ASSEMBLY AGENDA/MANAGER'S REPORT
THE CITY AND BOROUGH OF JUNEAU, ALASKA

Ordinance for Introduction: Ordinance 2018-43: An Ordinance Authorizing the Issuance of General Obligation Bonds in the Principal Amount of Not to Exceed $7,000,000 to Finance Capital Improvements to the Facilities of the City and Borough, and Submitting a Proposition to the Voters at the Election to Be Held Therein on October 2, 2018.

MANAGER'S REPORT:

This ordinance authorizes placing on the October 2, 2018 general election ballot the question of issuing $7 million in fifteen-year general obligation bonds for the purpose of funding capital projects. The identified projects include: renovations to Centennial Hall, including upgrading the HVAC system, making improvements to the sound system, lighting system and technology, making improvements to the interior flooring, furnishings and wall systems and expanding the lobby area and construction of an enclosed and heated corridor between Centennial Hall and the potential new arts and culture center.

The temporary 1% sales tax approved by voters during the October 2017 general election will pay for $2.5 million of the debt service.  The remaining $7 million of debt and interest would require .13 mills in property taxes for debt service payments. This amount of debt service would require an annual property tax levy of approximately $13 (.13 mills) per $100,000 of assessed value or approximately $51 for average single family home (estimated 2018 value $393,000 per CBJ Assessor).

The annual payment funded by property taxes would be about $635,000. The Assembly Finance Committee discussed this proposal at its July 25, 2018, meeting.

RECOMMENDATION:

The City Manager recommends that this ordinance be introduced, referred to the Committee of the Whole on August 20, 2018 to allow for public testimony and set for public hearing at the Special Assembly meeting also on August 20, 2018.