Item Coversheet

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

Ordinance 2019-35(c) An Ordinance Authorizing the Issuance of General Obligation Bonds in the Principal Amount of Not to Exceed Seven Million Dollars 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 1, 2019.

MANAGER'S REPORT:

This ordinance authorizes the issuance of not to exceed $7 million of general obligation bonds.  The purpose of the bonds is to fund renovations to Centennial Hall. Initial project scope is provided in section 6 of the ordinance.  The funding sources to repay the bonds are:

 

  • 2% increase in the hotel tax (if approved by the voters) paying 65% of the debt service payments.

  • .04 mills (~0.4% total increase in tax) increase in the property tax mill rate paying 35% of the debt service payments.

 

The ordinance provides for the issuance of 15 year bonds.  If this ordinance is approved the question of whether to sell the bonds would be placed before the voters on October 1, 2019.  The need for bond/debt financing was discussed and approved at the July 15 and July 29 Assembly Committee of the Whole meetings. Version (c) of the ordinance added the word "possible" to sections 3 and 6 as directed by the Committee of the Whole.

RECOMMENDATION:

The City Manager recommends the Assembly adopt this ordinance.

ATTACHMENTS:
DescriptionUpload DateType
Ord 2019-35(c)8/14/2019Ordinance