2009-03-12 Special Meeting1. ROLL CALL
Kodiak Island Borough
Assembly Special Meeting Agenda
Thursday, March 12, 2009, 7:30 p.m.
Borough Conference Room
2. CITIZENS COMMENTS (Limited to Three Minutes per Speaker)
3. CONSIDERATION OF MATTERS IN THE CALL FOR THE SPECIAL MEETING
A. Resolution No. FY2009 -24 Designating the General Obligation Refunding Bonds,
2009 Series A of the Borough, Plus the Portion of the Proceeds of the Alaska
Municipal Bond Bank's Reserve Fund Obligations That Are Used With Respect to
the Borough, as Qualified Tax Exempt Obligations Under Section 265(b)(3) of the
Internal Revenue Code of 1986.
4. ADJOURNMENT
This meeting was called by Mayor.
SUMMARY:
KODIAK ISLAND BOROUGH
AGENDA STATEMENT
MARCH 12, 2009 SPECIAL MEETING
ITEM NO: 3.A
TITLE:
Resolution FY2009 -24 Designating the General Obligation Refunding Bonds, 2009 Series
a of the Borough, Plus the Portion of the Proceeds of the Alaska Municipal Bond Bank's
Reserve Fund Obligations That are Used With Respect to the Borough, as Qualified Tax
Exempt Obligations Under Section 265(B)(3) of the Internal Revenue Code of 1986.
This resolution allows the Borough to take advantage of the American Recovery and
Reinvestment Act of 2009 which was signed into law on February 17, 2009. By adopting this
resolution the Borough may be able to sell the 2009 series A bonds at a lower interest rate
saving the Borough money.
Under the provisions of the Act and the IRS Tax Code, the Borough must declare its intent by
resolution of the Assembly that it will issue no more than $30,000,000 of tax - exempt bonds in
calendar year 2009. Governmental issuers that have made this designation in 2009 have been
able to lower the interest rates on their bond sales by between 0.05% and 0.10 %.
APPROVAL FOR AGENDA:
RECOMMENDED MOTION: Move to adopt Resolution FY2009 -24.
1 Introduced by: Manager Gifford
2 Requested by: Bond Counsel
3 Drafted by: Bond Counsel
Introduced on: 03/12/2009
4 Adopted on:
5
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
20
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
24
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
28
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
44
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
49 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
Page 1 of 2
52 exempt obligations described in Section 265(b)(3)(C)(ii) of the Code) exceeding
53 $30,000,000.
54
55 Section 2: Effective Date. This Resolution shall become effective upon passage and
56 approval.
57
58
59 ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH
60 THIS DAY OF 2009
61
62 KODIAK ISLAND BOROUGH
63
64
65
66 Jerome M. Selby, Borough Mayor
67
68 ATTEST:
69
70
71
72 Nova M. Javier, CMC, Borough Clerk
Kodiak Island Borough Resolution No. FY2009 -24
Page 2 of 2
Mayor Selby
The mayor may not vo)e except in the case where only six members of the assembly are present and there is'three)ffiree tie vote of the assembly.
TOTAL:
Ms. Stutes
Ms. Lynch
Mr. Kaplan
Ms. Jeffrey
Ms. Fulp
Mr. Friend
Ms. Branson
N W
n ;<
O
z
v
S
S,S.
YES
s
NO1
Mayor Selby
TOTAL:
Ms. Lynch
Mr. Kaplan
Ms. Jeffrey
Ms. Fulp
Mr. Friend
cn w
0
5 . ..),:_7 m 75
0
v
YES
!.
NO
Mayor Selby
TOTAL:
IEIR VOTE? VI
_
Ms. Lynch
Mr. Kaplan
Ms. Jeffrey
Ms. Fulp
Mr. Friend ,
'
.
co W
0
o
' c\ z
q
ta c i',
(-el-,
\\'\
YES
NO
TOTAL:
Mayor Selby
Ms. Lynch
Mr. Kaplan
LMs. Jeffrey
Ms. Fulp'
Mr. Friend
M ;<
z
9 0
YES
NO
Mayor Selby
TOTAL:
Ms. Stutes
Ms. Lynch
Mr. Kaplan
Ms. Jeffrey
Ms. Fulp
L Mr. Friend
Ms. Branson
cn W
M 75
0
z
P
YES
NO
0
0
CD
CD
0
0
3
CD
o.
(D
c0
c
v
CD
0
v
93
0
v
u)
z
0o
0
0
cn
cn
G)
m
70
0
cn r
r
0
1
r
m
m
1. ROLL CALL
Kodiak Island Borough
Assembly Special Meeting Guidelines
Thursday, March 12, 2009, 7:30 p.m.
Borough Conference Room
KIBC 2.16.070.... the Chair shall cause the record to reflect the absence of the member,
the REASON for the absence, and whether the absence is excused by the Assembly.
Assembly members Branson and Stutes will be absent and asked to be excused due to
personal leave.
Recommended motion: Move to specifically excuse Assembly members Branson
and Stutes who are out on personal leave.
VOICE VOTE ON MOTION.
2. CITIZENS' COMMENTS (These are limited to three minutes per speaker.)
A. Agenda items not scheduled for public hearing and general comments.
ASK SPEAKERS TO SIGN IN AND STATE THEIR NAME FOR THE RECORD.
3. CONSIDERATION OF MATTERS IN THE CALL FOR THE SPECIAL MEETING
A. RESOLUTIONS
1. Resolution No. FY2009 -24 Designating the General Obligation Refunding
Bonds, 2009 Series A of the Borough, Plus the Portion of the Proceeds of the
Alaska Municipal Bond Bank's Reserve Fund Obligations That Are Used With
Respect to the Borough, as Qualified Tax Exempt Obligations Under Section
265(b)(3) of the Internal Revenue Code of 1986.
Recommended motion: Move to adopt Resolution FY2009 -24.
Staff Report - Manager Gifford
Assembly discussion - Amendments may be offered at this time.
ROLL CALL VOTE ON MOTION.
4. ADJOURNMENT
Recommended motion: Move to adjourn the meeting.
ROLL CALL VOTE ON MOTION.
Kodiak Island Borough Assembly Guidelines
March 12, 2009 Page 1