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FY2021-13 Placing A Ballot Proposition Before The Voters At The Next Regular Municipal Election To Be Held On October 6, 2020.1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 Introduced by: Assembly Member Dvorak and Assembly Member Skinner Drafted by: Assembly Member Dvorak Introduced on: 07/16/2020 Public Hearing Date: 08/06/2020 Adopted on: 08/06/2020 KODIAK ISLAND BOROUGH ORDINANCE NO. FY2021-13 AN ORDINANCE OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH PLACING A BALLOT PROPOSITION BEFORE THE VOTERS AT THE NEXT REGULAR MUNICIPAL ELECTION TO BE HELD ON OCTOBER 6, 2020—TO AUTHORIZE THE ASSEMBLY TO APPROPRIATE FUNDS FOR PAYMENT OF BOND DEBT FROM THE FACILITIES FUND OVER THE NEXT FIVE (5) FISCAL YEARS, SUBJECT TO A DEFINED ANNUAL LIMIT. WHEREAS, in accordance with Kodiak Island Borough Code (KIBC) 3.10.1204A), the Facilities Fund is created as a special revenue fund separate from the general fund of the Kodiak Island Borough; and WHEREAS, KIBC 3.10.1204D1 provides for specific limited use of this special revenue fund, furthermore requiring a ballot measure for other uses of the fund in accordance with KIBC 3.10.1204D); and WHEREAS, it has been the predominant sentiment of the assembly that the assembly should not take substantial draws from the Facilities Fund without approval of the voters, even if those draws could be made in an otherwise legal manner according to the existing code framework; and WHEREAS, a majority of the assembly has been reluctant to address the matter of giving itself more control, in code, over the use of the Facilities Fund without taking such matters to the voters first; and WHEREAS, rather than proposing such a code change, which would open the possibility of the assembly using Facilities Funds to balance the Borough Budget in ways that the voters might not envision or be able to quantify at the time of the election, the Assembly has decided instead to place before the voters a specific proposal, authorizing the potential use of Facilities Funds over the next five (5) fiscal years, FY2022 until FY2026; and WHEREAS, this approach will allow voters the ability to make the most informed decision, whether to make certain Facilities Funds available for the express purpose of bond debt payments as an alternative to potentially raising taxes or further cutting borough services during those specified fiscal years by providing a discrete, one time, authorization to the assembly; and WHEREAS, if approved by 2/3 of the qualified voters during the 2020 election, the ultimate disposition of the specified Facilities Funds would be further subject to annual budget appropriation process by future assemblies, such that the assembly could decide whether or not to use those funds previously authorized by the voters for bond debt payments on a year by year Kodiak Island Borough, Alaska Ordinance No. FY2021-13 Page 1 of 3 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 basis, but that the maximum amount allowable, in any given year, would be known ahead of time if so approved by voters, NOW, THEREFORE, BE IT ORDAINED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THAT: Section 1: This ordinance is not of general application and shall not be codified. Section 2: Notwithstanding any provision of KIBC 3.10.120 to the contrary, during five consecutive fiscal years from 2022 through 2026 the assembly may, by simple majority approval of an appropriations ordinance, appropriate and expend funds in the amounts listed in this section from the Facilities Fund for purposes of debt service. Appropriations authorized by this ordinance may include either principal or earnings or both. Appropriations authorized by this ordinance shall not be subject to further voter ratification. The amounts available for appropriation by the authority of this ordinance are in the following maximum amounts: FY2022 - $3,100,000 FY2023 - $3,100,000 FY2024 - $3,100,000 FY2025 - $3,100,000 FY2026 - $2,100,000 The authorization for appropriations in a particular fiscal year under this ordinance is limited to the specific fiscal year and cannot be carried over or accumulated. If an appropriation is not made in a particular fiscal year, then the authorization for that year set out in this ordinance lapses and the appropriation is not authorized by this ordinance. Section 3: An election is to be held on October 6, 2020 in the Kodiak Island Borough and the following proposition shall be submitted to the qualified voters for approval or rejection. A 2/3 majority of those voters, qualified and voting in favor of the proposition, shall be required for approval. PROPOSITION NO. 1 Shall the Kodiak Island Borough Assembly be authorized to make grants from the Facilities Fund, for bond payments in annual amounts not to exceed the following schedule. FY2022 - $3,100,000 FY2023 - $3,100,000 FY2024 - $3,100,000 FY2025 - $3,100,000 FY2026 - $2,100,000 Q YES p NO Section 4: Section 3 of this ordinance shall become effective immediately upon adoption. Section 2 of this ordinance shall become effective upon certification of the results of the Regular Kodiak Island Borough, Alaska Ordinance No. FY2021-13 Page 2 of 3 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 Municipal Election of October 6, 2020, but only if the proposition set forth in Section 3 receives approval of a 2/3 majority of the voters voting on the question. ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THIS SIXTH DAY OF AUGUST, 2020. KODIAK ISLAND BOROUGH William Roberts, Mayor VOTES: Ayes: Dvorak, Kavanaugh, Schroeder, and Skinner Noes: Arndt Kodiak Island Borough, Alaska ATTEST: Alise LG Rice, Borough Clerk D Bf1.n q<ASKIN Ordinance No. FY2021-13 Page 3 of 3