On October 3, 2022, City of Soldotna voters approved Proposition 2022-A for the issuance of general obligation bonds, in an amount not to exceed $15,000,000, to finance construction of a 42,000 square foot field house at the Soldotna Regional Sports Complex.
After careful consideration, City Administration recommended issuing the bonds in two tranches. This strategy allows the City of Soldotna to only pay interest on bond revenues that are currently needed rather than paying interest on bond revenues that will not be needed until sometime next year.
Resolution 2022-060 authorized the issuance of the first tranche in the amount of $10,000,000. This tranche of general obligation bonds was issued on February 15, 2023.
Ordinance 2023-007 appropriates the full $15,000,000 and an estimated amount for bond issuance costs, which will allow the City to award the project and order materials that have long lead times.
City Manager Stephanie Queen detailed the resolution;
“This ordinance would appropriate the full amount that is authorized under the bond issuance to date, as we mentioned in our work session, we’ve received the first issuance of $10 million of that debt that’s in its own segregated account where it’s earning interest and will be available for us to use this ordinance would authorize that as well as a future tranche of debt if we needed up to that full $5 million amount. It’s important from the perspective that when we get ready to potentially award construction of the project. It’ll be important that we have authorization or funds reserved and this is going to be reserving the majority of the funds needed for the project we will come back at a later date and seek authorization and appropriation of the remaining funds.”
The project spending can begin since the City of Soldotna appropriated the bond proceeds.
The City Council unanimously adopted the resolution.