompaniedby identifying information as prescribed by the MSRB Termination The obligations of the BondBank under its undertaking will terminate upon the legal defeasance prior redemption or payment in full of all of the 2014 Series One Bonds Remedy for Failure to Comply with Undertaking No failure by the BondBank and/or the Obligated Persons identified in Appendix heretoto comply with any provisions of their respective undertakings will constitutedefault in respect of the 2014 Series One Bonds and thesole remedy under the respective undertakings in the event of any failure of the BondBank andlorthe Obligated Persons identified in Appendix heretoto comply with their respective undertaking will be the right to obtain specific performance of the undertaking Prior Compliance with Continuing Disclosure Undertakings Under the Rule TheBondBank previously entered into continuing disclosure undertakings under the Rule in connection with its Bonds The BondBank subsequently discovered that it didnot file event notices in connection with certain rating downgrades of insurers of its existing Bonds Additionally the BondBank discovered that it did not file an event notice for an underlying ratings upgrade from Moodys in November 2010 in relation to two series of outstanding Bonds All such notices were subsequently filed In each of the past five fiscal years the BondBank has timely filed its audited financial statements and annual report However the BondBank discovered that it had notincluded in its annual report statistics of Governmental Units similar to those found in Exhibit of its official statements as required by prior continuing disclosure undertakings Such information was included in publicly available official statements prepared by the BondBank every year of noncompliance although in certain cases such information was dated on or about the date of the official statement rather than as of the relevant fiscal year end of the Bond Bank TheBondBank has developed procedures to ensure that all information required to be included in the Annual Report as of the fiscal year end will be filed within 210 days after the end of such fiscal year TheBond Bank has otherwise complied in the past five years in all material respects with its previous undertakings with regard tothe Rule to provide annual reports or notices of certain events During the course of preparing this Official Statement it was discovered thatcertain of the Obligated Persons who timely filed annual financial information in accordance with prior undertakings inadvertently failed toassociatethat annual financial information with all Bonds issued under the 2005 General Bond Resolution Effective on the date of issuance of the 2014 Series One Bonds each undertaking executed by an Obligated Person will include an express requirement that such filing be linkedtothe CUSIP numbers of all outstanding Bonds issued under the 2005 General Bond Resolution The Obligated Persons have reported that they have otherwise complied in the past five years in all material respects with their previous undertakings with regard to the Rule to provide annual reports or notices of certain events SOURCES OF CERTAIN INFORMATION As of the date of this Official Statement the Governmental Units which have loan obligations in an amount of ten percent 10%or greater in the pool of loans financed with proceeds of Bonds arethe City and Borough of Sitka 17.64%the City and Borough of Juneau 14.05%and the Kenai Peninsula Borough 12.32%These Governmental Unitsare considered Obligated Personsunder the Rule andhave provided theinformation appearing in Appendix of this Official Statement 31 The BondBank makesno representation as tothe accuracy of theinfonnation concerning the City and Borough of Juneau the Kenai Peninsula Borough or the City and Borough of Sitka found in Appendix of this Official Statement DEFINITIONS The following termsare used in this Official Statement with the following meanings Act The Alaska Municipal BondBank Act codified as Chapter 85 Title 44 of the Alaska Statutes as amended BondBank The Alaska Municipal Bond Bank public corporation and instrumentality of theState of Alaska withinthe Department of Revenue but with legal existence independent of and separate from theState Bonds Bonds issued by the BondBank under the 2005 General Bond Resolution pursuant to Series Resolution These include Loan Obligations and ReserveFund Obligations as defined below Code Internal RevenueCode of 1986and the regulations thereunder as amended Credit Enhancement letter of credit line of credit credit facility surety bond bond insurance or any otherinstrument or arrangement obtained in connection with the issuance of Series of Bonds to further secure the payment of the Bonds of such Series or to satisfy the Reserve Fund Requirement Credit Enhancement AgencyAny bank or other institution that provides Credit Enhancement Debt Service Fund fund established by the 2005 General Bond Resolution to be maintained and held by the Trustee The 2005 General Bond Resolution defines and provides