FY2009-06 New High School Ballot MeasureKODIAK ISLAND BOROUGH
ORDINANCE NO. FY 2009 -06
Introduced by: Manager Gifford
Requested by: School District/Assembly
Drafted by: Finance Director /Bond Counsel
I ntroduced: 08/14/2008
Public Hearing: 08/21/2008
Amended: 08/21/2008
Adopted: 08/21/2008
AN ORDINANCE OF THE KODIAK ISLAND BOROUGH ASSEMBLY
AUTHORIZING THE BOROUGH TO ISSUE GENERAL OBLIGATION BONDS
IN THE PRINCIPAL AMOUNT OF NOT TO EXCEED $115,300,000 TO
FINANCE THE PLANNING, DESIGN, AND CONSTRUCTION OF A NEW HIGH
SCHOOL, THE RENOVATION OF THE EXISTING HIGH SCHOOL TO
CREATE AN ADMINISTRATION BUILDING, DEMOLITION OF THE EXISTING
BOROUGH BUILDING AND RELATED CAPITAL IMPROVEMENTS; AND TO
SUBMIT THE QUESTION OF THE ISSUANCE OF SUCH BONDS TO THE
QUALIFIED VOTERS OF THE BOROUGH AT THE OCTOBER 7, 2008
REGULAR BOROUGH ELECTION
WHEREAS, under the provisions of AS 29.47.190, a municipality may incur general
obligation debt only after a bond authorization ordinance is approved by a majority of
those voting on the question at a regular or special election; and
WHEREAS, the Kodiak Island Borough (the "Borough ") is in need of a new high school;
and
WHEREAS, the administrative offices for the Borough, the Kodiak Island Borough
School District and the City of Kodiak are located in a remodeled high school dorm that
is functionally obsolete, and has very high utility costs; and
WHEREAS, the current debt service reimbursement plan provides that the State of
Alaska will reimburse the Borough for not less than sixty percent (60 %) of debt service
on the eligible portion of bonds authorized by the qualified voters of the Borough on or
after October 1, 2006 but before November 30, 2010, to pay costs of school
construction, additions to schools, and major rehabilitation projects; and
WHEREAS, the Borough views a new high school, renovation of part of the existing
high school into an administration building, demolition of the Borough Building and
related capital improvements authorized herein as necessary and beneficial to the
community;
NOW, THEREFORE, BE IT ORDAINED BY THE ASSEMBLY OF THE KODIAK
ISLAND BOROUGH THAT:
Section 1: This ordinance is not of a general and permanent nature and shall not
become a part of the Kodiak Island Borough Code of Ordinances.
Kodiak Island Borough, Alaska Ordinance No. FY2009 -06
Page 1 of 3
Section 2:
It is hereby determined to be for a public purpose and in the public interest
of the Borough to incur general obligation bonded indebtedness in an
amount not to exceed One Hundred Fifteen Million, Three Hundred
Thousand Dollars ($115,300,000) for the purpose of paying the cost of
planning, designing, and constructing a new high school, renovating part
of the existing high school into an administration building, demolition of the
existing Borough Building and related capital improvements in the
Borough.
Section 3: The Borough is authorized to borrow the sum of One Hundred Fifteen
Million, Three Hundred Thousand Dollars ($115,300,000) to finance the
capital improvements described in Section 2, and the borrowing shall be
evidenced by the issuance of general obligation bonds of the Borough;
provided that bonds may not be issued for any project unless the project is
eligible for debt service reimbursement by the State of Alaska. The full
faith and credit of the Borough are pledged for payment of the principal of
and interest on the bonds, and ad valorem taxes upon all taxable property
in the Borough shall be levied without limitation as to rate or amount to
pay the principal of and interest on the bonds when due.
Section 4: The Borough shall submit the following proposition to the qualified voters
of the Borough at the October 7, 2008 regular Borough election. The
proposition must receive an affirmative vote from a majority of the qualified
voters voting on the question to be approved.
PROPOSITION NO. 2
GENERAL OBLIGATION BONDS FOR A
NEW HIGH SCHOOL ,RENOVATION OF PART OF THE
EXISTING HIGH SCHOOL INTO AN ADMINISTRATION
BUILDING AND DEMOLITION OF THE EXISTING
BOROUGH BUILDING
Shall the Kodiak Island Borough incur debt and issue
general obligation bonds in an amount not to exceed One
Hundred Fifteen Million Three Hundred Thousand Dollars
($115,300,000) to finance the planning, design and
construction of school and other capital improvements in the
Borough, including without limitation the projects described
below?
Project
New High School
Renovation of part of the existing High
School into an Administration Building
Demolition of the existing Borough Building
Kodiak Island Borough, Alaska
Estimated Cost
$106,660,000
$ 6,530,000
$2,110,000
Ordinance No. FY2009 -06
Page 2 of 3
The approximate amount of taxes on $250,000 of assessed
real and personal property value (based on total 2008
assessed valuation) required to pay 100% of the debt
service for the projects above is $2,786.91 per year. The
approximate amount of taxes on $250,000 of assessed real
and personal property value (based on total 2008 assessed
valuation) required to pay the Borough share of debt service
with full State debt service reimbursement is $1,178.51 per
year. This is $1,031.09 per year for the New High School,
$102.77 per year for the renovation of part of the existing
High School into an Administration Building and $44.65 for
the demolition of the existing Borough Building.
If additional funding, grants, or otherwise becomes available,
only enough bonds to finish the project will be sold.
The bonds shall be secured by a pledge of the full faith and
credit of the Borough. (Ordinance No. FY 2009 -06)
Section 5: The proposition, both for paper ballots and machine ballots, shall be
printed on a ballot which may set forth other general obligation bond
propositions, and the following words shall be added as appropriate next
to an oval provided for marking the ballot for voting by hand or machine:
Section 6: Sections 2 and 3 of this ordinance shall become effective only if the
proposition described in Section 4 is approved by a majority of the
qualified voters voting on the proposition at the October 7, 2008 regular
Borough election. The remaining sections of this ordinance shall become
effective upon adoption by the Kodiak Island Borough Assembly.
ATT T:
ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH
THIS TWENTY FIRST DAY OF AUGUST, 2008
No "a M. Javier, , : orough Cler
Kodiak Island Borough, Alaska
PROPOSITION NO. 2
o YES
o NO
KODIAK ISLAND BOROUGH
J ome Selby, B
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• • _ _ o.r bit
Ordinance No. FY2009 -06
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