2006-08-05 Work SessionASSEMBLY WORK SESSION
August 5, 2006 - 9:00 a.m.
Kodiak Fisheries Research Center
Main Conference Room
AGENDA
CITIZENS' COMMENTS (limited to three minutes per speaker)
ITEMS FOR DISCUSSION
1. Use of Facilities Fund
MANAGER'S COMMENTS
CLERK'S COMMENTS
MAYOR'S COMMENTS
ASSEMBLYMEMBER COMMENTS
ON LEAVE
Ranney Aug 10 -12 (AML)
Selby Aug 10 -12 (AML)
Branson Sept 7 -15
Oct 25-Jan 17
(Sabbatical)
3.04.050 -- 3.04.052
3.04.050 Funds. Funds as required will be established, which should include, but are not limited
to, the following:
A. Kodiak Island Borough general fund;
B. Kodiak Island Borough payroll fund;
C. Tobacco tax fund;
D. Debt service funds;
E. Capital projects funds;
F. Fire service district fund;
G. Sewer and water utility fund;
H. Other enterprise funds as needed; and
I. Land sale fund. (Ord. 83 -24 -0 (part), 1983; Ord. 71 -5 -0 (part), 1971; prior code Ch. 7
subch. 1 §5).
Section 3.04.051 Facilities fund.
A. The facilities fund is established as a separate investment fund which is distinct from the
general land sale fund and all other funds. The fund consists of all proceeds received from the sale
of Shuyak Island property to the Exxon Valdez Oil Spill Trustee Council. All income from the
fund shall be deposited to the fund. The assembly may, by ordinance, make additional
appropriations to the fund at any time. Any additional funds added to the fund, aside of Shuyak
Island proceeds, shall become part of the fund as a whole and subject to the regulations of the
facilities fund.
B. The fund may be invested only as provided in section 3.04.020 of this chapter. The fund
may not be appropriated or spent, except as provided in this section. The earnings or principle
shall at no time run or supplement the running of government except as specified in this section.
C. The assembly may, by ordinance, make a one (1) time appropriation of six million
(6,000,000) dollars for the financing or construction of the Near Island Research Facility (Kodiak
Fisheries Research Center) as an addition to the Fishery Industrial Technology Center complex
on Near Island.
D. The excess income of the fund is defined as eighty -five (85) percent of the annual
investment income from the fund. The excess income of the fund is available for appropriation
by the assembly in the fiscal year following the year in which the income is earned. The excess
income of the fund may be appropriated only for the following purposes:
1. maintenance and repair of existing borough facilities,
2. insurance paid by the borough for borough buildings,
3. upgrade and reconstruction of existing facilities, or
4. debt service on general obligation bonds issued for facilities construction - -up to fifty
(50) percent of excess may be used for this purpose.
E. A portion of the fund may be appropriated for another purpose only upon approval of an
ordinance ratified by a two- thirds (2/3) majority of the qualified voters at a regular or special
election. (Ord. 96 -13 §2, 1996; Ord. 94 -17 -0 §2, 1994).
3.04.052 Education fund.
A. The education fund is established as a separate investment fund which is distinct from all
other funds. The fund consists of the net proceeds received from the Exxon Valdez oil spill
litigation punitive damages after payment of all expenses of litigation and oil spill clean-up. All
3 -10
(KIB 06/2004)
Supp. #40
MEMO TO:
FROM:
DATE:
SUBJECT:
Mayor and Assembly
Nova Javier, CMC, and Borough Clerk
July 13, 2006
Facilities Fund History
The Assembly requested that I compile documentation regarding the history of Shuyak /Facilities
fund for the August 5, 2006 meeting at the Fisheries Research Center. The following are
attached to this memo page. Please let me know if you need additional information. Thank you.
Page 1
Page 3
Page 5
Page 6
Page 7
Page 9
Page 11
Page 13
Page 18
Page 20
Page 22
Page 24
Res. 1994 -05
Res. 1994 -41
Res. 1995 -46
KIBC 3.04.051
Ord. 1994 -17
August 18, 1994
August 18, 1994
September 1, 1994
Ord. 1996 -13
October 3, 1996
October 3, 1996
October 17, 1996
N:ICLASSY\FACILITIES FUNDICOVER MEMO.doc
Kodiak Island Borough
Office of the Borough Clerk
710 Mill Bay Road
Kodiak, Alaska 99615
Phone (907) 486 -9310 Fax (907) 486 -9391
KODIAK ISLAND BOROUGH
CLERK'S OFFICE
COPIED TO:
ASSEMBLY VI
MANAGER V OTHER
Approving Disposal, for Fair Market Value, of all Borough
Land on Shuyak Island to the Exxon Valdez Trustee
Council.
Approving Disposal of All Borough Land on Shuyak Island to
the State of Alaska.
Authorizing Sale of Shuyak Island to Exxon Valdez Trustee
Council By Contract.
Facilities Fund Code Section
Amending Title 3 Revenue and Finance of the Kodiak Island
Borough Code of Ordinances by Adding Section 3.04.051
Facilities Fund.
Back -up Information from the Assembly Packet
Regular Meeting Minutes
Regular Meeting Minutes
Amending Title 3 Revenue and Finance of the Kodiak Island
Borough Code of Ordinances By Amending Section
3.04.051 Facilities Fund.
Back -up Information from the Assembly Packet
Regular Meeting Minutes
Regular Meeting Minutes
Page 27 Permissible Investments (All ordinances that amended KIBC 3.04.020)
Page 28 Ord. 1971 -05
Page 32 Ord. 1982 -15 A
Page 34 Ord. 1984 -30
Page 36
Page 37
Amending the Kodiak Island Borough Code of Ordinances
and Resolutions by Adding Thereto Chapter 7 Dealing with
Public Finance.
Amending the Investment Policy of the Kodiak Island
Borough.
Directing the Implementation of Certain Investment Policies
by the Borough and Providing for an Effective Date.
Ord. 1990 -35 Amending Kodiak Island Borough Code Regarding
Permissible Investments.
Ord. 1992 -29
Authorizing the Kodiak Island Borough to Authorize the
Kodiak Island Borough Investment in the Investment Pool.
Contracts (The following are available upon request from the Clerk's Office.)
Contract No. 94 -16 Shuyak Island Appraisal with Thomas Dunagan NTE
$17,000. (9 pages)
Contract No. 94 -38 Agreement for Sale and Purchase of Interests in Lands on
Shuyak Island. (6 pages)
Contract No. 95 -70 Agreement for Sale and Purchase of Interests in Lands on
Shuyak Island. (77 pages)
N: \CLWSSY\FACILITIES FUND \COVER MEMO.doc
Kodiak Island emeual6 Alaska
KODIAK ISLAND BOROUGH
RESOLUTION NO. 94-05
PAGE- 1 -
n
Introduced by: Mayor Selby
Requested by: Planning &
Zoning Commission
Drafted by: Community
Development Department
Introduced: 02/03/94
Adopted: 02/03/94
A RESOLUTION APPROVING DISPOSAL, FOR FAIR MARKET VALUE,
OF ALL BOROUGH LAND ON SHUYAK ISLAND
TO THE EXXON VALDEZ TRUSTEE COUNCIL
i
WHEREAS, about 27,000 acres of Kodiak Island Borough land on Shuyak Island has
been identified as high value habitat that will benefit the recovery of
resources and services injured by the Exxon Valdez oil spill, and;
WHEREAS, the Borough Administration has determined that all Borough land on
Shuyak Island is surplus to the needs of Borough residents, so long as
the land is maintained in public ownership, and;
WHEREAS, the proposed use of the land acquired by the Trustee Council (as
Indicated in the Memorandum of Agreement and Consent Decree
executed between the United States and the State of Alaska and
approved and entered by Judge Holland on August 28, 1991) is
consistent with the goals and objectives of the 1986 Shuyak Island
Comprehensive Plan, and;
WHEREAS, compensation for Shuyak Island Land, at fair market value, will benefit
all residents of the Kodiak Island Borough consistent with the intent of
the state land entitlement at the time of incorporation, and;
WHEREAS, the Kodiak Island Borough Assembly, having reviewed the pertinent facts
relating to this land disposal, approves the disposal of all Borough
interest in Shuyak Island Lands for fair market value;
NOW, THEREFORE, BE IT RESOLVED BY THE ASSEMBLY OF THE KODIAK ISLAND
BOROUGH THAT:
Section 1: The disposal, for fair market value, of all Borough Lands on Shuyak
Island, as described in the State of Alaska final decision document dated
May 4, 1982 and amended by ADL 37988, dated September 27, 1985,
to the EXXON VALDEZ TRUSTEE COUNCIL is approved, subject to
Assembly review and approval of the final settlement agreement.
R000kdon No. 9405
Pogo 1 of 2
Section 2: The findings of fact adopted by the Planning and Zoning Commission
supporting this disposal are hereby confirmed:
1. The disposal will ensure the land is available to the public for
recreation purposes, consistent with the goals and objectives of the
1986 Shuyak island Comprehensive Plan.
Kern* S.d Borough, Ah.h.
v.1
2. Disposal of Shuyak Island land to the Trustee Council will provide
valuable habitat to support and augment lands damaged by the Exxon
Valdez oil spill.
