City and Borough of Juneau Assembly Finance Committee Meeting Wednesday, April 15, 2015, 5:30 p.m. Assembly Chambers

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1 City and Borough of Juneau Assembly Finance Committee Meeting Wednesday, April 15, 2015, 5:30 p.m. Assembly Chambers I. Call to Order II. Roll Call III. Approval of Minutes Wednesday, April 1, 2015 (pg. 2) Wednesday, April 8, 2015 (pg. 3) IV. Bartlett Regional Hospital FY16 Revised Budget Presentation (pg. 5) V. Eaglecrest Ski Area FY16 Revised Budget Presentation (pg. 17) VI. Juneau International Airport FY16 Revised Budget Presentation (pg. 25) VII. Bond Interest Rate Resolutions A. Issue Paper (pg. 43) B. Resolution Port Revenue Bonds (pg. 44) C. Resolution Refunding of 2005 School Bonds (pg. 50) D. Resolution Refunding of 2007 Harbor Bonds (pg. 56) VIII. Information Items A. AFC Meeting Schedule (pg. 62) IX. Next Meeting Date Wednesday, April 22, 2015, immediately following the Special Assembly Meeting at 5:30 PM X. Adjournment

2 DRAFT City and Borough of Juneau Minutes - Assembly Finance Committee Meeting Wednesday, April 01, 2015, 5:30 PM* *Meeting began upon the adjournment of the Special Assembly Meeting that began at 5:30 PM I. Call to Order The meeting was called to order at 5:54 PM by Karen Crane, Chair. II. Roll Call Committee Members Present: Merrill Sanford, Mary Becker, Debbie White, Maria Gladziszewski, Karen Crane, Kate Troll, Jerry Nankervis and Loren Jones Committee Members Absent: None III. IV. Approval of Minutes There were no minutes presented for approval. Distribution of FY16 Revised Budget Documents V. FY16 Revised Budget Overview Bob Bartholomew, Finance Director, presented information comparing fiscal year revenue and expenditures and fund balance usage for FY15 and FY16 Revised budget. Mill levy information from FY00 through FY16 was also presented. Committee members had the following requests: 1. Provide back-up memo on the operating impacts of additional FY16 reductions. 2. Provide an overview of the Risk Management and Healthcare fund balances. 3. For the committee and public prepare a summary of what caused the recent budget shortfall and actions taken to resolve it. 4. When addressing the mill rate provide additional information on the allocation between the 3 service areas. VI. VII. VIII. Information Items AFC Meeting Schedule as of April 1 st, 2015 was provided. Next Meeting Date Wednesday, April 08, 2015 Adjournment Meeting was adjourned at 7:03 PM 2

3 DRAFT City and Borough of Juneau Minutes - Assembly Finance Committee Meeting Wednesday, April 08, 2015, 5:30 p.m. I. Call to Order The meeting was called to order at 5:33 PM by Karen Crane, Chair. II. III. IV. Roll Call Committee Members Present: Merrill Sanford, Mary Becker, Debbie White, Maria Gladziszewski, Karen Crane, Kate Troll, Jerry Nankervis and Loren Jones Committee Members Absent: None Approval of Minutes There were no minutes presented for approval. Request to Amend Agenda Bob Bartholomew requested to amend the agenda to include the Summary of how we balanced the budget. The new item would append Agenda Item VI Information Items. There were no objections. V. Juneau School District Budget Presentation Dr. Mark Miller, JSD Superintendent; David Means, Director of Administrative Services; and Phyllis Carlson, School Board President; presented information on the JSD FY16 Revised Budget and impact of current State legislation being considered. School Board is considering asking for bond sale for rehabbing Marie Drake school. Committee members had the following requests: 1. Copy of the overhead presentation. 2. Annual PTR (Pupil Teacher Ratio) change FY14 FY16, and potential impact from funding to the cap on PTR. 3. Is funding Head Start outside the cap an option? 4. FY15 CBJ total funding was $24.5 million. The requested FY16 increase, before final action by State Legislature, was from $0.7 million to $1.2 million. Additional request was to consider $0.5 million FY15 supplemental for FY16 carry forward funds. Total increase for consideration $1.7 million. VI. Capital Improvement Projects Program Budget / Plan Bob Bartholomew, Finance Director, and Rorie Watt, Engineering Director, presented information on the capital improvements project funding and Resolution 2713(b) (A Resolution Adopting the City and Borough Capital Improvement Programs for fiscal years 2016 through 2021, and Establishing the Capital Improvement Project Priorities for Fiscal Year 2016). 3

