FY2010-05 Amending Debt PoliciesIntroduced by: Borough Manager
Requested by: Borough Mayor
1 Drafted by: Finance Director
2 Introduced: 08/06/2009
3 Public Hearing: 09/03/2009
Adopted: 09/03/2009
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6 KODIAK ISLAND BOROUGH
7 ORDINANCE NO. FY2010 -05
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9 AN ORDINANCE OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH
10 AMENDING KODIAK ISLAND BOROUGH CODE TITLE 3 REVENUE AND FINANCE
11 CHAPTER 3.05 FISCAL POLICY SECTION 3.05.030 DEBT POLICIES
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13 WHEREAS, the financial policies of the Kodiak Island Borough were adopted in 1990
14 and are very conservative; and
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16 WHEREAS, the State of Alaska generally reimburses the Borough for 60 to 70 percent
17 of our debt; and
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19 WHEREAS, under GASB (Governmental Accounting Standards Board) this State
20 reimbursement is not considered in the net bonded debt calculation; and
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22 WHEREAS, General Fund expenditures make up a very small percentage of total
23 Borough revenues; and
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25 WHEREAS, the financial stability of the Borough is further enhanced by the Facilities
26 Fund which did not exist when these policies were adopted.
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28 NOW, THEREFORE, BE IT ORDAINED BY THE ASSEMBLY OF THE KODIAK
29 ISLAND BOROUGH THAT:
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31 Section 1: This ordinance is of a general and permanent nature and shall become a
32 part of the Kodiak Island Borough Code of Ordinances.
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34 Section 2: Title 3 Revenue and Finance Chapter 3.05 Fiscal Policy Section 3.05.030
35 Debt Policies of the Kodiak Island Borough Code is hereby amended as
36 follows:
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38 3.05.030 Debt policies.
39 The borough will not fund current operations from the proceeds of borrowed funds.
40 The borough will confine long -term borrowing to funding of capital improvements or
41 projects that cannot be financed from current revenues.
42 When the borough finances capital projects by issuing bonds, it will repay the debt
43 within a period not to exceed the expected useful life of the project so constructed.
44 Target debt ratios will be annually calculated and included in the review of financial
45 trends.
46 Net debt as a percentage of the estimated market value of taxable property should not
47 exceed five-fifteen percent.
Kodiak Island Borough Ordinance No. FY2010 -05
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51 The borough recognizes the importance of underlying and overlapping debt in
52 analyzing financial condition. The borough will regularly analyze indebtedness including
53 underlying and overlapping debt.
54 The borough will maintain good communications about its financial condition with bond
55 and credit institutions.
56 The borough will follow a policy of full disclosure in every annual financial statement
57 and bond official statement.
58 The borough will avoid borrowing on tax anticipation and maintain an adequate fund
59 balance.
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61 ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH
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71 ATTEST:
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ijjt s,J
75 Nova M. Javier, MM Borough Clerk
THIS THIRD DAY OF SEPTEMBER, 2009
KODIAK ISLAND BOROUGH
Jerome M. Selby, Borough Ma or
Kodiak Island Borough Ordinance No. FY2010 -05
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