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HomeMy WebLinkAboutRESOLUTION 1983-116Suggested by: Administration CITY OF KENAI RESOLUTION NO. 83-116 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, PROVIDING FOR THE SUBMISSION TO THE QUALIFIED VOTERS OF THE CITY OF KENAI AT THE GENERAL ELECTION TO BE HELD IN THE rITY OF KENAI ON OCTOBER 4, 1983 OF THE QUESTION OF ISSUING GENERAL OBLIGATION BONDS OR OTHERWISE INCURRING DEBT IN AN AMOUNT NOT TO EXCEED $4,000,000 TO PROVIDE A PORTION OF THE FUNDS NECESSARY TO CONSTRUCT CAPITAL IMPROVEMENTS TO THE CITY'S ROAD, SEWER AND WATER SYSTEMS AND RELATED CAPITAL IMPROVEMENTS. WHEREAS, the City Council determines it is in the best interests of the City of Kenai, Alaska (the "City") to construct capital improvements to the City's road, sewer and water systems and related capital improvements; and WHEREAS, the Constitution and laws of the State of Alaska and the Charter of the City provide that the question of whether or not such debt may be incurred for such a purpose must be submitted to the qualified voters of the City for their ratification: NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, as follows: Section 1: It is hereby determined to be for a public purpose— and in the public interest of the City to incur indebtedness of the City in an amount not to exceed $4,000,0110 for the purpose of paying a portion of the costs of planning, designing, acquiring and constructing improvements to road, sewer and water systems and related capital improvements, in the City. Section 2: A sum not exceeding $4,000,000 shall be borrowed by, for, and on behalf of the City for the aforesaid capital improvements and shall be evidenced by the issuance of general obligation bonds or other evidence of debt of the City. The amounts so borrowed shall be used for capital improvements only. The bonds shall be paid first from special assessments levied against property specially benefited by the improvements and then from general ad valorem taxes levied in the City. The full faith and credit of the City is pledged for the payment of the principal and interests on the bonds or other debt instrument and ad valorem taxes upon all taxable property in the City shall be levied without limitation as to rate or amount in amounts sufficient to pay principal and interest on the bonds or other debt instrument due. The bonds or other debt instrument 1 shall bear interest at a rate not to exceed the maximum rate permitted by law, and shall mature at such time or times within 30 years from the date of issue as the City Council may hereafter determine. The exact date, form, terms, maturities, and covenants of said bonds or other debt instrument shall be as hereafter fixed by ordinance of the City. Section 3: An election is to be held on October 4, 1983 in and for the City, for the purpose of submitting to the qualified voters of the City for approval or rejection a proposition authorizing the borrowing of money and issuing of general obligation bonds or other such evidence of indebtedness. A majority of the qualified voters who vote on the proposition are required for approval. The proposition shall be in substantially the following form: f PROPOSITION Improvements to City's Road, Sewer and Water Systems Pursuant to Resolution 83-116 shall the City of Kenai, Alaska, be authorized to incur indebtedness and to issue its general obligation bonds or other such evidence of indebtedness in an amount or amounts as needed, and not to exceed in the aggregate FOUR MILLION DOLLARS ($4,000,000), for the purpose of providing a portion of the funds for planning, designing, acquiring and constructing improvements to the road, sewer and water systems and related capital improvements in the City, and to pledge the full faith and credit of the City for the payment of the principal and interest on the bonds or other such evidence of indebtedness? Said general obligation bonds or other such evidence of indebtedness are to mature within 30 years from the date of is6ve and are to bear interest at a rate not to exceed the maximum rate permitted by law. Section 4: The foregoing proposition shall be printed in full on the ballot, and the following words shall be added below or next to the proposition as appropriate and next to a square privided for marking the ballot or voting by machine: FOR THE PROPOSITION YES [ ] NO [ ] RA a PASSED BY THE COUNCIL OF THE CITY 0 KENAI, SKA this 17th day of August, 1983. - . ems. li.C.Gl.�� Ronald A. alston, Mayor ATTEST: y� �iet helan, City Clerk Approved by Finance: 3 f WOHLFORTH & FLINT ERIC E V/o HLFORTH A �RV. Fr6S�O AL RD P•• COAT'1. It RC13ERT Ff FLINT •CO 1.t FS' 5— AVF'. F ,-,-E 1,.0 .4 L 9'7 tIMOTHY G. MIDDLETON PETER ARGETSIhGER ANCHORAGE. ALASKA t-5CI.2C86 :7r.e tot ROF4FRT M. JOHNSON --- KENNETH E. VASSAR .. A C: '.:, i ! G 7 1 76.5 G 13 August 10 , 1uzz;:; Mr. Charles A. Brown Finance Director City of Kenai P.O. Box 580 Kenai, ?.laska 90611 RE: 10:33 Bond Proposition Dear Mr. Brown: Enclosed is the resolution (-,without a number) for placing a bond proposition on the 11,133 ;;er_eral election ballot. I call your attention to Section 6.05.100(a) which provides for publication of notice in a newspaper of general circulation or by posting, of the notice of election. Such, notice must in- clude the bond proposition. As I understand your plan, the bonds will be paid first from local assessment pursuant to Section 16.05.050(a)- but still be general obligations, of the City. I have drafted the resolution to reflect that. I have also drafted the resolution in general terns with respect to the actual purposes of the bond issue. The Code section I just cited appears to require payment from such districts, although it does contemplate the possibility of a deficiency in which case the bonds can be paid from general tax revenues. I hope the above is satisfactory. I would be happy to dis- cuss the above with you. Yours truly, Timothy G. 12iddleton TGtiI/am Enclosure - as stated.