Submitted by: Rod Swope, City & Borough Manager
I. FLAG SALUTE
II. ROLL CALL
III. NEW BUSINESS
A. Resolution 2276
A Resolution Of The Assembly Of The City And Borough Of Juneau, Alaska, Fixing The Final Principal Amounts And Interest Rates Of The City And Borough’s Hospital Revenue Bonds, 2004 (Bartlett Regional Hospital Project) Authorized By Ordinance Serial No. 2004-24.
Approval of this resolution will set the principal amount and accept the interest rates for the issuance of Bartlett Regional Hospital’s (BRH) 2004 Revenue Bonds. The resolution included in the packet is incomplete and for reference only. The resolution for adoption will be presented to the Assembly as a red-folder item.
The Assembly, on June 28, 2004, adopted Ordinance 2004-24 that authorized the issuance and sale of the hospital revenue bonds not to exceed $31.0 million. After analysis of the project funding needs, the bond size was reduced to $29.04 million. However, the actual amount will be set on the morning of August 5, 2004. The bond will fund the following estimated amounts:
Project Construction Funds $24,000,000
Capitalized Interest 2,670,000
Reserve Requirements 1,896,000
Bond Insurance 288,000
Issuance Costs (underwriting, bond counsel, etc.) 331,000
Less: Bond Premium (145,000)
Bond Issue $29,040,000
The capitalized interest will be used to pay the interest costs incurred on the bonds during the construction period. The reserves will be held as additional security and applied to the final debt service payment. The revenue bonds will be issued through the Alaska Bond Bank for a term of 30 years (loan agreement). The bond issue will be underwritten by the firm of RBC Dain Rauscher, Inc.
The estimated annual debt of $1.9 million will be paid from BRH user fees. The City and Borough of Juneau (CBJ) is not incurring any general obligation debt. However, the loan agreement with the Alaska Bond Bank does include a state revenue intercept provision. Under this provision, the State can redirect amounts due to the CBJ from the State to debt service if BRH defaults on the bond payments.
I recommend adoption of this resolution.
Note: Agenda packets are available for review at the Juneau Municipal Libraries and online at www.juneau.org.
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: City_Clerk@ci.juneau.ak.us