1987-08 Establishing the School Building Major Maintenance Fund and Providing Some Initial Funding for Such FundKODIAK ISLAND BOROUGH
ORDINANCE NO. 87 -08 -0
AN ORDINANCE OF THE KODIAK ISLAND BOROUGH ASSEMBLY ESTABLISHING THE
MAJOR MAINTENANCE BUILDING FUND AND PROVIDING SOME INITIAL FUNDING FOR SUCH
FUND.
WHEREAS, the Kodiak Island Borough has constructed many new school
buildings in recent years and such cost has been in excess of $40 million
dollars and throughout the lifetime of these buildings the maintenance cost
will equal or exceed the initial construction costs; and
WHEREAS, in the early years of the life of such structures the
, routine maintenance of such structures remains modestly low as contrasted to
the later years of life; and
WHEREAS, such construction has been possible through direct state
grants and more recently through bonding that has been accomplished with the
State reimbursing the Borough in amounts of 80% to 100% of such bonding; and
WHEREAS, such major amounts of funds from the State cannot
reasonably be predicted for receipt in future years; and
WHEREAS, prudent financial management dictates that preparation to
pay for these expenses should begin now and not be left to cause large tax
increases in the future.
NOW THEREFORE, BE IT ORDAINED, that staff is hereby authorized and
directed to establish a fund to be known as the "Major Maintenance Building
Fund ". The initial funding for this entity will be from the transfer of one
million dollars from the Land Sale Fund.
BE IT FURTHER ORDAINED, that the following is the intent of this
Assembly:
1. As to Revenues.
a. No monies will be expended in the foreseeable future from this
fund.
b. All investment earnings on monies of this fund shall be
deposited to this fund.
c. Periodically the Assembly will by ordinance authorize further
deposit of available monies to this fund.
2. As to Expenditures.
a. No amount of the corpus shall be expended.
b. Investment earnings may be expended, but only under the
following conditions:
(1) For emergency major repair, i.e., an Act of God such as
storm or wind damage to the roof for $10,000 or more.
(2) For major repair resulting from normal decay, i.e., an .
addition such as new lighting or a new roof for $100,000 or more.
the
Ordinance No. 87 -08-0
Page 2
') All such major expenditure! •all be commenced only after
inane authorizing such expend). :es has been duly adopted.
PASSED AND APPROVED THIS 7 day of May ,1987 by the Kodiak
Island Borough Assembly.
First Reading, Approval Date:
Second Reading, Public Hearing, Approval Date:
Passage Date:
Effective Date:
Recoam:ended By: Borough Mayor
Drafted By: Finance Director
KODIAK ISLAND BOROUGH
Borouq�MaJyor
WGov�
By
siding Officer
2 April 1987
7 May 1987
7 Mav 7987
7 May 1987