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Failed Sponsored by: Oates <br /> CITY OF SEWARD, ALASKA <br /> RESOLUTION 2010 -130 <br /> A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF <br /> SEWARD, ALASKA, ESTABLISHING A 1 MILL INCREASE IN <br /> PROPERTY TAX TO GENERATE A REVENUE SOURCE FOR <br /> REPAYMENT OF THE $3.73M GENERAL OBLIGATION BOND FOR <br /> THE CONSTRUCTION OF THE SEWARD COMMUNITY LIBRARY <br /> MUSEUM <br /> WHEREAS, the City of Seward and the Seward Community Library Museum Building <br /> Committee have been working since 2003 to obtain funding and design a new library museum; <br /> and <br /> WHEREAS, the Seward Community Library Museum Building Committee and the City <br /> of Seward have secured $5.1 Million in state and private foundation funding and $1.1 Million in <br /> grant applications are pending; and <br /> WHEREAS, in October 2009 voters approved a General Obligation bond in an amount <br /> of not to exceed $5 Million for construction of the library museum; and <br /> i.• WHEREAS, in a report to City Council on November 29, 2010, RISE Alaska and <br /> ECI /flyer estimated the remaining capital construction costs for the library museum project to be <br /> $10,294,560.City Administration and project managers have estimated that $3.73 Million of <br /> additional funding in the form of general obligation bonds will be needed to complete the project <br /> as currently projected; and <br /> WHEREAS, the annual debt service for a 25 -year $3.73 Million General Obligation <br /> Bond at an interest rate of 4.5% is approximately $249 Thousand per year; and <br /> WHEREAS, a revenue source is necessary to establish and pay the debt service of a <br /> General Obligation Bond; and <br /> WHEREAS, a property tax is a revenue source where property owners in the City of <br /> Seward contribute to the construction and operations costs of the new library museum; and <br /> WHEREAS, the current City of Seward property tax mill rate is 3.12; and <br /> WHEREAS, increasing the current City of Seward property tax mill rate from 3.12 to <br /> 4.12 for approximately 600 property owners within the city limits will generate an estimated <br /> $300 Thousand annually; and <br />