HomeMy WebLinkAboutOrdinance No. 3153-2020JC Sponsored by: Administration
Kt;NAI
CITY OF KENAI
ORDINANCE NO. 3153-2020
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI , ALASKA, APPROPRIATING
EXCESS FUNDS RECEIVED FROM THE ISSUANCE OF GENERAL OBLIGATION
REFUNDING BONDS.
WHEREAS , On July 7, 2020, the City completed the transaction to issue General Obligation
Refunding Bonds to refund the City's outstanding Library Expansion Bonds in the amount of
$1, 194,604.46 including outstanding principle and accrued interest; and,
WHEREAS, issuance of these bonds resulted in a present value savings of $122,192.29 to the
City; and ,
WHEREAS, the actual amount of proceeds from the issuance was $1 ,213,482 .20; and,
WHEREAS, the breakdown on use of the proceeds is as follows :
Outstanding Principle and Accrued Interest
Alaska Municipal Bond Bank Cost of Issuance
City of Kenai Bond Counsel Cost
Underwriting Discount
Additional Proceeds
$1, 194,604.46
2,516.02
10,077.35
3,349.19
2.935.18
$1 .213.482.20
;and,
WHEREAS; appropriating the funds in excess of the outstanding principle and accrued interest
for the payment of bond issuance costs and to reduce the debt service payments in FY2021, is
in the best interest of the City.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI , ALASKA,
as follows:
Section 1. That the estimated revenues and appropriations be increased as follows :
Debt Service Fund :
Increase Estimated Revenues -
Proceeds from issuance of Debt
Increase Appropriations -
Professional Services
Miscellaneous
$18.877 ,74
$15,942 .56
2.935.18
$18.877.74
Ordinance No . 3153-2020
Page 2 of 2
Sectio n 3. Severability: That if any part or prov ision of this ordinance or appl ication thereof to
any person or circumstances is adjudged invalid by any court of competent jurisdiction, such
judgment shall be confined in its operation to the part, provision , or application directly involved
in all controversy in which this judgment shall have been rendered, and shall not affect or impair
the validity of the remainder of this title or application thereof to other persons or circumstances .
The City Council hereby declares that it would have enacted the remainder of this ordinance even
without such part, pro vision , or application .
Section 4. Effective Date : That pursuant to KMC 1.15 .0?0(f), this ordinance shall take effect
immediately upon enactment.
ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 19th day of August , 2020 .
BRIAN GABRIEL SR., MAYOR
New Text Underlined ; [DELETED TE XT BRACKETED]
Introduced : August 5, 2020
Enacted : August 19 , 2020
Effective: August 19 , 2020
City of Kenai I 210 l=ida lgo Ave , Kenai , AK 99611 -7794 I 907.283.7535 I www.kenai.c il y
MEMORANDUM
T O:
T HROUGH:
FROM:
DATE:
SUBJECT:
Mayor Gabriel and Council Members
Paul Ostrander, City Manager
Terry Eubank , Finance Director
July 28, 2020
Ord inance No. 3153-2020 -Appropriating Excess Funds Received from
the Issuance of General Obligation Refunding Bonds
The purpose of this memo is to recommend the enactment of Ordinance No . 3153-2020 that will
appropriate excess proceeds from the issuance of general obligation refunding bonds to pay for
bond issuance costs with remaining funds to reduce the City's FY2021 debt service on the bonds.
On July 7, 2020, the City closed on general obligation refunding bonds that were issued to refund
the outstanding Library Expansion Bonds the City issued in 2010 . Proceeds from the newly issued
bonds totaled $1,213,482 .20 . Outstanding principle and accrued interest on the original bonds
totaled $1, 194,604.46, providing $18,877, 7 4 in proceeds to pay for bond issuance costs, which
totaled $15,942.56 and $2 ,935 .18 to reduce the City's FY2021 debt payment on the outstanding
bonds .
Your support is respectfully requested.