1989-15 Authorizing Refunding of the 1980-B General Obligation School Bond Issue.By: Mayor Selby
Recommended by: Finance Officer
Introduced:
Adopted 3/02/89
: 3/02,189
KODIAK ISLAND BOROUGH
RESOLUTION NO. 89-15-R
A RESOLUTION OF THE KODIAK ISLAND BOROUGH ASSEMBLY AUTHORIZING
THE REFUNDING OF THE 1980 GENERAL OBLIGATION SCHOOL BOND ISSUE
WHEREAS, the Kodiak Island Borough did issue a general obligation
school bond issue on August 1, 1980, through the Alaska Bond Bank in the
amount of $12,100,000, and
WHEREAS, such bonds carry an interest rate of 7.30$ to 9.009 for
each semi-annual repayment through the year 2000 and such debt service is
currently reimbursed by the Alaska Department of Education at a rate of 909
with a two year lag, and
WHEREAS, staff and the underwriter have shown that through
restructuring this debt the following improvements to the Borough financial
Position will occur:
I. The bond rating will be increased from Baa -1 to Aaa.
2. Savings for the Kodiak Island Borough can be realized
from swapping a 909 state reimbursement with a two year
lag to an 80$ current reimbursement.
3. Debt service reimbursement from the state can be
accelerated by two years thus keeping current throughout
the payoff period and be repaid a full two years sooner.
4. As a result of this debt restructure, the Kodiak Island
Borough can realize an actual savings in excess of
$160,000;
NOW, THEREFORE, BE IT RESOLVED that staff is hereby author-
ized and directed to consummate this general obligation bond refunding at
,such time as it is determined to be the most favorable market opportunity for
!the Borough.
PASSED AND APPROVED THIS 2nd DAY OF MARCH, 1989.
II
KODIAK ISLAND BOROUGH
y ough ayor
q iding icer
ATTEST:
it ourougD clerk
!Resolution No. 89-15-R
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