3. Disposal of Shuyak Island land to the Trustee Council will eliminate
the possibility of disposing Borough land on Shuyak to private
ownership. .1
4. Disposal of Shuyak Island land to the Trustee Council precludes the
possibility of resource extractive development, such as mining, logging,
and quarrying.
5. Disposal of Shuyak Island land will benefit Borough residents and
fulfill the intent of the Borough's land entitlement at the time of
incorporation.
6. The use of the land for habitat protection and recreation are public
property uses that are beneficial to the Borough.
ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH
THIS THIRD DAY OF FEBRUARY, 1994
ATTEST:
(D 071410- T, AniCA
Donna F. Smith, Borough Clerk
PAGE- 2 -
KODIAK ISLAND BOROUGH
aiding • Nicer
Resolution No. 94-05
P.po 2 of 2
r
KODIAK ISLAND BOROUGH
RESOLUTION NO. 94-41
Introduced by: Mayor Selby
Requested by: Mayor Selby
Drafted: Borough Attorney
Introduced: 12/08/94
Adopted: 12/08/94
A RESOLUTION APPROVING DISPOSAL OF ALL BOROUGH LAND
ON SHUYAK ISLAND TO THE STATE OF ALASKA
WHEREAS, the Kodiak Island Borough has received title to certain land on Shuyak
Island and has an absolute right to receive a patent from the State to
other land on Shuyak Island, consisting in total of approximately 26.665
acres more or less (hereinafter "Land "); and
WHEREAS, the Land has been identified as high value habitat that will benefit the
recovery of resources and services injured by the Exxon Valdez oil spill;
and
WHEREAS, the Borough administration has determined that the Land is surplus to
the needs of Borough residents, so long as the Land is maintained in
public ownership; and
WHEREAS, the proposed use of the Land to be acquired through the process of the
Exxon Valdez 011 Spill Trustee Council Is consistent with the goals and
objectives of the 1986 Shuyak Island Comprehensive Plan; and
WHEREAS, compensation for the Shuyak Island Land will benefit all residents of the
Kodiak Island Borough consistent with the intent of the State land
entitlement at the time of incorporation; and
WHEREAS, the use of the land for habitat protection and recreation are public
purposes that are beneficial to the Borough within the meaning of Kodiak
Island Borough Code 18.20.100; and
WHEREAS, the Assembly has adopted Resolution No. 94-05 approving the disposal
of the Land for fair market value, subject to Assembly review and
approval of the final settlement agreement; and
WHEREAS, the Trustee Council, through the USDA Forest Service, has provided an
appraisal estimating the market value of the land as of September 1,
1994 to be $27 million; and
Kodiak Island Borough, Alaska
PAGE- 3 -
Resolution No. 94 -41
Page 1 of 2
1 2 0
fl
WHEREAS, the Kodiak Island Borough Assembly has enacted an ordinance to
establish a Facilities Fund In which the proceeds from the sale of these
Lands are to be deposited. As part of this ordinance, funding was
authorized by the Assembly for the Kodiak Fishery Industrial Technology
Center; and
WHEREAS, the Trustee Council adopted a resolution on December 2, 1994 to
provide the funds for the State of Alaska to offer to purchase the Land
in accordance with the Agreement for Sale and Purchase of Interests in
Lands on Shuvak Island (hereinafter "Purchase Agreement ") for a price
equal to the final approved appraised fair market value of the land plus
20% of the final approved appraised fair market value, except that the
price may not exceed $42 million; and
WHEREAS, the Kodiak Island Borough Assembly, having reviewed the pertinent facts
relating to this land disposal, approves the disposal of the Land for the
price of $42 million in accordance with the Purchase Agreement;
NOW, THEREFORE, BE IT RESOLVED BY THE ASSEMBLY OF THE KODIAK ISLAND
BOROUGH THAT:
Section 1: The disposal of all Kodiak Island Borough lands on Shuyak Island to the
State of Alaska for the purchase price of $42 million is hereby approved
on the terms and conditions of the Purchase Agreement.
Section 2: The mayor is authorized to execute the Purchase Agreement and all
other documents required for the completion of this transfer.
ATTEST:
ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH
THIS EIGHTH DAY OF DECEMBER, 1994
onna F. Smith, CMC, Borough Clerk
Kodiak Island Borough, Alaska
KODIAK ISLAND BOROUGH
e
PAGE 4 -
me M. Selby, Boro
7i—a. 2t �
Mary A. onroe, Presiding Officer
Resolution No. 9441
Page 2 of 2
A RESOLUTION APPROVING A PURCHASE AGREEMENT FOR DISPOSAL
OF ALL BOROUGH LAND ON SHUYAK ISLAND TO THE STATE OF ALASKA
WHEREAS, the Assembly previously adopted Resolution No. 94-41 approving
disposal of all Kodiak Island Borough lands on Shuyak Island (hereinafter "Land ") to
the State of Alaska for the purchase price of $42 million; and
WHEREAS, the Fxxnn Valde, Oil Spill Trustee Council adopted a resolution on
December 5, 1995 to provide the funds for the State of Alaska to offer to purchase
the Land in accordance with the Agreement fnr Sale and Purchase of Interacts in
and on Shuyak Island (hereinafter "Purchase Agreement ") for a price of $42 million
payable in installments over a period of seven years; and
WHEREAS, the Kodiak Island Borough Assembly, having reviewed the pertinent facts
relating to this land disposal, approves the disposal of the Land for the price of $42
million in accordance with the Purchase Agreement;
NOW, THEREFORE, BE IT RESOLVED BY THE ASSEMBLY OF THE KODIAK ISLAND
BOROUGH that the disposal of all Kodiak Island Borough lands on Shuyak Island to
the State of Alaska for the purchase price of *42 million is hereby approved on the
terms and conditions for the Purchase Agreement.
NOW, THEREFORE, BE IT FURTHER RESOLVED BY THE ASSEMBLY OF THE KODIAK
ISLAND BOROUGH that the mayor, or his designee, is authorized to execute the
Purchase Agreement and all other documents required for the completion of this
transfer.
ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH
THIS TWENTY -FIRST DAY OF DECEMBER, 1995.
ATTEST:
(D0714 c L/ , 4 yl- LAS pp
i CMG—
onna F. Smith, CMC, Borough Clerk
Kodiak Island Borough, Alaska
KODIAK ISLAND BOROUGH
RESOLUTION NO. 95 -46
PAGE 7 -
KODIAK ISLAND BOROUG
e *me M. Selby ough
L.
St
Introduced by: Mayor Selby
Requested by: Mayor Selby
Drafted: Borough Attorney
Introduced: 12/21/95
Adopted: 12/21/95
`nn ayo . '
ve , - esiding Officer
Resolution No. 95-46
Page 1 of 1
KODIAK ISLAND BOROUGH CODE, CHAPTER 3 REVENUE AND FINANCE
Section 3.04.051 Facilities fund.
A. The facilities fund is established as a separate investment fund which is distinct
from the general land sale fund and all other funds. The fund consists of all proceeds
received from the sale of Shuyak Island property to the Exxon Valdez Oil Spill Trustee
Council. All income from the fund shall be deposited to the fund. The assembly may,
by ordinance, make additional appropriations to the fund at any time. Any additional
funds added to the fund, aside of Shuyak Island proceeds, shall become part of the fund
as a whole and subject to the regulations of the facilities fund.
B. The fund may be invested only as provided in section 3.04.020 of this chapter.
The fund may not be appropriated or spent, except as provided in this section. The
earnings or principle? shall at no time run or supplement the running of government
except as specified in this section.
C. The assembly may, by ordinance, make a one (1) time appropriation of six million
(6,000,000) dollars for the financing or construction of the Near Island Research Facility
(Kodiak Fisheries Research Center) as an addition to the Fishery Industrial Technology
Center complex on Near Island.
D. The excess income of the fund is defined as eighty -five (85) percent of the
annual investment income from the fund. The excess income of the fund is available for
appropriation by the assembly in the fiscal year following the year in which the income is
earned. The excess income of the fund may be appropriated only for the following
purposes:
1. maintenance and repair of existing borough facilities,
2. insurance paid by the borough for borough buildings,
3. upgrade and reconstruction of existing facilities, or
4. debt service on general obligation bonds issued for facilities construction - -up
to fifty (50) percent of excess may be used for this purpose.
E. A portion of the fund may be appropriated for another purpose only upon
approval of an ordinance ratified by a two - thirds (2/3) majority of the qualified voters at a
regular or special election. (Ord. 96 -13 §2, 1996; Ord. 94 -17 -0 §2, 1994).
