KENAI PENINSULA BOROUGH

ORDINANCE 2001-24

AN ORDINANCE PROVIDING FOR THE SUBMISSION TO THE QUALIFIED VOTERS OF THE KENAI PENINSULA BOROUGH, ALASKA, THE QUESTION OF THE ISSUANCE OF NOT TO EXCEED FIVE MILLION DOLLARS ($5,000,000) OF GENERAL OBLIGATION BONDS OF THE KENAI PENINSULA BOROUGH TO PAY COSTS OF CAPITAL IMPROVEMENTS TO ALLEVIATE OVERCROWDING IN THE BOROUGH ADMINISTRATION BUILDING AT AN ELECTION IN AND FOR THE KENAI PENINSULA BOROUGH ON OCTOBER 2, 2001

WHEREAS, there has been identified in the Kenai Peninsula Borough a substantial and immediate need for an addition to, and renovation of, the existing Borough Administration Building to alleviate overcrowding and maintain structural integrity of the existing administration building, as evidenced in the Final Report and Recommendations for the Kenai Peninsula Borough Space Allocation Committee; and

WHEREAS, under provisions of AS 29.47.190 a municipality may incur general obligation debt only after a bond authorization ordinance is approved by a majority of those voting on the question at a regular or special election; and

WHEREAS, the Kenai Peninsula Borough views the capital improvements mentioned above as necessary and beneficial to the community;

NOW, THEREFORE, BE IT ORDAINED BY THE ASSEMBLY OF THE KENAI PENINSULA BOROUGH:

SECTION 1. It is hereby determined to be for a public purpose and in the public interest of the Kenai Peninsula Borough (the "Borough") to incur general obligation bonded indebtedness in an amount not to exceed Five Million Dollars ($5,000,000), for the purpose of paying the costs of planning, designing, site preparation, constructing, renovating, expanding, equipping, and improving the existing Borough Administration Building and/or new facility, located within the Borough. The Borough will not issue bonds in a principal amount greater than the total estimated cost of the project.

SECTION 2. The sum of not to exceed Five Million Dollars ($5,000,000) shall be borrowed by, for and on behalf of the Borough for the aforesaid capital improvements and shall be evidenced by the issuance of general obligation bonds of the Borough. The bond proceeds shall be used only for capital improvements and costs of issuance of the bonds. The full faith and credit of the Borough is pledged for the payment of the principal of and interest on the bonds, and ad valorem taxes upon all taxable property in the Borough shall be levied without limitation as to rate or amount to pay the principal of and interest on the bonds when due.

SECTION 3. An election is to be held on October 2, 2001, in and for the Borough for the purpose of submitting a general obligation bond proposition to the qualified voters of the Borough for approval or rejection. The proposition must receive a majority vote of those in the Borough voting on the question to be approved. The proposition shall be substantially in the following form:

PROPOSITION NO. -

GENERAL OBLIGATION BONDS

Shall Kenai Peninsula Borough borrow up to $5,000,000 through the issuance of general obligation bonds?

The general obligation bond proceeds will be used to pay costs of planning, designing, site preparation, constructing, renovating, expanding, equipping, and improving the existing Borough Administration Building and/or new facility, located within the Kenai Peninsula Borough.

The debt shall be paid from real and personal property taxes (general ad valorem) levied and collected within the Kenai Peninsula Borough. The full faith and credit of the Borough is also pledged for payment of the bonds.

Voter approval of this bond proposition authorizes for each $100,000 of assessed taxable property value (based on the estimated total 2001 assessed valuation) an annual increase of taxes of approximately $10.80 to retire the proposed debt.

SECTION 4. The proposition, both for paper ballots and machine ballots, shall be printed on a ballot which may set forth other general obligation bond propositions, and the following words shall be added as appropriate and next to a square provided for marking the ballot or voting by a machine:

PROPOSITION NO.

____ YES

____ NO

SECTION 5. Section 2 of this Ordinance shall become effective only if the proposition described in Section 3 is approved by a majority of the qualified voters voting on the proposition at the regular Borough election on October 2, 2001. The remaining sections of this Ordinance shall become effective upon enactment.

ENACTED BY THE ASSEMBLY OF THE KENAI PENINSULA BOROUGH THIS * DAY OF *, 2001.