Assembly to consider advance loans before bond issuance

Two public projects may get advances from the Kenai Peninsula Borough’s general fund before revenue bonds are issued to pay for them.

Voters approved two bond issuances on the October 2016 municipal regular election ballot. The first, which authorizes bond sales of up to $10.6 million, will cover the costs to design and build a new cell at the Central Peninsula Landfill near Soldotna, which serves the majority of the Kenai Peninsula’s population. The second, authorizing bond sales of up to $4.8 million, will go to replace the heating, ventilation and air conditioning system at South Peninsula Hospital in Homer and the expansion of the hospital-owned Homer Medical Center.

However, the bond sales will not be held until the spring. Kenai Peninsula Borough Mayor Mike Navarre’s administration is asking the borough assembly to approve interim intergovernmental loans from the borough’s general fund to get the projects going in the meantime.

The assembly approved an ordinance in August 2016 approving an intergovernmental loan of $2.8 million to the South Kenai Peninsula Hospital Service Area so the hospital could begin construction this fall on the Homer Medical Center. The the bonds had not yet been approved by the voters, but if the proposition had failed, the hospital would have paid back the loan in annual debt service to the borough, according to a July 28, 2016 memo from the borough finance department to the assembly.

The loan allowed the medical center project to move ahead, according to a Dec. 22 assembly from Borough Finance Director Craig Chapman to the assembly.

“The remaining portion of the (South Peninsula Hospital) improvement project is for replacement of the 40-year-old heating, ventilating and air conditioning system at the hospital,” he wrote in the memo.

South Peninsula Hospital, which recently celebrated its 60th anniversary, has not replaced the HVAC system in four decades. The South Kenai Peninsula Hospital Service Area Board will discuss the ordinance at its Jan. 12 meeting, according to a draft supporting resolution submitted to the assembly.

The situation is similar for the landfill. Voters approved the $10.6 million in bonds, but the first sale — which will be approximately $6 million in bonds — won’t take place until the spring, according to another memo from Chapman to the assembly, also dated Dec. 22. Most of the planning and design work is already done on the new cell, according to the memo.

The assembly introduced both ordinances at its Jan. 3 meeting and is scheduled to hearing them at its Jan. 17 meeting.

Reach Elizabeth Earl at elizabeth.earl@peninsulaclarion.com.

More in News

A sign warning of a June 28, 2021, bear attack is placed at the head of the Kenai River Trail on Skilak Loop Road in the Kenai National Wildlife Refuge on June 30, 2021. (Photo by Erin Thompson/Peninsula Clarion)
Federal wildlife officers seek information about early-May black bear poaching

Officials think the poaching happened near the east entrance of Skilak Loop roughly 2 miles from Jims’ Landing

Alaska State Troopers logo.
Ninilchik woman dead after Tuesday collision

The woman was attempting to cross the Sterling Highway from Oil Well Road when she was struck by a pickup truck

Graduates listen to Connections Homeschool Principal Doug Hayman speak during the school’s commencement ceremony on Thursday in Soldotna. (Ashlyn O’Hara/Peninsula Clarion)
Graduates listen to Connections Homeschool Principal Doug Hayman speak during the school’s commencement ceremony on Thursday, May 16, 2024 in Soldotna, Alaska. (Ashlyn O’Hara/Peninsula Clarion)
‘Expect a lot from yourself and from others’

Connections Homeschool students accept diplomas at commencement ceremony

Screenshot
Graduates of Seward High School leave the gym at the end of their graduation ceremony on Wednesday.
‘Give people something to talk about’

Seward High School graduates 30

Kenai Police Chief David Ross speaks to Kenai City Council members about an ordinance that would repeal sections of city code that prohibit public sleeping and loitering and the city’s curfew on Wednesday, May 15, 2024, in Kenai, Alaska. (Ashlyn O’Hara/Peninsula Clarion)
Kenai OKs repeal of loitering laws, curfew for minors

The policies, first enacted in 1978, are difficult to enforce and potentially violate citizens’ rights, according to the Kenai Police Department

Nikiski Middle/High School graduates throw their caps into the air at the conclusion of a graduation ceremony in the school’s gym in Nikiski, Alaska, on Wednesday, May 15, 2024. (Jake Dye/Peninsula Clarion)
Nikiski graduates ‘will always be a part of each other’s stories’

The graduates celebrated their time together and took a moment to anticipate the bright futures that lie ahead

A seal pup rescued from near Kenai beach is treated by the Alaska SeaLife Center’s Wildlife Response Program on May 9, 2024. (Photo courtesy Kaiti Grant/Alaska SeaLife Center)
SeaLife Center admits abandoned harbor seal pups

Both seals were found abandoned and malnourished, and both were born prematurely

Caitlin Babcock, left, and other graduates enter Soldotna High School’s commencement ceremony on Tuesday, May 14, 2024, in Soldotna, Alaska. (Ashlyn O’Hara/Peninsula Clarion)
Soldotna sends off more than 140 graduates at Tuesday commencement

More than 140 students stepped off the Soldotna High School graduation stage… Continue reading

Most Read