thatthe Interest Account Principal Account and Redemption Account are maintained withinthe Debt Service Fund Fees and Charges All fees and charges authorized to be chargedby the BondBank pursuant to Sections 44.85.080 15 and 16 of the Act and chargedby the Bank pursuant tothe terms and provisions of the Loan Agreements Governmental Unit municipality or such other entity from which the BondBank is authorized by law to purchase its revenue bonds generalobligation bonds notes or other forms of indebtedness and which otherwise satisfies conditions found in the 2005 General Bond Resolution and in the Loan Agreement Loan Agreement An agreement and any amendments thereto entered into between the BondBank and Governmental Unit setting forth the terms and conditions of loan Loan Obligations The amount of Bonds and the Bonds themselves issued by the BondBank for the purchase of Municipal Bonds of Governmental Unit Municipal Bonds General obligation bonds revenue bonds notes orother evidence of debt issued by any Governmental Unit as defined in the Act which havebeen acquired by the BondBank as evidence of loantothe Governmental Unit pursuant tothe Act Municipal Bonds Payment The amounts paid or required to be paid from time to time for principal and interest by Governmental Unit tothe BondBank on the Governmental Units Municipal Bonds Notes Any obligations referredto in the 2005 General Bond Resolution issued by the BondBank other than Bonds 32 Operating Fund fund established by the 2005 General Bond Resolution This fund is notheld by the Trustee and money therein is not pledged as security for Bonds Outstanding When used with referenceto Bonds shall mean as of any date Bonds theretoforeor then being delivered under the provisions of the 2005 General Bond Resolution other than Bonds owned orheld by or for the account of the BondBank except any Bonds cancelled by the Trustee at or prior to such date ii any Bonds for the transfer or exchange of or inlieu of or in substitution for which other Bonds shall havebeen delivered pursuant to the 2005 General Bond Resolution and iii Bonds deemed to havebeen paid as provided in the 2005 General Bond Resolution Reserve Fund The reserve account established by the 2005 General Bond Resolution and held by the Trustee pursuant to the provisions of the 2005 General Bond Resolution ReserveFund Obligations Bonds issued by the BondBank to obtain funds to deposited in the Reserve Fund ReserveFund Requirement The amount required to beon deposit in the 2005 General Bond Resolution Reserve Fund is the least of the following 10%of the initial stated principal amount of each Series of Bonds then Outstanding ii maximum annual principal and interest requirements on all Bonds then Outstanding iii 125%of average annual principal and interest requirements on all Bonds then Outstanding or iv such lesser amount as shall be required by law The Reserve Fund Requirement may be satisfied entirely or in part by Credit Enhancement provided however any Credit Enhancement satisfying all or any part of the Reserve Fund Requirement after the initial issuance of Bonds or issued in substitution for any prior Credit Enhancement previously issued will not by itself cause withdrawal or downward revision of the ratings maintained by any Rating Agency with respect to the Bonds Required Debt Service ReserveAs of any date of calculation the amount required to be on deposit in the Reserve Fund whichamount shall atleast be equal tothe Reserve Fund Requirement Series Resolution resolution of the BondBank authorizing the issuance of series of Bonds in accordance with the tenns of the 2005 General Bond Resolution 2005 General Bond Resolution TheBond Banks 2005 General Obligation Bond Resolution adopted July 132005 as amended August 19 2009 The BondBank may adopt additional generalobligation resolutions for the same or different purposes MISCELLANEOUS The summaries or descriptions of provisions in the Bond Resolution and all referencestoothermaterialsnot purporting to be quoted in full are only brief outlines of certain provisions thereof anddo notconstitute complete statements of such documents or provisions and reference is hereby made tothe complete documents and materials copies of which will be furnished by the BondBank on request The2005 General Bond Resolution has been includedherein as Appendix Any statements made in this Official Statement indicated to involvematters of opinion or estimates are represented as opinions orestimates in good faith No assurance canbe given however thatthe facts will materialize asso opined or estimated 33 OFFICIAL STATEMENT TheBondBank has authorizedthe execution and distribution of this Official Statement ALASKA MUNICIPAL BOND BANK Is Deven Mitchell Executive Director 34 APPENDIX Form of LegalOpinion PAGE INTENTIONALLYLEFT BLANK WOHLFORTH BRECHT CARTLEDGE BR00KING PROFESSIONAL CORPORATION Julius Brecht TELEPHONE Cheryl Rawls Brooking ATTORNEYS AT LAW 907.276.6401 CynthiaCartledge William Earnhart 900 WEST 5TH AVENUE SUITE 600 FACSIMILE 907.276.5093ICaeANCHORAGEALASKA99501-2048 