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2015-01-15 Joint Work Session - School Board BOROUGH ASSEMBLY/SCHOOL DISTRICT BOARD JOINT WORK SESSION AGENDA Thursday, January 15, 2015 Assembly Chambers 6:30 p.m. (School District Chairing) Joint work sessions are informal meetings of the Borough Assembly and City Council where elected officials discuss issues that affect both Borough and City governments and residents. Although additional items not listed on the joint work session agenda are sometimes discussed when introduced by elected officials, staff, or members of the public, no formal action is taken at joint work sessions and items that require formal action are placed on a regular Borough Assembly and/or City Council meeting agenda. Public comments at work sessions are NOT considered part of the official record. Public comments intended for the "official record"should be made at a regular Borough Assembly or City Council meeting. Page 1. PUBLIC COMMENTS (Limited to Three Minutes per Speaker) 2. AGENDA ITEMS 2 - 10 A. Preliminary Discussion on the FY2016 Budget • KIBSD Budget Timeline and Process Outline School District Funding - KIBC and AS.pdf FY2015-01 School District FY2015 Fundinq.pdf Received at the meetinq.pdf B. Discussion on Minor Maintenance Projects to be Performed by the School District • How They Are Decided, Funded, and Completed 11 - 25 C. Discussion on Bond Related and Other Major School Projects • Prioritization, Timelines, Funding, and Processes FY2015-02 Authorizing GO Bonds R&R School Facilities.pdf 2014 Election Pamphlet Info.pdf FY2015-12 Election Certification.pdf Page 1 of 25 AGENDA ITEM #2.A. KIBC 3.15.030B provides that the school district shall submit to the manager the proposed budget and local support requirements for the school by April 30 so the major funding can be incorporated into the borough budget and budget message. Alaska Statutes 14.14.060C provides that if the assembly does not,within 30 days, furnish the School Board with a statement(resolution)of the sum to be made available,the amount requested in the School Board budget is automatically approved. Note: The Assembly may holt/ci public hearing and adopt the Resolution on Thursday, May 21. Per Borough Code,the Assembly determines the total amount of money to be made available from local sources for school purposes and shall furnish the School Board with a statement (resolution)of the sum to be made available. KIBC 3.15.050 provides that by June 10 the Assembly shall appropriate the amount to be made available from local sources for that purpose in the Borough budget. KIBC 3.35.060D provides the assembly shall fix the rate of tax levy and designate the number of mills upon each dollar of value of assessed taxable real property that shall be levied for borough purposes including the borough government,assessment, and collection of taxes,education, and planning and zoning, and shall levy the tax accordingly. The levies for school and municipal purposes shall be separately made and fixed, but the aggregate of them shall not exceed three percent of the assessed value of the property assessed. KIBC 3.60.020 provides that all motor vehicle registration taxes will be allocated to the area wide school system. Page 2 of 25 Preliminary Discussion on the FY2016 Budget KIBSD Budget Tim... AGENDA ITEM #2.A. 1 Introduced by: Borough Manager 2 Requested by: School District Board Drafted hy: Finance Director 3 Introduced on: 05/15/2014 4 Public Hearing: 05/15/2014 5 Adopted on: 05/15/14 6 7 KODIAK ISLAND BOROUGH 8 RESOLUTION NO. FY2015-01 9 10 A RESOLUTION OF THE ASSEMBLY OF THE KODIAK ISLAND 11 BOROUGH ESTABLISHING THE MINIMUM AMOUNT OF FUNDS TO BE 12 MADE AVAILABLE FROM LOCAL SOURCES FOR THE KODIAK ISLAND 13 BOROUGH SCHOOL DISTRICT FOR THE FISCAL YEAR BEGINNING 14 JULY 1, 2014 AND ENDING JUNE 30, 2015 15 16 WHEREAS, Kodiak Island Borough Code of Ordinances 3.15.0308 provides that the 17 Kodiak Island Borough Board of Education shall submit the proposed budget and local 18 support requirements for the schools by April 30; and 19 20 WHEREAS, the Kodiak Island Borough Board of Education submitted their proposed 21 budget and local support requirements for the schools on April 24; and 22 23 WHEREAS, within thirty days after receipt of the school district budget, the assembly shall 24 determine the amount of funds to be made available from local sources for school purposes 25 and shall furnish the Board of Education with a statement of the sum to be made available; 26 and 27 28 WHEREAS, the Board of Education has submitted their FY2015 budget at $51,803,358 29 which includes a request for local funding (Kodiak Island Borough)of$11,171,800. 30 31 WHEREAS, the amount of funds to be appropriated from local sources for school purposes 32 will be incorporated into Ordinance No. FY2015-01, the Borough's fiscal year 2015 33 appropriation and tax levy ordinance; and 34 35 WHEREAS, FY2015 motor vehicle registration taxes are estimated at$280,000; and 36 37 WHEREAS, the Fiscal Year 2015 assessed value is estimated at $1,160,000,000 (one 38 billion, one hundred and sixty million); and 39 WHEREAS, at an assessed value of $1,160,000,000 (one billion, one hundred and sixty 40 million) and a mill rate of 9.16 mills the education support fund will receive$10,625,600 in real 41 and personal property tax revenues; and 42 WHEREAS, the School District appropriation stated in this resolution may be adjusted as 43 part of the Borough budget process. 44 Kodiak Island Borough,Alaska Resolution No. FY2015-01 Page 1 of 2 Page 3 of 25 Preliminary Discussion on the FY2016 Budget KIBSD Budget Tim... AGENDA ITEM #2.A. 45 NOW, THEREFORE, BE IT RESOLVED BY THE ASSEMBLY OF THE KODIAK ISLAND 46 BOROUGH that the minimum amount to be made available to the Kodiak Island Borough 47 School District from local sources for the fiscal year ending June 30, 2015 is set at 48 $10,905,600 for both the direct appropriation and in kind services. 49 50 NOW, THEREFORE, BE IT FURTHER RESOLVED BY THE ASSEMBLY OF THE KODIAK 51 ISLAND BOROUGH that a mill levy of at least 9.16 mills for education support will be set for 52 the fiscal year ending June 30,2015. 53 54 NOW, THEREFORE, BE IT FURTHER RESOLVED BY THE ASSEMBLY OF THE KODIAK 55 ISLAND BOROUGH that a determination regarding additional funding may be made available 56 to the Kodiak Island Borough School District based upon federal, state, and local funding 57 available for the fiscal year ending June 30, 2015. 58 59 NOW, THEREFORE, BE IT FURTHER RESOLVED BY THE ASSEMBLY OF THE KODIAK so ISLAND BOROUGH any in-kind service expenditures over the budgeted amounts will have to 61 be absorbed by the Kodiak Island Borough School District. 62 63 ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH 64 THIS FIFTEENTH DAY OF MAY, 2014 65 66 KODIAK ISLAND BOROUGH 67 66 69 d 70 / -rrol Frie o, Borough Mayor 71 72 ATTEST: 73 74 76 Nova M. Javier, MMC, Borough Clerk Kodiak Island Borough,Alaska Resolution No. FY2015-01 Page 2 of 2 Page 4 of 25 Preliminary Discussion on the FY2016 Budget KIBSD Budget Tim... -U 3 ',e 03 d- Q_ en C) C N In OState 6l Mesita Pani suttee.ne the was(ie.,s eatelee059g41.49.45et 3 Imm. 1n Mw.n dthay.