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Introduced by: Borough Manager <br />Requested by: Borough Mayor <br />1 Drafted by: Finance Director <br />2 Introduced: 08/06/2009 <br />3 Public Hearing: 09/03/2009 <br />Adopted: 09/03/2009 <br />4 <br />5 <br />6 KODIAK ISLAND BOROUGH <br />7 ORDINANCE NO. FY2010 -05 <br />8 <br />9 AN ORDINANCE OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH <br />10 AMENDING KODIAK ISLAND BOROUGH CODE TITLE 3 REVENUE AND FINANCE <br />11 CHAPTER 3.05 FISCAL POLICY SECTION 3.05.030 DEBT POLICIES <br />12 <br />13 WHEREAS, the financial policies of the Kodiak Island Borough were adopted in 1990 <br />14 and are very conservative; and <br />15 <br />16 WHEREAS, the State of Alaska generally reimburses the Borough for 60 to 70 percent <br />17 of our debt; and <br />18 <br />19 WHEREAS, under GASB (Governmental Accounting Standards Board) this State <br />20 reimbursement is not considered in the net bonded debt calculation; and <br />21 <br />22 WHEREAS, General Fund expenditures make up a very small percentage of total <br />23 Borough revenues; and <br />24 <br />25 WHEREAS, the financial stability of the Borough is further enhanced by the Facilities <br />26 Fund which did not exist when these policies were adopted. <br />27 <br />28 NOW, THEREFORE, BE IT ORDAINED BY THE ASSEMBLY OF THE KODIAK <br />29 ISLAND BOROUGH THAT: <br />30 <br />31 Section 1: This ordinance is of a general and permanent nature and shall become a <br />32 part of the Kodiak Island Borough Code of Ordinances. <br />33 <br />34 Section 2: Title 3 Revenue and Finance Chapter 3.05 Fiscal Policy Section 3.05.030 <br />35 Debt Policies of the Kodiak Island Borough Code is hereby amended as <br />36 follows: <br />37 <br />38 3.05.030 Debt policies. <br />39 The borough will not fund current operations from the proceeds of borrowed funds. <br />40 The borough will confine long -term borrowing to funding of capital improvements or <br />41 projects that cannot be financed from current revenues. <br />42 When the borough finances capital projects by issuing bonds, it will repay the debt <br />43 within a period not to exceed the expected useful life of the project so constructed. <br />44 Target debt ratios will be annually calculated and included in the review of financial <br />45 trends. <br />46 Net debt as a percentage of the estimated market value of taxable property should not <br />47 exceed five-fifteen percent. <br />Kodiak Island Borough Ordinance No. FY2010 -05 <br />Page 1 of 2 <br />