Eric Wohlforth WEESITE WWW.AKATTY.COM February_2014 Board ofDirectors Alaska Municipal BondBank P.O Box110405 Juneau Alaska 99811 Ladies and Gentlemen We have acted as Bond Counsel in connection with the issuance by the Alaska Municipal BondBank the Bank of its General Obligation Bonds 2014 Series One the Bonds consisting of $47205000 principal amount of General Obligation Bonds 2014A Series One Tax-Exempt the 2014A Series One Bonds and $14000000 principal amount of General Obligation Bonds 2014B Series One Taxable We have examined the law and such certified proceedings and other papers as we deem necessary to render this opinion including the opinions of bond counsel to the Governmental Units concerning the validity and enforceability of the Municipal Bonds and the Loan Agreements securing the Loans financed with the proceeds of the Bonds as such terms are defined in the Resolutions referred to below The Bonds are issued under the Alaska Municipal BondBank Act Chapter 85 of Title 44 of the Alaska Statutes as amended the Act the General Obligation Bond Resolution of the Bank entitled Resolution Creating And Establishing An Issue Of Bonds Of The Alaska Municipal Bond Bank Providing For The Issuance FromTime To TimeOf Said Bonds Providing For The Payment Of Principal Of And Interest On Said Bonds And Providing For The Rights Of The Holders Thereof adopted July 132005 as amended August 19 2009 the General Bond Resolution and Series Resolution No 2014-01 adoptedJanuary 2014 the Series Resolution and together with the General Bond Resolution the Resolutions TheBonds are subject to redemption prior to maturity as provided in the forms of Bonds A-i Board ofDirectors Alaska Municipal BondBank February 2014 Page In connection with the issuance of the Bonds we have reviewed the Resolutions and the federaltax certificate of the Bank dated the date hereof the Tax Certificate Certificate of No-Litigation of the Attorney General counsel to the Bank certificates of the Bank the Trustee and others and such other documents opinions and matters to the extent we deemed necessary to render the opinions set forth herein The opinions expressed hereinare based onan analysis of existing laws regulations rulings and court decisions and cover certain matters not directly addressed by such authorities Such opinions may be affected by actions taken or omitted or events occurring after the date hereof We have not undertaken to determine or to inform any person whether any such actions or events are taken or do occur We disclaim any obligation to update this letter We have assumed the genuineness of all documents and signatures presented to us whether as originals or as copies by any parties other than the Bank and the dueand legal execution and delivery thereof by any parties other than the Bank We have not undertaken to verify independently and have assumed the accuracy of the factual matters represented warranted or certified in the documents referredto in the preceding paragraph Furthermore we have assumed compliance with the covenants and agreements contained in the Resolutions the Tax Certificate and the tax certificates of each Governmental Unit including without limitation covenants and agreements compliance with which is necessary to assure thatfuture actions omissions or events will not cause interest on the Bonds to be included in gross income for federal income tax purposes We call attention to the fact that the rights and obligations under the Resolutions the Bonds the Loan Agreements and the Tax Certificate may be subject to bankruptcy insolvencyreorganization moratorium and other laws affecting creditors rights generally and subject to the exercise ofindividual discretion in appropriate cases and to the application of equitable principles We express no opinion relating to the undertaking by the Bank to provide ongoing disclosure pursuant toSecurities and Exchange Commission Rule 15c2-12 As to questions of factmaterial to our opinion we have relied upon various statements and representations of the Bank contained in the Resolutions and in the certified proceedings and other certifications of public officials furnishedto us without undertaking to verify the same byindependent investigation Subject to the foregoing we are of the opinion that under existing law TheBank has the right and power to adopt the Resolutions The Resolutions have been duly and lawfully adopted by the Bank are in full force and effect and are valid and binding upon the Bankand enforceable in accordance with their terms A-2 Board ofDirectors Alaska Municipal BondBank February_2014 Page The Resolutions createthe valid pledge and assignment which they purport to create of the Municipal Bonds subject to the application thereof to the purposes and on the conditions permitted by the Resolutions TheBonds are valid and binding general obligations of the Bank enforceable in accordance with their terms and the terms of the Resolutions The Bonds have been duly and validly authorized and issued in accordance with the