{ C 102211.00thsodne Mall Oweauietd Daln.ed 00at 0enepko.d 6Npn44 oak., ,-4. cieserai Genets" State Federal Total General 0.vN Sure 1.1.,.1 TSW OOP 001% Total% rade ewe rases rat not rasa %re rule rasa ryW ,[yye Mr• 0.441e 0 REVEIIOL 3.5745 959.5 605.9 3.135.2 7.311.1 3,196.7 557.4 0760 3.3399 7,169.9 Taut Oavulnd hnel Purl Remwn lµ07631.146 ny 2,551.0 2,551.0 3,196.7 2,196.7 Cc,stwN RR 235 0.2 33 04 273 00 90•3436 R.e06 III 959.3 6356 31378 4,733,7 657.4 876.3 3,2392 4,913.3 N APPRorRmAn096 ' 0 Taa109n1045 5,443.0 7723 3,573.6 2.019.9 11.509.0 5.120,7 817.9 1641 2.027.6 6.9264 127811 .4.1% -2486% 4eaq Opeaeaes 4.8030 7514 517.9 1.9929 7.764.6 4,396.6 792.4 654.5 1,994,9 7,741.7 1506.51 .2.4% .0.3% 6) hen 0p.N0ne 930p90.99141 2.093.9 666.0 5145 902.9 4,177,3 2,064.9 700.8 351.3 9095 4,226.5 ]1901 .1.4% 1.2% Ie4l.Iru,see Con 189.5 0.6 0.5 1.3 191.9 194.0 06 0.7 I3 1966 4.5 2.4% 2.4% W Tamed .l 0135muee .. Pupa Ins,noamn rya• 1.339.7 10.0 30.5 1,370.5 . 96 256.9 13.0 20.8 1,290.7 191.8! 4 % - 6% C C 41040 0000644 11440.141 8799 749 2.8 1.047.] 2.014,8 080.8 780 2.5 1,067.3 2,018.9 0.9 0.1% 03% a a 00µ91s 6unn95.-.4,141.4n45.-.4,141.4 RI 7364 7364 744.1 744.1 410e4014 0,0044,4. 939.9 20.9 3,055.9 27.7 4,044.4 824.2 25.5 305.3 28.7 1.1113.7 (115.51 -12.3% -70.7% CD Debt Rewire In(km th.511 ue lolls 013 I.Se 0 2188 193 50.3 52 2907 1283 139 433 52 300.7 9.4 4.3% 2.4% rural Cepedvntm.11(s dIpl ed Fums233.13 II 55 1.6 56 225 35,1 50 Ib 54 23.5 35.4 Wan Agnpp..W,ea 5,04*0.l 5.2 30000 3,005.3 5.9 256.6 261.5 0.6 12.4% .913% W Revenue51asin1 520 52.0 600 600 ou ars 0e.7s.Crebna 6250 633.0 5250 525.0 .ueeneeo.0604 ud 14,434400•Mme X6kxv 134 13.4 0.0 Q 1upPae�a14PW.ICW 200 20.0 00 0.00915 rnIM.tartm,.x9e.e1611be III 15.3 153 12.2 111 22 Total Car14 1 594.9 1644 63.1 1,115.2 1.942.7 106.7 0.0 16.4 1.111.5 1.334.6 1455.21 -82.1% 41.3% G C ',flier'014.41,4a6m. 594.9 164.5 65.1 1.118.2 1.942.7 106.7 0.0 164 1.211,5a I,1N.6 CO 0000900 AueR4310w X ll 4mu me. IS 09 200.9 136 13.6 914.haul.t Aolheeiutlue 6,037.9 936.7 3.635.9 3.135.2 13,751.1 5.327.4 617.9 976.5 3239.2 10.261.0 171051 .11.6% -221.4% CD Feed TSusfml 67.7 21.1 13,00001 0.0 90.5 003 39.6 0.0 0,0 119.7' 0•Mpatd Rua9411.4s5 Pub r8.Fduolan Fuss.uadw Year Do.n LI *eat"( (120.54.1 111:.:0; ,'"a4 3 29 Public£av9W'!kind.Future Year PUMe.SIDlNllO 3030 2733 3 36 5nfpsaev..mea •• 3f 4157 17.2194114 8.111 16311 0.0 32 oche Truth. 33 800/6,00 M0nitlpl se8ml Paula Pu.51 40.0 40.0 388 38.R 34 Rent-nem t 9'0.n.1 Feed try 200 20.0 150 150 35 C*1141Nm.10.4 n Poow puri 00 170.7161 0.0 36 dMTmMen Pi 125 22.8 35.3 10.0 39.6 496 37 TataI A*4Mtla1165 to 0.1461044.30400.4434,44,44,--,, 4, 6,1066'.n'as/959.5....,s,o4369.:a.31331 ....10,641.1.s 2, ab.407.5.,%-.',.657.4. ....67644-A ..3.1399/%.110.330.7,R.. 358.,94.Tln.e 41aNMIO7s4388s8 a.....•n..6.5tm Q aux 1333111• - .ee.a'.rmem- . 97'x'.gf,ri0.81SrSMla.,v...ttrnaev ...r..9+aa 1155999V 690.1/94-1386%444.55, 39 Pn.asot ra4A90gr4O.o 0.0 2.332.0 0.0 0.0 2.232.0 086 2,331.0 0.0 0.0 2.331.0 40 PP beseech/570 a.w.,09(41101.p0 1.3430 1.3420 1,405 0 1.405 0 40 PP I,LWm gmMS 867.0 8670 903.0 9030 43 #E4p16,114064e Fund Nmilm)64 230 23.0 43 Total AateAutba to Spend wi169eemaa.at lend 6,105.6 1,1913 631.9 3,1383 13,054.2 0,407.5 3.155.4 676.5 3,2399 52,711.7 1699.11 -11.4% -25% 44 Med Tax 0931060)flealsla Pa95.ot 9941 61054 3,191.5 6369 3.1303 16.0749 Ss sS 3.150.4 976.5 3.2390 J4.711 7 (.9811 .11.4% 00.944 45 Apnngnaum 4,3010 751.4 517.9 1,9923 7.7646 43966 792.4 554.5 1,9989 7.7417 11065) .3.4% -03% 46 55.u.44e744. 9399 20.9 3,0559 27.7 4.04.4 624.2 255 3052 15.7 1,183.7 (11591 .125.4 .70.7% 47 Taalop.n0e4 6443.0 772.3 3.8718 2,019.9 11.509.0 5.220.7 517.9 960.1 3,027.6 6926.4 h2231 .4.1% 434,4% 9491 694.9 164.5 661 1,118.3 1,942.7 106.7 0.0 16.4 1.211,5 1.334.6 'I%533 -12.1% .312%l2% y 4 .9 ToW4aax0p44..P..Tn..lm 6037.9 936.7 16369 3.1353 12,751.7 6327,4 617.9 5763 3.2394 10.261.0 /"1 15n 50 .4 TWn00 e 57.7 22.8 (3.0 .01 0.0 90.5 00.2 39.6 0.0 0,0 119.7 t1/ -ID II ens.444.9.94949 M sena 6,103.6 959.6 6369 3.1359 50,8429 5.467.5 557.4 6763 3439.2 10,310.7 1498.11 -11.4% .4.3% m (0) 51 P•114114.t...Id651496MWu 0.0 2'33.0 00 0.0 3,333.0 0.0 2.31.0 0.0 0.0 2,331.0 O CP 0 n N m 0164 W M.mrraem IS 11u61e1 1448 0433 14641445 h eob,o I5,3014 N a 3 f It. P. N Notes Cl A Total Unrestricted General Tend Revenue:Line 2 is based on information from the Department of Revenue Fall 2014 Revenue Forecast. C CO intro 04 ted Omer&Tad Rennes x71016 M016 Cnrlopme DMMb Feta$ MOt6 Cl) rtes Klee mita wet Cent het Per heel/ 576.1 le 01 AWW MOualasHassimmteN Lepra Alien tar IAsec-ts 310.0 SI/.! O' Aaeta�ANS W etioni F rd RaveIlliev! 509 5 9t52atAlaska Horsing Fmwue tat t.d Oes far ptq 50.0 SB.] = Lamtrl N Omm1 Yaad Ae.evoa 3a,561A 3],lYe.] TeW n uvrtrb(etea pmeN FSvie 310.7 YMw O L Total Nog Mese for Capital Pojma and Debt&ori ej $7.51 519.I) C B Caeyfarward:Includes fund source for reappmprietions and other appropriation)typically roll•krwarda of prior year multi.year appropriations)that do not require additional FY2015 or FY2016 revenue. C Restricted Revenue:Other revenue not Included as Unrestricted General Fund Revenues in the Revenue Sourm Book,such as Federal Receipts and university Receipts. ll D PublIc Education Fund: Legislation In 2005 established the Public Education Fund WEFT One of the effects of this legislation was to remove expenditure for K-12 Public Education from Agency Operations (FonnuW on lint I1.The FY2015 and FY2016 proposed total 11.12 Foundation Prognutt and Pupil Teanaportation authorization not edpcnditura)is shown on line IO.Line 10 for FY2015 also includes 552.1 million N funded lautharizedl in FY2015 as multiyear operating appropriations for FY2016 and FY2017 funding in addition to the Foundation Formula for State Md to School Districts.The table below shows the amount of K- 0 12 Foundation Permute and Pupil Tranaportation being apaxd from the Public Education Fund.since apenditures from the fund do not require appropriation. a) ?abbe tdueadn Elm eapaedleaee reins Penne m017' W1 Foundation ennula SI Ib/ora 4 sll//,3lb.l 31192.7590' CO pant m pU lnpmpban 3/6`ee4.9 $/Y,t24.] 1:30,e6.2ob5 pant 5deadn Pond Tow 1,244 6471 1,256,940.5 l,213.3153 C Ulla tending outride of the PEP" 41,953.5 CO Demme FY201dUUF fin inn amide the PEP 33,243.7 111 One-ume FY2037 INF Mein:metre the Pee 199011 One-ane T20I6IH.l)tend }l9 it - •d t a,ai..2 mA outride the REF -11 41.2 1/243.7 One-time FY2017 HOY tun t+ nide the PlF 57,600.7 19,9045 UOOP%2/11mi hampartatmn Cappdnhor Tow 1,23T,100.T 1,159,154-5 1,293.19.4 W IMF%change from prim year Aelpe stele Taw -61% 1.3%Line 1G V) INF%change from per year 5apeedlemea Taut' 0.1% 0.1% E Duplicated Anth0rinHoae:These appropriations we in the budget twice,such as when funds flow in and out of a holding account or one agency pays another far services provided.'Drs moat significant aemples W of these type ofapcnditures include operating payments from Interagency Receipts end Capital Improvement Project Receipts. C d F Debt Service:The Debt Service tine include actual payment of debt obligations,primarily General ObLigstion Bonds,State debt reunbunement programs such as School Debt reimbursement,Certificates of fla Participation IleasrOnancingl,and International Airports Revenue Bonds. ID e' 0 Fund Capitallestiese lute 15 