SB 180: "An Act relating to reimbursement of school construction debt; and providing for an effective date."
00SENATE BILL NO. 180 01 "An Act relating to reimbursement of school construction debt; and providing for 02 an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 14.11.100(a) is amended to read: 05 (a) During each fiscal year, the state shall allocate to a municipality that is a 06 school district, the following sums: 07 (1) payments made by the municipality during the fiscal year two years 08 earlier for the retirement of principal and interest on outstanding bonds, notes, or other 09 indebtedness incurred before July 1, 1977, to pay costs of school construction; 10 (2) 90 percent of 11 (A) payments made by the municipality during the fiscal year 12 two years earlier for the retirement of principal and interest on outstanding 13 bonds, notes, or other indebtedness incurred after June 30, 1977, and before 14 July 1, 1978, to pay costs of school construction;
01 (B) cash payments made after June 30, 1976, and before July 1, 02 1978, by the municipality during the fiscal year two years earlier to pay costs 03 of school construction; 04 (3) 90 percent of 05 (A) payments made by the municipality during the fiscal year 06 two years earlier for the retirement of principal and interest on outstanding 07 bonds, notes, or other indebtedness incurred after June 30, 1978, and before 08 January 1, 1982, to pay costs of school construction projects approved under 09 AS 14.07.020(a)(11); 10 (B) cash payments made after June 30, 1978, and before July 1, 11 1982, by the municipality during the fiscal year two years earlier to pay costs 12 of school construction projects approved under AS 14.07.020(a)(11); 13 (4) subject to (h) and (i) of this section, up to 90 percent of 14 (A) payments made by the municipality during the current fiscal 15 year for the retirement of principal and interest on outstanding bonds, notes, or 16 other indebtedness incurred after December 31, 1981, and authorized by the 17 qualified voters of the municipality before July 1, 1983, to pay costs of school 18 construction, additions to schools, and major rehabilitation projects that exceed 19 $25,000 and are approved under AS 14.07.020(a)(11); and 20 (B) cash payments made after June 30, 1982, and before July 1, 21 1983, by the municipality during the fiscal year two years earlier to pay costs 22 of school construction, additions to schools, and major rehabilitation projects 23 that exceed $25,000 and are approved under AS 14.07.020(a)(11); and 24 (C) payments made by the municipality during the current fiscal 25 year for the retirement of principal and interest on outstanding bonds, notes, or 26 other indebtedness to pay costs of school construction, additions to schools, and 27 major rehabilitation projects that exceed $25,000 and are submitted to the 28 department for approval under AS 14.07.020(a)(11) before July 1, 1983, and 29 approved by the qualified voters of the municipality before October 15, 1983, 30 not to exceed a total project cost of (i) $6,600,000 if the annual growth rate of 31 average daily membership of the municipality is more than 7 percent but less
01 than 12 percent, or (ii) $20,000,000 if the annual growth rate of average daily 02 membership of the municipality is 12 percent or more; payments made by a 03 municipality under this paragraph on total project costs that exceed the amounts 04 set out in (i) and (ii) of this paragraph are subject to (5)(A) of this subsection; 05 (5) subject to (h), (i), and (j) of this section, 80 percent of 06 (A) payments made by the municipality during the fiscal year 07 for the retirement of principal and interest on 08 (i) outstanding bonds, notes, or other indebtedness 09 authorized by the qualified voters of the municipality after June 30, 10 1983, but before March 31, 1990, to pay costs of school construction, 11 additions to schools, and major rehabilitation projects that exceed 12 $25,000 and are approved under AS 14.07.020(a)(11); 13 (ii) outstanding bonds, notes, or other indebtedness 14 authorized by the qualified voters of the municipality before July 1, 15 1989, and reauthorized before November 1, 1989, to pay costs of school 16 construction, additions to schools, and major rehabilitation projects that 17 exceed $25,000 and are approved under AS 14.07.020(a)(11); and 18 (B) cash payments made after June 30, 1983, by the 19 municipality during the fiscal year two years earlier to pay costs of school 20 construction, additions to schools, and major rehabilitation projects that exceed 21 $25,000 and are approved by the department before July 1, 1990, under 22 AS 14.07.020(a)(11); 23 (6) subject to (h), (i), and (j) of this section, 70 percent of payments 24 made by the municipality during the fiscal year for the retirement of principal 25 and interest on outstanding bonds, notes, or other indebtedness authorized by the 26 qualified voters of the municipality after April 1, 1993, but before March 31, 27 1997, to pay costs of school construction, additions to schools, and major 28 rehabilitation projects that exceed $50,000 and are approved under 29 AS 14.07.020(a)(11). 30 * Sec. 2. AS 14.11.100(j) is amended to read: 31 (j) Except as provided in (l) of this section, the state may not allocate money
01 to a municipality for a school construction project under (a)(5) or (6) of this section 02 unless the municipality complies with the requirements of (1) - (5) [(1) - (4)] of this 03 subsection, the project is approved by the commissioner before the local vote on the 04 bond issue for the project, and the local vote occurs before July 1, 1987, or after 05 June 30, 1988. In approving a project under this subsection, the commissioner shall 06 require 07 (1) the municipality to include on the ballot for the bond issue the 08 estimated total cost of each project including estimated total interest, estimated annual 09 operation and maintenance costs, the estimated amounts that will be paid by the state 10 and by the municipality, and the approximate amount that would be due in annual 11 taxes on $100,000 in assessed value to retire the debt; 12 (2) that the bonds may not be refunded unless the annual debt service 13 on the refunding issue is not greater than the annual debt service on the original issue; 14 (3) that the bonds must be repaid in approximately equal annual 15 principal payments or approximate equal debt service payments over a period of at 16 least 10 years; 17 (4) the municipality to demonstrate need for the project by establishing 18 that the school district has 19 (A) projected long-term student enrollment that indicates the 20 district has inadequate facilities to meet present or projected enrollment; or 21 (B) facilities that require repair or replacement in order to meet 22 health and safety laws or regulations or building codes; 23 (5) that after issuance of the bonds the percentage ratio of 24 municipal general obligation bonded indebtedness, other than general obligation 25 bonded indebtedness for school construction for which a municipality is eligible 26 to receive reimbursement under this section, to the full value of taxable real and 27 personal property as determined under AS 14.17.140, does not exceed the 28 following limits: 29 Municipal population Limit 30 0 - 5,000 2.0 percent 31 5,001 - 20,000 2.5 percent
01 20,001 - 35,000 3.0 percent 02 35,001 - 50,000 3.5 percent 03 50,001 - 100,000 4.0 percent 04 100,001 or greater 4.5 percent. 05 * Sec. 3. AS 14.11.102 is amended by adding a new subsection to read: 06 (b) The department shall evaluate projects for which retirement of school 07 construction debt is requested. In evaluating projects the department shall consider at 08 least the following factors: 09 (1) emergency requirements; 10 (2) number of unhoused students; 11 (3) new elementary or secondary programs; 12 (4) existing regional, community, and school facilities, and their 13 condition; 14 (5) alternate education program options for accomplishing the project's 15 objectives; and 16 (6) economic and social stability of the community. 17 * Sec. 4. This Act takes effect immediately under AS 01.10.070(c).