MANAGER'S REPORT:
This ordinance amends Ordinance 2020-21 (adopted May 2020), which authorized CBJ's participation in the Alaska Municipal Bond Bank’s (AMBBA) refunding of multiple bond issues: 2013 Bartlett Hospital Refunding, 2013 GO CIP, and 2015 Cruise Ship Dock Expansion bonds. The refundings authorized by Ordinance 2020-21 were not completed prior to AMBBA discontinuing services in 2020. However, now that AMBBA has reestablished their services, the refundings can move forward by amending the original ordinance.
The current remaining debt service payments (bonds + interest) total approximately $47.5 million dollars. AMBBA is proposing a partial Exchange refunding based on various scheduled maturities that show substantial cost savings. Approximately $18.4 million in debt principal will be refinanced. In March 2021, AMBBA has estimated savings to CBJ of approximately $1.4 million in a partial Exchange refunding.
The bond refunding transaction will not extend the term of the bonds. |