2004-06 Special Election General Obligation Bonds $8,630,000KODIAK ISLAND BOROUGH
ORDINANCE NO. 2004 -06
Introduced by: Manager Carlson
Requested by: Assembly
Drafted by Manager Carlson/Bond Attorney
Introduced: 03/09/2004
Public Hearing: 03/18/2004
Adopted: 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 $8,630,000 TO FINANCE THE
PLANNING, DESIGN AND CONSTRUCTION OF SCHOOL AND RELATED
CAPITAL IMPROVEMENTS, INCLUDING WITHOUT LIMITATION A NEW
SCHOOL AQUATIC FACILITY; 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 less 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 Eight Million Six Hundred Thirty Thousand
Dollars ($8,630,000) 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 Eight Million Six Hundred Thirty
Thousand Dollars ($8,630,000) to finance the capital improvements described in
Section 4 - • . the borrowing shall be evidenced by the issuance of general
obligati.,• .onds .f the Borough; provided that bonds may not be issued for any
projec nless the •roject is eligible for debt service reimbursement of at least thirty
perce t (30 %) by e State of Alaska. The full faith and credit of the Borough are
pledg for paym nt of the principal of and interest on the bonds, and ad valorem
taxes on all t able property in the Borough shall be levied without limitation as to
rate or a 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 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.
Kodiak Island Borough, Alaska Ordinance No. 2004 -06
Page 1 of 2
Section 5:
Section 6:
PROPOSITION NO. 4
GENERAL OBLIGATION BONDS FOR AQUATIC FACILITY
PROJECT
Shall the Kodiak Island Borough incur debt and issue general
obligation bonds in an amount not to exceed Eight Million Six Hundred
Thirty Thousand Dollars ($8,630,000) 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
Construction of new Aquatic Facility $8,630,000
Bonds may not be issued to pay costs of a project unless the project
is eligible for debt service reimbursement by 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 project above is
$96.29 per year, and to pay the Borough share of debt service for the
project with full State debt service reimbursement is $67.40 per year.
The bonds shall be secured by a pledge of the full faith and credit
of the Borough. (Ordinance No. 2004 -06)
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. 4
YES 0
NO 0
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.
ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH
THIS EIGHTEENTH DAY OF MARCH, 2004
e it 1 0
ATTEST: Gabrielle LeDoux, Borou Mayor
/,r 7 Judith A. Nielsen, MC, Borough Clerk
KODIAK ISLAND BOROUGH
Kodiak Island Borough, Alaska Ordinance No. 2004 -06
Page 2 of 2
of the property on the current property tax records of the assessor. The notice shall be mailed to the
record owner at the address stated in the assessor's tax records; and
c. every notice of a public hearing required by this section shall state the date, time, location, and
purpose of the public hearing and shall describe the improvement. The notice shall also state that, if the
assembly approves the proposal, no assessment district will be formed and the borough will not participate
in the allocation or collection of costs among the respective property owners.
4. after the public hearing, the assembly may approve the project, with or without additional
conditions. If the assembly approves the project, it shall authorize the manager to execute the contract.
ATTEST:
Kodiak Island Borough, Alaska
ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH
THIS FIFTEENTH DAY OF APRIL 2004
KODI K ISLAND BOROUGH
dith A. ,. (ten ./ , B orou gh —
udith A. Nielsen, C C, Borough Clerk
Ordinance No. 2004 -02
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