For the purposes of this subchapter, the term:
(1) "Debt Service" means the amount of money necessary to pay interest on outstanding District Bonds, including interest payments deferred to future years, the principal on maturing District Bonds, and the required contributions to a sinking fund for District Bonds, but excluding debt service payments rebated to the District pursuant to the American Recovery and Reinvestment Act of 2009, approved February 17, 2009 (123 Stat. 115; 26 U.S.C. § 1 note). For tax-supported debt issued as variable-rate District Bonds, if the planned amortization of principal on the District Bonds, as documented in the indenture associated with such District Bonds, is different from the stated maturity of principal on the District Bonds, then the principal on maturing District Bonds shall mean the planned amortization of principal on the District Bonds.
(2) "District Bonds" means:
(A) General obligation bonds issued pursuant to the Home Rule Act;
(B) Treasury capital-project loans;
(C) Tax supported revenue bonds, notes, or other debt instruments secured by revenues derived from taxes, fees, or other general revenues of the District, or its agencies and authorities, pursuant to the District's power to tax and impose fees, including tax increment financed bonds, notes, or other debt instruments and bonds, notes, or other debt instruments financed by payments in lieu of taxes, but excluding revenue bonds, notes, or other debt instruments issued for the purpose of funding water and sewer facilities, as described in section 490(a) of the Home Rule Act [§ 1-204.90(a)], and bonds, notes, or other debt instruments paid or secured by revenues from the Master Settlement Agreement with tobacco companies, federal grants, or revenues from the operation of public enterprises, so long as those enterprises are fully self-supporting;
(D) Certificates of participation, and
(E) Lease purchase financing obligations.
(3) "District Bond Issuance" means the District's authorizing, selling, and delivering of District Bonds, including District Bonds to refund outstanding District Bonds.
(4) "Home Rule Act" means the District of Columbia Home Rule Act, approved December 24, 1973 (87 Stat. 774; D.C. Official Code § 1-201.01 et seq.).
(5) "Total Expenditures" means the total amount included in the Total Expenditures and Transfers line item in the enacted District Budget and Financial Plan for the General Fund for an applicable fiscal year, plus any Debt Service amounts in an applicable fiscal year on District Bonds for which the Debt Service on such District Bonds is not included in the Total Expenditures and Transfers line item in the enacted District Budget and Financial Plan for the General Fund.
(Mar. 25, 2009, D.C. Law 17-360, § 2(b), 56 DCR 1200; Mar. 3, 2010, D.C. Law 18-111, § 7211(a), 57 DCR 181; Apr. 8, 2011, D.C. Law 18-370, § 752(a), 58 DCR 1008.)
HISTORICAL AND STATUTORY NOTES
Effect of Amendments
D.C. Law 18-111 rewrote the section, which had read as follows:
"For the purposes of this subchapter, the term:
"(1) 'Debt Service' means the amount of money necessary to pay interest on outstanding District Bonds, including interest payments deferred to future years, the principal on maturing bonds, and the required contributions to a sinking fund for District Bonds.
"(2) 'District Bonds' means:
"(A) General obligation bonds issued pursuant to the Home Rule Act;
"(B) Treasury capital-project loans;
"(C) Tax-supported revenue bonds or notes, including tax increment financed bonds or notes and bonds or notes financed by payments-in-lieu of taxes, but excluding revenue bonds or notes issued for the purpose of funding water and sewer facilities, as described in section 490(a) of the Home Rule Act [§ 1- 204.90(a)];
"(D) Certificates of participation, and
"(E) Lease-purchase financing bonds.
"(3) 'District Bond Issuance' means the District's authorizing, selling, and delivering of District Bonds, including District Bonds to refund outstanding District Bonds.
"(4) 'General Fund Expenditures' means the total amount expended from the General Fund and Transfers line item in the enacted District Budget and Financial Plan for a fiscal year.
"(5) 'Home Rule Act' means the District of Columbia Home Rule Act, approved December 24, 1973 (87 Stat. 774; D.C. Official Code § 1-201.01 et seq.)."
D.C. Law 18-370, in par. (1), added the second sentence.