Constitution and statutesof theState of Alaska including the Act as amended to the date of this opinion and in accordance with the Resolutions The Bonds arenot debt or liability nor do they constitute pledge of the faith and credit of theState of Alaska Under existing laws regulations rulings and judicial decisions interest on the 2014A Series One Bonds is excludable from the gross income of the owners thereof for federal income tax purposes and is not an itemoftax preference for purposes of the federalalternative minimum tax imposed on individuals and corporations However interest on the 2014A Series One Bonds is taken into account in determiningadjusted current earnings for purposes of computing the federalalternative minimum tax imposed on certain corporations The opinion set forth in the first sentence of this paragraph is subject to the conditionthat the Bank and the Governmental Units comply with all requirements of the Internal RevenueCode of 1986 as amended that must be complied with subsequent to the issuance of the 2014A Series One Bonds in order that interest thereon be or continue to be excludable from gross income of the owners for federal income tax purposes TheBank and Governmental Units havecovenanted to comply with all such applicable requirements Failure to comply withcertainof such requirements may cause interest on the 2014A Series One Bonds to be included in gross income thereof for federal income tax purposes to be retroactive to the date of issuance of the 2014A Series One Bonds In expressing our opinion as to theexclusion of interest on the 2014A Series One Bonds from the gross income of the owners asdescribed above we have relied on and assumed to be correct the representations covenants and agreements of the Bank and Governmental Units in the Loan Agreements and information furnished by and on behalf of the Bankand Governmental Unitswith respect tocertainmaterialfactsthat are solely within their knowledge relating to the proposed use of the proceeds of the 2014A Series One Bonds or Municipal Bonds A-3 Board ofDirectors Alaska Municipal BondBank February_2014 Page Under existing laws interest on the Bonds is free from taxation by the State of Alaska except for transfer estate and inheritance taxes Except as expressly stated above we express no opinion regarding any other federal orstate income tax consequences of acquiring carrying owning or disposing of the Bonds Owners of the Bonds should consult their tax advisor regarding the applicability of any collateral tax consequences of owning the Bonds which may include original issue discount original issue premium purchase at market discount or at premium taxation upon sale redemption or other disposition and various withholding requirements We have not been engaged nor have we undertaken to review the accuracy completeness or sufficiency of the official statement orother offering materialrelated to the Bonds except to the extent if any stated in the official statement or supplemental opinion dated the date hereof This opinion is given as of the date hereof and we assume no obligation to update reviseor supplement this opinion or reflect any facts or circumstances that may hereafter come to our attentionor any changes in law that may hereafter occur Sincerely WOHLFORTH BRECHT CARTLEDGEBROOKING CynthiaCartledge A-4 APPENDIX State Payments to Governmental Units PAGE NTENTIONALLYLEFT BLANK Appendix State Payments to Governmental Units The State of Alaska the State disbursesto Alaskan cities and boroughs the Governmental Units funds that generally areavailable for uses other than payingmunicipal bond debt serviceInthe event of default by Governmental Unitwith respect to Loan Agreement the BondBank is authorized to cause such funds held in custody by theState prior to disbursement to be paid over to the Bond Bank However the State may at any time reduce orterminatethe disbursements or programs underwhich they are made Four of the departments of theStatethatdisburse money to Governmental Units are as follows Department of Education and Early Development The Department of Education and Early Development DEED disbursesStateaid for educational purposes primarily through the schooldebt reimbursement thefoundation funding and pupil transportation programs in addition to funding for boarding homes residential boardingyouth in detention special schools and the Alaska Challenge Youth Academy programs.The first program provides system underwhich the Statesubject to annual appropriation by the State Legislature will reimburse municipalities that operate school districts for certaincosts of school constructionState reimbursement applies to debt service on locally issued general obligation school bonds Timing of reimbursements is determined by municipalities debt service payments and is made throughout the year This program provides that subject to statutory and regulatory conditionsthattheState will reimburse municipalities for pre-determined percentage of debt serviceincurred for such bonds depending on when such bonds were issued and