FY2009-24 Designating The General Obligation Refunding Bonds, As Qualified Tax Exempt Obligations1 Introduced by: Manager Gifford
2 Requested by: Bond Counsel
3 Drafted by: Bond Counsel
Introduced on: 03/12/2009
4 Adopted on: 03/12/2009
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6 KODIAK ISLAND BOROUGH
7 RESOLUTION NO. FY2009 -24
8
9 A RESOLUTION OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH
10 DESIGNATING THE GENERAL OBLIGATION REFUNDING BONDS,
11 2009 SERIES A OF THE BOROUGH, PLUS THE PORTION OF THE PROCEEDS OF
12 THE ALASKA MUNICIPAL BOND BANK'S RESERVE FUND OBLIGATIONS
13 THAT ARE USED WITH RESPECT TO THE BOROUGH, AS QUALIFIED TAX
14 EXEMPT OBLIGATIONS UNDER SECTION 265(b)(3)
15 OF THE INTERNALREVENUE CODE OF 1986
16
17 WHEREAS, the Kodiak Island Borough (the "Borough "), by Resolution No. FY2009 -20 has
18 authorized the issuance of its General Obligation Refunding Bonds, 2009 Series A (the "Bonds ")
19 in the aggregate principal amount of not to exceed $7,150,000; and
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21 WHEREAS, the Borough intends to sell the Bonds to the Alaska Municipal Bond Bank, which
22 will purchase the Bonds with the proceeds of an issue of its general obligation bonds ( "Bond
23 Bank Bonds "); and
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25 WHEREAS, the resolution under which the Bond Bank Bonds are issued requires that the
26 Bond Bank Bonds also include bonds ( "Reserve Fund Obligations ") to fund a reserve to secure
27 the Bond Bank Bonds; and
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29 WHEREAS, under the American Recovery and Reinvestment Act of 2009, which became law
30 on February 17, 2009, the designation of the Bonds, plus the portion of the proceeds of the
31 Reserve Fund Obligations that are used with respect to the Borough, as "qualified tax exempt
32 obligations" under Section 265(b)(3) of the Internal Revenue Code of 1966, as amended (the
33 "Code ") can provide more favorable tax treatment to financial institutions that purchase the
34 bonds that the Alaska Municipal Bond Bank will issue to purchase the Bonds, which may result in
35 an interest cost savings to the Borough; and
36
37 WHEREAS, for the reasons stated above, it is in the best interest of the Borough that the
38 Bonds, plus the portion of the proceeds of the Reserve Fund Obligations that are used with
39 respect to the Borough, be designated as "qualified tax exempt obligations" under Section
40 265(b)(3) of the Code.
41
42 NOW, THEREFORE BE IT RESOLVED BY THE ASSEMBLY OF THE KODIAK ISLAND
43 BOROUGH that
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45 Section 1: Designation of Bonds as Qualified Tax Exempt Obligations. The Bonds, plus the
46 portion of the proceeds of the Reserve Fund Obligations that are used with
47 respect to the Borough, are hereby designated as "qualified tax exempt
48 obligations" in accordance with Section 265(b)(3) of the Code, and the Borough
19 hereby covenants that during the calendar year 2009 it shall not issue or
50 designate as "qualified tax exempt obligations" under Section 265(b)(3) of the
51 Code an aggregate principal amount of tax exempt obligations (other than tax
Kodiak Island Borough Resolution No. FY2009 -24
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Section 2: Effective Date. This Resolution shall become effective upon passage and
approval.
ATTEST:
Nova M. Javier, C
exempt obligations described in Section 265(b)(3)(C)(ii) of the Code) exceeding
$30,000,000.
ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH
THIS TWELFTH DAY OF MARCH, 2009
C, Borough Clerk
KODIAK ISLAND BOROUGH
%-
J me M. Selby, Bor
Kodiak Island Borough Resolution No. FY2009 -24
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