VI-6 Council to have power to regulate

ARTICLE VI
BORROWING

Section

VI-4 Use of unexpended and unencumbered balances

VI-5 Voiding authorization of bonds, etc.

For statutory provisions regarding security for general obligation bonds, see AS 29.47.200(b); for revenue bonds, see AS 29.47.260.

VI-1 General obligation bonds, etc.

The City shall have power to borrow money and to issue its general obligation bonds or other such evidences of indebtedness therefor, but only when authorized by the council 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 by other designated funds or revenues specifically pledged for payment of principal and interest thereon. Capital improvements as used hereinabove may also include a part or all of the City’s share of the cost of a public improvement of which a part is to be paid by benefitted property. Construction warrants may be issued following bond issue approval and pending sale of the bonds.

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 benefitted property, nor to refunding indebtedness.

VI-2 Borrowing to meet appropriations

The City shall have power to borrow money to meet appropriations for any fiscal year in anticipation of the collection of revenues for that year when authorized by the council and without submitting the question to the voters. The total of such indebtedness shall never exceed twenty-five (25) percent of anticipated revenues of that year. All debts so contracted shall be paid before the end of the next fiscal year.

VI-3 Revenue bonds, etc.

The City shall have power to borrow money and to issue revenue bonds or other such evidences of indebtedness therefor, the principal and interest of which are payable solely out of and the only security of which is the revenue of a revenue-producing utility or enterprise; but only when authorized by the council for the acquisition, construction, reconstruction, repair, improvement, extension, enlargement, and/or equipment of the said utility or enterprise and ratified at an election by a majority of those qualified to vote and voting on the question, so long as voter approval is required by state law. Construction warrants may be issued following the ratification of a bond issue under this section and pending sale of the bonds.

VI-4 Use of unexpended and unencumbered balances

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 council 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 City; or

(3) If there are no other bonds or obligations of the City outstanding, then for any purpose determined by the council.

VI-5 Voiding authorization of bonds, etc.

The council, by resolution or ordinance, may void the authorization of any unsold bonds or other evidences of indebtedness at any time. If any bonds or other evidences of indebtedness are not sold within ten 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.