BALLOT PROPOSITIONS PROPOSITION NO. 1

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BALLOT PROPOSITIONS PROPOSITION. 1 ADVISORY QUESTION ELECTRIC REVENUE $50,000,000 BLUE LAKE HYDROELECTRIC PROJECT AND RETIRING ELECTRIC REVENUE To pay a portion of the cost of expanding the Blue Lake hydroelectric project and all or a portion of the cost of retiring the City and Borough of Sitka s outstanding municipal utilities revenue bonds, shall the City and Borough of Sitka issue and sell approximately $50,000,000 of its electric revenue bonds maturing within a maximum term of 20 years and payable solely from revenues of the Electric System, all as described in Resolution No. 2010-20 of the Sitka Assembly? PROPOSITION. 2 Shall the Sitka General Code at Chapter 9.20 entitled Smoking in Public Places and Places of Employment be amended to prohibit smoking in bars and in private clubs licensed to sell alcoholic beverages or food, set a minimum reasonable distance outside for non-smoking, add violation consequences, and make clarifying amendments to further protect people from the effects of secondhand smoke? Informational. See Ordinance 2010-09 for the amendments. PROPOSITION. 3 $2,410,000 GENERAL OBLIGATION BLATCHLEY SCHOOL MECHANICAL AND ELECTRICAL SYSTEM IMPROVEMENTS in the principal amount of not to exceed $2,410,000, maturing within a maximum of 20 years, to pay for refurbishment and upgrades to mechanical and electrical systems of Blatchley Middle School, and shall Ordinance No. 2010-18 of the City

and Borough authorizing the issuance of the bonds for these capital improvements be approved? Informational. This project has been approved by the State of Alaska Department of Education and Early Development, so that the City and Borough is eligible for reimbursement of 70% of debt service on the bonds. Reimbursement payments by the State are subject to annual appropriation by the legislature, and the full faith and credit of the City and Borough will be pledged for 100% of debt service on the bonds if necessary. PROPOSITION. 4 $3,286,000 GENERAL OBLIGATION BLATCHLEY SCHOOL MAJOR MAINTENANCE PROJECTS in the principal amount of not to exceed $3,286,000, maturing within a maximum of 20 years, to pay for major capital maintenance improvements at Blatchley Middle School including replacing and refurbishing windows, doors, bathrooms, flooring, locker rooms and laboratories, and shall Ordinance No. 2010-19 of the City and Borough authorizing the issuance of the bonds for these capital improvements be approved? Informational. This project has been approved by the State of Alaska Department of Education and Early Development, so that the City and Borough is eligible for reimbursement of 70% of debt service on the bonds. Reimbursement payments by the State are subject to annual appropriation by the legislature, and the full faith and credit of the City and Borough will be pledged for 100% of debt service on the bonds if necessary.

PROPOSITION. 5 Shall the City and Borough of Sitka use some of the proceeds from the seasonal sales tax revenue imposed from April 1 through September 30 to fund the 35% match of $935,056 required by the State of Alaska grant to the Sitka School District and the City and Borough of Sitka for the $2,671,588 Pacific High School Major Maintenance Project? Informational: The local match for the Pacific High School Major Maintenance Project of $935,056 will not lengthen the duration of the seasonal sales tax beyond the original 20 year term approved by the voters in the October 2003 special election. PROPOSITION. 6 $6,000,000 GENERAL OBLIGATION FOR THE PURCHASE OF AND CAPITAL IMPROVEMENTS TO THE HAMES CENTER in the principal amount of not to exceed $6,000,000, maturing within a maximum of 20 years, to finance the purchase of and capital improvements to the Hames Center, and shall Ordinance No. 2010-06S of the City and Borough authorizing the issuance of the bonds for such plan for the purchase of and capital improvement to the Hames Center be approved? Informational. The bonds will be issued only if the voters of the City and Borough of Sitka also approve related propositions regarding: (1) a Charter amendment to increase the real property tax millage rate limit by.5 mills to 6.5 mills (Proposition No. 7), and (2) allowing the Assembly to pass a yearly resolution for the next 20 years in accordance with Sitka General Code 4.12.110A to set the real property tax rate at 6.5 mills to pay for the

purchase of, capital improvements to, and unfunded operating costs for the Hames Center (Proposition No. 8). PROPOSITION. 7 Shall the City and Borough of Sitka Charter at Article 13.03, entitled Property Tax Limit, be amended to increase the property tax levy limit by.5 mills, thus not to exceed six and one-half tenths (.0065) of one per cent (6.5 mills) of the assessed valuation of taxable property, to pay for the purchase of and improvements to the Hames Center, and for Hames Center unfunded operating costs? Informational: An affirmative vote on this question would amend the City and Borough of Sitka Charter at Article 13.03 by increasing the allowable millage rate limit by.5 mills, to 6.5 mills. However, this amendment will not occur unless the qualified voters at the October 5, 2010 election also approve both related propositions regarding: (1) ratifying the authorization of general obligation bonds for the Hames Center purchase and capital improvements in the amount not to exceed six million dollars ($6,000,000) (Proposition No. 6); and (2) allowing, but not requiring the Assembly to set the property tax millage rate at 6.5 mills annually by Assembly resolution, in accordance with Sitka General Code 4.12.110A., to repay the bonds and the unfunded operating costs of the Hames Center (Proposition No. 8). PROPOSITION. 8 ADVISORY QUESTION Should the Assembly for the City and Borough of Sitka be allowed, but not required, to pass a resolution yearly for the next 20 years to set the property tax millage rate at 6.5 mills, in accordance with Sitka General Code 4.12.110A, to pay for the general obligation bonds for the purchase of and improvements to the Hames Center, and for Hames Center unfunded operating costs? Informational: An affirmative vote on this question would result in the Sitka Assembly being requested to set the property tax millage rate at 6.5 mills for the next 20 years in its yearly resolution, passed in accordance

with Sitka General Code 4.12.110A. The final decision whether to increase the millage rate rests with the Assembly each year. If the Assembly did increase the millage rate to 6.5 mills, this would result in real property valued at $300,000 being assessed $150 in additional property taxes yearly. However, this amendment will not occur unless the qualified voters at the October 5, 2010 election also approve both related propositions regarding: (1) ratifying the authorization of general obligation bonds for the Hames Center purchase and capital improvements in the amount not to exceed six million dollars ($6,000,000) (Proposition No. 6); and (2) amending the Sitka Charter at 13.03 to increase the real property tax millage rate limit by.5 mills to 6.5 mills (Proposition No.7).