2004-03 General Obligation Bonds $2,765,000KODIAK ISLAND BOROUGH
ORDINANCE NO. 2004 -03
Introduced by:
Requested by:
Drafted by: Manager
Introduced:
Public Hearing:
Adopted:
Manager Carlson
Assembly
Carlson /Bond Attorney
03/09/2004
03/18/2004
03/18/2004
AN ORDINANCE OF THE KODIAK ISLAND BOROUGH ASSEMBLY
AUTHORIZING THE BOROUGH TO ISSUE GENERAL OBLIGATION BONDS IN
THE PRINCIPAL AMOUNT OF NOT TO EXCEED $2,765,000 TO FINANCE THE
PLANNING, DESIGN AND CONSTRUCTION OF SCHOOL AND RELATED
CAPITAL IMPROVEMENTS, INCLUDING WITHOUT LIMITATION KODIAK
MIDDLE SCHOOL CONCRETE REPAIR; LARSEN BAY SCHOOL FLOOR
REPAIR; KODIAK HIGH SCHOOL ASBESTOS REMOVAL, FLOOR COVERING
AND POOL SPACE RECLAMATION; DISTRICT WIDE FLOOR COVERING
REPLACEMENT; AND EVACUATION CENTER EARTHQUAKE EVALUATION;
AND TO SUBMIT THE QUESTION OF THE ISSUANCE OF SUCH BONDS TO
THE QUALIFIED VOTERS OF THE BOROUGH AT THE APRIL 20, 2004 SPECIAL
BOROUGH ELECTION
WHEREAS, the Alaska legislature adopted a new plan for school debt reimbursement during the
2002 special session; and
WHEREAS, this debt service reimbursement plan provides that the State of Alaska will reimburse
the Borough for not Tess than sixty percent (60 %) of debt service on the eligible portion of bonds
issued by the Borough to pay costs of school construction, additions to schools, and major
rehabilitation projects and education - related facilities; and
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 Borough views the school 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.
Section 2: It is hereby determined to be for a public purpose and in the public interest of the
Kodiak Island Borough (the "Borough ") to incur general obligation bonded
indebtedness in an amount not to exceed Two Million Seven Hundred Sixty Five
Thousand Dollars ($2,765,000) for the purpose of paying the cost of planning,
designing and constructing school and related capital improvements in the Borough.
Section 3: The Borough is authorized to borrow the sum of Two Million Seven Hundred Sixty
Five Thousand Dollars ($2,765,000) to finance the capital improvements described in
Section 4, and the borrowing shall be evidenced by the issuance of general
obligation bonds of the Borough; provided that bonds may not be issued for a
project, other than the Evacuation Center earthquake evaluation, unless the project
is eligible for debt service reimbursement of at least sixty percent (60 %) 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.
Kodiak Island Borough, Alaska Ordinance No. 2004 -03
Page 1 of 3
Section 4: The Borough shall submit the following proposition to the qualified voters of the
Borough at the April 20, 2004 special Borough election. The proposition must
receive an affirmative vote from a majority of the qualified voters voting on the
question to be approved.
GENERAL OBLIGATION BONDS-FOR SAFETY — REPAIR
PROJECTS
Shall the Kodiak Island Borough incur debt and issue general
obligation bonds in an amount not to exceed Two Million Seven
Hundred Sixty Five Thousand dollars ($2,765,000) to finance the
planning, design and construction of school and related capital
improvements in the Borough, including without limitation the projects
described below?
Project Estimated Cost
Kodiak Middle School concrete repair
Larsen Bay School floor repair
Kodiak High School asbestos removal
and floor covering replacement
Kodiak High School pool space reclamation
District -wide floor covering replacement
Evacuation Center earthquake evaluation
Bonds may not be issued to pay costs of a project, other than the
Evacuation Center earthquake evaluation, unless the project is
eligible for debt service reimbursement from the State of Alaska. The
approximate amount of taxes on $100,000 of assessed real and
personal property value (based on total 2004 assessed valuation)
required to pay 100% of the debt service for the projects above is
$30.85 per year, and to pay the Borough share of debt service for the
projects with full State debt service reimbursement is $15.67 per year.
The bonds shall be secured by a pledge of the full faith and credit
of the Borough. (Ordinance No. 2004 -03)
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 and next to a square provided for
making the ballot for voting by hand or machine:
PROPOSITION NO. 1
YES D
NO D
PROPOSITION NO. 1
$ 237,918
$ 339,883
$ 304,704
$ 650,788
$ 728,708
$ 500,000
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 April 20, 2004 special Borough election. The remaining
sections of this ordinance shall become effective upon adoption by the Kodiak
Island Borough Assembly.
Kodiak Island Borough, Alaska Ordinance No. 2004 -03
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ATTEST:
ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH
THIS EIGHTEENTH DAY OF MARCH, 2004
/_: -4
/Judith A. Nielsen, CMC, Borough Clerk
KODIAK ISLAND BOROUGH
I / / '/ rl ' 1_ _ .
o�
Gabrielle LeDoux, Borougli Mayor
Kodiak Island Borough, Alaska Ordinance No. 2004 -03
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