PAGE -
Section 1:
Section 2:
Kodiak Island Borough. Alaska
7
KODIAK ISLAND BOROUGH
ORDINANCE NO. 94 -17
Introduced by:
Requested by:
Drafted by:
Introduced:
Public Hearing:
Adopted:
AN ORDINANCE ESTABLISHING AN EDUCATION AND HEALTH FUND
BY AMENDING TITLE 3 REVENUE AND FINANCE
OF THE KODIAK ISLAND BOROUGH CODE OF ORDINANCES
BY ADDING SECTION 3.04.051 FACILITIES FUND
Mayor Selby
Mayor Selby
Attorney
08/18/94
09/01/94
09/01/94
WHEREAS, there will be proceeds from the sale of Shuyak Island; and
WHEREAS, the establishment of a permanent fund for facilities in the Kodiak Island
Borough would provide revenue for future buildings; and
WHEREAS, a facilities fund would be a major factor in controlling and establishing
the property tax rates in the Kodiak Island Borough for many years;
NOW, THEREFORE, BE IT ORDAINED BY THE ASSEMBLY OF THE KODIAK ISLAND
BOROUGH THAT:
This ordinance is of a general and permanent nature and shall be a part
of the Kodiak Island Borough Code of Ordinances.
Title 3, Chapter 3.04 is amended by adding Section 3.04.051 as
follows:
Section 3.04.051 Facilities fund.
A. The facilities fund is established as a separate investment fund which
is distinct from the general land sale fund. The fund consists of all proceeds received
from the sale of Shuyak Island property to the Exxon Valdez Oil Spill Trustee Council.
All income from the fund shall be deposited to the fund. The assembly may, by
ordinance, make additional appropriations to the fund at any time.
B. The fund may be invested only as provided in section 3.04.020. The
fund may not be appropriated or spent, except as provided in this section.
C. The assembly may, by ordinance, make a one time appropriation of
a portion of the fund for the financing or construction of an addition to the Fishery
Industrial Technology Center.
Ordinance No. 94-17
Page 1 of 2
D. The excess income of the fund is defined as eighty -five percent
(85 %) of the annual investment income from the fund. The excess income of the
fund is available for appropriation by the assembly in the fiscal year following the year
in which the income is earned. The excess income of the fund may be appropriated
only for the following purposes:
1. debt service on bonds issued for facilities construction,
2. upgrade and reconstruction of existing facilities
3. maintenance and repair of existing facilities
E. A portion of the fund may be appropriated for another purpose only
upon approval of an ordinance ratified by a two- thirds majority of the qualified voters
at a regular or special election.
ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH
THIS FIRST DAY OF SEPTEMBER, 1994
ATTEST:
(Dom a • %irwt!
Donna F. Smith, CMC, Borough Clerk
Kodiak Island Borough, Alaska
M. Selby, Borou
Jack L.
S
• tl
KODIAK ISLAND BOROUGH
Jero
iding Officer
Ordinance No. 94-17
Paps 2 of 2
TO: Jerome Selby, Mayor %
\a°
Kodiak Island Borough ( t/�
'tJ
FROM: Joel H. Bolger
V3\ DATE: August 10, 1994
RE: Facilities Fund
Our Rle No. 4702-506
MEMORANDUM
I have revised the proposed ordinance to make reference to the facf that the
funds received from the Exxon Valdez 0i1 Spill Trustee Council are separate from the
General Land Sale Fund. I have also revised the language of the ordinance to
authorize the Assembly to make an appropriation by ordinance for the financing or
construction of an addition to the Fishery Industrial Technology Center. Here is my
revision:
3.04.051 Facilities Fund.
A. The Facilities Fund is established as a separate
investment fund which is distinct from the General Land Sale
Fund, The Fund consists of all proceeds received from the
sale of Shuyak Island property to the Exxon Valdez Oii Spill
Trustee Council. All income from the Fund shall be
deposited to the Fund. The Assembly may make additional
appropriations to the Fund at any time by ordinance.
B. The Fund may be invested only as provided in
Section 3.04.020. The Fund may not be appropriated or
spent, except as provided in this section.
C. The Assembly may, by ordinance, appropriate a
portion of the Fund for the financing or construction of an
addition to the Fishery Industrial Technology Center.
D. The Excess Income of the Fund is defined as ninety
percent (90 %) of the annual investment income from the
fund. The Excess Income of the Fund is available for
appropriation by the Assembly in the fiscal year following the
year in which the income is eamed. The Excess Income of
the Fund may be appropriated only for the following
purposes:
4702'506M.002
- 1, Debt service on bonds issued for facilities
construction.
2. Construction of new facilities,
3. Maintenance and repair of existing facilities.
4, Insurance for facilities.
. E. A portion of the Fund may be appropriated for
another purpose only upon approval of an ordinance ratified
by a two- thirds majority of the qualified voters at a regular or
special election.
Please let me know if the ordinance can be improved or modified in any way.
cc: Jack MacFadand, Presiding Otter
to
2. Ordinance No. 94 -17 Establishing a ORDINANCE
Facilities Fund by Amending Title 3 Revenue NO. 94 -17
and Finance of the Kodiak Island Borough
Code of Ordinances by Adding Section
3.04.51 Facilities Fund.
Presented for consideration was ordinance No. 94 -17
that, if adopted, established a facilities fund for
proceeds received from the sale of Shuyak Island to
the Exxon Valdez Oil Spill Trustee Council.
MILLIGAN, moved to advance
seconded by AUSTERMAN Ordinance No. 94 -17 to
publi^ hearing on
Septa. r 1, 1994.
Mayor Selby said funds from the Shuy_,_ Island sale
would be placed in a permanent maintenance,
renovation and building fund for the future. He said
the intent was to place ten percent of the interest
earnings in the corpus for inflation proofing. He
said building maintenance was important and was
generally eliminated when budgets were cut. He noted
the fund would also pay debt service on bonds to
construct new facilities. He said there was an
emergency provision that allowed corpus funds to be
spent if approved by a two - thirds vote of the public.
Assemblymember Austerman asked if the Assembly could
allocate a portion of the funds for an addition to
the Fisheries Industrial Technology Center (FITC).
Mayor Selby explained there was discussion at the
negotiations to wrap $7,000,000 for the FITC from the
trustee council into the Shuyak Island land sale. He
said the Trustee Council was supportive but there was
concern that the Department of Justice would consider
it an inappropriate use of funds. He said bricks and
mortar, or construction of buildings was not an
appropriate expenditure of the proceeds. He reported
that Mr. Frampton from the Department of the interior
suggested the Shuyak Island sale be used as a vehicle
for completion of the FITC /NOAA facility. Mayor
Selby said there was a provision that when funds were
received, the Assembly could make a one -time
appropriation for the FITC /NOAA facility to the
university of Alaska.
In response to Assemblymember Austerman's request for
clarification, Mayor Selby explained it was made
clear to the Trustee Council that the $7,000,000 for
the FITC /NOAA facility was in addition to the $35,000
Sh
Shuyak Island sale.
Regular Assembly Meeting
August 18, 1994
`t )
" 9
11
Volume XIX
Page 16
Ayes:
When Assemblymember Burt questioned whether 10
percent was sufficient for inflation, Mayor Selby
outlined that 10 percent of the interest earned would
be placed in the corpus and 90 percent could be
spent. He added that the Assembly had the ability to
allocate additional funds to the corpus.
Assemblymember Austerman felt it was wise to set
aside funds for future growth and maintenance.
Assemblymember Burt agreed but had reservations about
constructing new buildings.
VOTE ON MOTION TO ADVANCE
Noes: None
Absent: Gould, Hancock
MOTION CARRIED Unanimous
3. Ordinance No. 94 -18 Repealing and ORDINANCE
Reenacting Chapter 2.12 Personnel Section NO. 94 -18
of the Kodiak Island Borough Code of
ordinances.
Presented for consideration was Ordinance No. 94 -18
that, if adopted, repealed and reenacted Kodiak
Island Borough Code Chapter 2.12 Personnel Section to
comply with state and federal regulations.
MONROE, moved to advance
seconded by MILLIGAN Ordinance No. 94 -18 to
public hearing on
September 1, 1994.
Mayor Selby said the current Personnel Policy Manual
was out -of -date with serious inconsistencies. He
commended Rachael Miller, personnel assistant, for
drafting the Manual. He said the Personnel Advisory
Board reviewed the Manual and unanimously recommended
approval.
There was no discussion by the Assembly.
VOTE ON MOTION TO ADVANCE
Ayes: Monroe, Austerman,
Burt, Milligan,
McFarland
Regular Assembly Heating
August 18, 1994
'1
Milligan, Monroe,
Austerman, Burt,
McFarland
12
9 a I
Volume XIX
Page 17
i.nxxtau
Unanimous
2 Ordinance No. 94 -17 Establishing a Facilities f ORDINANCE
Fund by Amending Title 3 Revenue and Finance of NO. 94 -17
the Kodiak Island Borough Code of Ordinances by
Adding Section 3.04.51 Facilities Fund.
Presented for consideration was Ordinance No. 94 -17
which, if adopted, established a facilities fund for
proceeds received from the sale of Shuyak Island to
the Exxon Valdez Oil Spill Trustee Council.