consists of the Alaska Children's Trust Grant Account,the Disaster Relief Fund,the Crime Victim Compensation Fund,the Trauma Care Fund,the Alaska Clean Water Fund,the H Alaska Driniting Water Fund,the Muni Bond Bank Reserve Fund,the Election Fund,and the Fish and Game Revenue Band Redemption Fund. B H "Etc Babaidlary Account Fund Transfers:In the FY2015 column,522.5 million is for a capital project for the State Library,Archive and Museum Facility on Wm 23,and 590.6 million is fore capital project for the University of Alaska Anchorage Engineering Building on line 23. • 1 REM/Small Mooldpal School District Pont The REM/Small Municipal School District Fund is apitafced with$39.9 million tinrtrtricted General Funds plus interest estimated to be.1 in FY2015, and 338.8 million Unrestricted General Funds in FY2016,per AS 14.11.025.1n FY2105,540.5 million in grants are appropriated from the REM/Small Municipal School District Fund on tine 23 in the Designated General Funds column. J Ramble Eaealp Grant Feat The Renewable Energy Grant Fund is capitali-wd with 520.0 million Unrestricted General Rinds in FY2015,and 515.0 million Unrestricted General Funds in FY2016.In FY2105,$22.8 million in grants are appropriated from the Renewable Energy Grant Fund on line 13 in the Designated General Funds column. R Coaatttatlanal Midget Reserve Fund:Lune 35 transfers 53.0 billion from the Constitutional Budget Reserve to the retirement Wet funds. I. Other Transfer Includes capitalization of serious State funds,such as the Fish and Game Fund,Oil and Hazardous Substance Release Prevention and Response Accounts,and the Vaccine Assessment Aunt. M PP Dividends f PFD Division Openeone tine 40 include both the amounts for Permanent Fund Dividend(PFD)checks and other State operating mats nitre PFD. Permanent Ped Deere Pond Otbn dSNAwna _ Ft2010 FTa016 PhnMrnt of Revenue DlvIsion et Pcnneevn Fund Dividend apcations 55.2 55.4 included in Line B n Department of Health and Seel be-...., Publle Aelatsace PPD Held Henke 517.7 $17.7 included in Line I I 0 Teel IN.0 555.1 ID The financial Information for the Permanent Fund section Sinn from39-431 is the Alaska Permanent Fund Corporation Fund Financial History h Projections as of September 30,2014.These financial statements are j CO available on the Alaska Permanent Fund website:www.APFC.org. fD Q 1 Alaskam ) N Alaska Capital tame Font The Alaska Capital Income Fund is authorized by AS 37.05.565.The fund consists of income earned on money awarded ase result of the State n.Amerada Hess royalty case, y O estimated to be 517-30 million per year,plus other aPproprialona. awaN alI 11R ate el 5lanpemmt and dtlael Par 2 d7_ Rtleaad saes.,15.2014 It ` .V a AGENDA ITEM #2.A. Governor's Budget- released by Walker with Parnell's numbers Department of Education and Early Development • 3.7 percent increase to pupil transportation • 10.6 percent increase to boarding home grants • No change to Youth in Detention • No change to Special Schools • No change to the Alaska Challenge Youth Academy • 33.9 percent unallocated decrease to to DEED Executive Administration • 2.1 percent increase to DEED Administrative Services, personal services • 2.1 percent increase to DEED Information Services, personal services • 0.9 percent decrease to DEED School Finance & Facilities,personal services 44-• 40.8 percent decrease to DEED School Finance&Facilities,services • 2.1 percent increase to DEED Student&School Achievement,Teaching& Learning Support, personal services • 0.4 percent decrease to DEED Student&School Achievement Teaching& Learning Support, services • No change to the Alaska Learning Network(AKLN) • 1.7 percent increase to State System of Support,Teaching& Learning Services, personal services • No change to the statewide mentoring program • 2.1 percent increase to Teacher Certification,Teaching&Learning Support, personal services • 2 percent increase to Child Nutrition,Teaching& Learning Support, personal services • 2.2 percent increase to Early Learning Coordination,Teaching& Learning Support,personal services • 4.2 percent decrease to Early Learning Coordination,Teaching&Learning Support,grants& benefits • No change to Pre-Kindergarten Grants,Teaching&Learning Support • 104 percent increase to the Professional Teaching Practices Commission, personal services • 100 percent increase to the Professional Teaching Practices Commission,travel • 100 percent increase to the Professional Teaching Practices Commission,services • 100 percent increase to the Professional Teaching Practices Commission, commodities • 2.1 percent increase to the Alaska State Council on the Arts, personal services • 0.7 percent increase to Mt. Edgecumbe Boarding School, personal services • 0.4 percent increase to State Facilities Maintenance,personal services • No changes to DEED Facilities Rent,State Facilities Maintenance 0 . 2 percent increase to Library Operations,Alaska Library& Museums,personal services V • 38.3 percent decrease to Library Operations,Alaska Library&Museums,grants&benefits • 2.1 percent increase to Archives,Alaska Library& Museums, personal services • 2.1 percent increase to Museum Operations,Alaska Library& Museums • 1.9 percent increase to Program Administration &Operations,ACPE, personal services • 4.5 percent increase to Program Administration &Operations,ACPE,grants &benefits • No change to WWAMI,ACPE • 4.5 percent increase to the Alaska Performance Scholarship Awards,grants&benefits Page 7 of 25 Preliminary Discussion on the FY2016 Budget KIBSD Budget Tim... AGENDA ITEM #2.A. 7.47,.':x. `, .w ` ,iNFFie4a .F.A6rCa3Itall_Budget + � Department Parnell's FY16 Walker's FY16 House Education&Early Development School Construction:Klvalina Design $ 4,604,404 Major Maint.Grand Fund Projects(first 9 projects on Major Maint.list) $ 23,140,910 Revenue AHFC Teacher/Health/Safety Housing $ 5,000,000 Page 8 of 25 Preliminary Discussion on the FY2016 Budget KIBSD Budget Tim... AGENDA ITEM #2.A. 1,....-.,- ��x P'i �,"rtt�,v v w " xt ,,..;‘,0,--‘�+ e1kY �a> "yah. k: , rY4(1.e" w, �$,E %a afY ° t � �4�e `f4 i � :ad a '..�� ,armu r x u a t^ .u, di , s ,:„.`i ✓,� s+b: � e i`+ µ,f L b ' Y"' r '''"' 'b'F sir v pp r R wt'a � #'..b t�" ,. '"S ,,, y-ro 'e',{ Kodiak Island Borough School District Office of the Superintendent 722 Mill Bay Rd. Kodiak,AK 99615 907-481-6200 FY 16 Budget Timeline: Saturday,January 31,2015 9 a.m.-1 p.m.-Budget Development Committee. Room A223 High School Tower-Governor's Budget,Winter revision Monday,February 2,2015 7 p.m.-Budget Development Committee-Central Services Conference Room- Updates and Legislative Fly-in Talking Points Discussion February 7-10 AASB Legislative Fly-in,Juneau Monday,February 16,2015 7 p.m.- Regular Meeting- Borough Assembly Chambers- Budget Presentation to the public Thursday,February 19,2015 6-8 p.m.-Initial Budget Citizen Advisory Committee Meeting- Central Services Conference Room-Specific charges of the committee,topics for study Thursday,February 26,2015 6-8 p.m. Budget Citizen Advisory Committee-Central Services Conference Room Monday,March 2,2015 7 p.m.-Budget Development Committee-Central Services Conference Room- Public Comment Monday,March 5,2015 6-8 p.m. Budget Citizen Advisory Committee-Central Services Conference Room Monday,March 12,2015 6-8 p.m. Budget Citizen Advisory Committee-Central Services Conference Room Monday,March 16,2015 7 p.m.