AGENDA/MANAGER’S REPORT
THE CITY AND BOROUGH OF JUNEAU, ALASKA

Thursday, May 30, 2002 NOON
Assembly Chambers – Municipal Building
Special Meeting No. 2002-14


I. FLAG SALUTE

II. ROLL CALL

III. PUBLIC HEARING

A. Ordinance 2002-17

An Ordinance Appropriating Money Out Of The Treasury For FY03 School District Operations.

This ordinance will appropriate the School District’s FY03 operating budget. The ordinance includes local funding support for education up to the maximum amount allowed under the DEED funding cap. The Assembly is required, by State Statute, to indicate the minimum amount of funding to be made available for School District operational support no later than April 30, 2002. The Assembly must appropriate, by ordinance, the amount of local support for School District operations no later than May 31, 2002.

I recommend this ordinance be adopted.

B. Ordinance 2002-21
An Ordinance Of The Assembly Of The City And Borough Of Juneau, Alaska, Providing For The Issuance And Sale Of General Obligation Refunding Bonds Of The City And Borough In The Maximum Aggregate Principal Amount Of $5,000,000 For The Purpose Of Refunding Certain Outstanding General Obligation Bonds Of The City And Borough; Fixing The Form, Manner Of Execution, Terms, Including Redemption Terms, Maximum Maturities And Covenants Of The General Obligation Refunding Bonds To Be Issued; Authorizing The Appointment Of A Bond Registrar For Such Bonds; Authorizing The Appointment Of An Escrow Agent; Authorizing Officials Of The City To Prepare And Approve A Preliminary Official Statement And An Undertaking To Provide Ongoing Disclosure And Providing For The Method Of Sale Of Such Bonds.

This ordinance will authorize the refunding of the CBJ’s 1992 General Obligation Refunding Bonds. Currently there is enough savings to justify issuing the bonds, but it is financially close. The ordinance is drafted to not require the CBJ move ahead with the bond issuance if the issuance becomes unfavorable. To meet the provisions of this ordinance, the refunding of the bonds would need to provide a net present value (NPV) savings of at least 1.5% of the principle amount of the bonds (approximately $60,000). Currently the market is such that the refunding would exceed the minimum amount to proceed with refunding. It is unknown if bond market will move sufficiently to not qualify for refunding, but we feel it is in the City’s best interest to move ahead with the assumption that the refunding will work.

If the market stays above the required 1.5% in NPV savings, staff will immediately proceed with the bond refunding. Bond issuance authorization would require Assembly approval of a resolution accepting the refunding bond bids. 

I recommend this ordinance be adopted.

IV. ADJOURNMENT

Note: Agenda packets are available for review at the Juneau Municipal Libraries.

ADA Accommodations Available Upon Request: Please contact the Clerk’s office 72 hours prior to any meeting so arrangements can be made to have a sign language interpreter present or an audiotape containing the Assembly’s agenda made available. The Clerk’s office telephone number is 586-5278, TDD 586-5351, e-mail: Laurie_Sica@ci.juneau.ak.us.