4 Minutes - Assembly Finance Committee Meeting Wednesday, April 08, 2015, 5:30 p.m. Rorie stated that the Douglas Harbor Rebuild (pg. 20) in the amount of $3.0 million will be removed from the list as it will be funded by the Corp of Engineers. Rorie agreed to work with staff to enhance process for prioritizing areawide paving projects. Jesse Kiehl moved the resolution, minus the Douglas Harbor Rebuild, be forwarded to the full Assembly for consideration. There were no objections. VII. Marine Passenger Fee Recommendations Kim Kiefer, City Manager, presented the final MPF list. Committee members had the following requests: 1. Provide Assembly members with MPF background information. Some AFC members voiced concerns to tax money being used to pay for private businesses. Kim Kiefer read an excerpt from CBJ Title 69 Revenue and Taxation, Chapter 20 - Marine Passenger Fee, Section 120 Use of proceeds ( ). Lightering Float Ramp Canvas Cover Replacement in the amount of $10,000 (pg. 27) was removed from the list. Chair Crane recommended moving the MPF List to the Pending List. VIII. Information Items A. AFC Meeting Schedule The AFC Meeting Schedule as of April 8, 2015 was presented and discussed. Chair Crane requested the AFC meeting scheduled for Tuesday, April 28, 2015 be moved back to Wednesday, April 29, 2015; to begin at 5:00 PM and with the intent to adjourn by 6:30 PM, if possible. B. Summary of how we balanced the budget Bob Bartholomew distributed the document in response to a request of the AFC on April 1, He requested Assembly members review the document in the coming days and submit comments and FAQs for publication on the website. IX. Next Meeting Date Wednesday, April 15, 2015 X. Adjournment Meeting was adjourned at 7:20 PM 4

5 FY2016 Budget Presented to CBJ Assembly on April 15, A City and Borough of Juneau Enterprise Fund

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7 Fiscal 2016 Budget Presentation 1. Introduction 2. Assumptions 3. Cash Flow Summary with Comparison to National Benchmarks 4. Sources of Funding 5. Volume Schedule Comparison 6. Fiscal 2016 Capital Budget 7. Summary 8. Question and Answer 7

8 1. The Fiscal 2016 budget delivers financial results that allow Bartlett to achieve its mission. 2. Hospital in-patient and out-patient volumes will not measurably change from Fiscal Bartlett will no longer bill for Emergency Room physician services. There are changes to specific lines of the budget but there is a neutral impact. Patients will receive a different claim for these services. 4. The Bartlett Board approved the Fiscal 2016 budget with strategic pricing changes up to a blended increase of 5%. 5. Bartlett will continue to participate in the Medicare Rural Demonstration Project. Bartlett assumes: A. CMS will identify Fiscal 2016 as the base year for Fiscals B. CMS will remit $4 million for the Demonstration Project 8

9 6. Bartlett will receive grant $ s including: A. $1.5 million from CBJ for Liquor and Cigarette Tax with additional funds originating from the increased cigarette tax B. $600K from State of Alaska for Behavioral Health 7. Labor expense will be consistent with Fiscal Bartlett staffs its departments based on services and patient volumes. 9

10 FY13 (Audit) FY14 (Audit) FY15 Est FY16 Est Cash Receipts 86,895,041 89,541,013 89,559,529 85,270,091 Cash Disbursed Ops -76,487,945-73,750,448-79,010,599-75,955,414 Cash Disbursed - Capital -3,297,716-1,739,169-5,400,000-7,212,811 Revenue Bond Activities 922,149-1,725,556-1,725,556-1,725,556 Net Change in Cash $8,031,529 $12,325,840 $3,423,374 $376,310 10

11 Bartlett Operating Cash (2/28/15) $ s $27.9 M Days on Hand Bartlett Cash on Hand 186 Beckman Hospital Review 2011 Median 165 Merritt Research Services Moody s 2012 Hospital Median

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13 FY11 FY12 FY13 FY14 FY15 FY16 Actual Actual Actual Actual Budget Budget BRH Acute (Ave Daily Census) BRH Mental Health Unit (Ave Daily Census) Rainforest Recovery Center (Ave Daily Census) Deliveries Emergency Department Visits 13,792 14,636 14,416 14,384 14,131 15,094 Inpatient Surgery Cases Same Day Surgery Cases 2,642 2,736 2,601 2,545 2,432 2,485 Total Surgery Cases 3,365 3,467 3,309 3,141 3,068 3,149 13

14 Departments FY16 CAMHU $1,000,000 Diagnostic Imaging $450,000 Electronic Medical Record $1,121,391 Facilities Management $1,495,000 Master Facility Plan $1,000,000 Histology/Laboratory $65,000 Other Information Systems $598,400 Others $511,298 Operating Room $971,722 Totals $7,212,811 14

15 Bartlett Payroll and Benefits Projected Payroll and Benefits $55.7 M Multiplier (Alaska-specific) Effect of Hospital on Total Labor Income $82.6 M Bartlett Non-Labor Expenditures $32 M Multiplier (Alaska-specific) Effect of Hospital Expenditures on Total Output in State Economy $55.4 M Source: AHA article ( The Economic Contribution of Hospitals ) 15

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17 CBJ Finance Committee Meeting April 15, 2015 Eaglecrest Ski Area FY15 Review & FY16 Budget Presentation FY 15 Overview FY16 Budget Fund Balance and Conclusion 17

18 Overview Worst snow year in the history of Eaglecrest dating back to 1976 Only operated for 40 days on Porcupine Chair and 5 days on Upper East Side of Mountain Lower Mountain was green for most of winter Only 7,000 Skier Visits Basically spent the whole season skiing on man made snow We were able to offer some skiing and riding from December 6-March 22!! 18

19 Overview All Wee Ski (3-6 year old) Programs were completed Offered small terrain park for duration of season Juneau Ski Club was able to train and had a successful competitive season Books to Board Program was held as planned and enabled skiing and riding for over 100 middle school children Learn to Ski Programs were still popular Skiers and riders who did come skiing had a great time sliding on snow! 19