-Regular Meeting-Borough Assembly Chambers- Recommended Balanced Budget Presentation- Public Comment March 28-31 AASB Legislative Fly-in,Juneau Page 9 of 25 Preliminary Discussion on the FY2016 Budget KIBSD Budget Tim... AGENDA ITEM #2.A. Monday April 6,2015 7 p.m.-Work Session-Central Services Conference Room- Public Comment Monday,April 20,2015 7 p.m.-Regular Meeting-Borough Assembly Chambers- BOE Final Adoption- Public Comment Thursday April 23,2015 Present Budget to Kodiak Island Borough Page 10 of 25 Preliminary Discussion on the FY2016 Budget KIBSD Budget Tim... AGENDA ITEM #2.C. 1 Introduced by: Borough Manager 2 Requested by: Borough Assembly ^''1 3 Drafted by: Finance Director/Bond Counsel I 4 Introduced on: D7/17/2014 1 5Public Hearing: 08/07/2014 6 Adopted: 08/07/2014 7 8 KODIAK ISLAND BOROUGH 9 ORDINANCE NO. FY2015-02 10 11 AN ORDINANCE OF THE KODIAK ISLAND BOROUGH ASSEMBLY 0 12 AUTHORIZING THE BOROUGH TO ISSUE GENERAL OBLIGATION 13 BONDS IN THE PRINCIPAL AMOUNT OF NOT TO EXCEED $10,230,000 14 TO FINANCE THE RENEWAL AND REPLACEMENT SCHEDULE 15 RELATED TO BOROUGH OWNED SCHOOL FACILITIES, PROJECTS 16 WHICH ARE 70% REIMBURSABLE BY THE STATE OF ALASKA, AND 17 TO SUBMIT THE QUESTION OF THE ISSUANCE OF SUCH BONDS TO 18 THE QUALIFIED VOTERS OF THE BOROUGH AT THE OCTOBER 7, 19 2014 REGULAR BOROUGH ELECTION 20 21 WHEREAS, under the provisions of AS 29.47.190, a municipality may incur general 22 obligation debt only after a bond authorization ordinance is approved by a majority of those 23 voting on the question at a regular or special election; and 24 25 WHEREAS, the borough owns and maintains multi-million dollar school facilities; and 26 J 27 WHEREAS, the borough maintains a Renewal & Replacement Schedule which provides 28 a long term plan to renew and/or replace worn out building components within the school 29 facilities; and • 30 31 WHEREAS, many of the Kodiak Island Borough's school facilities have worn out building 32 components such as roofs, floors, underground storage tanks, etc. that have reached the 33 end of their useful life; and 34 35 WHEREAS, the State of Alaska, Department of Education, has a program in which major 36 maintenance projects for school facilities are eligible for 70% reimbursement of the bonded 37 debt service on the eligible portion of bonds authorized by the qualified voters of the 38 Borough; and 39 40 WHEREAS, the Borough views the renewal and replacement projects authorized herein 41 as necessary and beneficial to the community and acquisition of 70% reimbursement 42 money from the state as the most cost effective way of funding these projects; and 0 43 44 WHEREAS, bonds can be sold for a period of 10 to 20 years and qualify for State Debt 45 Reimbursement; and 46 47 WHEREAS, the True Interest Cost (TIC) is estimated to be 2.65 percent (2.65%); and 48 49 WHEREAS, per KIBC 7.10.060D, .before a general obligation bond issue election, the 50 clerk shall publish the attached notice of the borough's total existing bonded indebtedness 51 (EXHIBIT A) at least once a week for three consecutive weeks. The first notice shall be 52 published at least 20 calendar days before the date of the election. The notice shall state: © Kodiak Island Borough Ordinance No. FY2015-02 Page 1 of 5 Page 11 of 25 Discussion on Bond Related and Other Major School Projects P... AGENDA ITEM #2.C. �) 53 1. The current total general obligation bonded indebtedness, including authorized 54 but unsold bonds of the borough; 55 2. The cost of the debt service on the current indebtedness; and 56 3. The total assessed valuation of property in the borough. 57 58 NOW, THEREFORE, BE IT ORDAINED BY THE ASSEMBLY OF THE KODIAK ISLAND 59 BOROUGH THAT: 60 61 Section 1: This ordinance is not of a general or permanent nature and shall not become 62 a part of the Kodiak Island Borough Code of Ordinances. '._/ 63 64 Section 2: It is hereby determined to be for a public purpose and in the public interest of 65 the Borough to incur general obligation bonded indebtedness in an amount 66 not to exceed Ten Million Two Hundred Thirty thousand Dollars 67 ($10,230,000) for the purpose of paying for renewal and replacement 68 projects (including planning, design, construction, furnishings, and 69 equipment) in an effort to carry out the renewal and replacement schedule 70 related to these facilities as described in Section 4 and for similar projects if 71 money is available after these projects have been completed. 72 73 Section 3: The Borough is authorized to borrow the sum of Ten Million Two Hundred 74 Thirty Thousand Dollars ($10,230,000) to finance the renewal and 75 replacement projects described in Section 4, and the borrowing shall be • 76 evidenced by the issuance of general obligation bonds of the Borough; 77 provided that bonds may not be issued for any project unless the project is 78 eligible for debt service reimbursement by the State of Alaska. The full faith 79 and credit of the Borough are pledged for payment of the principal of and 80 interest on the bonds, and ad valorem taxes upon all taxable property in the 81 Borough shall be levied without limitation as to rate or amount to pay the 82 principal of and interest on the bonds when due. 83 • 84 Section 4: The final maturity of the bonds will be no later than 10.5 years after their date 85 of issuance and the bonds will not be sold if the true interest cost is over 4 86 percent (4%). 87 88 Section 5: The Borough shall submit the following proposition to the qualified voters of 89 the Borough at the October 7, 2014 regular Borough election. The 90 proposition must receive an affirmative vote from a majority of the qualified 91 voters voting on the question to be approved. 92 93 PROPOSITION NO. 1 94 GENERAL OBLIGATION BONDS-$10,230,000 95 SCHOOL FACILITIES RENEWAL AND REPLACEMENT PROJECTS 96 97 Shall the Kodiak Island Borough incur debt and issue general 98 . obligation bonds in an amount not to exceed Ten Million Two 99 Hundred Thirty thousand Dollars ($10,230,000) for the 100 purpose of paying the cost of school facilities renewal and 101 replacement projects which are 70% reimbursable by the 102 State of Alaska, that address worn out building components 1 103 such as roofs, floors, underground storage tanks, etc. that 104 have reached the end of their useful life, including without Kodiak Island Borough Ordinance No. FY2015-02 CD Page 2 of 5 Page 12 of 25 Discussion on Bond Related and Other Major School Projects P... AGENDA ITEM #2.C. 105 limitation the projects described below and other related 106 projects? Project Name Cost Kodiak Middle School Underground Storage Tank Replacement 150,000 East Elementary School Flooring Replacement 649,000 Peterson Elementary School Flooring Replacement 363,500 Port Lions School Underground Storage Tank Replacement 200,000 Main Elementary School Underground Storage Tank Replacement 150,000 Kodiak Middle School New Elevator Controls 54,000 0 Kodiak Middle School School New HVAC(Heating)Controls 1,576,200 Peterson Elementary School New HVAC(Heating) Controls 694,900 Kodiak Middle School Rear Parking Lot Paving 675,800 East Elementary School Cafeteria Roof