July 10, 2004
"The bond bank provides a valuable service to Alaska communities and their residents," Governor Frank Murkowski said. "This bond issue reinforces the importance of maintaining the state's solid credit rating through good financial management. I congratulate the communities and the bond bank on their work."
On July 7 the Alaska Municipal Bond Bank Authority sold $14,585,000 in general obligation bonds to provide funding for new projects in the City of Palmer, Kodiak Island Borough and the City of Petersburg. The 20-year bonds, carrying an insured rating of AAA, were purchased at competitive sale by Citibank Global Markets at an interest rate of 4.42 percent.
The City of Petersburg will use $3.5 million in proceeds for school district facility renovation and maintenance. The bond bank estimates reductions in bond payments of $154,000 over the 20-year life of this loan through use of the bond bank.
The City of Palmer will use $1.5 million in proceeds for construction of an indoor ice rink and associated public, mechanical and equipment rooms. Bond bank participation with this financing is estimated to save more than $97,000 during the 20-year life of this loan.
The Kodiak Island Borough will use $9.95 million in proceeds for school district facility renovation and maintenance and to develop an earthquake evacuation plan. The bond bank estimates reductions in bond payments of $243,000 over the 20-year life of this loan through use of the bond bank.
Since the Petersburg project
and a portion of the Kodiak project are eligible for reimbursement
by the State of Alaska, some of the savings generated by the
bond bank will accrue to the benefit of the state.
Source of News Release: