CSHB 521(CRA): "An Act relating to municipal improvement areas."

00 CS FOR HOUSE BILL NO. 521(CRA) 01 "An Act relating to municipal improvement areas." 02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 03 * Section 1. AS 29.47.460 is repealed and reenacted to read: 04 Sec. 29.47.460. Debt for improvement area projects. (a) A municipality 05 may issue bonds to finance or to make loans to finance the acquisition, construction, 06 rehabilitation, or development of public improvements in improvement areas. The 07 municipality may issue the bonds as general obligation bonds or as revenue bonds or 08 as a combination of revenue bonds and general obligation bonds. The municipality 09 may pledge revenues described in (b) of this section, payments to be made by users 10 and owners of the improvements, payments to be made by borrowers of the proceeds 11 of the bonds, and any other revenues available to the municipality to the payment of 12 bonds issued under this subsection. To the extent that the municipality issues general 13 obligation bonds under this subsection, the provisions of AS 29.47.180 - 29.47.200 14 apply to the bonds. To the extent that the municipality issues revenue bonds under 15 this subsection, the provisions of AS 29.47.250 and 29.47.260 apply to the bonds.

01 (b) A municipality may provide by ordinance that the tax increment from the 02 taxes levied each year by or on behalf of the municipality on the property in an 03 improvement area shall be issued to pay the principal and interest on bonds issued 04 under (a) of this section for improvements in that improvement area, and may 05 irrevocably pledge the tax increment from the area for that purpose. The area 06 described in the ordinance may be a service area. Nothing in this section obligates a 07 municipality that has issued bonds under (a) of this section and pledged a tax 08 increment to the payment of those bonds under this subsection to levy any tax in the 09 improvement area or any other area or to levy a tax at any particular rate within the 10 improvement area or any other area. 11 (c) The power granted by this section is in addition to other powers granted to 12 municipalities and does not restrict or limit the powers municipalities may have under 13 other provisions of law. 14 (d) In this section, 15 (1) "bonds" means bonds, notes, and other forms of indebtedness; 16 (2) "improvement area" means an area that a municipality determines 17 to be 18 (A) a blighted area on the basis of the substantial presence of 19 factors such as excessive vacant land on which structures were previously 20 located, abandoned or vacant buildings, substandard structures, and 21 delinquencies in payment of real property taxes; or 22 (B) an area that is capable of being substantially improved 23 based on the property value within the area; 24 (3) "tax increment" means the portion of a tax that is attributable to the 25 difference between the value of property within an improvement area shown on the 26 taxing agency's assessment roll for the year when the taxes are levied and the value of 27 the property shown on the taxing agency's last assessment roll that was equalized 28 before the improvements in the improvement area were authorized.