Replacement 1,248,500 Ouzinkie School Old Wing Flooring Replacement 160,300 Ouzinkie School New Wing Flooring Replacement 41,000 Akhiok School Flooring Replacement 95,500 Kodiak Middle School Fire Alarm Replacement 405,000 East Elementary School Partial Interior Renovation 687,200 Peterson Elementary School Parking Lot Paving 972,000 Kodiak Middle School Bus Ramp Roof Replacement 118,800 Peterson Elementary School Replacement of Boilers 324,600 Main Elementary School Gym Floor Replacement 450,000 Karluk School Flooring Replacement 86,700 Chiniak School Playground Equipment Replacement 101,200 Karluk School Playground Equipment Replacement 101,200 Akhiok School Playground Equipment Replacement 101,200 East Elementary School Replacement of Plumbing Fixtures 256,500 Old Harbor School Playground Equipment Replacement i 121,500 Ouzinkie School Playground Equipment Replacement 321,500 Port Lions School Playground Equipment Replacement 121,500 Old Harbor School Underground Storage Tank Replacement 202,400 Project Totals 10,230,000 70%State Reimbursement 7,161,000 107 30% Local Contribution _ 3,069,000 108 109 The projects are expected to qualify for not less than 70% 110 State debt service reimbursement, funding for which is 17.1 subject to annual appropriation. The projects will be 11.2 scheduled as such to limit disruption to the education of 113 students, and bonds will be sold only as needed to pay 114 project costs. If the State fully funds the debt service 115 reimbursement program, the average annual debt service 116 payable by the Borough after State reimbursement, is 117 estimated to be $353,569. This amount of debt service may 118 require an additional annual property tax levy of $84 per J 119 $250,000 of assessed value, or its equivalent. This example 120 of a property tax levy is provided for illustrative purposes only. 121 • Kodiak Island Borough Ordinance No, FY2015-02 Page 3 of 5 Page 13 of 25 Discussion on Bond Related and Other Major School Projects P... AGENDA ITEM #2.C. • • 0 122 The bonds shall be secured by a pledge of the full faith and 123 credit of the Borough (Ordinance No. FY2015-02). 124 125 Section 6: The proposition shall be printed on a ballot which may set forth other general Ji 126 obligation bond propositions, and the following words shall be added as 127 appropriate next to an oval provided for marking the ballot for voting by hand 128 or machine: 129 PROPOSITION NO, 1 O YES rm NO 130 131 132 Section 7: Sections 2 and 3 of this ordinance shall become effective only if the 133 proposition described in Section 4 is approved by a majority of the qualified 134 voters voting on the proposition at the October 7, 2014 regular Borough 135 election. The remaining sections of this ordinance shall become effective 136 upon adoption by the Kodiak Island Borough Assembly. 137 138 ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH 139 THIS SEVENTH DAY OF AUGUST, 2014 140 141 142 KODIAK ISLAND BOROUGH 143 • 144 145eallm.s ._ _� 146 Gf rrol Frien:rEorough Mayor 147 148 ATTEST: 149 150 151 ,f 152 Nova M. Javier, MMC, f rough Clerk 153 154 (J Kodiak Island Borough Ordinance No. FY2015-02 0 Page 4 of 5 Page 14 of 25 Discussion on Bond Related and Other Major School Projects P... AGENDA ITEM #2.C. 0 155 EXHIBIT A 156 KODIAK ISLAND BOROUGH r157 NOTICE OF EXISTING BONDED INDEBTEDNESS 158 As of June 30, 2014 ' 159 Pursuant to AS 29.47.190(b) and KIBC 7.10.060(d) requiring governmental units to 160 publish Notice of Existing Bonded Indebtedness before general obligation bond 161 elections, the Kodiak Island Borough publishes the following notice: GENERAL OBLIGATION BONDS Authorized But Unsold Balance 6/30/2014 O School Construction 20040 -0- $ 530,000 / School Construction 2008A -0- 6,305,000 School Construction 2011 Series One -0- 7,145,000 School Construction 2012A -0- 5,195,000 School Construction 2012B -0- 6,340,000 School Construction 2013 Series one -0- 20,960,000 School Construction 2014 A -O- 22,660,000 $ 59,135,000 162 Fiscal Year Ending lune 30 Principal Interest Total 2015 $ 2,640,000 5 3,119,885 $ 5,759,885 2016 3,170,000 2,989,362 6,159,362 2017 3,295,000 2,869,212 6,164,212 2018 3,395,000 2,750,463 6,145,463 7019 3,540,000 2,617,362 6,157,362 , 2020 3,670,000 2,478,487 6,148,487 2021 3,815,000 2,336,100 6,151,100 2022 3,980,000 2,166,550 6,146,550 2023 4,160,000 1,985,701 6,1.45,701 2024 4,355,000 1,789,538 6,144,538 2025 4,570,000 1,572,571 6,142,571 2026 3,310,000 1,402,025 4,712,025 2027 3,470,000 1,238,228 4,708,228 2028 3,645,000 1,064,121 4,709,121 2029 3,205,000 881,234 4,086,234 2030 3,365,000 720,315 4,085,315 2031 3,535,000 551,359 4,086,359 2032 3,085,000 381,190 3,466,190 2033 3,240,000 226,940 3,466,940 2034 1,690,000 84,500 1,774,500 O $ 69,135,000 $ 33,225,143 $102,360,143. 163 164 Total Assessed value January 1, 2014 $1,181,899,002 165 Karleton G Short Nova M. Javier, MMC 166 Finance Director Borough Clerk • O Kodiak Island Borough Ordinance No. FY2015-02 �i Page 5 of 5 Page 15 of 25 Discussion on Bond Related and Other Major School Projects P... AGENDA ITEM #2.C. - PROPOSITION NO. 1 SCHOOL FACILITIES RENEWAL AND REPLACEMENT PROJECTS Shall the Kodiak Island Borough incur debt and issue general obligation bonds in an amount not to exceed Ten Million Two Hundred Thirty thousand Dollars ($10,230,000) for the purpose of paying the cost of school facilities renewal and replacement projects which are 70% reimbursable by the State of Alaska, that address worn out building components such as roofs, floors, underground stor- age tanks, etc. that have reached the end of their useful life, including without limitation the projects described below and other related projects? PROJECT NAME COST Kodiak Middle School Underground Storage Tank Replacement $ 150,000 East Elementary School Flooring Replacement 649,000 Peterson Elementary School Flooring Replacement 363,500 Port Lions School Underground Storage Tank Replacement 200,000 Main Elementary School Underground Storage Tank Replacement 150,000 Kodiak Middle School New Elevator Controls 54,000 Kodiak Middle School New HVAC (Heating)Controls 1,576,200 Peterson Elementary School New HVAC(Heating)Controls 694,900 Kodiak Middle School Rear Parking Lot Paving 675,800 East Elementary School Cafeteria Roof Replacement 1,248,500 Ouzinkie School Old Wing Flooring Replacement 160,300 Ouzinkie School New Wing Flooring Replacement 41,000 Akhiok School Flooring Replacement 95,500 Kodiak Middle School Fire Alarm Replacement 405,000 East Elementary School Partial Interior Renovation 687,200 Peterson Elementary School Parking Lot Paving 972,000 Kodiak Middle School Bus Ramp Roof Replacement 118,800 Peterson Elementary School Replacement of Boilers 324,600 Main Elementary School Gym Floor Replacement 450,000 Karluk School Flooring Replacement 86,700 Chiniak School Playground Equipment Replacement 101,200 Karluk School Playground Equipment Replacement 101,200 Akhiok School Playground Equipment Replacement 101,200 East Elementary School Replacement of Plumbing Fixtures 256,500 Old Harbor School Playground Equipment Replacement 121,500 Ouzinkie School Playground Equipment Replacement 121,500 Port Lions School Playground Equipment Replacement 121,500 Old Harbor School Underground Storage Tank Replacement 