AUSTERMAN, moved to adopt
seconded by MILLIGAN Ordinance No. 94 -17.
Mayor Selby anticipated the negotiation and sale of
Shuyak Island to be consummated by the end of
October. He said this was a one -time opportunity for
the community to establish a fund for future
facilities maintenance.
Assemblymember Gould announced his intention to amend
the ordinance to delete new facility construction and
add upgrade and maintenance of new facilities. He
asked Mayor Selby to comment.
Mayor Selby did not foresee building a large facility
without going to the voters and agreed with
Assemblymember Gould because upgrade and maintenance
was what he envisioned. He gave as an example an
addition to Peterson Elementary School to meet the
needs of new residents in homes being built on
Aviation Hill.
At questions raised by Assemblymember Milligan, Mayor
Selby stated the ten percent interest earnings was
the low end of mandatory contributions that gave
future assemblies more latitude to add monies.
When asked by Assemblymember Milligan if the revenues
from the fund could be used to offset payments on
general obligation bonds, Mayor Selby explained the
intent was not to place restrictions on future
assemblies.
In response to Assemblymember Hancock, Mayor
outlined the provision to allow a single
appropriation to fund the FITC /NOAA Facility. He
added that future draw -downs would be an action of
the assembly.
Presiding Officer McFarland opened the public
hearing.
•
Stosh Anderson felt the establishment of the fund was
a win -win situation.
Norm Wooten commended the Mayor and Assembly for
taking a position that provided a great opportunity
for continued maintenance on school facilities.
Regular Assembly Meeting
September 1, 1994
13
Volume XLX
Page 26
When Assemblymember Milligan asked for his opinion on
using the fund to construct new facilities, Mr.
Wooten declared he was speaking for himself and not
the school board when he offered his opinion that
there was some merit in removing new construction in
that taxpayers would be more appreciative if they
paid for new. facilities.
Scott Arndt understood that all funds from the sale
of Shuyak Island would go in the fund. He said that,
because people used private property for recreation,
ten percent of the proceeds should go to the land
sale fund to purchase recreational property along the
road system. He felt it was not appropriate to spend
funds on the FITC /NOAA facility and the question
should go before the people for a vote. He agreed
with Assemblymember Gould's suggestion to delete
construction. He also felt insurance should not be
paid from the fund. He thought interest rates could
go down and suggested leaving 20 to 30 percent of the
interest earnings in the fund.
Assemblymember Gould did not see the logic in funding
the FITC /NOAA facility. He felt it was a process
that should go to the voters because the Assembly was
making an exception by funding the FITC /NOAA
facility.
Presiding officer McFarland said negotiations were
proceeding and it was difficult to clarify the
specifics.
Robert Tucker supported the fund. He was familiar
with the cost of building maintenance and supported
the idea of deleting new construction.
Marcia Oswalt commended the Mayor and Assembly. She
supported the idea of supporting the FITC /NOAA
facility because fine people would be brought to the
community. She was concerned about funding cutbacks
at the University of Alaska, Fairbanks.
Presiding Officer McFarland closed the public hearing
and reconvened the regular meeting.
Assemblymember Austerman commended Mayor Selby for
drafting the fund document. He agreed with deleting
new construction and questioned the insurance. He
agreed with Mr. Arndt that recreational property was
needed.
Presiding Officer McFarland suggested requesting an
attorney's opinion on the acquisition of private
property for public use. He wondered at potential
Regular Assembly Meeting
September 1, 1994
a 9 :i rl 4 9 6
l'/
Volume XIX
Page 27
/ complications and Mayor Selby stated the Trustee
Council recommended the fund be kept in tact.
Assemblymember Austerman felt it was important to
inflation -proof the fund.
Assemblymember Gould agreed. He felt 85 percent
would allow for a major remodel. He agreed that
insurance should be paid by other funds.
GOULD,
seconded by AUSTERMAN
Assemblymember Milligan supported the idea of 85
percent and deleting construction of new facilities.
He said he had a problem with deleting 3.04.051D.4
because insurance was not a great expenditure.
Presiding Officer McFarland suggested dividing the
question by separating the deleting of 3.04.051D.4 in
the amendment.
GOULD, moved to divide the
seconded by AUSTERMAN question by separating
the deleting of
3.04.051D.4 from the
rest of the question.
MOTION CARRIED Unanimous consent *
When asked by Presiding Officer McFarland, Mayor
Selby gave a synopsis of how the ten percent savings
was not complete inflation proofing.
The question to amend Ordinance No. 94 -17 Section 2
by deleting the word "ninety" and inserting the word
"eighty- five" in 3.04.051D and 3.04.051D.2. by
deleting the words: "construction of new facilities"
Regular Assembly Meeting
September 1, 1994
1 9 9 ,A n
n 4 9 6
moved to amend
ordinance No. 94 -17
Section 2 by deleting
the word "ninety" and
inserting the word
"eighty -five" in
3.04.051D and
3.04.051D.2. by
deleting the words:
"construction of new
facilities" and
inserting the words:
"upgrade and
reconstruction of
existing facilities"
and deleting
3.04.051D.4.
16
Volume XIX
Page 28
1 7 ' ':1 : 9 5
and inserting the words: "upgrade and reconstruction
of existing facilities" was before the Assembly.
VOTE ON MOTION TO AMEND
Ayes:
VOTE ON MOTION TO AMEND
Ayes:
Regular Assembly Meeting
September 1, 1994
Hancock, Milligan,
Austerman, Gould,
McFarland
Noes: Monroe
Absent: Burt
MOTION CARRIED 5 yes, 1 No
The question of deleting 3.04.051D.4 was before the
Assembly.
Assemblymember Hancock favored deleting insurance for
facilities.
Assemblymember Milligan felt insurance was an
operating expense.
When Assemblymember Gould stated his opinion that the
fund be dedicated to facilities maintenance,
Assemblymember Austerman concurred.
Presiding Officer McFarland applauded Mayor Selby,
staff and the Borough attorney. He felt diversifying
revenue was a major responsibility and commitment for
the Assembly.
Monroe, Austerman,
Gould, Hancock,
McFarland
Noes: Milligan
Absent: Burt
MOTION CARRIED 5 Ayes, 1 No
Presiding Officer McFarland made a motion to
reconsider the vote on Ordinance No. 94-17.
Assemblymember Milligan seconded the motion.
After a five minute recess at 9:17 p.m., Presiding
Officer McFarland reconvened the regular meeting.
14
Volume KIX
Page 29
MILLIGAN,
seconded by AUSTERMAN
VOTE ON MOTION TO AMEND
Ayes:
Regular Assembly Meeting
September 1, 1994
11) . 0 4 9, 4
Presiding Officer McFarland withdrew his motion to
reconsider the vote on Ordinance No. 94 -17 with the
concurrence of the second.
Assemblymember Milligan read from the ordinance to
clarify that the Assembly may, by ordinance, make a
one -time appropriation of a portion of the fund for
construction purposes.
moved to amend
Ordinance No. 94 -17, by
replacing section C
with the words: The
Assembly may, by
ordinance, make a one
time appropriation of a
portion of the fund for
the financing or
construction of an
addition to the Fishery
Industrial Technology
Center.
Monroe, Austerman,
Gould, Hancock,
Milligan, McFarland
Noes: None
Absent: Burt
MOTION CARRIED Unanimous
VOTE ON MOTION TO ADOPT AS AMENDED
Ayes: Austerman, Gould,
Hancock Milligan,
Monroe,�McFarland
Noes: None
Absent: Burt
MOTION CARRIED Unanimous
17
3. Ordinance No. 94 -18 Repealing and Reenacting ORDINANCE
Chapter 2.12 Personnel Section of the Kodiak NO. 94 -18
Island Borough Code of Ordinances.
Presented for consideration was Ordinance No. 94 -18
which, if adopted, repealed and reenacted Kodiak
Island Borough Code Chapter 2.12 Personnel Section to
comply with state and federal regulations.
Volume XIX
Page 30
Introduced by:
Requested by:
Drafted by:
Introduced:
Public Hearing:
Amended:
Adopted:
KODIAK ISLAND BOROUGH
ORDINANCE NO. 96 -13
AN ORDINANCE AMENDING TITLE 3 REVENUE AND FINANCE
OF THE KODIAK ISLAND BOROUGH CODE OF ORDINANCES
BY AMENDING SECTION 3.04.051 FACILITIES FUND
Assemblymember Burt
Assemblymember Burt
Assemblymember Burt
and Mayor Selby
10/03/96
10/17/96
10/17/96
10/17/96
WHEREAS, there is established a permanent fund for facilities in the Kodiak Island
Borough to provide revenue for future buildings; and
WHEREAS, revenue derived from this fund will be used to stabilize and reduce the
property taxes in the Kodiak Island Borough;
NOW, THEREFORE, BE IT ORDAINED BY THE ASSEMBLY OF THE KODIAK ISLAND
BOROUGH THAT:
Section 1: This ordinance is of a general and permanent nature and shall be a part
of the Kodiak Island Borough Code of Ordinances.