the project components The State has in the past and may in the futureappropriate less than the full amount to which the municipalities are entitled When appropriations are less than 100 percent of the entitlement funds havebeen allocated pro rata among the eligible school districts Under the second program theStateaids local school districtsin the payment of operating expenses under theState K-12 foundation funding which provides education-relatedaid for operating costs associated with qualified K-12 schools as well as programs such as the handicapped facilities and nutrition programs The program provides for monthly distributions tothe school districts Under the third program the state aids local school districts for pupil transportation The program provides for monthly distributions tothe school districts Under the fourth program the state has provided one-time grant funds Department of RevenueThe Department of Revenue disburses shares of variousStatetaxes collected by thewithinthe jurisdiction of certain Governmental Units including aviation fuel Commercial Passenger Vessel electric telephone liquor and fisheries resources landed and business taxes Payments are distributed both semi-annually in January and July and annually in October depending upon the type oftax Department of Commerce Community and Economic Development The Department of Commerce Community and Economic Development DCCED administers payment inlieu of taxes program underwhich thefederal government pays fee for use of land The payments received from thefederal government are passed through theStatetocertain Governmental Units Distributions occur annually in July The Statealsodisburses money tocertain Governmental Units through the DCCEDs Capital Matching Grants program to provide assistance in financing capital projects Distributions are made throughout the year as approved projects are constructed Additionally theState Revenue Sharing program provides an annual transfer tocertain governmental units based on population The revenue sharing transfers occur in the first quarter of the fiscal year Department of Corrections The Department of Corrections transfers monthly amounts to pay operational expenses of local communities that house prisoners in municipal-owned facilities B-i Sources State ofAlaska Department ofAdministration Division of Finance State ofAlaska Office of Management and Budget and State ofAlaska Department of Revenue Tax DivisionFurther information regarding the State ofAlaska may be found at http//alaska.gov this reference is not hyperlink and by this reference theState ofAlaska website is not incorporated into this Official Statement B-2 Alaska Municipal BondBank Capability to Intercept Funds FY 2013 Shared MatchiagGrants as af Tanea Fees nae FY 2014 DOT Octaber 12013 will Revenac Sharing time traastera far Reimbarsemeat FY 2014 ScbaalDebt FY 2014 Edacatina be FY 2014 Cammaaily FY 2014 disbarsed categarica nftax Pragram traasferred as Rcimbarsemeal Satspnrt lraasferred in drawn dnwn as Jails Transferred in at nae time by aad license type debt service cnmeadae traaaterred as debt 12 level maalhly tsraiectsare campleled 12 levelasaathty Octaber af fiscal apdated ia semi-aaaaally carreal service cameadae semi-inatallmeata dariag carreat and past yenr paymentsdaring fiscal year carrcat year December year anaaal aaaaally carreat year fiscal year carreist year capital grant year carrcal year FY 2014 PILT aaaaal Tatal taterccpl Fiscal Year 2014 Tatal aaaually appraprialiaa aaaaal apprapriatina aaaaal appraprialianappraprialiaaa aaaaal apprapriatian lraaatcra appraprialiaaCapability Debt Service Cavcragc Ralia Baraugha ajtulinaa final Baccagh S2002074 $476742 $057 160 14 2000 841 1719 802 818 ii 29 856 609 32.23 55350495 $4424246 50 $386426 $13377943 $2602051 Haaca Baraagh 406904 900.729 25 25261937 383440 604631 1382392 City Bamagh ofJaaaaa 4062940 14161151 43616733 28847546 2042020 $93330390 Kcaai Pcaiaaala flaraugh 1473970 3501404 86.625.845 33543106 2130401 $127356894 740074 Katchikaa Gateway flaroagh 2639506 2716934 24635536 17627621 632111 5471.394 Kodiab Island flocaagh 1222846 943676 4470047 28484003 17807153 709660 553637385 6558.649 I-alexPaaiaaala flaraagls S3aa8a5 hi 19lb9 1901.080 59122.784 $348469 $0 428627 $11306.93 1001200 NacllswealArcticflamagh 6695 4419584 34723250 13009768 944172 428531 55353200 6252203 City flamagh afSilba 1.641403 2523.860 14537.378 43952095 694660 56626246fl 9622755 Maatcipalily afSbagway 3405620 631542 11446987 429.721 515993075 496178 City flamaghafWaagell 409.023 212430 4355639 11017175 596.467 51716076a 376375 Cities 4562 100.23 6.73 1097 106.78 34.42 6.65 71.74 1140 30.29 46 17 16.52 4070 17.41 19.62 770 4513 524 1165 l4ctlala $3937 SO $0 $0 $28113307 $0 $004164 $386834 52930824 Cardava 1517031 351180 967800 3790931 3814120 240000 393230 206187 1120855 $292413 flilltagham 419943 823.059 7073.906 3306221 422987 210.469 12.89708 Hannah 756778 69205 1985070 17940715 1176090 137204 132967 21.02201 Hamarc 197140 6412982 753410 341.161 970469 112.550 Kctchkaa5 2465255 