202,400 Project Totals $ 10,230,000 70% State Reimbursement 7,161,000 30% Local Contribution $ 3,069,000 0 Yes O No CONTINUED ON NEXT PAGE... 27 Page 16 of 25 Discussion on Bond Related and Other Major School Projects P... AGENDA ITEM #2.C. PROPOSITION NO. 1 CONTINUED SCHOOL FACILITIES RENEWAL AND REPLACEMENT PROJECTS The projects are expected to qualify for not less than 70% State debt service reimbursement, funding for which is subject to annual appropriation. The projects will be scheduled as such to limit disruption to the education of students, and bonds will be sold only as needed to pay project costs. If the State fully funds the debt service reimbursement program, the average annual debt service payable by the Borough after State reimbursement, is estimated to be $353,569. This amount of debt service may require an additional annual property tax levy of$84 per$250,000 of assessed value, or its equivalent. This example of a property tax levy is provided for illustrative purposes only. The bonds shall be secured by a pledge of the full faith and credit of the Borough(Ordinance No. FY2015-02). .: ..�. PROPOSITION NO. 1 SUMMARY PREPARED BY KIB ADMINISTRATION DESCRIPTION A positive vote for the sale of $10,230,000 (ten million two hundred thirty thousand dollars) of general obligations bonds will fund projects to replace deteriorating school facilities' building elements that are past their useful life span in schools around Kodiak Island. These projects will save operation costs or eliminate liability due to the old age of building components.The following are the recommended projects and the costs associated with these projects: PROJECT NAME COST Kodiak Middle School Underground Storage Tank Replacement $ 150,000 East Elementary School Flooring Replacement 649,000 Peterson Elementary School Flooring Replacement 363,500 Port Lions School Underground Storage Tank Replacement 200,000 Main Elementary School Underground Storage Tank Replacement 150,000 Kodiak Middle School New Elevator Controls 54,000 Kodiak Middle School New HVAC(Heating)Controls 1,576,200 Peterson Elementary School New HVAC(Heating)Controls 694,900 Kodiak Middle School Rear Parking Lot Paving 675,800 East Elementary School Cafeteria Roof Replacement 1,248,500 Ouzinkie School Old Wing Flooring Replacement 160,300 Ouzinkie School New Wing Flooring Replacement 41,000 Akhiok School Flooring Replacement 95,500 Kodiak Middle School Fire Alarm Replacement 405,000 East Elementary School Partial Interior Renovation 687.200 Peterson Elementary School Parking Lot Paving 972,000 Kodiak Middle School Bus Ramp Roof Replacement 118,800 Peterson Elementary School Replacement of Boilers 324,600 Main Elementary School Gym Floor Replacement 450,000 Karluk School Flooring Replacement 86,700 CONTINUED ON NEXT PAGE... 28 Page 17 of 25 Discussion on Bond Related and Other Major School Projects P... AGENDA ITEM #2.C. PROPOSITION NO. 1— SUMMARY CONTINUED Chiniak School Playground Equipment Replacement 101,200 Karluk School Playground Equipment Replacement 101,200 Akhiok School Playground Equipment Replacement 101,200 East Elementary School Replacement of Plumbing Fixtures 256,500 Old Harbor School Playground Equipment Replacement 121,500 Ouzinkie School Playground Equipment Replacement 121,500 Port Lions School Playground Equipment Replacement 121,500 Old Harbor School Underground Storage Tank Replacement 202,400 Project Totals $ 10,230,000 70%State Reimbursement (7,161,000) 30%Local Contribution $ 3,069,000 The projects are expected to qualify for not less than 70% State debt service reimbursement, funding which is subject to annual appropriation. Bonds will be sold only as needed to pay project costs. If the State fully funds the debt service reimbursement program, the average annual debt service payable by Borough citizens, after State reimbursement, is estimated to be$353,569. This amount of debt service may require an additional annual property tax levy of $84 per $250,000 of assessed value, or its equivalent. This example of a property tax levy is provided for illustrative purposes only. The bonds shall be secured by a pledge of the full faith and credit of the Kodiak Island Borough. TOTAL DEBT COSTS The Kodiak Island Borough owns the above mentioned public school facilities and has the responsibility to make sure that these publically owned buildings are operating efficiently and economically, and where worn out items are replaced. Items that cause buildings to use less fuel save the public in reduced operation costs over the many years of those buildings' lifespans. Eliminating liabilities will save the public in potential legal costs. If the bonds are voted down, the work associated with these projects will still need to be completed, but will be deferred over several years. The option of the State reimbursing the projects at seventy percent(70%)of their costs is the most cost effective method to fund this work and to keep local costs to a minimum. Funding these projects with the sale of bonds will raise the per capita debt and could raise property taxes. Bonded debt has grown as a result of the construction of the Kodiak High School addition, but is expected to be paid down in future years.The current per capita net bonded debt is$2,288. The sale of these bonds will increase the net per capita bonded debt to$2,544. Following this page is a copy of Borough Ordinance No. FY2015-02 that was adopted by the Borough Assembly on August 7, 2014. 29 Page 18 of 25 Discussion on Bond Related and Other Major School Projects P... AGENDA ITEM #2.C. -, PROPOSITION NO. 1— ORDINANCE NO. FY2015-02 1 Inlronuced by. Sweep Manage, 2 Requested br. Borough Assenbp 3 Deed by' Finance Dread/Bond Counsel 4 Introduced on, 07/17/2014 Pubic Hearing 08072014 5 Adopted 08/0712014 7 e KODIAK ISLAND BOROUGH 9 ORDINANCE NO.FY2015-02 10 11 AN ORDINANCE OF THE KODIAK ISLAND BOROUGH ASSEMBLY 12 AUTHORIZING THE BOROUGH TO ISSUE GENERAL OBLIGATION 11 BONDS IN THE PRINCIPAL AMOUNT OF NOT TO EXCEED$10,230,000 14 TO FINANCE THE RENEWAL AND REPLACEMENT SCHEDULE 15 RELATED TO BOROUGH OWNED SCHOOL FACILITIES. PROJECTS 16 WHICH ARE 70%REIMBURSABLE BY THE STATE OF ALASKA. AND 17 TO SUBMIT THE QUESTION OF THE ISSUANCE OF SUCH BONDS TO 18 THE QUALIFIED VOTERS OF THE BOROUGH AT THE OCTOBER 7, 19 2014 REGULAR BOROUGH ELECTION 20 21 WHEREAS, under the provisions of AS 29,47.190, a municipality may incur general 22 obligation debt only after a bond authorization ordinance is approved by a majority of those 23 voting on the question at a regular or special election:and 2,1 25 WHEREAS, the borough owns and maintains milli-miilien dollar school facilities:and 26 27 WHEREAS, the borough maintains a Renewal S Replacement Schedule which provides 28 a long term plan to renew and/or replace'nom out building components within the school 29 facilities;and 30 31 WHEREAS, many of the Kodiak Island Borough's school facilities have worn out building 32 components such as roofs,floors,underground storage tanks,etc.that have reached the 33 end of their useful life;and 3.1 35 WHEREAS, the State of Alaska,Department of Education,has a program in which major 36 maintenance projects for school facilities are eligible for 70"%'reimbursement of the bonded 37 debt