Item Coversheet

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

Ordinance 2020-21 An Ordinance Approving the City and Borough’s Participation in Proposed Refinancings by the Alaska Municipal Bond Bank of the Bond Bank’s Various General Obligation Bonds that Provided Funds to Purchase Various General Obligation and Revenue Bonds of the City and Borough, Under Loan Agreements between the City and Borough and the Bond Bank; and Authorizing Revised Schedules of Principal and Interest Payments on the City and Borough’s Bonds, in Accordance with the Loan Agreements, if the Bond Bank Successfully Refinances its Bonds.

MANAGER'S REPORT:

This ordinance would authorize the participation in the Alaska Municipal Bond Bank’s “Exchange” refunding (refinance) of multiple bond issues:  2013 Bartlett Hospital Refunding, the 2013 GO CIP and 2014 GO CIP bonds, and the 2014 Seawalk and 2015 Cruise Ship Dock Expansion bonds.  The original bonds were sold through the Alaska Municipal Bond Bank Authority (AMBBA). 

 

Bond

Issue Date

Original Principal

Current Principal

Refunding Principal

2013 BRH (2004 Refunding)

3/1/2013

$23,660,000

$18,130,000

$8,715,000

2013I GO CIP

3/1/2013

$2,600,000

$2,045,000

$1,125,000

2014III GO CIP

10/1/2014

$11,210,000

$9,160,000

$1,420,000

2014IA Seawalk

2/1/2014

$6,055,000

$5,130,000

$890,000

2015B Cruise Ship Dock

6/1/2015

$20,595,000

$16,545,000

$7,045,000

Total

 

$64,120,000

$51,010,000

$19,195,000

 

AMBBA is proposing a partial Exchange refunding based on various scheduled maturities that show substantial cost savings.  Approximately $19.2 million in debt principal will be refinanced.  In early March 2020, AMBBA estimated savings to CBJ of approximately $280,000 in a partial Exchange refunding. 

 

As a result of the COVID-19 pandemic, considerable market volatility has erased much of the projected savings.  The financing team is watching the markets and believes a bond sale later in the summer will benefit from some market recovery.  The bond refunding transaction will not extend the original terms of the bonds.

 

Additional detail will be forthcoming prior to public hearing.

RECOMMENDATION:

The City Manager recommends the Assembly introduce this ordinance and set it for public hearing at the next regular Assembly meeting.

 

ATTACHMENTS:
DescriptionUpload DateType
Ord. 2020-214/23/2020Non-Code Ordinance