42739607 490456 4569531 Kcaaia 363172 12000286 14.252 435315 1281302 6873961 178599 KiagCavc5 524005 525865 119176 Kadiaic 1.371504 34262183 j94554 401.964 3724394 Name 54785 227456 9236220 25898506 438945 274840 972604 Naclh Palca 61605 1520950 782589 198.860 178142 Palmcrc 151713 10510646 307025 107050 Pclccabacg 1056400 496743 6173620 17537394 308020 271500 337910 2662303 0aad PataIC 365756 2605941 1.528.909 142.768 3194.46 Scevard 069006 25.303572 655470 227.025 162.022 2705507 Saldalaaa 46057 9543863 3513651 300531 9090.45 tiaalaaka 8.342195 367445 827.546 4958.635 3166125 762.050 763584 219.162 322044 1971042 Valdca 485.678 213188 2030545 4955679 14756795 630250 703.602 3764204 293157 24060.89 WmilIaa 252454 22839005 596467 2066563 Cnmmaaitica thatare seated ia baraagh which aperatca the pablic achaala ia the cammaaity aad receivesthatrelated EdacatiaaSappart Faadtag Matchiag graalsarc apprapriatrd by the Alaska State Legislatare sad caa vary sigaificaatly fram year Ia year Iacladesaaaaaldebt service aa geaeralabligatina sadrcveaac-backed laaaaisaacd thraagh AMOB Barrawcra In this iaaac PAGE INTENTIONALLY LEvr BLANK APPENDIX Government Unit Statistics Regarding Participation in the Bond Bank PAGE INTENTIONALLY LEn BLANK APPENDIX GOVERNMENTAL UNIT STATISTICS REGARDING PARTICIPATION IN THE BOND BANK 2005 GENERAL BOND RESOLUTION OUTSTANDING LOAN PRINCIPAL TO GOVERNMENTAL UNIT BORROWERS OF THE ALASKA MUNICIPAL BOND BANK AS OFJANUARY 2014 Does Not Include 2014 Series One Bonds Outstanding Percent of Borrower Par Outstanding City and Borough ofSitka 135595000 17.64% City and Borough of Juneau 108020000 14.05% Kenai Peninsula Borough 94690000 12.32% Kodiak Island Borough 68710000 8.94% City of Ketchikan 63235000 8.22% Ketchikan GatewayBorough 41760000 5.43% City of Seward 40425000 5.26% City of Unalaska 35190000 4.58% Northwest Arctic Borough 30505000 3.97% Aleutians East Borough 27360000 3.56% Lake Perthisula Borough 18225000 2.37% City of Cordova 15020000 1.95% City of Kodiak 13695000 1.78% City of Diilingham 12505000 1.63% City of Petersburg 9265000 1.21% City of Nome 5595000 0.73% Municipality of Skagway 5460000 0.71% City of King Cove 1100000 0.14% City of Homer 3735000 0.49% City ofBethel 2940000 0.38% City of Valdez 2725000 0.35% City of Sand Point 2615000 0.34% City of Soldotna 2225000 0.29% City ofWasifia 1880000 0.24% City of Kenai 1775000 0.23% City of Hoonah 1190000 0.15% Haines Borough 1180000 0.15% City of Palmer 860000 0.11% City of NorthPole 820000 0.11% City and Borough of Wrangell 390000 0.05% Reserve Obligations 20130000 2.62% Total Outstanding Par $768820000 100.00% C-i DEBT SERVICE OF OUTSTANDING GENERAL OBLIGATION LOANS TO GOVERNMENTAL UNIT BORROWERS OF THE ALASKAMUNICIPALBONDBANKUNDERTHE2005GENERALBONDRESOLUTION FISCAL YEARS 2014-2023 Includes 2014 Series One Bonds Table reflects Loan Payments throngh fiscal year 2023Debt service on bonds issned nnder the 2005 Resolution continnes to fiscal year 2049 Borrower 2014 2015 2016 2017 2018 City of Ketchulcan Utility 2005Loan City of Nome 2005 Loan Kenai Peninaula Borough Cent Em Svce Diat 2006Loan City of Seward2005 Port Loan City of Seward 2005 Refunding City of Seward-2006 Port Loan City of Ketchilcan Port 2006Loan City of Nome 2007 Refunding Northweat Arctic Borough 2007 Refunding City of Peteraburg 2007 Refunding City of Seward2007 Refunding City and Borough ofSitka 2007 Refunding City of Wasilla 2007 Refunding Kenai Peninaula Borough 2007 Loan City of Peteraburg 2007Loan AleutianaEaat Borough 2007 Refunding SouthKenai Peninaula Hoapital 2007 Refunding City and Borough of Juneau 2007 ttt Dock Loan City of Bethel 2007 Itt Court Facility Loan Kenai Peninaula Borough South Hoapital Service Area City of Kodiak MP Loan City of Kodiak Lift Loan Kodiak tatand Borough 2008 One Loan City of Ditlingharn 2008 One Loan Kodiak PoliceStatfon 2008 One Loan City of Seward Long TermCare2008 One Loan City and Borough ofSitka 2008 Two Loan Municipality of Skagway 2008 Two Loan City of Seward 2008 Two Loan City of Unalaaka2009 One Loan City of Kodiak 2009 One Boat Lift Loan City of Unataaka 2009 Two Loan Kodiak tatand Borough 2009 Two Loan City of Cordova 2009 Two Loan City of Nome 2009 Two Loan City and Borough of Juneau -2009ThreeLoan Ketchilcan GatewayBorough-2009 Four Loan KenaiPeninaula Borough-2009 Four Loan City of Kenai-2010 One Loan Ketchikan GatewayBorough-2010 One Loan lorthwest Arctic Borough-2010 One Loan City of Peteraburg-2010 One Loan Cityof Unataaka-2010 One Loan $131518C 301338 190128 116935 286750 344380 2559450 177488 256331 147181 241838 846575 417744 314538 91281 1206238 145900 753159 292413 1129569 128621 243580 625210 1176090 529990 1970663 563445 394235 393686 1914000 70413 561425 1502800 1370481 54263 1479850 1775819 1055150 178598 729000 281215 239419 426699 $1330180 302338 190728 118435 288750 346380 2556156 181397 256094 147131 243859 845341 422263 316725 88925 1203438 145300 746813 295225 1129600 126221 244530 624210 1176090 531240 1971413 562045 391235 393886 1916800 69613 559025 1370681 53263 1493075 