20 Overview Eaglecrest Board of Directors is upholding no refunds due to weather policy Able to limit losses to ~$60,000 while still offering some skiing and riding Fixed costs account for 85% of expenses in FY15 All loses can be covered by Eaglecrest Fund Balance Fund Balance at start of FY15- $92,000 One year doesn t make a pattern! We fully expect winter to return in Beginning in April and continuing through June Eaglecrest staff and the Board will be looking at promotions and incentives for Seasonal Product Holders 20

21 Porcupine Lodge (Learning Center) Construction started Spring of 2014 Completed March

22 FY 16 Revised Budget Operating Days FY 15 FY 16 FY 16 Projected Approved Revised Eaglecrest Revenue $ 1,179,616 $ 2,170,691 $ 2,180,700 General Fund Support $ 712,500 $ 712,500 $ 662,500 Total Revenue $ 1,892,116 $ 2,883,191 $ 2,843,200 Expenses Personnel Services $ 1,052,881 $ 1,679,358 $ 1,671,700 Full Cost Allocation $ 224,500 $ 224,500 $ 224,500 Other Expenses $ 573,371 $ 877,900 $ 845,500 Equipment Replacement $ 100,000 $ 100,000 $ 100,000 Total Expenses $ 1,950,752 $ 2,881,758 $ 2,841,700 Payment to Fund Balance $ (58,636) $ 1,432 $ 1,500 Fund Balance $ 33,549 $ 34,981 $ 36,481 Cost Recovery 60% 75% 77% Revised Budget Highlights Decreased General Fund Support to $662,500 from $750,000 in FY14. Lowest general fund support since FY08 $50,000 decrease made up by contribution from the Eaglecrest Operating Endowment Decreased Special Risk Insurance $33,000. Decreased annual revenue (Season Pass Revenue) $33,000 Porcupine Lodge operational expenses covered by increased efficiency and increases in revenue High fixed costs is challenging 85% of FY15 expenses were required/committed to be ready to open on Dec. 6 th 22

23 Eaglecrest Fund Balance History Year Beginning Balance Contribution/(Use) Ending Balance Cost Recovery FY02 $ 157,077 $ (177,702) $ (20,625) 66% FY03 $ (20,625) $ (540,262) $ (560,887) 34% FY04 $ (560,887) $ (143,347) $ (704,234) 68% FY05 $ (704,234) $ (64,267) $ (768,501) 66% FY06 $ (768,501) $ (111,813) $ (880,314) 62% FY07 $ (880,314) $ 21,747 $ (858,567) 71% FY08 $ (858,567) $ 103,007 $ (755,560) 71% FY09 $ (755,560) $ 47,585 $ (707,975) 70% FY10 $ (707,975) $ 113,362 $ (594,613) 71% FY11 $ (594,613) $ 109,119 $ (485,494) 72% FY12 $ (485,494) $ 239,751 $ (245,743) 79% FY13 $ (245,743) $ 198,000 $ (47,743) 77% FY14 $ (47,743) $ 139,934 $ 92,191 75% FY15 $ 92,191 $ (60,000) $ 32,191 59% PRJOJECTED 23

24 Conclusion Staff and the Board of Directors understands the concerns of our guests We remain very committed to providing a great product and continuing to be a great community asset for Juneau and all of Southeast Eaglecrest is very grateful for the support of the Assembly and the Juneau Community. The Eaglecrest Board and Staff will continue to seek to be: a community-owned winter recreation area and a yearround destination for outdoor recreation and education, providing a wide range of affordable winter and summer outdoor recreational activities. 24

25 JUNEAU INTERNATIONAL AIRPORT FY 16 UPDATED BUDGET 25 1

26 EXPENSE SUMMARY FY 14 APPROVED FY 14 ACTUALS FY 15 APPROVED FY 15 PROJECTED FY 16 APPROVED FY 16 UPDATED PERSONNEL 2,453,500 2,403,469 2,733,800 2,636,800 2,859,000 2,639,700 SUPPLIES 796, , , , , ,800 SERVICES/CHARGES 2,592,000 2,521,957 2,604,300 2,725,700 2,779,500 2,855,600 TRAVEL/TRAINING 30,500 17,095 27,900 24,400 29,600 23,600 CAPITAL OUTLAY , DEBT SERVICE TOTALS 5,872,700 5,576,355 6,097,900 *6,202,700 6,395,800 6,225,700 *FY15 will require supplemental spending authority of $104,800 due to the addition of Alex Holden Way road repairs. The Airport budget supports this additional spending with the projected increase in revenues. 26

27 FY 16 Expenses Services & Charges 46% Travel & Training 1% Personnel 42% Supplies 11% 27

28 REVENUE SUMMARY FY 14 APPROVED FY 14 ACTUALS FY 15 APPROVED FY 15 PROJECTED FY 16 APPROVED FY 16 UPDATED STATE/FED REVENUE 316, , , , , ,700 FUEL FLOWAGE FEES 541, , , , , ,682 LANDING FEES 1,700,000 1,702,114 1,737,100 1,831,100 1,737,100 1,873,900 USER FEES/SECURITY FEES 399, , , , , ,700 RENTALS 2,528,600 2,593,887 2,582,000 2,639,200 2,582,000 2,766,600 INTEREST INCOME 36,500 37,875 30,000 18,800 35,600 18,800 FINES/MISC./OTHER 192, , , , , ,100 AIPORT FUND BALANCE TOTALS 5,714,359 5,964,111 5,969,414 6,203,400 5,995,014 6,408,482 28

