SITKA, ALASKA
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Local rate payers would see no change in their utility bills if the bonds are passed, since existing debt from the early 1990’s would be retired at about the same time.
City finance director Dave Wolff said that a vote of the people was not required for Sitka to issue revenue bonds. Still, Wolff explained that the executive director of the Alaska Municipal Bond Bank Authority, Deven Mitchell, believed an advisory vote had several advantages.
“He thought if we got the vote of the people there would be a greater comfort level with his board to approve the bonds. And also give a greater comfort level to the people that buy the bonds. That would give us a lower interest rate.”
Although the bonds would have no effect on rates, Wolff cautioned the assembly that the city was only at the beginning of the financing its hydro expansion. He thought another $50 million in bonds would be required to finish.
Wolff said it was not too early to begin thinking about softening that blow.
“There will be another bond series coming out. Your challenge is to go out and find some more grants – whether state or federal – because there will be another $50 million hit coming after this one. If we could get more grants, every $10 million means a penny less on the rate.”
The assembly expressed no reservations about moving ahead with putting the advisory vote before the electorate this fall.
Member Phyllis Hackett may have asked the one question that everyone else was thinking.
“If this does go to an advisory vote but voters don’t approve it, how is that going to look? Wolff – Then I didn’t do my job. I’m out to educate them the next two-and-a-half months.”
The typically retiring Wolff said he would put in an appearance at every public forum possible where he could spread the word. Turning to the Sitka’s omni-present television man, Dan Etulain, Wolff said, “Dan will be sick of me.”
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