1774769 1055600 176198 722050 282465 236269 425999 $133168081332480 302838 299838 301433 191128 191328 191171 302564 303114 303244 302709 301744 114685 116685 118405 114899 190071 116329 194121 117549 192671 190890 118464 119164 342980 344380 345099 345405 2555069 2556963 2553063 2548063 344993 344155 347760 345510 179894 177419 180247 2550038 2543850 2544363 2541300 255856 1259844 1249172 180619 178609 141944 145919 140159 1248825 1245163 235606 241044 241709 143681 147991 847319 848781 851672 237394 238363 234525 239994 420819 421681 423241 313225 312625 424588 91431 88544 90778 945438 947338 1772238 90100 92356 89425 91297 144700 144100 143500 1835863 1844988 1856938 2121938 747175 749575 746875 146950 789450 788250 784350 291838 293038 294125 295125 745500 746000 745500 748875 1128569 1126475 1127363 1124313 290750 291000 290750 290000 128671 125971 128121 1122938 1119813 1119813 1117813 240330 240980 241330 127521 125287 127878 125313 622460 624960 620160 624960 242030 243271 244186 244804 1179590 1176340 1178540 623960 621323 623048 623360 531990 532240 529040 505640 1174540 1176390 1176753 1179565 1970163 1971913 1970513 507840 509128 504990 505365 565245 562845 564725 564625 1973313 1969750 1969488 1970925 393035 394435 395210 564005 562355 564645 565610 393886 393686 393151 394751 395330 393630 396210 392815 1909900 1912900 1909025 393151 391176 393816 395826 68713 67713 71588 1905525 1905650 1903525 1904025 558775 558800 563588 560413 69088 67838 71463 69963 1371656 1367969 1369094 52138 51075 55044 53694 1369906 1369906 1367906 1371706 1500650 1485600 1495800 52269 55769 54019 52181 1777769 1775519 1768232 1444800 1754104 1468800 1743479 1731390 1722642 1707107 178798 175398 176998 729800 725800 731000 172704 172011 171018 16472 283565 283165 282565 730000 728000 238044 239094 234494 280765 284565 281315 276127 425149 427149 428749 234894 234794 238694 235840 TableContinues on Following Page Borrower 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Northwest Arctic Borough 2010 Refunding 970750 969350 967200 City and Borough of Juneau 2010 Two Loans 1143819 1141794 1139319 1139029 1129772 1117534 1107744 2472665 1820539 1779639 City of Cordova 2010 Two Loan 46955 45905 49780 48430 46859 45138 48188 46070 City of King Cove2010 Two Loan 42712 42112 41512 45743 44762 43686 42540 41363 40155 38847 Aleutians East Borough 2010Loan 399778 399003 397078 398878 395378 396578 397966 392.943 390877 383441 City of King Cove2010ThreeLoan 61842 60942 59892 58692 62392 60992 59680 58205 61359 59389 City of Unalaska 2010 Three Loan 435192 438892 436267 437267 437867 438067 433605 432617 429319 420652 Kenai Peninsula Borough 2010 Four Loan 1487777 1477241 1468022 1459887 1442725 1431305 1411775 1395269 1376201 1358946 City of Ketchilcan 2010 Four Loan 632888 631272 628044 623153 616549 608190 603500 597854 586163 578214 Ketchilcan GatewayBorough 2010 Four Loan 339087 334573 333976 332198 324287 320209 315233 314574 308091 300753 City and Borough ofSitka 2010 Four Loan 4069032 4082982 4064732 4064932 4075151 4062 4047570 4058570 4050648 4038926 City of Soldotna 2010 Four Loan 219162 216905 219070 215646 216594 211905 211752 206311 205509 199279 City and Borough of Wrangell 2011 One Loan 26275 25675 25075 24475 28875 28000 27000 26000 Kodiak Island Borough 2011 One Loan 624850 626000 621850 622550 622950 621400 622800 623600 623800 625513 City and Borough of Juneau 2011 Two Loan 660231 659631 658831 657831 658831 657300 659600 655200 City and Borough ofSitka 2011 Two Loan 411709 412209 407609 408009 412134 410090 407590 407390 411790 407690 Aleutians East Borough 2011 Three Refunding 298000 569125 833750 976625 229375 229875 226000 231625 230625 Kenai Peninsula Borough 2011Three Refunding 1169000 1656275 1647050 1640450 1630075 1621825 1617850 967375 958750 953250 Ketchilcan GatewayBorough 2011Three Refunding 618600 620325 621250 616300 618175 618800 615900 616875 614000 609875 Northwest Arctic Borough 2011Three Refunding 1336500 2493150 2484400 2491900 2486775 2492025 2492700 2488875 2485000 2485625 Wrangell 2011Three Refunding 96300 87600 93800 41000 Kenai Peninsula Borough CentralHospital 2011Three 1343600 3522725 3525050 3522125 3521750 3520000 3521000 3525500 3528625 3533750 City of Cordova2011Three 58400 56600 54800 57875 55625 53375 56250 54000 56375 City of Hoonah 2011Three 112550 110075 107600 114875 111625 113250 90500 93125 90375 92500 Kodiak Island Borough 2011Three 298800 301350 298600 300475 300975 300975 301550 301625 300125 298125 Municipality of Skagway 2011Three 35700 35025 34350 33675 37800 36800 35900 35000 34000 37875 City of Seward2011Three 159400 242275 243350 244175 244300 244175 244350 244275 243400 242275 City and Borough of Juneau Refunding 2012 One 1319500 1323700 1319125 1091625 Juneau WildflowerCourt Refunding 2012 One 1569700 1637075 1702025 1344900 1418125 1486925 1555825 437725 484575 534966 Juneau 2012 Two 318000 1892250 1902150 1920400 1940250 1958400 City of Ketchilcan 2012 Two 357794 358344 356944 354444 356644 352519 352019 355894 355344 354294 