29 FY 16 Revenues Other- Misc. 3% Federal Reimbursement 4% Fuel Flowage Fees 12% Landing Fees 30% Security Fees 8% 29

30 EXPENSE VS. REVENUE SUMMARY FY 14 APPROVED FY 14 ACTUALS FY 15 APPROVED FY 15 PROJECTED FY 16 APPROVED FY 16 UPDATED EXPENSES (5,872,700) (5,576,355) (6,097,900) (6,202,700) (6,395,800) (6,225,700) REVENUES 5,714,780 5,964,111 5,969,414 6,203,400 5,995,014 6,408,482 DIFFERENCE (157,920) 387,756 (128,487) 700 (400,787) 182,782 AIRPORT FUND BALANCE APPLIED 128, TOTAL OVER/(SHORT) (157,920) 387, (400,787) 182,782 FY14 closed out up $387,756 and FY16 is now projected to close out up $182,782. The Airport Board approved to use these excess revenues for future CIP local matches. FY15 requires $104,800 in supplemental spending authority. 30

31 Staff was asked to look at cutting a percentage of expenses for FY16. Staff reduced expenses by 2.7%. 31 7

32 PERSONNEL Unfilled (on-call) vacancies as well as a reduction in health care costs decreased FY16 Personnel costs. 32 FY16 down $219,300 8

33 SUPPLIES Mild Winter has allowed savings on runway sand and de-icing chemical purchases for next year. TRAVEL & TRAINING Continued cuts to Airport staff travel/training. FY16 Supplies down $20,900 FY16 Travel/Training down $6,000 33

34 SERVICES & CHARGES An increase across cost centers is anticipated from electrical/water utilities, fuel and contractual services with the City (JPD). 34 FY16 up $76,100

35 FY15 CAPITAL OUTLAY Repairs to Alex Holden Way (Air Cargo Road) are underway. FY15 budget includes $105,000 for this band-aid. Long term reconstruction of road is still required. 35

36 REVENUES 36

37 LANDING FEES Landing Fee revenues expected to increase with the addition of Delta Air Lines year-round service. 37 FY16 up $136,800 13

38 RENTALS & USER FEES Increase in leased terminal space as well as new concession contracts will see increases to Rental income. FY16 Rentals up $184,600 Additional year-round aircraft parking, Jetway use and security fees will increase User Fee revenues. FY16 User Fees up $109,200 38

39 FUEL FLOWAGE FEES & STATE REVENUES (Explanation) Fuel Flowage Fees (FFF)show an increase while State Revenues show similar decrease. This is actually net zero. Non-signatory FFF were budgeted under State Rev so as not to skew the financial model when FFF were calculated. This budget cycle corrects and adjusts where these fees show up. FY16 FFF up $114, FY16 State Rev down $117,500

40 INTEREST INCOME Projected decline in interest income continues its trend. FY16 down $16,800 40

41 JUNEAU INTERNATIONAL AIRPORT 2015 SUPPLEMENTAL BUDGET REQUEST $104,800 Additional expenses (Alex Holden Way) for FY15 requires approved supplemental spending authority. The Airport has the additional revenues in the budget 41 to cover this additional spending.

42 The End 42 In memory18 of Co-pilot, Gus

43 City and Borough of Juneau ASSEMBLY FINANCE COMMITTEE Bond Interest Rate Resolutions April 15, 2015 Issue: On March 16, 2015 the Assembly adopted 3 separate ordinances authorizing the issuance of new Port Revenue Bonds and the refunding (refinancing) of 2 outstanding bond issues. The ordinances authorize a Not to Exceed Total Authorized Bond Sale amount and the annual bond maturity schedule, with ability to vary by 25% on a single maturity year. Ordinances Previously Adopted: 1. Ordinance for the remaining $23 million of Port Revenue Bonds. 2. Ordinance for the refunding of approximately $8 million of Harbor Revenue Bonds. 3. Ordinance for the refunding of approximately $3.4 million of School Bonds. Current Status: The final Assembly action, per CBJ Charter, related to these bonds is to prescribe (set/accept) by resolution the interest rates and annual principal maturity dollar amounts. CBJ legal counsel, K&L Gates, has prepared 3 Draft Resolutions to adopt the interest rates, via delegation to the City Manager, and set other final bond sale terms. Schedule A of the resolution list the years and amounts when the bonds will mature and sets the maximum interest rates authorized. The attached Resolutions are: 1. No Port Revenue Bonds. 2. No School Refunding Bonds. 3. No Harbor Revenue Refunding Bonds. All bond issues are scheduled to be sold via the Alaska Municipal Bond Bank Authority (AMBBA). The estimated interest rates in the draft resolutions are preliminary. By April 21 AMBBA s Financial Advisor and Underwriter will provide updated interest rates. The draft Resolutions will be updated with current information. Recommendation: The Finance Committee review the attached Resolutions and forward to the full Assembly for adoption April 27,

