ITEM TITLE:
#26-14 - Declaring the Official Intent of the City of Valdez, Alaska, to Reimburse Capital Expenditures in Connection with Pavement Management Phase IV-V from Proceeds of a Future Borrowing
SUBMITTED BY: Nathan Duval, City Manager; Jordan Nelson, Finance Director
FISCAL NOTES:
Expenditure Required: n/a
Unencumbered Balance: n/a
Funding Source: n/a
RECOMMENDATION:
Approve
SUMMARY STATEMENT:
This resolution does not commit the City to a future borrowing, however, it allows the option for a bond in the current Fiscal Year, or next, if the revenue picture dictates the need for additional bonded indebtedness.
As a reminder, Ad Valorem (tax) revenue, including those related to oil and gas production and pipeline property (AS 29.45.080) has a statutory limitation (AS 29.45.090), except that there is “no limitation on taxes to pay bonds” (AS 29.45.100).
Procedurally, the bond has to be authorized by the voters and in place no later than 18 months after the later of the date of the payment of the capital expenditures or the date of substantial completion for the project. Staff would anticipate presenting information for a decision by City Council to bond or not bond by July, in preparation for, at the earliest, a ballot measure in October of 2026.
This resolution was created and reviewed by Bond Counsel, Municipal Advisor, City Clerk, and City Administration.