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Sponsored by: Oates <br />CITY OF SEWARD, ALASKA <br />RESOLUTION 2009-084 <br />A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, <br />ALASKA, AUTHORIZING A NEW DEBT SERVICE FUND TO ACCOUNT <br />FOR CAPITAL COST REIMBURSEMENTS, OTHER REVENUES, AND <br />DEBT SERVICE COSTS ASSOCIATED WITH SEWARD MOUNTAIN <br />HAVEN <br />WHEREAS, the Seward City Council passed Resolution 2006-28 on March 13, 2006 and <br />Resolution 2007-50 on May 14, 2007, authorizing the issuance of $27 million in revenue bonds for <br />the purpose of financing, designing, constructing and equipping a new long-term care facility in <br />Seward, known as Seward Mountain Haven ("SMH"); and <br />WHEREAS, the primary mechanism for repayment of these bonds is expected to be the <br />capital cost component of Medicare revenues generated from the facility, with said capital cost <br />reimbursement becoming effective upon opening of SMH on approximately October 1, 2009; and <br />WHEREAS, the Seward City Council hereby intends to utilize 100% of said revenues for the <br />sole purpose of repaying the revenue bonds to construct and equip the facility, and therefore directs <br />the city administration to work with current manager of SMH, Providence, to facilitate the transfer of <br />the capital cost component of Medicare revenues, and any other capital cost-related revenues, to the <br />City for deposit into the newly established debt service fund, and further directs the city <br />administration to designate the entirety of these funds solely for the purpose of bond repayment; and <br />WHEREAS, the title of the newly established debt service fund will be "Seward Mountain <br />Haven Debt Service Fund". <br />NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY <br />OF SEWARD, ALASKA that: <br />Section 1. The city manager is hereby directed to establish a new debt service fund for the <br />purpose of accounting for revenues and debt service expenditures related to Seward Mountain <br />Haven. <br />Section 2. The city manager is hereby directed to develop an agreement with Providence for <br />the proper segregation of revenues associated with the capital costs of the facility, and the transfer of <br />those funds from Providence to the City of Seward.. <br />