44 Presented by: The Manager Introduced: 04/27/15 Drafted by: Bond Counsel RESOLUTION OF THE CITY AND BOROUGH OF JUNEAU, ALASKA Resolution No A Resolution Providing For Interest Rates For The Port Revenue Bond Being Issued Through The Alaska Municipal Bond Bank. WHEREAS, on January 6, 2014, the Assembly of the City and Borough of Juneau, Alaska (the City and Borough ), passed Ordinance Serial No , as amended by Ordinance Serial No , authorizing the issuance and sale of its Port Revenue Bonds in the aggregate principal amount of not to exceed $29,000,000 (the Authorized Bond ); and WHEREAS, pursuant to Section 9 of said ordinance the City Manager of the City and Borough or his/her designee shall be authorized to negotiate the sale of the Authorized Bond (hereinafter defined as the Bond) to the Alaska Municipal Bond Bank (the Bond Bank ); and WHEREAS, Section 10.2(b) of the Charter of the City and Borough provides that the Assembly shall by resolution prescribe the rate or rates of interest on the Bond; NOW, THEREFORE, BE IT RESOLVED BY THE ASSEMBLY OF THE CITY AND BOROUGH OF JUNEAU, ALASKA, as follows: Section 1. Bond Sale. The sale of a portion of the Authorized Bond is hereby authorized and approved under the terms prescribed in this resolution (the Bond ). The Bond shall be designated as the Port Revenue Bond, 2015 (AMT). Capitalized terms in this resolution which are not otherwise defined shall have the meanings given such terms in Ordinance Serial No , as amended, of the Assembly (the Bond Ordinance ). Res

45 Section 2. Bond Date, Maturity; Payments; Designation. The Bond shall be dated the date of delivery, expected to be June 4, 2015, shall mature in the principal amounts prescribed on Schedule A attached hereto and by this reference made a part hereof and shall bear interest payable on September 1, 2015 and semiannually thereafter on the first days of each March and September at the rates prescribed on Schedule A. At the time of sale of the Bond, the City Manager or his/her designee may increase or decrease the estimated principal amounts on Schedule A within the parameters specified in the Bond Ordinance, and may decrease the interest rates shown on Schedule A depending upon orders received for particular maturities, so long as (i) the net proceeds of the Bond (principal amount, plus net premium, less costs of issuance) does not exceed $22,945,000; and (ii) the true interest cost for the Bond (in the aggregate) does not exceed 4.50%. The authority granted to the City Manager and his/her designee pursuant to this Section shall be effective from the date of adoption of this resolution until May 27, If the Bond Bank has not made a final offer of terms approved by the City Manager or his/her designee consistent with the prescriptions of this resolution by May 27, 2015, the authority granted by this resolution shall be rescinded. Both principal of and interest on the Bond shall be paid as provided in the Bond Ordinance and in the Loan Agreement between the Bond Bank and the City and Borough. Section 3. Delivery of the Bond. The proper officials of the City and Borough are authorized and directed to execute all documents and to do everything necessary for the preparation and delivery of the Bond in definitive form to the Bond Bank. Section 4. Continuing Disclosure Undertaking. The City and Borough acknowledges that, under the Rule, the City and Borough may now or in the future be an obligated person with respect to the Bond Bank Bonds. In accordance with the Rule and as the Res

46 Bond Bank may require, the City and Borough shall undertake to provide certain annual financial information and operating data as shall be set forth in the Loan Agreement. The City Manager or his/her designee is hereby directed and authorized to review, approve and execute a continuing disclosure undertaking if required by the Bond Bank. Section 5. Ratification. All actions taken by the City Manager or his/her designee relative to the sale of the Bond are hereby in all respects ratified and confirmed. The City Manager of the City and Borough or his/her designee is hereby authorized to do all things necessary for the prompt execution, issuance and delivery of the Bond and for the proper application and use of the Bond proceeds; is hereby authorized to review and approve on behalf of the City and Borough portions of the final Official Statement relative to the Bond and the City and Borough with such additions and changes as may be deemed necessary or advisable; and his/her approval of portions of the Preliminary Official Statement is ratified and confirmed. Section 6. Severability. The covenants contained in this resolution shall constitute a contract between the City and Borough and the owner of the Bond. If any one or more of the covenants or agreements provided in this resolution to be performed on the part of the City and Borough shall be declared by any court of competent jurisdiction to be contrary to law, then such covenant or covenants, agreement or agreements, shall be null and void and shall be deemed separable from the remaining covenants and agreements of this resolution and shall in no way affect the validity of the other provisions of this resolution or of the Bond. Res

47 Section 7. Effective Date. This resolution shall be effective immediately upon adoption. ADOPTED this 27th day of April, Mayor Attest: Clerk Res

48 CERTIFICATE I, the undersigned, Clerk of the City and Borough of Juneau (herein called the City and Borough ) DO HEREBY CERTIFY: 1. That the attached Resolution No (herein called the Resolution ) is a true and correct copy of a resolution of the City and Borough as adopted at a meeting of the Assembly of the City and Borough (the Assembly ) held on April 27, 2015 and duly recorded in my office. 2. That said meeting was duly convened and held in all respects in accordance with law, and to the extent required by law; that a legal quorum was present throughout the meeting and a legally sufficient number of members of the Assembly voted in the proper manner for the adoption of the Resolution; that all other requirements and proceedings incident to the proper adoption of the Resolution have been duly fulfilled, carried out and otherwise observed, and that I am authorized to execute this certificate. IN WITNESS WHEREOF, I have hereunto set my hand this day of April, Clerk City and Borough of Juneau Res

