MEMORANDUM
TO: William Popp, Assembly President
Members, Kenai Peninsula Borough Assembly
THRU: Dale Bagley, Borough Mayor
FROM: Jeffrey Sinz, Finance Director
DATE: October 10, 2000
SUBJECT: School Bond Sale Resolution
The attached resolution authorizes the issuance and sale of $7,429,000 in general obligation school bonds through the Alaska Municipal Bond Bank Authority.
The sale of the bonds is expected to occur sometime around December 12, 2000. The resolution authorizes the borough Mayor and Finance Director to execute any documents and agreements necessary to complete the sale of the bonds. The resolution limits the term of the bonds to ten years and the interest rate to no more than 7%. Based on current interest rates for tax-exempt municipal debt, I would anticipate interest rates on the bonds at between 4.4% to 5.0%, but that is subject to market fluctuation between now and the actual sale date.
I will keep the assembly informed as we progress through the bond issuance process.