Section 2: Title 3, Chapter 3.04, Section 3.04.051 is amended as follows:
Section 3.04.051 Facilities fund.
A. The facilities fund is established as a separate investment fund which
is distinct from the general land sale fund : , arm The fund consists of
all proceeds received from the sale of Shuyak Island property to the Exxon Valdez Oil
Spill Trustee Council. All income from the fund shall be deposited to the fund. The
assembly may, by ordinance, make additional appropriations to the fund at any time.
.&._..:.
B. The fund may be invested only as provided in section 3.04.020. The
fund may not be appropriated or spent, except as provided .. in this section.
C. The assembly may, by ordinance, make a one time appropriation of
a of jor the financing or construction
an addition to the Fishery Industrial
Technology Center
Kodiak Island Borough, Alaska
14
Ordinance No. 98.13
Page 1 of 2
D. The excess income of the fund is defined as eighty -five percent
(85 %) of the annual investment income from the fund. The excess income of the
fund is available for appropriation by the assembly in the fiscal year following the year
In which the income Is earned. The excess Income of the fund may be appropriated
only for the following purposes:
1. maintenance and repair of existing �s ems facilities,
2.
3. upgrade and reconstruction of existing facilities,
4. debt service on , bonds issued for facilities
construction -
E. A portion of the fund may be appropriated for another purpose only
upon approval of an ordinance ratified by a two- thirds (2/3) majority of the qualified
voters at a regular or special election.
ATTEST:
ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH
THIS SEVENTEENTH DAY OF OCTOBER, 1996
onn �01.11lcr t I R
a F. Smith, CMC /AAE, Borough Clerk
Kodiak Island Borough, Alaska
1R
KODIAK ISLAND BOROUGH
Jer
y
s, Presiding Officer
Ordinance No. 90 -13
Page 2 of 2
J OEL N. IOLGIDP
C. WALT= EDELL•
MANNA R. GENTRY
AATTNEW 0. JAMIE
ALAN L /CI(MfTT
EARIN 2. I=DL='
D UNCAN II. MELDS
WALT= W. MASON*
•ww,w to /LAMS
Mb MAGIIMTON SAY
Au =CO MONTT =TO
MAIM OAR
VIA FACSIMILE NO. (907) 486 -9374
AND UNITED STATES MAIL
The Honorable Jerome Selby
Mayor, Kodiak Island Borough
710 Mill Bay Road
Kodiak, AK 99615
Dear Jerome:
.1AMIN, EBELL, BOLGER, & GENTRY
A PROFESSIONAL CORM:NATION
Re: Facilities Fund
Our File No. 4702 -506
ATTORNEYS AT LAW
123 CA3OLYN STREET
KODIAK.ALASNA 99915
rnLEPNONR: (907) OW
FACSIMILE: (907) 4241-1112
REPLY TO IOfDIU( OFFICE
September 9, 1996
2a
ANCHORAGE OFFICE
12001 STREET, aunt 7d
ANCNOIIAIL ALAI/G 11001
TELEPHONE ANO FM
(107) 276110(
SEATI = OFFICE
200 MUTUAL LIIE IUILDINI
101 VmST AVENUI
SIATTLL WASHINGTON Ogle/
TELEP4ON4 (1101)112 -7131
/AOSOILE: (2.011)(11.1-7221
This letter is in response to your question conceming a proposal to amend KIBC
3.04.051.E. This subsection presently provides that the Facilities Fund may be
appropriated for other purposes only upon approval of an ordinance ratified by a two -
thirds majority of the qualified voters. The proposal would amend this subsection to
require such an ordinance to be ratified by a three- fourths majority of the qualified
voters.
There is not a lot of case law concerning super - majority voting requirements.
However, it is fairly clear that the two- thirds majority requirement would be valid. A
three- fourths majority would be more questionable.
The only case striking down a super - majority approval requirement is
Westbrooke v. Mihaly, 471 P.2d 487 (Cal. 1970). In that case the California
Supreme Court held that a requirement of a two- thirds majority for public bond issues
violated the equal protection clause of the Fourteenth Amendment. The court
reasoned that the super - majority requirement violated the one -man, one -vote principle
because it gave each negative voter twice the voting power of each affirmative voter.
The Honorable Jerome Selby
September 9, 1996
Page 2
One year later the United States Supreme Court considered the question in
Gordon v. Lance, 403 U.S. 1 (1971). In that case a West Virginia statute provided
that political subdivisions could not incur bonded indebtedness or increase tax rates
beyond certain limits without approval of sixty percent of the voters. The court
rejected the equal protection challenge because the law did not single out any
minority for special treatment. However, the court did note in a footnote:
403 U.S. at 8, note 6.
"We intimate no view on the constitutionality of a provision
requiring unanimity or giving the veto power to a very small
group ...'
My conclusion from these cases is that the two- thirds majority requirement is
probably valid, but at some point a greater super - majority requirement may violate the
one -man, one -vote principle. In addition, you should keep in mind that the election
requirement can always be amended or repealed by a future assembly.
Feel free to give me a call if you have any questions.
Sincerely,
JAMIN, EBELL, BOLGER & GENTRY
JHB:cat
cc: Mr. Gary Stevens, Presiding Officer
47021508L.001
21
Joel H. Bolg
4 ayes, 2 noes NO. HUINANCE 96 -13
Ordinance No. 96 -13 Amending Title 3 Revenue and
Finance of the Kodiak Island Borough Code of
Ordinances by Amending Section 3.04.051
Facilities Fund.
Presented for consideration was Ordinance. No. 96 -13
that, if adopted, amended Title 3 to reflect a change
in the facilities fund to preserve the fund and
maintain its use for property tax relief.
Acting Mayor Carlson reported on the need to preserve
the fund that was established from the Sale of Shuyak
Island for future needs.
MOTION CARRIED
JOHNSON,
seconded by MILLIGAN
BURT,
seconded by McFARLAND
moved to advance
Ordinance No. 96 -13
to public hearing on
October 17, 1996.
move to amend Ordinance
No. 96 -13 by deleting
item D.1.
Assemblymember Burt wanted broader based tax relief.
Assemblymember McFarland thought the ordinance should
be advanced to public hearing prior to amendments.
Assemblymember Milligan had concerns about taxing
boats and thought further discussion was needed.
Assemblymember Burt felt the ordinance should address
school maintenance and not debt service on bonds.
VOTE ON MOTION TO AMEND
Ayes: Burt
Noes: Hancock, Johnson,
McFarland, Milligan,
Heinrichs
Absent: Stevens
MOTION FAILED 1 Aye, 5 Noes
Assemblymember Milligan felt positive impacts from
the Exxon Valdez Trustee Council purchase of Shuyak
Island. He thanked Assemblymember Burt for bringing
the ordinance forward.
Assemblymember McFarland also thanked Assemblymember
Burt and highlighted the changes for the listening
audience.
Assemblymember Burt noted his recommended changes did
not include the debt service on government bonds as
that was proposed by staff.
Regular Assembly Meeting
October 3, 1996
21
c t
Volume )CU
Page 283
Following questions on whether the majority of voters
meant those on the rolls or those who voted in the
election, the topic was deferred to a work session.
VOTE ON MOTION TO ADVANCE
Ayes:
Johnson, McFarland,
Milligan, Burt,
Hancock, Heinrichs
Noes: None
Absent: Stevens
ORDINANCE
MOTION CARRIED Unanimous NO. 96 -14
3.
Regular Assembly Meeting
October 3, 1996
Ordinance No. 96 -14 Establishing an
Education Fund by Amending Title 3 Revenue
and Finance of the Kodiak Island Borough
Code of Ordinances by Adding Section
3.04.052 Education Fund.
Presented for consideration was Ordinance No. 96 -14
that, if adopted, amended Title 3 for the purpose of
establishing a permanent fund for all education
programs as a separate investment fund distinct from
all other funds.
MCFARLAND,
seconded by MILLIGAN
moved to advance
Ordinance No. 96 -14
to public hearing on
October 17, 1996.
Acting Mayor Carlson explained the need to preserve
funds for future education needs.
MCFARLAND,
seconded by MILLIGAN
moved to amend
Ordinance No. 96 -14 by
amend the last sentence
in A. to read: "The
assembly will
appropriate an initial
investment into the
fund of $500,000 and
make additional
appropriations to the
fund at any time by
ordinance."
Assemblymember McFarland felt that the intent of
stating a dollar amount would make a commitment.
Assemblymember Burt was concerned that the Borough
would never receive the funds.
lb
Volume XXI
Page 284
Assemblymember McFarland thought that a future
assembly could develop the fund further. He
contended that the object was to educate children.
Presiding Officer Stevens noted the commitment to
fund up to $500,000 was not a firm commitment until
it went through the budget process.
