April 06, 2005
The Ketchikan Gateway Borough will use their $22.9 million loan to fund $9 million in major renovation of Schoenbar Middle School and construction of Fawn Mountain Elementary School, with the balance of the loan to be used for refinancing outstanding bonds of the Borough. Savings to the Borough as a result of borrowing through the Bond Bank are estimated at $549,000.
The Alaska Municipal Bond Bank Authority will also fund loans to the City and Borough of Sitka, and the City of North Pole for new projects as well as refinance outstanding loans for savings for the City of Palmer, Haines Borough, Aleutians East Borough, and the City of Wasilla. Ketchikan and these communities will save approximately $850,000 on new projects and over $850,000 on refinanced loans by using the Bond Bank.
The Board unanimously approved the Resolution authorizing the loans during the Bond Bank's March 30, 2005 Board of Director's Meeting. Board Chairman, Desi Mayo stated, "I'm thankful for the opportunity to provide savings for projects in Alaska's communities".
The City and Borough of Sitka is borrowing $8.9 million to finance the cost of major repairs at Baranof Elementary School, Blatchley Middle School and Sitka High School. Sitka is expected to save approximately $199,000 as a result of borrowing through the Bond Bank.
The City of North Pole is borrowing $1.4 million to pay for street improvements in the City. The City is expected to save approximately $92,000 as a result of borrowing through the Bond Bank.
Savings are achieved by the
strong credit rating of the Bond Bank, and efficiency in operation
by pooling multiple community bonds into one Bond Bank bond issue.
In 2004 the Bond Bank saved Alaskans $4.8 million in reduced
debt payments by issuing $113 million in tax-exempt bonds for
low cost loans to eleven communities.
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