49 Maturity Years (March 1) Schedule A City and Borough of Juneau, Alaska Port Revenue Bond, 2015 (AMT) [PRELIMINARY] Prescribed Maturity Schedule Coupon Interest Rates Maximum Effective Interest Rates Principal Amounts 2016 $ 965, % 1.09% , , , , , , , , ,040, ,085, ,140, ,190, ,255, ,315, ,380, ,445, ,525, ,280, Total: $ 20,415,000 Res

50 Presented by: The Manager Introduced: 04/27/15 Drafted by: Bond Counsel RESOLUTION OF THE CITY AND BOROUGH OF JUNEAU, ALASKA Resolution No A Resolution Providing For Interest Rates For The General Obligation School Refunding Bond Being Issued Through The Alaska Municipal Bond Bank. WHEREAS, on March 16, 2015, the Assembly of the City and Borough of Juneau, Alaska (the City and Borough ), passed Ordinance Serial No authorizing the issuance and sale of its General Obligation School Refunding Bond in the aggregate principal amount of not to exceed $3,400,000 (the Authorized Bond ); and WHEREAS, pursuant to Section 13 of said ordinance the City Manager of the City and Borough or his/her designee shall be authorized to negotiate the sale of the Authorized Bond (hereinafter defined as the Bond) to the Alaska Municipal Bond Bank (the Bond Bank ); and WHEREAS, Section 10.2(b) of the Charter of the City and Borough provides that the Assembly shall by resolution prescribe the rate or rates of interest on the Bond; NOW, THEREFORE, BE IT RESOLVED BY THE ASSEMBLY OF THE CITY AND BOROUGH OF JUNEAU, ALASKA, as follows: Section 1. Bond Sale. The sale of the Authorized Bond is hereby authorized and approved under the terms prescribed in this resolution (the Bond ). The Bond shall be designated as the General Obligation School Refunding Bond, Capitalized terms in this resolution which are not otherwise defined shall have the meanings given such terms in Ordinance Serial No of the Assembly (the Bond Ordinance ). Res

51 Section 2. Bond Date, Maturity; Payments; Designation. The Bond shall be dated the date of delivery, expected to be June 4, 2015, shall mature in the principal amounts prescribed on Schedule A attached hereto and by this reference made a part hereof and shall bear interest payable on September 1, 2015 and semiannually thereafter on the first days of each March and September at the rates prescribed on Schedule A. At the time of sale of the Bond, the City Manager or his/her designee may increase or decrease the estimated principal amounts on Schedule A within the parameters specified in the Bond Ordinance, and may decrease the interest rates shown on Schedule A depending upon orders received for particular maturities, so long as (i) the net proceeds of the Bond (principal amount, plus net premium, less costs of issuance) does not exceed $3,400,000; and (ii) the true interest cost for the Bond (in the aggregate) does not exceed 2.00%. The authority granted to the City Manager and his/her designee pursuant to this Section shall be effective from the date of adoption of this resolution until May 27, If the Bond Bank has not made a final offer of terms approved by the City Manager or his/her designee consistent with the prescriptions of this resolution by May 27, 2015, the authority granted by this resolution shall be rescinded. Both principal of and interest on the Bond shall be paid as provided in the Bond Ordinance and in the Loan Agreement between the Bond Bank and the City and Borough. Section 3. Delivery of the Bond. The proper officials of the City and Borough are authorized and directed to execute all documents and to do everything necessary for the preparation and delivery of the Bond in definitive form to the Bond Bank. Section 4. Continuing Disclosure Undertaking. The City and Borough acknowledges that, under the Rule, the City and Borough may now or in the future be an obligated person with respect to the Bond Bank Bonds. In accordance with the Rule and as the Res

52 Bond Bank may require, the City and Borough shall undertake to provide certain annual financial information and operating data as shall be set forth in the Loan Agreement. The City Manager or his/her designee is hereby directed and authorized to review, approve and execute a continuing disclosure undertaking if required by the Bond Bank. Section 5. Ratification. All actions taken by the City Manager or his/her designee relative to the sale of the Bond are hereby in all respects ratified and confirmed. The City Manager of the City and Borough or his/her designee is hereby authorized to do all things necessary for the prompt execution, issuance and delivery of the Bond and for the proper application and use of the Bond proceeds; is hereby authorized to review and approve on behalf of the City and Borough portions of the final Official Statement relative to the Bond and the City and Borough with such additions and changes as may be deemed necessary or advisable; and his/her approval of portions of the Preliminary Official Statement is ratified and confirmed. Section 6. Severability. The covenants contained in this resolution shall constitute a contract between the City and Borough and the owner of the Bond. If any one or more of the covenants or agreements provided in this resolution to be performed on the part of the City and Borough shall be declared by any court of competent jurisdiction to be contrary to law, then such covenant or covenants, agreement or agreements, shall be null and void and shall be deemed separable from the remaining covenants and agreements of this resolution and shall in no way affect the validity of the other provisions of this resolution or of the Bond. Res