VOTE ON MOTION TO ADOPT AS AMENDED
Ayes:
Noes: Burt
McFARLAND,
seconded by MILLIGAN
VOTE ON MOTION TO EXTEND
BURT,
seconded by MILLIGAN
Regular Assembly Meeting
October 17, 1996
2q
Johnson, McFarland,
Milligan, Hancock,
Heinrichs, Stevens
MOTION COED 6 Ayes, 1 No
Presented for consideration was Ordinance No. 96 -13
that, if adopted, amended Title 3 to reflect a change
in the facilities fund to preserve the fund and
maintain its use for property tax relief.
JOHNSON, moved to adopt
seconded by McFARLAND Ordinance No. 96 -13.
Mayor Selby said the adjustment to the fund would
allow maintenance of existing school structures. He
outlined the direct benefit to taxpayers.
moved to extend
the meeting to
midnight.
MOTION CARRIED Unanimous voice vote
Presiding Officer Stevens called for public
testimony; hearing and seeing none, he reconvened the
regular meeting.
moved to amend
Ordinance No. 96 -13 by
removing item D.1
relating to facilities
construction.
D. ordinance No. 96 -13 Amending Title 3 Revenue and ORDINANCE
Finance of the Kodiak Island Borough Code of NO. 96 -13
Ordinances by Amending Section 3.04.051
Facilities Fund.
4
„,
Fs
Volume XXII
Page 14
Assemblymember Burt felt the funds could cover all
needs.
Assemblymember Johnson opposed the amendment because
he felt a way to save on property taxes was in place.
In response to Assemblymember Milligan, Mayor Selby
explained the $1 million debt service on current bond
indebtedness for 15 years. He thought eliminating
options was a disservice in balancing general fund
budgets and flexibility in the mill levy.
Assemblymember Burt saw no difference because he felt
paying insurance did not reduce the mill rate.
VOTE ON MOTION TO AMEND
Ayes:
Noes:
MOTION FAILED
HEINRICHS,
seconded by MILLIGAN
MILLIGAN,
seconded by HANCOCK
Burt
VOTE ON MOTION TO AMEND THE AMENDMENT
Ayes:
Noes:
MOTION CARRIED
None
VOTE ON MOTION TO AMEND AS AMENDED
Ayes:
Regular Assembly Meeting
October 17, 1996
McFarland, Milligan,
Hancock, Heinrichs,
Johnson, Stevens
1 Aye, 6 Noes
moved to amend
Ordinance No. 96 -13 by
adding to item D.1. the
words: "...up to fifty
percent of excess may
be used for this
purpose ".
moved to amend the
amendment by switching
item D.1 with item D.4.
Milligan, Burt,
Hancock, Heinrichs,
Johnson, McFarland,
Stevens
Unanimous
Hancock, Heinrichs,
Johnson, McFarland,
Milligan, Stevens
Volume VCR
Page 15
Noes:
MOTION CARRIED
VOTE ON MOTION TO ADOPT AS AMENDED
Ayes:
Noes:
MOTION CARRIED
VOTE ON MOTION TO ADOPT
Ayes:
Noes:
MOTION CARRIED
MESSAGES BR01I MAYOR
Regular Assembly Meeting
October 17, 1996
Burt
6 Ayes, 1 No
Hancock, Heinrichs,
Johnson, McFarland,
Milligan, Stevens
Burt
6 Ayes, 1 No
E Ordinance No. 96 -15 Rezoning Approximately ORDINANCE
11.5 Acres Within U.S. Survey 2261 (Trident NO. 96 -15
Basin Float Plane Facility) From C-
Conservation To LI -Light Industrial.
Presented for consideration was Ordinance No. 96 -15
that, if adopted, rezoned 11.5 acres to be consistent
with current and proposed development trends in the
area.
MILLIGAN, moved to adopt
seconded by McFARLAND Ordinance No. 96 -15.
Mayor Selby informed the Assembly that the rezone was
requested by the City of Kodiak and approval was
recommended by the Planning and Zoning Commission.
Presiding Officer Stevens called for public
testimony; hearing and seeing none, he reconvened the
regular meeting.
Heinrichs, Johnson,
McFarland, Milligan,
Burt, Hancock, Stevens
None
Unanimous
Mayor Selby thanked the out -going Assemblymembers for
their outstanding job of serving the community.
2
MESSAGES FROM
THE BOROUGH
MAYOR
Volume XXII
Page l6
3.04.020 Permissible investments. The treasurer shall invest money only in the
following types of security instruments:
A. Bonds, notes, or other obligations, direct or otherwise, of the United States;
B. Bonds and other evidence of indebtedness of the state of Alaska, or any
municipality, or political subdivision of the state of Alaska;
C. Savings accounts, certificates of deposit, banker's acceptances, repurchase
agreements, and such other legal security instruments; or
D. The Alaska Municipal League Investment Pool, Inc. made in accordance with the
terms of that Pool's "Common Investment Agreement ". (Ord. 92 -29 §3, 1993; Ord. 90-
35 §2, 1990; Ord. 84 -30 -0 §1, 1984; Ord. 82- 15 -0(A) (part), 1982; Ord. 71 -5 -0 (part),
1971; prior code Ch. 7 subch. 1 §2).
27
n.n n I 2 2 ' `'
AN ORDINANCE AMENDING THE KODIAK ISLAND
ORD INANCES BOROUGH CODE OF AND
THERETO CHAPTER 7 DEALING WITH PU
BLIC FINANCE ADDING
BE IT ORDAINED by the Kodiak island Borough
Assembly that the the Kodiak Island Borough Code of
Ordinances and Resolutions be and the same is hereby
amended by adding thereto Chapter 7, entitled "Public
Finance ", which shall read as follows:
SUB- CHAPTER 1. MANAGEMENT AND ACCOUNTING
Section 1. General Management.
The Treasurer shall be responsible for
treasury management, including investment
and reinvestment of all revenues of the
municipality from whatever source, to
include the school system.
Section 2. Permissible Investments.
The Treasurer shall invest money only in the
following types of investments.
A. Bonds, notes or other obligations, direct
or otherwise, of the United States.
B. Bonds and other evidence of indebtedness
of the State of Alaska, or any municipality
or political subdivision of the State of Alaska.
C. Savings accounts or certificates of
deposit tuinnan an
any financial institution authorized
to
Section 3. Centralized Treasury
in a
All school money shall be
e deposited Borough
centralized treasury
money.
Section 4. Basis of Accounting.
Accounting of the budget will be prepared on
a modified accural basis, which is described
II
Page One, ORDINANCE NO. 71 -5 -0
2,7
KODIAK ISLAND BOROUGH
ORDINANCE NUMBER 71 -5-0
CHAPTER 7.
PUBLIC FINANCE
n 1 2 2; 7
.
I'I
Section 2.
as: revenues being recognized when cash is
received, with the exception of School
District, State and Federal Grants, which
shall be recognized whether received or not,
and expenditures being recognized as soon as
they result in liabilities for benefits
received.
Section 5. Funds.
Funds as required will be established, which
should include, but are not limited to the
following.
A. Kodiak Island Borough General Fund.
B. Kodiak Island Borough Payroll Fund.
C. Tobacco Tax Fund.
D. Debt Service Funds.
E. Capital Projects Funds.
F. Fire Service District Fund:
G. Sewer and Water Utility Fund.
H. other Enterprise Funds as needed.
Section 6. Distribution of Funds.
A. All funds shall be disbursed Borough
to the budget as approved by
Assembly.
B. The School District submit
claims that have been approved payment.
Board to the Central Treasury for
Section 7. Posit.
The Assembly shall provide for an independent
annual audit of all municipal accounts, or
more frequent audits as deemed necessary.
Such audits shall be made by a certified
edch
Public Accountant, or firm staffed by
accountants, who have no personal interest,
direct or indirect, in the fiscal faffairs The
municipality any of
Assembly may, without requiring competitive
bidding, designate such accountant or firm.
SUB - CHAPTER 2. BUDGET AND PROCEDURES.
Section 1. Bud et a Public Record. •
The Budget and the budget message and
supporting schedules shall be a public
record in the office of the Clerk, open
to the public inspection by anyone.
Fiscal alYeea .
The fiscal year of the Kodiak Island Borough
Page Two, ORDINANCE NO. 71 -5 -0
241
nnnn•I X22
•
Budget and Capital Pro ram.
Section 3. 30th of April of each
A. On or before the 3
budget the Borough
ca l g
program toathesBorough e
bud and capital p Budget and
shall contain Tne the e Budget
appro riation and
shall ocdinancap proposed P
tax levy
B. The School Districhl su to the
Borough Chairman the proposed
local support requirements for the school by
the 31st of.Naroh - so the major funding can
be incorporated into the Borough Budget and
Budget message.
Public Hearing of the Bud et.
Section 4.
j At a time place as advertised the
Budget shall p l hold a public hearing of the
A sub
t h e As es submiytaddopt, withtor withouthearing,
the annual budget as proposed by
amenddmeentsts, , the
the Chairman. Veto.
