(a) The Council shall not approve proposed District Bonds if the applicable annual Debt Service on the proposed District Bonds would cause the Debt Service on all District Bonds in the fiscal year in which the proposed District Bonds are issued, or in any of the 5 succeeding fiscal years, to exceed 12% of Total Expenditures in any applicable fiscal year, as contained in the most recently enacted District Budget and Financial Plan.
(b) Obligations incurred pursuant to the authority contained in subchapter II of Chapter 3 of Title 3, obligations incurred by the agencies transferred or established by sections 201 or 202 of the Home Rule Act [§ 1-202.01 or § 1-202.02], whether incurred before or after such transfer or establishment, and obligations incurred pursuant to District Bonds issued prior to October 1, 1996, for the financing of Department of Public Works, Water and Sewer Utility Administration capital projects shall not be included in determining the aggregate amount of Debt Service on all outstanding District Bonds subject to the 12% limitation specified in subsection (a) of this section.
(c) The 12% limitation specified in subsection (a) of this section shall be calculated by the Office of the Chief Financial Officer as follows:
(1) Determine the dollar amount equivalent to 12% of the Total Expenditures during the fiscal year for which the proposed District Bonds will be issued and the 5 succeeding fiscal years;
(2) Determine the actual total amount of Debt Service to be paid during the fiscal year for which the proposed District Bonds will be issued and the 5 succeeding fiscal years for all outstanding District Bonds;
(3) Determine the amount of Debt Service to be paid during the fiscal year for which the proposed District Bonds will be issued and the 5 succeeding fiscal years; and
(4) If in any applicable fiscal year the sum of paragraphs (2) and (3) of this subsection exceeds the amount determined under paragraph (1) of this subsection, then the proposed District Bonds or Treasury loan shall not be issued.
CREDIT(S)
(Mar. 25, 2009, D.C. Law 17-360, § 2(c), 56 DCR 1200; Mar. 3, 2010, D.C. Law 18-111, § 7211(b), 57 DCR 181; Apr. 8, 2011, D.C. Law 18-370, § 752(b), 58 DCR 1008.)
HISTORICAL AND STATUTORY NOTES
Effect of Amendments
D.C. Law 18-111 rewrote the section, which had read as follows:
“(a) The Council shall not approve a District Bond Issuance if the applicable annual Debt Service on the District Bond Issuance would cause the Debt Service on all District Bonds in the fiscal year in which the District Bonds are issued, or in any of the 3 succeeding fiscal years, to exceed 12% of General Fund Expenditures in any applicable fiscal year, as certified by the Chief Financial Officer of the District of Columbia.
“(b) Obligations incurred pursuant to the authority contained in subchapter II of Chapter 3 of Title 3, obligations incurred by the agencies transferred or established by sections 201 or 202 of the Home Rule Act [§§ 1-202.01 or 1-202.02], whether incurred before or after such transfer or establishment, and obligations incurred pursuant to District Bonds issued prior to October 1, 1996, for the financing of Department of Public Works, Water and Sewer Utility Administration capital projects shall not be included in determining the aggregate amount of all outstanding obligations subject to the 12% limitation specified in subsection (a) of this section.
“(c) The 12% limitation specified in subsection (a) of this section shall be calculated by the Office of the Chief Financial Officer as follows:
“(1) Determine the dollar amount equivalent to 12% of the General Fund Expenditures, less any fees or revenues directed to servicing revenue bonds, any revenues, charges, or fees dedicated for the purposes of water and sewer facilities, as defined in section 490(a)(5) of the Home Rule Act [§ 1-204.90(a)(5)], including fees or revenues directed to servicing or securing revenue bonds issued for such purposes, retirement contributions, revenues from retirement systems, and revenues derived from Treasury loans, and the sale of general obligation or revenue bonds, which the Mayor estimates, and the District of Columbia Auditor certifies, will be credited to the District during the fiscal year for which the bonds will be issued;
“(2) Determine the actual total amount of principal and interest to be paid in each fiscal year for all outstanding District Bonds, less the allocable portion of principal and interest to be paid during the year on general obligation bonds of the District of Columbia issued prior to October 1, 1996, for the financing of Department of Public Works, Water and Sewer Utility Administration capital projects and Treasury loans;
“(3) Determine the amount of principal and interest to be paid during each fiscal year over the term of the proposed District Bond or Treasury loan to be issued; and
“(4) If in any fiscal year the sum of paragraphs (2) and (3) of this subsection exceeds the amount determined under paragraph (1) of this subsection, then the proposed District Bond or Treasury loan shall not be issued.”
D.C. Law 18-370 substituted “5 succeeding fiscal years” for “3 succeeding fiscal years”.
Emergency Act Amendments
For temporary (90 day) amendment of section, see § 2(b) of Limitation on Borrowing and Establishment of the Operating Cash Reserve Technical Amendment Emergency Act of 2009 (D.C. Act 18-174, August 3, 2009, 56 DCR 6639).
For temporary (90 day) amendment of section, see § 7081(b) of Fiscal Year 2010 Budget Support Emergency Act of 2009 (D.C. Act 18-187, August 26, 2009, 56 DCR 7374).
For temporary (90 day) amendment of section, see § 7211(b) of Fiscal Year 2010 Budget Support Second Emergency Act of 2009 (D.C. Act 18-207, October 15, 2009, 56 DCR 8234).
For temporary (90 day) amendment of section, see § 7211(b) of Fiscal Year Budget Support Congressional Review Emergency Amendment Act of 2009 (D.C. Act 18-260, January 4, 2010, 57 DCR 345).
For temporary (90 day) amendment of section, see § 752(b) of Fiscal Year 2011 Supplemental Budget Support Emergency Act of 2010 (D.C. Act 18-694, January 19, 2011, 58 DCR 662).
Legislative History of Laws
For Law 17-360, see notes following § 47-334.
For Law 18-111, see notes following § 47-305.02.
For history of Law 18-370, see notes under § 47-143.