service on the eligible portion of bonds authorized by the qualified voters of the 34 Borough;and 39 40 WHEREAS. the Borough views the renewal and replacement projects authorized heroin 41 as necessary and beneficial to the community and acquisition of 70% reimbursement 42 moneyfrom the state as the most cost effective way of funding these projects;and 43 44 WHEREAS, bonds can be sold for a period of 10 to 20 years and qualify for Slate Debt 45 Reimbursement:and 46 47 WHEREAS. the True Interest Cost(TIC]is estimated to be 2.65 percent(2.65%);and 48 49 WHEREAS, per KIBC 7.10 0600. before a general obligation bond issue election,the 50 clerk shat publish the attached notice of the borough's total existing bonded indebtedness 51 (EXHIBIT A)at least once a week for three consecutive weeks. The firs)notice shall be 52 published at least 20 calendar days before the data of the election,The notice shall state: Kodiak Island Borough Ordinance No.FY2015.02 Page 1 of 5 30 Page 19 of 25 Discussion on Bond Related and Other Major School Projects P... AGENDA ITEM #2.C. PROPOSITION NO. 1— ORDINANCE NO. FY2015-02 53 I. The current total general obligation bonded indebtedness.including authorized Sd but unsold bonds of rho borough; 55 2. The cost of the debt service on the current indebtedness;and 56 3. The total assessed valuation of property in the borough. 57 58 NOW,THEREFORE.BE IT ORDAINED BY THE ASSEMBLY OF THE KODIAK ISLAND 59 BOROUGH THAT: so 61 Section 1: This ordinance is not of a general or permanent nature and shall not become 62 a part of the Kodiak Island Borough Code of Ordinances. 63 64 Section 2: II is hereby determined to be for a public purpose and in the public interest of 65 the Borough to incur general obligation bonded indebtedness in an amount 66 not to exceed Ten Million Two Hundred Thirty thousand Dollars 67 (510.230,000) for the purpose of paying for renewal and replacement 68 projects (including planning, design, construction, furnishings, and 69 equipment)in an elton to carry out the renewal and replacement schedule 70 related to these facilities as described in Section 4 and for similar projects if 21 money is avaibble alter these projects have been completed. 72 73 Section 3: The Borough is authorized to borrow the sum of Ten Million Tve Hundred 74 Thirty Thousand Dollars (510,230,000) to finance the renewal and 75 replacement projects described in Section 4,and the borrovnng shall be 96 evidenced by the issuance of general obligation bonds of the Borough; 77 provided that bonds may net be issued for any project unless the project is 78 eligible for debt service reimbursement by the State of Alaska. The full faith 79 and erode of the Borough are pledged for payment of the prindpal of and 80 interest on the bonds,and ad valorem taxes upon all taeable properly in the 81 Borough shall be levied without limitation as to rate or amount to pay the 32 prindpal of and interest on the bends when due. 83 84 Section 4; The final maturity el the bonds will be no later than 10.5 years after their date 85 of issuance and the bonds will not be sold if the true interest cost is over 4 86 percent(4%), 82 88 Section 5: The Borough shall submit the following proposition to the qualified voters of 89 the Borough at the October 7, 2014 regular Borough election. The 90 proposition must receive an affimvtive vote from a majority of the qualified 91 voters voting on the question to be approved. 92 93 PROPOSITION NO.1 94 GENERAL OBLIGATION BONDS•510,230,000 95 SCHOOL FACILITES RENEWAL AND REPLACEMENT PROJECTS 96 97 Shall the Kodiak Island Borough incur debt and issue general 98 obligation bonds in an amount not to exceed Ten Million Two 99 Hundred Thirty thousand Dollars ($10230.000) for the 100 purpose of paying the cost of school facilities re vel and Pal replacement projects witch are 70% reimbursable by the 102 State of Alaska,that address worn out building components 103 such as oofs, floors, underground storage tanks. etc.that 161 have reached the end of their useful life, including without Kodiak Island Borough Ordinance No.FY2015-02 Page 2 of 5 31 Page 20 of 25 Discussion on Bond Related and Other Major School Projects P... AGENDA ITEM #2.C. PROPOSITION NO. 1— ORDINANCE NO. FY2015-02 105 limitation the projects described below end other related 106 projects? Project Name Cost Kodiak Middle School Underground Storage Tank Replacement 150.000 East Elementary School Flooring Replacement 649,000 Peterson Elementary School Flooring Replacement 363,500 Part Lions School Underground Storage Tank Replacement 2004300 Main Elementary School Underground Storage Tank Replacement 150,009 Kodiak Middle School New Elevator Controls 54,0000 Kodiak Middle School School New IIVAC(Heating)Controls 1,574200 Peterson Elementary School New FIVFC(Heating)Controls 694,900 Kodiak Middle School Rear Parking Lot Paving 675,800 East Elementary School Cafeteria Roof Replacement 1,248,500 Ouzinkie School Old Wing Flooring Replacement 160,300_ Ouzinkie School New Wing Flooring Replacement 41,000 Akhiok School Flooring Replacement 95,500 Kodiak Middle School Fire Alarm Replacement 405.000 East Elementary School Partial Interior Renovation 687.200 Peterson Elementary School Parking Lot Paving 97;000 Kodiak Middle School Bus Ramp Roof Replacement 118,800 Peterson Elementary School Replacement of Rollers 324,600 Main Elementary School GymFloor Replacement 45,000 Karluk School Flooring Replacement 86,700 Chiniak School Playground Equipment Replacement 101,200 Karluk School Playground Equipment Replacement 101,200 Akhiok School Playground Equipment Replacement 101,200 East Elementary School Replacement of Plumbing Fixtures 256.500 Old Harbor School Playground Equipment Replacement 124500 Ouzinkie School Playground Equipment Replacement 121,500 Port Lions School Playground Equipment Replacement 121,500 Old Harbor School underground Storage lank Replacement 202,400 Project-totals 10,230,000 70%State Reimbursement 2.161003 102 30%Local Contribution 3.069.000 105 109 The projects are expected to qualify for not less than 70% 110 State debt service reimbursement, funding for which is 111 subjed to annual appropriation. The projects w91 be 112 scheduled as such to limit disruption to the education of 153 students, and bonds will be sold only as needed to pay 114 project costs. It the State fully funds the debt service 115 reimbursement program, the average annual debt service 116 payable by the Borough after State reimbursement, is 117 estimated to be$353,569.This amount of debt service may 118 require an additional annual property tot levy of $84 per 119 $250,000 of assessed value,or its equivalent.The example 120 of e propertytax levy is provided for illustrative purposes only. 121 Kodiak Island Borough Ordinance No,FY2015-02 Page 3 of 5 32 Page 21 of 25 Discussion on Bond Related and Other Major School Projects P... AGENDA ITEM #2.C. PROPOSITION NO. 1— ORDINANCE NO. FY2015-02 122 The bonds shall be secured by a pledge of the full faith and 123 credit of the Borough(Ordinance No.FY201502). 