Chapter 4.06
MUNICIPAL INDEBTEDNESS
Sections:
4.06.010 Borrowing to meet appropriations.
4.06.020 General obligation bonds.
4.06.060 Use of unexpended and unencumbered balance.
4.06.070 Voiding authorization.
4.06.080 Assembly’s power to regulate.
4.06.010 Borrowing to meet appropriations.
Acting in accordance with AS 29.47.010 through 29.47.020, the assembly may, without submitting the question to the voters, borrow money to meet appropriations for the fiscal year in anticipation of the collection of revenues for that year. The total of such indebtedness shall never exceed twenty-five percent (25%) of the anticipated revenues in the budget. All debts so contracted shall be paid before the end of the next fiscal year.
(Ord. 11-12, Amended, 07/07/2011; Ord. 86-2, Amended, 01/15/1986; Ord. 84-25, § 5 (part), Repealed & Replaced, 11/08/1984)
4.06.020 General obligation bonds.
A. In accordance with AS 29.47.180 through 29.47.190, the municipality shall have power to borrow money and to issue its general-obligation bonds or other such evidences of indebtedness, but only when authorized by the assembly for capital improvements and ratified at an election by a majority of those qualified to vote and voting on the question. General obligation evidences of indebtedness may also be secured by revenues from a revenue-producing utility or enterprise when they are issued for the acquisition, construction, reconstruction, repair, improvement, extension, enlargement and/or equipment of the said utility or enterprise, and/or by other designated funds or revenues specifically pledged for payment of principal and interest thereon. Capital improvements as used herein may also include a part or all of the municipality’s share of the cost of a public improvement of which a part is to be paid by benefited property. Construction warrants may be issued following bond issue approval, and pending sale of the bonds.
B. The restrictions of this section do not apply to borrowing money to meet appropriations for a particular fiscal year, nor to indebtedness to be paid from special assessments to be made on benefited property, nor to refunding indebtedness.
(Ord. 11-12, Amended, 07/07/2011; Ord. 84-25 § 5 (part), Repealed & Replaced, 11/08/1984)
4.06.030 Revenue bonds.
In accordance with AS 29.47.240 through 29.47.250, the municipality shall have power to borrow money and to issue revenue bonds or other such evidences of indebtedness, the principal and interest of which are payable solely out of, and the only security of which is, the revenues of a revenue-producing utility or enterprise; but only when authorized by the assembly for the acquisition, construction, reconstruction, repair, improvement, extension, enlargement and/or equipment of the utility or enterprise, and ratified at an election by a majority of those qualified to vote and voting on the question. Construction warrants may be issued following the ratification of a bond issue under this section and pending sale of the bonds.
(Ord. 11-12, Amended, 07/07/2011; Ord. 86-2, Amended, 01/15/1986; Ord. 84-25, § 5 (part), Repealed & Replaced, 11/08/1984)
4.06.040 Interest rate.
No bond or other evidence of indebtedness of the municipality shall bear interest, either directly or indirectly, at a rate exceeding nine percent (9%) per year.
(Ord. 11-12, Amended, 07/07/2011; Ord. 84-25 § 5 (part), Repealed & Replaced, 11/08/1984)
4.06.050 Debt limit.
A. The outstanding general obligation indebtedness of the municipality incurred for all purposes, shall not at any time exceed twenty-five percent (25%) of all assessed value of the taxable real property in the municipality. In determining such debt limit of the municipality, any amounts credited to or on deposit for debt retirement, and any portion of reserve funds or accounts pledged to the indebtedness, shall be deducted from the amount of the outstanding indebtedness.
B. The debt limit herein prescribed shall not apply to debt incurred through the issuance of revenue bonds or other such evidences of indebtedness when the only security is the revenues of the utility or enterprise for which issued, nor to indebtedness to be paid from special assessments on the benefited property, nor to refunding indebtedness of the municipality, nor to debt incurred to meet appropriations for the fiscal year in anticipation of the collection of revenue for that year.
(Ord. 11-12, Amended, 07/07/2011; Ord. 84-25 § 5 (part), Repealed & Replaced, 11/08/1984)
4.06.060 Use of unexpended and unencumbered balance.
Every bond or other evidence of indebtedness shall contain a statement of the purpose for which it is issued, and the proceeds thereof shall not be used for any other purpose; except, that whenever any proceeds of an issue remain unexpended and unencumbered for the purpose for which issued, the assembly shall authorize the use of such unexpended and unencumbered funds only for the following purposes, which are listed in descending order of priority:
1. For the retirement of such issue;
2. If such issue has been fully retired, then for the retirement of other bonds or obligations of the municipality;
3. If there are no other bonds or obligations of the municipality outstanding, then for any other capital improvement of a like nature;
4. If such funds cannot be used for the above purposes, then for any purpose determined by the assembly.
(Ord. 11-12, Amended, 07/07/2011; Ord. 84-25 § 5 (part), Repealed & Replaced, 11/08/1984)
4.06.070 Voiding authorization.
The assembly, by resolution or ordinance, may void the authorization of any unsold bonds or other evidence of indebtedness at any time. If any bonds or other evidences of indebtedness are not sold within ten (10) years after authorization, such authorization shall be void as to the bonds or evidences of indebtedness which remain unsold. Nothing in this section shall be deemed to require the sale, at the same time nor in the same series, of all bonds or other evidences of indebtedness authorized.
(Ord. 11-12, Amended, 07/07/2011; Ord. 84-25 § 5 (part), Repealed & Replaced, 11/08/1984)
4.06.080 Assembly’s power to regulate.
The assembly shall have power to regulate the indebtedness of the municipality and the issuance of bonds and other evidences of indebtedness, regardless of type or purpose, including general obligation, revenue, special assessment, refunding and other, subject to the limitations imposed by the State Constitution and law.
(Ord. 11-12, Amended, 07/07/2011; Ord. 84-25 § 5 (part), Repealed & Replaced, 11/08/1984)