County proposes $9 million in bonds
July 9, 2010 · Updated 1:03 PM
On July 12, the Kitsap County commissioners will propose a resolution authorizing the issuance and sale of limited tax general obligation and refunding bonds in the amount of, but not to exceed, $9 million.
If approved, the resolution will provide funds to finance, refinance and reimburse the costs of construction and improvements to the Coroner’s Office building, a central county community campus and to refund certain outstanding limited tax general obligation bonds.
It also includes provisions to refund a note issued to finance the acquisition of the Bearbower property in Central Kitsap and provides for the annual levy of taxes to pay the principal of and interest on the bonds.
The resolution, if accepted, would authorize the issuance of tax-exempt bonds for two main purposes.
First, the county would refund previously issued bonds (1996 and 1999 bonds) and the Bearbower property note for a total of $7.85 million.
The bond refunding portion (1996 and 1999 bonds) would result in debt service savings of $405,000 ($345,000 net present value).
To finance, refinance and reimburse $2.05 million in costs already expended on the Coroner’s Office building and the Central Kitsap Community Campus, pursuant to the county’s adopted Capital Facilities Plan.
In 2007, the Board of County Commissioners adopted a resolution providing for reimbursement through later issuance of tax-exempt bonds to finance property acquisition, renovations, and/or improvements to county owned property and facilities in accordance with its Capital Improvement Plan.
That plan called for work on the Central Kitsap Community Campus and the construction of the coroner’s building.
In adopting the resolution, the county declared its intent to issue tax-exempt bonds to finance these acquisitions and improvements.
In 2008, the county exercised its option to purchase the Bearbower property, which was approximately an acre with a 10,800-square-foot commercial building.
The purpose was to house the Central Kitsap Community Campus site.
The county purchased the property for $2.3 million using its Real Estate Excise Tax (REET) fund.
In November 2009, the board approved another resolution authorizing the issuance of a bond anticipation note to reimburse the REET fund the $2.3 million used to purchase the Bearbower property.
The note matures on Sept. 4.
This bond issuance and sale would provide funding for the $2.3 million and interest on the Bearbower property purchase.
In addition, the bond issuance and sale will reimburse the county’s REET fund the $1 million used, or to be used, to finance certain infrastructure improvements made to the Central Kitsap Community Campus for the construction of multiple public amenities, including a multi-purpose community recreation center that will be leased and operated by the YMCA.
The bonds will also reimburse the REET fund for an additional $880,000 in costs associated with the construction of the coroner’s building, finalized in December 2009.