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HomeMy WebLinkAboutRes2005-075 Sponsored by: Corbridge -- 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 ..... 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: ..... Page 1 of3 CITY OF SEWARD, ALASKA RESOLUTION 2005-75 ~ ..J 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 I .",., 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 ) , , ...J Page 20f3 CITY OF SEWARD, ALASKA RESOLUTION 2005-75 ..... 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. - THE CITY OF SEWARD tL. Vanta Shafer, Mayor AYES: NOES: ABSENT: ABSTAIN: Branson, Dunham, Val datta, Clark, Lorenz, Shafer Amberg None None ATTEST: ~ , u...."" S '" ......... =i~ 4f',.,... . POfil.,q).;.... <'.) ~ ~'. ~ -.-. v . .. S'r.'lAL .~ :: '~.: '!:, Ie: .;'I ~ : ... "'" ... .......- l = '" . v,. '\"'~. ~ \~ 19. ~...'f.Nl! 1 ,\~...., ~ ~". .~~. ......h. ~- .~"...., ~ OF p.~~.,." """"",' Page 3 of3 ....