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Borough, district near sign-off on MOA to repay roughly $5.4M over multiple years; exhibit pending
Summary
Officials said the borough and school district have agreed on repayment language and are awaiting a final exhibit and attorney sign‑off before the district board holds a special meeting to vote on a multi‑year repayment MOA; members emphasized avoiding additional debt and noted the loan will have a variable interest rate.
Members of the Ketchikan Gateway Borough Assembly–School Board Liaison Committee were told the borough and district have largely resolved language for a repayment memorandum of agreement to address the district's roughly $5.4 million note and are awaiting a final exhibit and attorney sign-off before a special district meeting and vote.
"We will get the final exhibit and those final edits before the attorney and before the board, and we're ready to ink it as soon as we get this sign off," Ms. Bullard said, describing the steps remaining for the district to finalize the agreement.
Committee members asked the district to avoid adding more debt before the end of the fiscal year. Mr. Dowell warned that any additional borrowing would increase repayment amounts and interest and urged maintaining vacancies or other cost controls to help the FY2027 budget.
Pierce said staff are using the borough's three‑year repayment worksheet and have included an optimistic $650,000 assumption for additional debt in projections; she also noted DEED staff (identified in the meeting as Lori Weed) indicated the district should present an assigned MOA and a repayment structure to qualify for timely foundation payments.
One committee member noted the interfund loan arranged for the repayment will carry a variable interest rate; the debt on the books is currently about 3 percent and "will be recalculated for July 1," the member said. Members expressed support for staff candor and asked for continued public conversation as financial details are finalized.
The committee set a follow-up liaison meeting for April 7 at noon to continue budget review prior to the Assembly's April 8 final reading; no MOA vote occurred at this liaison meeting.
