HomeMy WebLinkAbout1969-02-03 Council Minutes - Special MeetingMOTES ON COUACIL STUDY SLSSIOd WITH um MLYLR - 1969 B041) PPOGRAM 3 FEB.'u9
Present: Bailie, Bielefeld, Cone, Hulien, McCann, McCollum and florin; also City Mgr.
Harrison, DPW Dir. Kjelstad, W&5 Gen. Foreman Massey, Atty..Fisher and Acct. drown.
Mr. Meyer suggested:
1. The City should eliminate the 6% interest limit in the Bond Ordinance. Get them
voted in first, without a limit.
2. If necessar , then go for a change in the Charter with a limit of 7 112%. This
should be a last resort.
Water and Sewer propositions should be written up separately; two ordinances.
Thorgrimson says the C .ty should not use the money voted for purchase of H.E.A. fac-
ilities for any other purpose.
It might be possible to get permission from the owners of the bonds (All -
State Insurance) to buy them back, etc., and thus clear the deck.
A new ordinance snould be prepared for the 3 ordinances extant for KCL bonds; the 1st
one is very unorthodox, and the City is not complying with the requirements. Under
these ordinances the present bonds are "term" bonds; the City shoudl have serial bonds
with "open end" factor. Thus, any additions to bonding for KCL will carry an equal
lien. These new ordinances would provide for a second lien bond.
The City should pledge revenue toward payment of the bonds as well as assessments.
Gantz does not represent Thorgrimson in Alaska; Thorgrimson has no representative
in Alaska; dealing with two bond counsels might lead to confusion, and the City might
just be adding to its problems.
Meyer says he can market $1940U,000 bonds for Kenai "at a price". bonds should be mar-
keted when the money is needed; anticipation notes are not good business, and City
Councils have no right to speculate with bond monies.
Industrial Bonds are not much of a threat, or competition, as they can now be sold
at not under 5 million.
The City should see that the electorate is well informed on the bonding program; let
them know just what it will cost in dollars and cents for each program; a voters
pamphlet might be a good way to do it.
Kenai has a very low tax rate omcpared with some Cities Outside.
Council discussed the size of the proposed City Hall; it might be better to cut down
on size and use more money (from bonds) for water and sewer - especially water storage
and for a better source of water.
Fire Hall, Jail, etc. can be added when they are really needed. The Library
and Health Center could be put upstairs.
Harrison said no tax money is now being used to retire the current bonds; he thinks
the firemen, librarians, etc. can"sell" the new bonds - not the Council. That if
the City continues to grow at half the present rate, the City can build the entire
City complex without an increase in taxes.
Meeting adjourned, 9:20 p.m.
Respectfully,
.�./Z!'�r7isa tA/ f •���/'�iL �YL
Frances Torkilsen
City Clerk