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Kenai City Council Issues Letter of Support For General Obligation Bond Bills In State Legislature

Anthony Moore

3 years ago

The Kenai City Council issued a letter of support for two pieces of legislation providing the issuance of $325 million in general obligation bonds for the purpose of paying the cost of state infrastructure projects. The money will build Alaska’s economy by putting Alaskans to work building bridges, ports, roads, and other important projects around the state, specifically for the City of Kenai. One of those projects is the Kenai Bluff Stabilization Project through critical funds being provided in the amount of $6.5 million to help meet the local match requirements of the federal funds that have been allocated toward the project. The two pieces of legislation include Senate Bill 166 and House Bill 285.

City Manager Paul Ostrander:

“The idea behind this letter came with a discussion with Bert Cottle who’s the former mayor of Wasilla and is also helping the Dunleavy Administration in getting out the word about this GO bond that was a part of his budget. He suggested that either a resolution or a letter from the city council would be a good way of showing the city’s support for the GO bond. In addition to that, one of the main things that the mayor and I will be talking to our legislative delegation about when we’re down in Juneau will be this GO bond and having this letter signed by all of council would show the broad support from the council for the passage of this GO bond.”

The total design and construction cost for the Kenai Bluff Stabilization Project has a preliminary cost estimate of approximately $42 million; however, it is expected that the total cost likely will range between $25 and $35 million. As the design proceeds, the project’s scope will be refined, and a more accurate cost will be generated. The city is using a total cost of $30 million for planning purposes while they attempt to secure the funding necessary for the required local match of 35%.

The $6.5 million in funding from this general obligation bond combined with funds already secured or being pursued by the City of Kenai, allows the city to meet its $10.5 million local match requirement and leverage over $19.5 million in federal dollars toward economic activity in the state.

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