53 Section 7. Effective Date. This resolution shall be effective immediately upon adoption. ADOPTED this 27th day of April, Mayor Attest: Clerk Res

54 CERTIFICATE I, the undersigned, Clerk of the City and Borough of Juneau (herein called the City and Borough ) DO HEREBY CERTIFY: 1. That the attached Resolution No (herein called the Resolution ) is a true and correct copy of a resolution of the City and Borough as adopted at a meeting of the Assembly of the City and Borough (the Assembly ) held on April 27, 2015 and duly recorded in my office. 2. That said meeting was duly convened and held in all respects in accordance with law, and to the extent required by law; that a legal quorum was present throughout the meeting and a legally sufficient number of members of the Assembly voted in the proper manner for the adoption of the Resolution; that all other requirements and proceedings incident to the proper adoption of the Resolution have been duly fulfilled, carried out and otherwise observed, and that I am authorized to execute this certificate. IN WITNESS WHEREOF, I have hereunto set my hand this day of April, Clerk City and Borough of Juneau Res

55 Maturity Years (March 1) Schedule A City and Borough of Juneau, Alaska General Obligation School Refunding Bond, 2015 [PRELIMINARY] Prescribed Maturity Schedule Coupon Interest Rates Maximum Effective Interest Rates Principal Amounts 2016 $ 615, % 0.94% , , , , Total: $ 3,135,000 Res

56 Presented by: The Manager Introduced: 04/27/15 Drafted by: Bond Counsel RESOLUTION OF THE CITY AND BOROUGH OF JUNEAU, ALASKA Resolution No A Resolution Providing For Interest Rates For The Harbor Revenue Refunding Bond Being Issued Through The Alaska Municipal Bond Bank. WHEREAS, on March 16, 2015, the Assembly of the City and Borough of Juneau, Alaska (the City and Borough ), passed Ordinance Serial No authorizing the issuance and sale of its Harbor Revenue Refunding Bond (the Authorized Bond ) in order to refinance the City and Borough s Harbor Revenue Bond, 2007 in the original principal amount of $10,620,000 (the 2007 Bond ); and WHEREAS, pursuant to Section 2 of said ordinance the City Manager of the City and Borough or his/her designee shall be authorized to negotiate the sale of the Authorized Bond (hereinafter defined as the Bond) to the Alaska Municipal Bond Bank (the Bond Bank ); and WHEREAS, Section 10.2(b) of the Charter of the City and Borough provides that the Assembly shall by resolution prescribe the rate or rates of interest on the Bond; NOW, THEREFORE, BE IT RESOLVED BY THE ASSEMBLY OF THE CITY AND BOROUGH OF JUNEAU, ALASKA, as follows: Section 1. Bond Sale. The sale of the Authorized Bond is hereby authorized and approved under the terms prescribed in this resolution (the Bond ). The Bond shall be designated as the Harbor Revenue Refunding Bond, Capitalized terms in this resolution which are not otherwise defined shall have the meanings given such terms in Ordinance Serial Nos (b) and of the Assembly (together, the Bond Ordinance ). Res

57 Section 2. Bond Date, Maturity; Payments; Designation. The Bond shall be dated the date of delivery, expected to be June 4, 2015, shall mature in the principal amounts prescribed on Schedule A attached hereto and by this reference made a part hereof and shall bear interest payable on September 1, 2015 and semiannually thereafter on the first days of each March and September at the rates prescribed on Schedule A. At the time of sale of the Bond, the City Manager or his/her designee may increase or decrease the estimated principal amounts on Schedule A within the parameters specified in the Bond Ordinance, and may decrease the interest rates shown on Schedule A depending upon orders received for particular maturities, so long as a reduced debt service on the 2007 Bond is achieved. The authority granted to the City Manager and his/her designee pursuant to this Section shall be effective from the date of adoption of this resolution until May 27, If the Bond Bank has not made a final offer of terms approved by the City Manager or his/her designee consistent with the prescriptions of this resolution by May 27, 2015, the authority granted by this resolution shall be rescinded. Both principal of and interest on the Bond shall be paid as provided in the Bond Ordinance and in the Amendatory Loan Agreement between the Bond Bank and the City and Borough. Section 3. Delivery of the Bond. The proper officials of the City and Borough are authorized and directed to execute all documents and to do everything necessary for the preparation and delivery of the Bond in definitive form to the Bond Bank. Section 4. Continuing Disclosure Undertaking. The City and Borough acknowledges that, under the Rule, the City and Borough may now or in the future be an obligated person with respect to the Bond Bank Bonds. In accordance with the Rule and as the Bond Bank may require, the City and Borough shall undertake to provide certain annual financial information and operating data as shall be set forth in the Amendatory Loan Agreement. The Res