Ketchilcan GatewayBorough 2012 Two 135450 135450 689150 686150 682350 689250 681625 Kodiak Island Borough 2012 Two 503550 503550 1449250 1449850 1439500 1447950 1439025 1442275 1433950 1433125 City ot Nome 2012 Two 52150 145725 147300 148200 148900 148825 147950 146825 146100 150000 City of North Pole 2012 Two 41600 36550 36550 100250 102550 99400 100775 101900 103200 104250 City of Palmer 2012 Two 37550 37550 111050 108050 105800 108450 104850 105725 106800 107625 City of Petersburg 2012 Two 175400 333000 494000 490600 496600 491075 488125 488375 489750 485250 City and Borough ofSitka 2012 Two 1061450 1058050 1455650 1456250 1460150 1456775 1455650 1456650 1451200 1453000 City of Valdez 2012 Two 126350 126350 341950 347850 348250 351850 343725 340225 342550 344125 Haines Borough 2012Three 84208 83919 87219 85981 84744 82719 85344 82844 85219 87344 Juneau 2012Three Refunding 396616 903050 909050 916950 918950 928250 937125 948625 947875 959750 Juneau2012ThreeSchool Construction 1584494 1482875 1455375 1440838 1430600 1400375 1363625 1364875 1363125 1363250 TableContinues on Following Page Borrower 2014 2015 2016 2017 2018 2019 Uty 01 retersburg 2012 Three Kenaf Peninsula BoroughBear Creek Fire 2013 One City and Borough of Juneau Bartlett Hospital 2013 One City and Borough of Juneau2013 One Kafchikaii Gateway Borough 2013 One Kodiak Island Borough 2013 One City of Sand Point 2013 One City and Borough ofSitka Harbor 2013 One City and Borough ofSitka Electric 2013 One City of Homer 2013 Two City of Ketchikan 2013 Two Kodiak Island Borough 2013 Two Municipality of Skagway 2013 Two City and Borough of Juneau2013Three Kenai Peninsula Borough Lakeand Peninsula Borough 2013Three City and Borough ofSitka 2013Three Kenai Peninsula Borough 2014 One Kodiak Island Borough 2014 One City and Borough of Juneau2014 One 104971 83481 1680044 198241 540621 1496335 162822 272728 1557216 281953 1182650 711253 66243 103925 94020 1656213 204610 610150 1689340 180580 310700 1757360 287350 1700400 1353688 67550 914231 1698935 1478931 1637233 2964268 1779628 413353 101525 97420 1652113 201010 608150 1690140 183180 310300 1757360 289750 1064400 1355538 66950 911700 1701550 1479800 1348750 2964831 1779100 412.400 iU4M3t 9562C 1657213 20241C 610550 168974C 180580 309700 1757360 292050 1069500 1356788 71350 914525 1702125 1477950 1348750 2965311 1780250 413050 103050 93820 1659263 203610 607150 1688140 182980 308900 1757360 287850 1069200 1355988 70300 913375 1698275 1482175 1348750 2960730 1777950 410800 105000 97020 1665563 199610 608150 1690340 180180 307900 1757360 288650 1068450 1355888 69250 911625 169875C 1480725 1348750 2965472 1779750 409800 101500 94520 1661863 204610 608400 1687590 181680 310150 1757360 289300 1072250 1360188 68200 915300 1699100 1479850 1348750 2964300 1780150 413.600 1U4Si 9752C 1661513 200210 607600 1691790 183680 308550 1757360 293300 1069850 1361588 71800 914100 1699000 1479250 1348750 2962652 1777150 410300 104000 95320 1666713 200.810 611000 1689390 180480 311750 1757360 291900 1071650 1361788 70200 911700 1702400 1477450 1348750 2962764 1776400 412050 104875 93120 1665313 201210 608400 1690590 182280 309550 1757360 290300 1072450 1363038 68600 913000 169930C 147935C 1348750 2962500 1778000 410.050TotalLoanObligationOS$62000359 $79726071$79786455$79399822 $76729893 $76681453 APPENDIX Summaries of Borrowers Representing 10%or More of Outstanding Principal of Bonds Issued Under the 2005 General Bond Resolution PAGE INTENTIONALLY LEVr BLANK Municipal FinancialPosition 2009 2010 2011 2012 2013 Average Property Tax Collections BorrowersPropertylaxRateper$lOOO $4.50 $4.50 $4.50 $4.50 $4501 $4.50 MunicipalLevy $26779449$28875124$29058274 $30419493 $30823497 $58500541 00 CurrentYears Collections $264319an $28375677$28630610$29946804 $30382636 $57650F4 CurrentCollectionRate 9370 9827%98.53%98.45%98.57%I 98.55 Total Years Collections $2677391 $28863520$29005996$30353606$3O382636$58383843 TotalCollectionRate 99.98 99.96%99.82%99.78%98.57%I 99.80 General Fund Total Ending Fund Balance .$2513821 23025423 21705814 21466 583 23310985 Unreserved Ending Fund Balance 24604294 22864839 21454058 21268.520 16296148 94052757 Expenditures 691196 70829556 72163558 71347 68 72452478 $129385194 Fund Balance/Expenditures 36 32%30%30%22%30 Total Revenues 69797834 68716762 70799893 71108637 74255493$129722/5 Intergovernmental Revenues 9477866 8987813 8538331 9749464 10392037$1627182 PercentageIntergovernmental 14 13%12%14%14%13 AnnualGrowthCeneralEconomicDemograplucData To l0TaxPaers mey mostrecent 2011 UmeservedFund Batonse is Net of Note Rexeivobte tothe City of Homer the emomet of $6944837 foeiostattotionofnatural gm to vourmonity seemed by assovnments on ott benefited properties KenaiPeninsula Borough General Fund General ObligationFinancial Summary D-1 Municipal FinancialPosition troperty Tax Collections norrowers1rooertv lax Ratener SLXX Current YØafs LoJlectlons Current Collection Rate Total Years Collections CITY AND BOROUGH OF SITKA GENERALOBLIGA11ON FINANCIAL SUMMARY 2009 2010 2011 2012 2013 Average D-2