Vote Re sired;
Section 5. Ado tion of Bud et; e favorable
The Budget shall be adopted by the the
votes of at least a majoritylof th all l th 10 Jure
members of the Assembly
through the adoption of an ordinance setting
forth the appropriation levels ante eheillage
rate. The Borough Chairman mayyveetodth by
ordinance but his veto may be
two- thirds of all the votes to which the
Assembly
is entitled on the question.
1\ Section 6. Date of Final Ado aeon; Failure to Ado t•
adopted not
later than
The Budp prior tol e he eg iof the budget
1y June' Shul the to Assembly take no' action
anao, n or prior t o such hdy,
on t day, the Budget, as
submitted, shall bbet deemed
Setolhhave been
finally adopted
Section 7. Effective Date of Bud et; Certification.
Won adoption of the budget through passage
of the Budget Ordinance and tax levy, the
budget shall bo of i the f budget astfinally Budget he
yeas. A copy the Ca e
adndpthd shar be certified by irma
shall
and the clerk k and d filed in the office of
Clerk. Sufficient copies of the budget
n
shall begin on the first day of July and
end on the Last day of June.
Page Three, ORDINANCE N0. 71 -5 -0
q1 q n
ATTEST:
n 2 n
be made available for use of all offices,
departments and agencies and for interested
persons.
' 9or ud gh Clerk
FIRST READING AND APPROVAL DATE, MARCH 4, 1971.
SECOND READING, PUBLIC HEARING AND PASSAGE DATE,
/ , 1971.
Page Four, ORDINANCE NO. 71 -5 -0
3 1
KODIAK ISLAND BOROUGH
WILT N T. WH T
Borough Chairman
By
n 1 •• j z r;
KODIAK ISLAND BOROUGH
ORDINANCE NO. 82- 15 -0(A)
AN ORDINANCE OF THE KODIAK ISLAND BOROUGH, KODIAK, ALASKA, AMENDING
THE INVESTMENT POLICY OF KODIAK ISLAND BOROUGH.
WHEREAS, it is the desire of the Kodiak Island Borough Assembly to
modify the existing ordinance on Permissible Investments, and
WHEREAS, it is the further desire of the Kodiak Island Borough Assembl
that all investments of Borough funds be collateralized.
NOW, THEREFORE, BE IT ORDAINED that Title 3 of the Kodiak Island
Borough Code be revised as follows:
Sections:
Chapter 3.04
PUBLIC FINANCE -- MANAGEMENT AND ACCOUNTING*
3.04.020 Permissible Investments
3.04.021 Terms Defined
3.04.022 Collateral Requirements
3.04.023 Collateral Safekeeping
3.04.020 Permissible Investments. The treasurer shall invest money
only in the following types of investments security instruments.
A. Bonds, notes or other obligations, direct or otherwise, of the
United States;
B. Bonds and other evidence of indebtedness of the State of Alaska,
or any municipality, or political subdivision of the State of Alaska;
C. Savings accounteL er certificates of deposit, bankers acceptances,
repurchase agreements and such other legal security instruments. in -any
ff naneiel- 4nsti tetlen - eetherkeed to - de- bee #Hess -4n- the - State.
3.04.021 Terme Defined. In so far as specific wording is used in this
code, the following definitions shall apply;
A. Banker's Acceptance. An instrument utilized in the financing of
foreign trade, making possible the payment of cash to an exporter covering all
or a part of the amount of a shipment made by him.
B. Bond. A bond is a certificate of indebtedness, in writing, and
often under seal.
C. Bill of Exchange. An unconditional order in writing addressed
by one person to another, signed by the person giving it, requiring the person
to whom it is addressed to pay on demand or at a fixed or determinable future
time a sum certain in money to order or to bearer (Uniform Negotiable
Instruments Law); synonymous with a draft or acceptance when referring to a
domestic transaction.
D. Collateralize. To secure a debt in part or in full by a pledge.
A note is said to be collateralized if the debtor has deposited property with
his creditor as part of full security for the payment of principal or interest.
E. Repurchase Agreement. A repurchase agreement, commonly referred
to as a "repo", is a short -term sale of Securities by a dealer in government
securities whereby the dealer agrees to repurchase the securities from the
investor at a fixed or open maturity date. The underlying instrument is a
U.S. government security; therefore, there is little risk of default. The
holding period is tailored to the needs of the investor and can be established
for very short periods, even a few days. Interest rates on repurchase
agreements are tied to the rate on treasury bills, federal funds, and loans to
government security dealers by commercial banks.
31
CI q
1 ' :'
3.04.022 Collateral Requirements. All investments of public funds
will be collateralized and /or insured. Collateral will be required to the
extent that the investment amount exceeds the limits of FDIC or other applicable(
insurance. The following collateral shall apply:
ATTEST:
By ,
Required for
STATE AND MUNICIPAL BONDS AND NOTES 100% of Deposit
1. Alaskan issues
2. Federally Guaranteed Project Notes
Alaska issues
3. Other states (Boa rating or better)
U.S. GOVERNMENT OBLIGATIONS
1. Direct obligations
2. Federal Agency issues
3. Federally Guaranteed Project Notes -Other
3.04.023 Collateral Safekeeping. All items of collateral will be
deposited for safekeeping with a third party. This party will be another
bank
Borough Cler
PASSED AND APPROVED this 5th day of May
Kodiak Island Borough Assembly.
1
First Reading, Approval Date, March 4, 1982
Second Reading, Public Hearing: April 1, 1982
Passage Date: May 6. 19RP
Effective Date, May 6. 1982
Recommended By: Borough Assembly
Ordinance No. 82 -IS-0 (AL
Page 2
33
KODIAK ISLAND BOROUGH
100% of market
100% of market
120% of market
100% of market
100% of market
100% of market
, 1982, by the
KODIAK ISLAND BOROUGH
ORDINANCE NO. 84 -30 -0
AN ORDINANCE OF THE KODIAK ISLAND BOROUGH ASSEMBLY DIRECTING THE
IMPLEMENTATION OF CERTAIN INVESTMENT POLICIES BY THE BOROUGH AND PROVIDING
FOR AN EFFECTIVE DATE.
WHEREAS, Section 3.04.020 of the Kodiak Island Borough Code provides
investment standards for the investment of Borough funds; and
WHEREAS, the Assembly is desirous of providing additional guidelines
to the Borough Manager for investment of certain funds of the Borough.
NOW, THEREFORE, BE IT ORDAINED as follows:
Chapter 3.04
PUBLIC FINANCE -- MANAGEMENT AND ACCOUNTING*
Section 1:
d 3.04.020 Permissible Investments.
0. Notwithstanding the standards provided in Section 3.04.020, the
proceeds of $7,400,000 Kodiak Island Borough General Obligation Variable Rate
Demand Bonds, Series A; the proceeds of $9,500,000 Kodiak Island Borough
General Obligation Variable Rate Demand Bonds, Series B (1984) and amounts
held in the Debt Service Fund for repayment of either of the following:
1. Direct obligations of or obligations insured or guaranteed by,
the United States of America or agencies or instrumentalities of the United
States of America;
2. Interest - bearing time deposits or certificates of deposit with
a bank or trust company continuously secured and collateralized by obligations
of the type described in paragraph (1) above, having a market value which shall
be determined weekly at least equal at ali times to the amount of such deposit
or certificate, to the extent such deposit or certificate is not insured by
the Federal Deposit Insurance Corporation or the Federal Savings and Loan
Insurance Corporation, or any successors thereto; or
3. Fully collateralized repurchase agreements with (1) the following
dealers: Merrill Lynch, Pierce, Fenner and Smith, Inc.; Salomon Brothers Inc.;
The First Boston Corporation; Goldman Sachs and Company; or (2) with banks which
are members of the Federal Reserve System and whose obligations are rated not
less than A or Prime 1 by Moody's Investors Services or the equivalent rating
by Standard and Poor's that are secured by obligations referred to in paragraph
(A) hereof having a current market value at least equal to one hundred and
three percent of the amount of the repurchase agreement,inclusive of accrued
Interest, marked to market daily.
), fl 1 1 3 1
Section 2: This ordinance takes effect immediately.
PASSED AND APPROVED by the Kodiak Island Borough Assembly this
:ATTEST:
day of
By .�
Boorough C
!first Reading, Approval Date:
'Second Reading, P blic Hearin
Effective Date:
Or dinance No. 84 -30 -0
Page 2
3s
, 1984.
KODIAK ISLAND BOROUGH
that:
KODIAK ISLAND BOROUGH
ORDINANCE NO. 90 -35
Introduced by:
Recommended by:
Finance
Date:
Public Hearing:
Adopted:
AN ORDINANCE AMENDING KIB CODE REGARDING
PERMISSIBLE INVESTMENTS
Mayor Selby
Director
10/01/90
11/01/90
11/01/90
BE IT ORDAINED by the Kodiak Island Borough Assembly
Section 1. This ordinance is of a general and permanent
nature and shall become a part of the Kodiak Island Borough Code of
Ordinances.
Section 2. Section 3.04.020, Permissible investments, is
amended by repealing section D.
