Submitted by: Rod Swope, City & Borough Manager
I. FLAG SALUTE
II. ROLL CALL
III. CONSENT AGENDA
A. Ordinance 2007-32
An Ordinance Authorizing Certain Harbor Improvements To Douglas Harbor, Auke Bay Loading Facility And Dehart’s Marina; Authorizing The Sale And Issuance Of Revenue Bonds Of The City And Borough In The Principal Amount Of Not To Exceed $10,620,000, For The Purpose Of Providing Permanent Financing For Said Improvements; And Providing For The Repayment Of Such Bonds Over A Term Of Years; Fixing The Date, Form, Terms, Maturities And Covenants Of The Bonds; Providing A Method Of Payment Therefor; And Reserving The Right To Issue Revenue Bonds On A Parity With The Bonds Upon Compliance With Certain Conditions.
This ordinance will authorize the issuance of $10.62 million in revenue bonds for Harbors. The bond proceeds will be used to fund the following –
$ 4,200,000 Old Douglas Boat Harbor construction project
4,200,000 Auke Bay Loading Facility construction project
1,345,380 DeHart’s Marina note refinancing
* 720,205 for deposits to the reserve account
154,415 for issuance costs, accrued interest and rounding
$10,620,000 total bond issue
*The reserves would be held as additional security and applied to the final debt service payment.
The current estimated all inclusive interest rate for the bonds is 4.67%. The revenue bonds would be issued through the Alaska Bond Bank for a term of 25 years. Annual debt service is estimated at approximately $718,000. The actual amount of annual debt service and the interest rate will be set at closing.
Bond debt service will be repaid from Harbor user fees. The Harbor presented a long range plan to fund harbor improvements to the Assembly in 2005. This plan included issuing revenues bonds which would be repaid through the increase in harbor user fees. The CBJ is not pledging the full faith and credit to repay the debt. However, it is important to note that the CBJ is assuming an obligation to protect its property (referred to as a moral obligation) and through a state revenue intercept provision. The revenue intercept provision allows the Alaska Municipal Bond Bank Authority to take any State funds coming to the CBJ if the Harbor defaults on paying the debt.
The Docks and Harbor Board approved this revenue bonding request on December 7, 2006.
I recommend that this ordinance be introduced and set for public hearing at the next regular meeting.
IV. PUBLIC HEARING
A. Ordinance 2007-21
An Ordinance Appropriating Money Out Of The Treasury For FY08 City And Borough Operations.
This ordinance would appropriate the City and Borough of Juneau’s FY08 operating budget, excluding the School District. This public hearing fulfills the Charter requirement that a public hearing be held on the FY08 operating budget by May 1, 2007, and adoption by June 15, 2007.
I recommend this ordinance be referred to the Finance Committee.
B. Ordinance 2007-22
An Ordinance Appropriating Money Out Of The Treasury For FY08 School District Operations.
This ordinance will appropriate to the School District an FY08 operating budget of $78,302,300. This public hearing fulfills the Charter requirement that a public hearing be held on the FY08 school district operating budget by May 1, 2007. The School District’s operating budget is:
General Operations $63,149,600
Special Revenue (pupil transportation, food service, etc) 4,586,100
Other Operations (student activities, debt service, grants, etc) 10,566,600
Total Budget $78,302,300
The FY08 school budget is supported with a combination of funding sources that includes local funding of $23,657,600 for general operations, $123,000 for Community Schools, $101,000 for Pupil Transportation and $200,000 for youth activities. The $23,657,600 in general operating support will fund the School District to the State Foundation Funding Formula maximum amount (estimated) using a Building Adjusted ADM (average daily membership) rate of $5,810 (SB1). This amount is greater than the current ADM rate provided for in State Statute of $5,380. It is possible the Legislature will approve a funding rate different from the rate assumed by the School District. This will result in a change in the maximum amount of local funding support that can be provided by the CBJ.
State Statute requires the Assembly to determine the total amount of local educational funding support to be provided, and provide notification of the support to the School Board within 30 days of the School District’s budget submission. To meet this timing provision, it will be necessary for the Assembly to determine the amount of funding and provide notice in the month of April. This amount cannot subsequently be reduced, unless the amount exceeds the State funding CAP, but it can be increased. If the Assembly does not set the amount and furnish the School Board with notice within 30 days, the amount requested by the School District is automatically approved. By Charter, the Assembly is required to appropriate the School District’s budget no later than May 31, 2006.
I recommend this ordinance be referred to the Finance Committee and a motion be made to set the level of local funding to be provided for education at the maximum amount currently allowed under state law, in the amount of $22,904,800.
C. Resolution 2407
A Resolution Adopting The Capital Improvement Program For Fiscal Years 2008-2013.
This is the hearing, as required by the Charter, for Capital Improvement Program.
The following is a summary of City and Borough of Juneau Proposed FY08 Capital Projects Summarized by Committee/Department Recommendations. A draft resolution is in your packet.
Preliminary Capital Improvements Program - Fiscal Years 2008 - 2013
Summary of City and Borough of Juneau Proposed FY08 Capital Projects
Summarized by Committee/Department Recommendations
Total FY08 Proposed Budget
Manager’s Office $12,376,900
Building Maintenance 0
Eaglecrest Ski Area 0
Parks and Recreation $135,000
Public Works $6,965,000
Total - General CIP's $87,845,816
I recommend this resolution be referred to the Public Works and Facilities Committee.
V. ASSEMBLY COMMENTS AND QUESTIONS
VI. PUBLIC PARTICIPATION ON NON-AGENDA ITEMS
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: firstname.lastname@example.org.