58 City Manager or his/her designee is hereby directed and authorized to review, approve and execute a continuing disclosure undertaking if required by the Bond Bank. Section 5. Ratification. All actions taken by the City Manager or his/her designee relative to the sale of the Bond are hereby in all respects ratified and confirmed. The City Manager of the City and Borough or his/her designee is hereby authorized to do all things necessary for the prompt execution, issuance and delivery of the Bond and for the proper application and use of the Bond proceeds; is hereby authorized to review and approve on behalf of the City and Borough portions of the final Official Statement relative to the Bond and the City and Borough with such additions and changes as may be deemed necessary or advisable; and his/her approval of portions of the Preliminary Official Statement is ratified and confirmed. Section 6. Severability. The covenants contained in this resolution shall constitute a contract between the City and Borough and the owner of the Bond. If any one or more of the covenants or agreements provided in this resolution to be performed on the part of the City and Borough shall be declared by any court of competent jurisdiction to be contrary to law, then such covenant or covenants, agreement or agreements, shall be null and void and shall be deemed separable from the remaining covenants and agreements of this resolution and shall in no way affect the validity of the other provisions of this resolution or of the Bond. Res

59 Section 7. Effective Date. This resolution shall be effective immediately upon adoption. ADOPTED this 27th day of April, Mayor Attest: Clerk Res

60 CERTIFICATE I, the undersigned, Clerk of the City and Borough of Juneau (herein called the City and Borough ) DO HEREBY CERTIFY: 1. That the attached Resolution No (herein called the Resolution ) is a true and correct copy of a resolution of the City and Borough as adopted at a meeting of the Assembly of the City and Borough (the Assembly ) held on April 27, 2015 and duly recorded in my office. 2. That said meeting was duly convened and held in all respects in accordance with law, and to the extent required by law; that a legal quorum was present throughout the meeting and a legally sufficient number of members of the Assembly voted in the proper manner for the adoption of the Resolution; that all other requirements and proceedings incident to the proper adoption of the Resolution have been duly fulfilled, carried out and otherwise observed, and that I am authorized to execute this certificate. IN WITNESS WHEREOF, I have hereunto set my hand this day of April, Clerk City and Borough of Juneau Res

61 Maturity Years (March 1) Schedule A City and Borough of Juneau, Alaska Harbor Revenue Refunding Bond, 2015 [PRELIMINARY] Prescribed Maturity Schedule Coupon Interest Rates Maximum Effective Interest Rates Principal Amounts 2019 $ 355, % 1.89% , , , , , , , , , , , , , , Total: $ 7,460,000 Res

62 City and Borough of Juneau Assembly Finance Committee (AFC) FY16 Revised Budget Calendar and Key Dates Wednesdays at 5:30 p.m., unless otherwise stated Updated April 15, 2015 APRIL 1 st Special Assembly Meeting A. Introduction of the general operating (CBJ) budget ordinance B. Introduction of the general operating School District budget ordinance C. Introduction of the mill levy ordinance D. Introduction of the CIP resolution 1 st AFC Meeting #1 (Immediately following Special Assembly Meeting to be held at 5:30 p.m.) A. Distribution of the Operating Budget, Capital Budget and Capital Improvement 6-Year Plan B. FY16 Revised Budget Overview C. Budget Balancing Proposal 6 th Regular Assembly Meeting 8 th AFC Meeting #2 A. School District Budget Presentation B. Capital Improvement Projects Program Budget/Plan C. Marine Passenger Fee Recommendations 15 th AFC Meeting #3 A. Eaglecrest Ski Area B. Juneau International Airport C. Bartlett Regional Hospital D. Bond Interest Rate Resolutions E. Update on Cost & Funding for the Cruise Ship Dock Expansion & Seawalk Projects 22 nd Special Assembly Meeting The Assembly must furnish the School District with a statement (motion) of the amount of local funding to be made available for FY16 School District operations. (Charter Section 13.6 (b)) 22 nd AFC Meeting #4 A. Juneau Convention and Visitors Bureau (Elizabeth Arnett) B. Docks and Harbors C. Proposed mill rate D. Debt Service Presentation E. Sales Tax Phase II 27 th Regular Assembly Meeting The following actions must be done by May 1 per Charter Section 9.6. A. Public hearing on the CBJ operating budget ordinance B. Public hearing on the School District operating budget ordinance C. Public hearing on the capital improvement program resolution D. Public hearing on the on the mill levy ordinance 62

63 City and Borough of Juneau Assembly Finance Committee (AFC) FY16 Revised Budget Calendar and Key Dates Wednesdays at 5:30 p.m., unless otherwise stated Updated April 15, 2015 APRIL cont. 29 th AFC Meeting #5 ** Notice** Meeting Wednesday April 29, starting at 5pm. A. Juneau School District Funding B. Risk Management Fund Balance Overview C. Youth Activities Board (YAB) Presentation MAY 6 th AFC Meeting #6 A. Pending Items List / Final Budget Decisions 13 th AFC Meeting #7 Meeting cancelled. 18 th Tentative Assembly Meeting A. Adoption of the general operating (CBJ) budget ordinance B. Adoption of the School District s general operating budget ordinance C. Adoption of the CIP resolution D. Adoption of the mill levy ordinance 27 th AFC Meeting #8 By May 31, the assembly must appropriate the amount to be made available from local sources for school purposes (Charter Section 13.6) JUNE 3 rd AFC Meeting #9 8 th Regular Assembly Meeting Adoption of Budget, if not adopted on May 18 th. The Charter requires that the following budget actions be made by June 15 th. Appropriating Ordinances Mill Levy Ordinance CIP Program 63