ATTEST:
Boro
Clerk U
PASSED AND APPROVED THIS 1st DAY OF NOVEMBER, 1990.
KODIAK ISLAND BOROUGH
ding 0 ficer
i
Bo ;ugh Mayor
Pres
7
Ordinance No. 90 -35
Page 1 of 1
KODIAK ISLAND BOROUGH
ORDINANCE NO. 92 -29
Introduced by:
Requested by:
Drafted by:
Introduced:
Public Hearing:
Adopted:
4
Mayor Selby
Mayor Selby
Mayor Selby
12/17/92
01/07/93
01/07/93
AN ORDINANCE AUTHORIZING THE KODIAK ISLAND BOROUGH TO BECOME
A MEMBER OF THE ALASKA MUNICIPAL LEAGUE INVESTMENT POOL, INC.,
TO EXECUTE A COMMON INVESTMENT AGREEMENT WITH THAT
CORPORATION, AND AMENDING KODIAK ISLAND BOROUGH
CODE 3.04.020 PERMISSIBLE INVESTMENTS TO AUTHORIZE
KODIAK ISLAND BOROUGH INVESTMENT IN THE INVESTMENT POOL
WHEREAS, the Alaska Municipal League Investment Pool, Inc. was formed as a
nonprofit corporation as a means for eligible political subdivisions of the
State of Alaska to secure the maximum investment return consistent
with the preservation of capital and liquidity by pooling money
temporarily available for investment; and
WHEREAS, participation in the Pool is on a voluntary basis to public entities who
become members of the Corporation and execute a Common Investment
Agreement; and
WHEREAS, it would be beneficial to have the option for the Kodiak Island Borough
to participate in the Alaska Municipal League Investment Pool, Inc.;
NOW, THEREFORE, BE IT ORDAINED BY THE ASSEMBLY OF THE KODIAK ISLAND
BOROUGH THAT:
Section 1: That the mayor is hereby authorized to execute such documents as are
necessary for the Kodiak Island Borough to become a member of the
Alaska Municipal League Investment Pool, Inc., and to enter into a
Common Investment Agreement, attached hereto as "Exhibit A ".
Section 2: Section three of this Ordinance is of a general and permanent nature and
shall become a part of the Kodiak Island Borough Code of Ordinances.
Kodiak Island Borough, Alaska Ordinance No. 92.29
)7
Page 1 of 2
Section 3: That Kodiak Island Borough Code 3.04.020 Permissible investments is
hereby amended by the inclusion of an additional subsection to read as
follows:
ATTEST:
D. The Alaska Municipal League Investment Pool, Inc., made in
accordance with the terms of that Pool's "common Investment
Agreement ".
ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH
THIS 7th DAY OF JANUARY, 1993
Donna F. Smith, Borough Clerk
Kodiak Island Borough, Alaska Ordinance No. 92 -29
Page 2 of 2
3$
KODIAK ISLAND BOROUGH
Jer
Jack L, Mp`Farland, Presiding Officer
TO:
THROUGH:
FROM:
SUBJECT:
DATE:
Kodiak Island Borough
MEMORANDUM
Honorable Mayor and Assembly Members
Kodiak Island Borough
Rick Gifford, Borough Manager R5
Karleton Short, Finance Director g,
Facilities Fund
July 26, 2006
of the
v
KODIAK ISLAND BOROUGH
CLERK'S OFFICE
coPi$D 'ro.
ASSEMBLY +/ MAYOR
MANAGER - T_ OTHER
we 9'
The Kodiak Island Borough sold Shuyak Island to the State of Alaska for $42,000,000 on March
26, 1996. The Kodiak Island Borough received its first payment of $8,000,000 in FY1996.
$6,000,000 of this amount, per the sales agreement, was used for the construction of the Kodiak
Fisheries Research Center and $2,000,000 was credited to the Facilities Fund.
The Borough then received $2,194,266 in FY1997, $4,000,000 per year from FY 1998 -2002 and
a final payment of $11,805,734 in FY 2003. The total of all payments to the Facilities Fund
amounted to $36,000,000.
The Borough has received $9,590,290 in interest on these payments through the end of FY2006.
The Borough can spend up to 85% of the previous year's interest earnings on building insurance,
debt service on bonds, and capital projects. Payments on debt service can only be up to 50% of
the total amount available.
Through FY2006 the Facilities Fund has spent $6,637,341 on building insurance, debt service,
and capital construction. $1,714,770 for building insurance, $3,137,884 for debt service, and
$1,784,687 for capital construction. These numbers do not include the six million dollars
allocated to the KFRC project.
In FY 2006 the Facilities Fund earned $1,781,653 (un- audited) in interest earnings. The 85% of
interest earnings that are available for subsequent year's appropriate amount to $1,514,405. In
FY 2007 1 mill equals about $900,000 in property and severance taxes. In FY 2007 this is equal
to 1 mills on both property and severance taxes.
At the end of FY 2006 the Fund Balance of the Facilities Fund will be $38,952,949 (un- audited).
This increase of $2,952,949 is due to the 15% inflation proofing ($1,438,544) and timing.
(Interest earnings cannot be spent until the next fiscal year).
KODIAK ISLAND BOROUGH
Facilities Fund Special Work Session
August 5, 2006
A special meeting of the Kodiak Island Borough Assembly was held August 5,
main conference room. The meeting was called to order at 9:00 a.m.
Present were Mayor Jerome Selby, Assemblymembers Tom Abell, Pat Branson,
Ranney, Mel Stephens, and Barbara Williams. Absent was Assemblymember
present were Manager Rick Gifford, Finance Director Karl Short, Clerk Nova
Clerk, Marylynn McFarland.
CITIZENS' COMMENTS
2006 in the KFRC
Reed Oswalt, Cecil
Sue Jeffrey. Staff
Javier and Deputy
Manager Gifford summarized the history of the facilities fund along with what the fund could be used
for.
Assemblymember Branson suggested that the assembly meet once a month to review the facilities.
Assemblymember Ranney was unsure as to the reason the assembly was meeting about the
facilities fund. He felt that was a matter of moving funds around but still having the same debt.
Assemblymember Williams was concerned that money was not set aside for maintenance of
facilities. She suggested that buildings be upgraded for energy efficiency.
Assemblymember Abell summarized some of the historical expenditures from the facilities fund that
were not building maintenance. He thought that the fund could be used to offset inflation or pay off
the hospital loan.
Assemblymember Stephens stated that the use of the facilities fund could be changed anytime by
ordinance. Mr. Stephens is concerned about the use of the fund; he is against dedicating or
earmarking funds; he does not like the inflexibility of 3.04.051 (D).
Assemblymember Branson suggested that when the assembly gathered to discuss the strategic plan,
goals and objectives, budget time would be a good time to discuss the facilities fund. She would also
like to see investment issues, maintenance and flexibility of the use of the fund be addressed.
Assemblymember Abell would like to see a certain percentage of the fund be dedicated to go to
maintenance and repair, capping the fund, inflation proofing the fund; percentage be allotted for
borough roads and thought that strategic plan time was a good time to discuss the fund in detail.
Assemblymember Branson reminded the Borough that the school district was to submit a list to the
Borough each year of their maintenance needs. She would like to see this yearly.
Assemblymember Oswalt would like to see paved roads in the borough. Also would like to see that
the CIP list be cut to approximately five items for the legislature.
Bill Williams expressed his concern over the 8.25% interest that the borough was paying and thought
it should be corrected. He also made the statement that with the 40 million from Shuyak; the
equivalency of paying taxpayers would be approximately 1,500.
Mayor Selby suggested that the interest rates of the different loans within the fund needed to be
reviewed. He also thought that the maintenance of the buildings should be addressed along with the
underperformance of the fund. The ordinance for the facilities fund needed to be reviewed because it
Kodiak Island Borough Facilities Fund Work Session Meeting Minutes
August 5, 2006
addressed only short term investments. The Mayor agreed that a good time to review the facilities
fund was at strategic plan time in November.
MANAGER'S COMMENTS — None
CLERK'S COMMENTS - None
MAYOR'S COMMENTS — Will be setting up a date for the Mayor's Conference.
ASSEMBLYMEMBER COMMENTS
Assemblymember Ranney — Thanked all for sharing.
Assemblymember Branson — at the time of the strategic plan meeting she will be on her sabbatical.
She plans to call in.
Assemblymember Oswalt would like to see Manager Gifford research the service districts moving
ahead.
Assemblymember Stephens would like to receive a copy of the Borough's response to the Eufemio's
letter they submitted regarding their property.
Assemblymember Abell believed that a priority list needed to be established included the CIP. Mr.
Abell would also like to see the Woodland Acres Paving area received some help from the Borough;
the investment policy be set up; service districts be reviewed with road powers in mind.
Assemblymember Williams - no comment.
ADJOURNMENT
The meeting adjourned at 10:15 a.m.
Kodiak Island Borough
Facilities Fund Work Session Meeting Minutes
August 5, 2006 Page 2