KENAI PENINSULA BOROUGH

ORDINANCE 2005-28 (MAYOR) SUBSTITUTE

AN ORDINANCE PROVIDING FOR SUBMISSION TO THE QUALIFIED VOTERS OF THE CENTRAL EMERGENCY SERVICE AREA IN THE KENAI PENINSULA BOROUGH, ALASKA, AT AN ELECTION IN AND FOR THE SERVICE AREA ON OCTOBER 4, 2005, THE QUESTION OF AUTHORIZING THE ISSUANCE OF GENERAL OBLIGATION BONDS OF THE CENTRAL EMERGENCY SERVICE AREA NOT TO EXCEED TWO MILLION FIVE HUNDRED THOUSAND DOLLARS ($2,500,000) TO PAY THE COSTS OF PLANNING, DESIGNING, CONSTRUCTING, EQUIPPING AND FINANCING A FIRE STATION IN KASILOF AND RENOVATING THE FIRE STATION IN THE FUNNY RIVER AREA, ALL WITHIN THE CENTRAL EMERGENCY SERVICE AREA

WHEREAS, in the October 5, 2004, regular election, the qualified voters of the subject areas approved the incorporation of the Kasilof and Funny River areas into the Central Peninsula Emergency Service Area; and

WHEREAS, the Central Emergency Service Area has the responsibility to provide prompt and responsive fire and other emergency services to all of its constituents; and

WHEREAS, the Central Emergency Service Area has an immediate need for a new fire station in Kasilof to reduce emergency response times for fire and other emergencies; and

WHEREAS, the Central Emergency Service Area has an immediate need to update the existing fire station in Funny River area to reduce emergency response times for fire and other emergencies by providing facilities for staffing of the station; and

WHEREAS, the estimated cost to build, equip and finance the new station and the upgrading of the existing facilities is $2,500,000; and

WHEREAS, a .15 mil rate increase throughout the Central Emergency Service Area may be required to maintain debt service on the $2,500,000 bond indebtedness; and

WHEREAS, the Central Emergency Service Area Board at its regularly scheduled meeting on July 13, 2005 unanimously passed a motion in support of the construction of a new station in Kasilof and upgrading of the existing facilities at the Funny River station; and

WHEREAS, the Assembly finds it desirable that the necessary capital improvements be funded through the issuance of general obligation bonds issued by the Borough on behalf of the Central Emergency Service Area, subject to voter approval;

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 to incur general obligation bonded indebtedness of the Central Emergency Service Area in an amount not to exceed Two Million Five Hundred Thousand Dollars ($2,500,000) for the purpose of paying the costs of acquisition, planning, designing, site preparing, installing, equipping and constructing the Central Emergency Station (the "Project") and other capital improvement projects located in the Central Emergency Service Area ("Service Area").

SECTION 2. The sum of Two Million Five Hundred Thousand Dollars ($2,500,000) shall be borrowed by the Kenai Peninsula Borough for and on behalf of the Service Area and shall be evidenced by the issuance of general obligation bonds of the Borough. The bond proceeds shall be used only for capital improvements, costs of issuance of the bonds, and reimbursement expenses for the Project and related projects in the Service Area in accordance with Treasury Regulation 26 � CFR 1.150-2. The full faith and credit of only the Service Area are pledged for the payment of the principal of and interest on the bonds, and ad valorem taxes upon all taxable property in the Service Area 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 4, 2005, in and for the Service Area, for the purpose of submitting a general obligation bond proposition to the qualified voters of the Service Area for approval or rejection. The proposition must receive a majority vote of those in the Service Area voting on the question to be approved. The proposition shall be substantially in the following form:

PROPOSITION NO. __

CENTRAL EMERGENCY SERVICE AREA BONDS

Shall the Kenai Peninsula Borough incur indebtedness and issue up to $2,500,000 of bonds for the costs of planning, acquistion, designing, constructing, equipping and financing a fire station in Kasilof and renovating the fire station in the Funny River area, all within the Central Emergency Service Area?

The indebtedness will be repaid from ad valorem taxes levied on all taxable property located within the Central Emergency Service Area. The Central Emergency Service Area will pledge its full faith and credit for repayment of the indebtedness.

Voter approval for this proposition authorizes for each $100,000 of assessed real and personal property value in the Central Emergency Service Area (based on the estimated 2005 tax year assessed valuation) an annual tax of approximately $15 to retire the proposed indebtedness.

SECTION 4. The proposition set forth in Section 3, 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 for voting by a machine:

PROPOSITION NO. ___ 

YES ____        NO ____

SECTION 5. The Bonds shall be issued upon such terms and conditions and in such form as the Finance Director finds to be in the best interests of the Borough.

SECTION 6. Sections 2 and 5 of this ordinance shall become effective only if the proposition described in Section 3 is approved by a majority of the qualified voters of the Central Emergency Service Area voting on the proposition at the general election on October 4, 2005. The remaining sections of this ordinance shall become effective upon enactment of this ordinance.

ENACTED BY THE ASSEMBLY OF THE KENAI PENINSULA BOROUGH ON THIS 2ND DAY OF AUGUST,  2005.