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CITY OF SEWARD, ALASKA
RESOLUTION 2005-75
AN RESOLUTION PROVIDING FOR SUBMISSION TO THE QUALIFIED
VOTERS OF THE CITY OF SEWARD, ALASKA, THE QUESTION OF THE
ISSUANCE OF UP TO $3,350,000 OF GENERAL OBLIGATION BONDS TO
PAY THE COSTS OF CONSTRUCTION, REPAIR, REPLACEMENT AND
PAVING OF ROADS, CURBS, GUTTERS, PEDESTRIANW ALKW AYS AND
RELATED CAPITAL IMPROVEMENTS WITHIN THE CITY OF SEWARD,
AT AN ELECTION IN AN FOR THE CITY ON OCTOBER 4,2005
WHEREAS, the City's 2005 Capital Improvement Plan identified $8.1 million needed to
repair and replace roads determined to be in "fair" and "poor" condition; and
WHEREAS, $2 million in federal funds has been earmarked for improving City roads; and
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WHEREAS, the City desires to take advantage of economies of scale by undertaking
construction and repair of roads utilizing both local bond funding and the earmarked federal funds,
and by taking advantage of cost efficiencies at a time when road paving will likely be the most cost-
effective due to the State of Alaska Department of Transportation's Mile 0-8 project; and
WHEREAS, it is anticipated that the City's contributions together with the federal funds will
address most or all of the roads that are now in "fair" and "poor" condition; and
WHEREAS, the City Council finds it desirable that the necessary capital improvements be
funded through the issuance of general obligation bonds; and
WHEREAS, a 2.0 mill rate increase throughout the City of Seward will be required to
maintain debt service on the $3,350,000 bond indebtedness.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, that:
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CITY OF SEWARD, ALASKA
RESOLUTION 2005-75
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SECTION 1. The sum of Three Million Three Hundred Fifty Thousand Dollars
($3,350,000) shall be borrowed by the City of Seward for construction, repair, replacement and
paving of roads, curbs, gutters, pedestrian walkways and related capital improvements within the
City of Seward ("Project") and shall be evidenced by the issuance of general obligation bonds ofthe
City of Seward. The bond proceeds shall be used for capital improvements, costs of issuance ofthe
bonds, and reimbursement expenses for the Project in accordance with Treasury Regulation 26 ~
CFR 1.150-2. The full faith and credit of the City of Seward are pledged for the payment of the
principal of and interest on the bonds, and ad valorem taxes upon all taxable property in the City of
Seward shall be levied without limitation as to rate or amount to pay the principal of and interest on
the bonds when due.
SECTION 2. An election is to be held on October 4,2005, in and for the City of Seward, for
the purpose of submitting a general obligation bond proposition to the qualified voters of the City of
Seward for approval or rejection. The proposition must receive a majority vote ofthose voting on the
question to be approved. The proposition shall be substantially in the following form:
PROPOSITION NO. 1
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GENERAL OBLIGATION ROAD IMPROVEMENT BONDS
Shall the City of Seward incur indebtedness and issue up to $3,350,000 of general obligation
bonds for capital construction and road improvements within the City of Seward?
The bond proceeds of $3,350,000 will be used to pay the costs of planning, designing, site
preparation, improving, repairing, replacing and paving roads, curbs, gutters and pedestrian
walkways in the City of Seward, and related capital improvements.
The indebtedness will be repaid from ad valorem taxes levied on all taxable property located
within the City of Seward. The City of Seward will pledge its full faith and credit for repayment of
the indebtedness.
Voter approval for this proposition authorizes for each $100,000 of assessed real and
personal property value in the City of Seward (based on the estimated 2005 tax year assessed
valuation) an annual tax of approximately $200 (equal to 2.0 mills) to retire the proposed
indebtedness.
(Resolution No. 2005-75 )
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CITY OF SEWARD, ALASKA
RESOLUTION 2005-75
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SECTION 3. The proposition set forth in Section 2, 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 and next to a square provided for marking the
ballot for voting by a machine:
PROPOSITION NO.1 YES
NO
SECTION 4. Section 1 of this resolution shall become effective only if the proposition
described in Section 2 is approved by a majority of the qualified voters voting on the proposition at
the general election on October 4,2005. The remaining sections of this resolution shall become
effective upon passage and approval.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, this 11 th day of August, 2005.
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THE CITY OF SEWARD
tL.
Vanta Shafer, Mayor
AYES:
NOES:
ABSENT:
ABSTAIN:
Branson, Dunham, Val datta, Clark, Lorenz, Shafer
Amberg
None
None
ATTEST:
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