CITY OF HOMER

Finance

HOMER, ALASKA

City Manager

RESOLUTION 04-54

A RESOLUTION OF THE CITY COUNCIL AMENDING RESOLUTION 03-143(S)(A), TO ESTABLISH THE INTEREST RATE FOR THE OCEAN DRIVE LOOP BLUFF EROSION CONTROL ASSESSMENT DISTRICT AT SIX AND ONE HALF PERCENT (6.5%).

WHEREAS, Resolution 03-143(S)(A) approved the final assessment roll, set the payment date as September 1 with September 1, 2004 as the first payment date, set penalties and interest for delinquency; and

WHEREAS, The annual installment included an interest set at the rate of .5% per annum higher than the average interest rate of the bonds sold for the District; and

WHEREAS, An appeal to the assessment amounts was filed and therefore, the City of Homer was unable to apply for bonding.

NOW, THEREFORE, BE IT RESOLVED by the City Council of Homer, Alaska that Resolution 03-143(S)(A) is hereby amended to establish the interest rate for the Ocean Drive Loop Bluff Erosion Control Assessment District at six and one half percent interest per annum effective for the September 1, 2004 payment date and all other portions of Resolution 03-143(S)(A) stand as adopted; and

BE IT FURTHER RESOLVED by the City Council that once the bonds are sold the interest rate will be .5% higher than the average interest rate of the bonds sold for the district; and

BE IT FURTHER RESOLVED by the City Council that once the bonds are sold the 6.5% interest rate will cease and bond rate as noted above will be effective without credit or reimbursement to the property owner should the rate be lower than 6.5% and without additional payment to the City should the rate be higher than 6.5%.

PASSED and ADOPTED by the City Council of the City of Homer, Alaska this 14th day of June, 2004.

CITY OF HOMER

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ATTEST: JACK CUSHING, MAYOR

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MARY L. CALHOUN, CMC, CITY CLERK

Fiscal note: Resolution 03-143(S)(A) fiscal note unchanged except for interest rate.