FY2020-15 Amending Title 3 Revenue And Finance Postponed Indefinitely1
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Introduced by: Finance Director
Drafted by: Finance Director
Introduced on:
12/05/2019
Postponed to:
02/06/2020
Amended:
02/06/2020
Postponed to:
03/19/2020
Postponed Indefinitely:
03/19/2020
KODIAKISLAND BOROUGH
ORDINANCE NO. FY2020-15
AN ORDINANCE OF THE ASSEMBLY OF THE KODIAK ISLAND BORQU4#1AAMENDING
TITLE 3 REVENUE AND FINANCE CHAPTER 3.10.030 PERMISSIBLI? IWMENTS AND
CHAPTER 3.10.120 FACILITIES FUND
WHEREAS, The Kodiak Island Borough Assembly finds that t e lith Fund is an areawide
borough reserved fund which contains sufficient funds to facilitgl!%Joalrs or grants when needed
to allow the Borough to respond to unexpected fiscal chpllera5 pr udgetary demands; and
WHEREAS, The Kodiak Island Borough Assembly fin th it is in the public interest to permit
investment of funds from the Facilities Fund by in aring multi-year loan to Borough
areawide, non-areawide or service area fun p d that such loans comply with limitations
on long term borrowing by Borough funds; and
WHEREAS, The Kodiak Island Boroug A mbly finds that it is in the public interest to permit
the grant of funds from the Facili ' d to other Borough areawide funds for areawide
purposes; and
WHEREAS, The Kodiak I i rough Assembly finds that it is in the public interest to permit
the loan of funds from th Fa ilities Fund to other Borough areawide funds for areawide, non-
areawide or servic purposes under terms where repayment is subject to annual
appropriations; a
WHEREAS Tdiak Island Borough Assembly finds that it is in the public interest to prescribe
rules for I an ���r grants from the Facilities Fund to other Borough funds; and
W EAS, The Kodiak Island Borough Assembly finds that loans or grants from the Facilities
Fund ould be memorialized by ordinance.
NOW, THEREFORE, BE IT ORDAINED BY THE ASSEMBLY OF THE KODIAK ISLAND
BOROUGH THAT:
Section 1: This ordinance is of a general and permanent nature and shall become a part of the
44 1 Kodiak Island Borough Code of Ordinances.
Kodiak Island Borough, Alaska
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Ordinance No. FY2020-15
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Section 2: That section 3.10.030 Permissible Investments of the Kodiak Island Borough Code of
Ordinances is amended to read as follows:
3.10.030 Permissible investments.
The finance director shall invest money only in the following types of security instruments:
A. Bonds, notes, or other obligations, direct or otherwise, of the United States Government;
B. Bonds and other evidence of indebtedness of the State of Alaska, or any municipality, or
political subdivision of the State of Alaska;
C. Savings accounts, certificates of deposit, banker's acceptances, repurchase agreements, and
such other legal security instruments; er
D. The Alaska Municipal League Investment Pool, Inc., made in accordance with the terms of that
pool's "Common Investment Agreement; or
E. Loans to borouah areawide, nonareawide or service area funds. provided that such
loans must be approved by ordinance setting out the term, interest rate and repayment
schedule for such loans. The interest rate shall be not less than the most recent annual
investment return rate for invested Borough funds. When such loans are not payable
within one vear, the ordinance must be ratified by the voters as reauired by law at a regular
or special election
Section 3: That section 3.10AZ20
cilities Fund of the Kodiak Island Borough Code of
Ordinances is amended to refollows:
3.10.120 Facilities fund.
A. The facilities fund is established as a separate special revenue fund which is distinct from all other
funds. The fund consists of all proceeds received from the sale of Shuyak Island property to the Exxon
Valdez Oil Spill Trustee Council. All income from the fund shall be deposited to the fund. The assembly
may, by ordinance, make additional appropriations to the fund at any time. Any additional funds added
to the fund, aside of Shuyak Island proceeds, shall become part of the fund as a whole and subject to
the regulations of the facilities fund.
B. The fund may be invested only as provided in KIBC 3.10.030. The fund may not be appropriated or
spent, except as provided in this section. The earnings or principal shall at no time run or supplement
the running of government except as specified in this section.
C. Repealed by Ord. FY2008-08.
Kodiak Island Borough, Alaska
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D. The excess income of the fund is defined as 85 percent of the annual investment income from the
fund. The excess income of the fund is available for appropriation by the assembly in the fiscal year
following the year in which the income is earned. The excess income of the fund may be appropriated
only for the following purposes:
1. Maintenance and repair of existing borough facilities;
2. Insurance paid by the borough for borough buildings;
3. Upgrade and reconstruction of existing facilities; or
4. Debt service on general obligation bonds issued for facilities construction — up to 50 100 percent of
excess may be used for this purpose.
E. The Assembly may, by ordinance, appropriate the excess income, and such portion of the
fund principal as the Assembly may determine, for grants to other areawide Borough funds or
A portion ofthe land may be appropriated for another areawide Borough purpose.-only-upenapprevaI
efan-erdiflaRee ra .::ed by wo thirds -majority -4 Unless specifically waived by the appropriations
ordinance, grants from the Facilities Fund may only be made by an ordinance approved by the
qualified voters at a regular or special election.
F. The Assembly may, by ordinance, appropriate the excess income, and such portion of the
fund principal as the Assembly may determine, for a loan to a Borough areawide, non-areawide
or service area fund which is not repayable within one year and for which the repayment is
subject to annual appropriation. Any such ordinance shall set out the term, interest rate and
repayment schedule for the loan. Unless specifically waived by the appropriations ordinance,
an ordinance authorizing a loan under this section may only be made by an ordinance
approved by the qualified voters at a regular or special election.
Effective Date: This ord an 'tis effect upon adoption. (Note: KIBC 2.30.070 states an
ordinance takes
or at a later date specified in the ordinance.)
ADOPTED BlaWASSEMBLY OF THE KODIAK ISLAND BOROUGH
THIS -V DAY OF , 2019.
KOD ISLAND BOROUGH ATTEST:
William Roberts, Mayor
114 1 VOTES:
Kodiak Island Borough, Alaska
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Tara Welinsky, Clerk
Ordinance No. FY2020-15
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115 Ayes:
116 Noes:
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Kodiak Island Borough, Alaska Ordinance No. FY2020-15
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