HomeMy WebLinkAboutResolution No. 2007-42Suggested by: Council
CITY OF KENAI
RESOLUTION NO. 2®07-42
A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI AUTHORIZING THE CITY
TO ISSUE GENERAL OBLIGATION BONDS IN THE PRINCIPAL AMOUNT OF NOT TO
EXCEED $2,000,000 TO FINANCE THE COST OF PLANNING, DESIGNING,
ACQUIRING PROPERTY FOR, AND CONSTRUCTING KENAI RIVER BLUFF EROSION
CONTROL CAPITAL IMPROVEMENTS; AND TO SUBMIT THE QUESTION OF THE
ISSUANCE OF SUCH BONDS TO THE QUALIFIED VOTERS OF THE CITY AT THE
OCTOBER 2, 2007 CITY GENERAL ELECTION.
WHEREAS, Section 6-1 of the Kenai City Charter authorizes the City of Kenai (the
"City") to borrow money and to issue its general obligation bonds therefor, but only
when authorized for capital improvements by the Council and ratified at an election by
a majority of those qualified to vote and voting on the question; arid,
WHEREAS, the Council views the capital improvements to control Kenai River bluff
erosion authorized herein as necessary and beneficial to the community; and,
WHEREAS, the total cost of the expansion or replacement of the Kenai River bluff
erosion control project is estimated to be $15,000,000, and the City does not intend to
issue bonds to £nance the project until it has obtained funding for the remainder of
the costs of the project.
NOW, THEREFORE, BT IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI,
ALASKA, that:
Section 1. It is hereby determined to be for a public purpose and in the public
interest of the City to incur general obligation bonded indebtedness in an amount not
to exceed Two Million Dollars ($2,000,000) for the purpose of paying the cost of
planning, designing, acquiring property for, and constructing Kenai River bluff erosion
control improvements in the City.
Section 2. The City is authorized to borrow the sum of Two Million Dollars
($2,000,000) to finance the capital improvements described in Section 1 and the
borrowing shall be evidenced by the issuance of general obligation bonds of the City.
The full faith and credit of the City are pledged for payment of the principal of and
interest on the bonds, and ad valorem taxes upon all taxable property in the City shall
be levied without limitation as to rate or amount to pay the principal of and interest on
the bonds when due.
Section 3. The City shall submit the following proposition to the qualified voters of
the City at the October 2, 2007 regular City general election. The proposition must
receive an affirmative vote from a majority of the qualified voters voting on the
question to be approved.
Resolution No. 2007-42
Page 2
ProposiYson No. 1
General Obligation Bonds for
Kenai River Bluff Erosion Control Capital Improvements
Shall the City of Kenai incur debt and issue general obligation bonds in
an amount not to exceed Two Million Dollars ($2,000,000) to finance the
cost of planning, designing, acquiring property for, and constructing
Kenai River bluff erosion control capital improvements in the City?
Bonds may not be issued to pay costs of the project unless the City has
obtained funding for the remainder of the costs of the project.
The bonds shall be secured by a pledge of the full faith and credit of the
City. (Resolution No. 2007-42)
Section 4. The proposition, both for paper ballots and machine ballots, shall be
printed on a ballot which may set forth other general obligation bond propositions,
and the following words shall be added as appropriate next to an oval provided for
marking the ballot for voting by hand or machine:
PROPOSITION NO. I
O Yes
O No
Section 5. Sections 1 and 2 of this resolution shall become effective only if the
proposition described in Section 3 is approved by a majority of the qualified voters
voting on the proposition at the October 2, 2007 regular City general election. The
remaining sections of this resolution shall become effective upon adoption.
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this third day of July,
2007.
~~' c-c~/ ~ ~ _ P
PAT PORTER, MAYOR
ATTEST:
1' o
1
Carol L. Freas, City Clerk