124 125 Section 6: The proposition shall be printed on a ballot which may set forth other general 126 obligation bond propositions, and the following words shall be added as 127 appropriate next to an oval provided for marking the ballot for voting by hand 128 or machine: 129 PROPOSITION NO.1 O YES O NO 130 131 132 Section?: Sections 2 and 3 of this ordinance shall become effective only it the 133 proposition described in Section 4 is approved by a nolorey of the qualified 134 voters voting on the proposition at the October 7, 2014 regular Borough 135 election. The remaining sections of this ordinance shall become effective 036 upon adoption by the Kodiak Island Borough Assembly. 137 138 ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH 139 THIS SEVENTH DAY OF AUGUST,2014 140 KODIAK ISLAND ROUGH /1GL 1421441. J{noi Friend.=.:. .h Mayor ATTTTT�EESS/T'�''� //,���''/�`/��(,U�/ Nova M.Javitr,MMCporw' gh C edx 141 142 Kodiak Island Borough Ordinance No.FY2015-02 Page 4 of 5 33 Page 22 of 25 Discussion on Bond Related and Other Major School Projects P... AGENDA ITEM #2.C. PROPOSITION NO. 1- ORDINANCE NO. FY2015-02 EXHIBIT A KODIAK ISLAND BOROUGH NOTICE OF EXISTING BONDED INDEBTEDNESS As of June 30,2014 Pursuant to AS 29.47.190(b)and KIBC 7.10.060(d)requiring governmental units to pub- lish Notice of Existing Bonded Indebtedness before general obligation bond elections,the Kodiak Island Borough publishes the following notice: GENERAL OBLIGATION BONDS Authorized But Unsold Balance 6/30/2014 School Construction 2004D -0- $ 530,000 School Construction 2008A -0- 6,305,000 School Construction 2011 Series One -o- 7,145,000 School Construction 2012A -0- 5,195,000 School Construction 20128 -0- 6,340,000 School Construction 2013 Series one -0- 20,960,000 School Construction 2014 A -0- 22,660,000 $ 69,135,000 Fiscal Year Endinglune 30 Principal Interest Total 2015 $ 2,640,000 $ 3,119,885 $ 5,759,885 2016 3,170,000 2,989,362 6,159,362 2017 3,295,000 2,869,212 6,154,212 2018 3,395,000 2,750,463 6,145,463 2019 3,540,000 2,617,362 6,157,362 2020 3,670,000 2,478,487 6,148,487 2021 3,815,000 2,336,100 6,151,100 2022 3,980,000 2,166,550 6,146,550 2023 4,150,000 1,985,701 6,145,701 2024 4,355,000 1,789,538 6,194,538 2025 4,570,000 1,572,571 6,142,571 2026 3,310,000 1,402,025 4,712,025 2027 3,470,000 1,238,228 4,708,228 2028 3,645,000 1,064,121 4,709,121 2029 3,205,000 881,234 4,086,234 2030 3,365,000 720,315 4,085,315 2031 3,535,000 551,359 4,086,359 2032 3,085,000 381,190 3,466,190 2033 3,240,000 226,940 3,466,940 2034 1,690,000 84,500 1,774,500 $ 59,135,000 $ 33,225,143 5102,350,143 Total Assessed value January 1,2014 $1,181,899,002 Karleton G Short Nova M.Javier,MMC Finance Director Borough Clerk The State of Alaska reimburses up to 60 to 70% of the Kodiak Island Borough payments, subject to annual appropriation. 34 Page 23 of 25 Discussion on Bond Related and Other Major School Projects P... AGENDA ITEM #2.C. SAMPLE BALLOT—PROPOSITION NO. 1 SCHOOL FACILITIES RENEWAL AND REPLACEMENT PROJECTS r ri SAMPLE BALLOT ipm KODIAK ISLAND BOROUGH,ALASKA General Municipal Election TUESDAY,OCTOBER 7.2014 t.- INSTRUCTIONS: To vote,fill in the oval to the left of your choice. PROPOSITION NO.1 GENERAL OBLIGATION BONDS-$10 730 00Q o w SCHOOL FACILITIES RENEWAL AND REPLACEMON I PROJECTS — 4.91 the kolra1.,void bocoso8 recur Pebb ane mem°neral ebFylm[ones in an amain nano exceed Too MYbn Tao Hundred Tony emr monad Dotes(110,230,00O)In the 0 inose of paySO Sr.cost or.csiod Hones rennoe1 anv repbcom t protects duce are 70% reenanabx by led State d Alava eat edemas oem opt buede9 aiTeOents such as rWarlws underground storage tanks.ere Mai owbate reMnav the old Wmar bseulne,nouoeg.vmott1inanton be pigeoCelian Ca[Mxumooed uanC Other ped gory[.]? eie PROJECT NAME COST Vedrak Mattie Schur under9'ouol Sorge lark Repaceuent S. Isar= we East Elementary School Flmn3 ReWumen: 649.000 as h'raedn Bern:mac&1 J FYrurg Replacement 361500 - Pet Lions School UMeogrossd Storeys Tank Reliacement 204040 Mar.Elementary School llmerorn:no Storage TankRepmeeef.nt lea Gro - Kodak Middle Scion new Eara'a Controls 510.1 soden Marne ScnW Pie,HVAC(Herynol Controls Pearson 1,576 210 - Etenen4%ailml Re.M/AL(Hnelnt)Consuls Kc.Guk/Addle 054003 SchoX Rear Parsing Lot Pamg b7%570 me Ent Eremoctys SclW Ca:erea Roel Renamxnt 1,205,503 Omemo.nbo SCA00101d Wing FWn.Repraceeerm 160 300 lime OWPke SCAWI Clew VArq Fbx'ag RepacemMt IT CW Pkmnl.School Floony Replaseront Ya,YO Kyl 4 Modle Schaal Fre PWm Regawmenl 405 0.tl sew East Elemmtary Sewer'Proal Interior Renoenwn 057X0 s HeataiOn Elemenuri Sem.PaMurg Ln Pavng 922030 - Kodiak MMra AMA yrs Ramp Root Rellacenient 118,800 Peteoon Elevenur,sac Repaament C Boilers 324 iro m Main SerneaWy Scryy Gym Fax Replacement 450,E eaINk SMMr F0Onrp ReplMrrelS e6,200 e CNniol 5chOn Pagrulnd Egwryrcnt Repbcerrent 101.200 Yarkik Sctol Plagmurq Eaub'Mrl Replacement 101,100 *x111,0 Sca0.J Pugmpde Ecacment Replacement 101 )0 East Senxfr glary Sorest Replacer/NW or Retry Forums 246,5]0 _ ON Haber SLAW Pt.)ground Epulprett Replatemen: 121,500 ▪ Ou:.'a 5ch001 Playground Fqulgmrn Redacement 121,500 PM Wm Smut Pll',wM EPAlarenI Replacetwnl 125,500 - Old Halter School Underground SwopeTana Repltceoeer 302.400 Rolecl Talds 310,230,0.00 mi 10%State Reimbursement 1181 P00 all 30%Local Contribution 5 Lc/MOM _ mi OYES ]NO a ▪ The protects are acceded ro wally la not ins two 70%Sate debt sem.re)mburumenl lunge.]to,wrath s stabled to annual mi apwdpaton The prgech sal be schooled as such to lime Cnrupia le He WKaton of students.and Weds all be sok oily as needed— to pas point oasts II Pe state raw twos sue dA.t eerie reimbursement ent owm1R Me aretage arerpl Cat sero.payable by it. - Borogn a.ea&ate,ehmbarement s eMemted 10 be 5353 5,59 Too amount al debt strew may rewire an add:pa anneal property tax'm by d 544 per$200,030 of assessed Gale,or its eNnalem.ThS eavrpleat a properly tax low is PWgcd toe Olepapurposes only. - T.weds shall be secured by a pledge lithe all ado and well Mt the Borogn(Cederarrcerto FY2015-02). emi mei PLEASE VOTE BOTH SIDES OF THE BALLOT a a as eaa as as as a a a a a a a a a Dace Cad;4:MI L J 35 . Page 24 of 25 Discussion on Bond Related and Other Major School Projects P... AGENDA ITEM #2.C. 0 89 FIRE PROTECTION AREA NO. 1 BOARD-TWO SEATS, THREE YEAR TERMS Scott Arndt 495 Richard Carstens 567 90 Lam. 91 MONASHKA BAY ROAD SERVICE AREA BOARD-ONE SEAT,THREE YEAR TERM Andy Dana(write-in) 12 92 93 SERVICE AREA NO. 1 BOARD-THREE SEATS, THREE YEAR TERMS r^ Scott Arndt 407 Mike Sirofchuck 417 William"Bill" Mann (write-in) 5 94 95 WOMENS BAY SERVICE AREA BOARD-THREE SEATS,THREE YEAR TERMS Dave Neuman 156 John Isadore145 George Lee 152 96 97 PROPOSITION NO. 1 -GENERAL OBLIGATION BONDS Yes1216 No 630 98 99 PERCENTAGES Precinct Total Registered Voters Votes Cast Percentage 32/800-Chiniak 135 36 27% 32/810-Flats 1711 186 11% 32/815-KI South(Larsen Bay) 198 37 19% 32/820-Kodiak No. 1 1741 350 20% 32/825-Kodiak No.2 1702 272 16% 32/830-Mission Road 3148 709 23% 32/835-Old Harbor 133 30 23% 32/840-Ouzinkie 134 45 34% 32/845-Port Lions 198 34 17% Absentee, Questioned,and Personal Representative 9100 269 3% TOTALS 9100 1968 22% Voter turn-out October 2013—17% Voter turn-out October 2012—13% 100 101 102 103 104 105 106 (Th Kodiak Island Borough Resolution No. FY2015-12 Page 3 of 4 Page 25 of 25 Discussion on Bond Related and Other Major School Projects P... 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