Emergency Act Amendments
For temporary (90 day) amendment of section, see § 2(a) 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(a) 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(a) 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(a) 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(a) 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
Law 17-360, the "Limitation on Borrowing and Establishment of the Operating Cash Reserve Act of 2008", was introduced in Council and assigned Bill No. 17- 914 which was referred to the Committee of the Whole. The Bill was adopted on first and second readings on December 2, 2008, and December 16, 2008, respectively. Signed by the Mayor on January 16, 2009, it was assigned Act No. 17-695 and transmitted to both Houses of Congress for its review. D.C. Law 17- 360 became effective on March 25, 2009.
For Law 18-111, see notes following § 47-305.02.
For history of Law 18-370, see notes under § 47-143.
Miscellaneous Notes
Short title: Section 7210 of D.C. Law 18-111 provided that subtitle S of title VII of the act may be cited as the "Limitation on Borrowing Technical Amendments Act of 2009".
Short title: Section 751 of D.C. Law 18-370 provided that subtitle F of title VII of the act may be cited as "Limitation on Borrowing Amendment Act of 2010".
Any revenue bonds, notes, or other obligations authorized by an act of the Council of the District of Columbia enacted subsequent to August 1, 1981, pursuant to § 1-204.90(a), may be secured by a mortgage of real property or a security interest in any revenues, assets, or other property, notwithstanding that such mortgage or other security interest may not have been authorized by such § 1-204.90(a) as of the effective date of such act.
(Dec. 23, 1981, 95 Stat. 1493, Pub. L. 97-105, § 19(b); enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 47-335.
The Mayor shall not borrow any funds for capital projects unless the Mayor has obtained prior approval from the Council, by resolution, identifying the projects and amounts to be financed with such borrowings.
(Oct. 19, 2000, D.C. Law 13-172, § 3302, 47 DCR 6308.)
HISTORICAL AND STATUTORY NOTES
Temporary Addition of Section
Section 3 of D.C. Law 18-308 added a section to read as follows:
"Sec. 3. (a) Pursuant to section 3302 of the Fiscal Year 2001 Budget Support Act of 2000, effective October 19, 2000 (D.C. Law 13-172; D.C. Official Code § 47-335.01), the Council approves the issuance and sale of general obligation bonds in an aggregate principal amount not to exceed $180 million to fund certain capital projects listed in section 4, plus all costs and expenses related to issuing and delivering the bonds as authorized pursuant to the Bond Acts.
"(b) The capital projects listed in section 4 have been authorized pursuant to section 446 of the District of Columbia Home Rule Act, approved December 24, 1973 (87 Stat. 801; D.C. Official Code § 1-204.46), the District of Columbia Appropriations Act, 2000, approved November 29, 1999 (Pub. L. No. 106- 113; 113 Stat. 1501), the District of Columbia Appropriations Act, 2001, approved November 22, 2000 (Pub. L. No. 106-522; 114 Stat. 2457), the District of Columbia Appropriations Act, 2002, approved December 21, 2001 (Pub. L. No. 107-96; 115 Stat. 923), the District of Columbia Appropriations Act, 2003, approved February 20, 2003 (Pub. L. No. 108-7; 117 Stat. 11), the District of Columbia Appropriations Act, 2004, approved January 23, 2004 (Pub. L. No. 108- 199; 118 Stat. 3), the District of Columbia Appropriations Act, 2005, approved October 18, 2004 (Pub. L. No. 108-335; 118 Stat. 1322), the District of Columbia Appropriations Act, 2006, approved November 30, 2005 (Pub. L. No 109- 115; 119 Stat. 2508), the Continuing Appropriations Resolution, 2007, approved February 15, 2007 (Pub. L. No. 110-5; 121 Stat. 8), the Continuing Appropriations Resolution, 2008, approved September 29, 2007 (Pub. L. No. 110- 92; 121 Stat. 989), the District of Columbia Appropriations Act, 2008, approved December 26, 2007 (Pub. L. No. 110-161; 121 Stat. 1990), the Continuing Appropriations Resolution, 2009, approved September 30, 2008 (Pub. L. No. 110-329; 119 Stat. 3574), the District of Columbia Appropriations Act, 2009, approved March 11, 2009 (Pub. L. No. 111-8; 123 Stat. 524), the Continuing Appropriations Resolution, 2010, approved October 1, 2009 (Pub. L. No. 111-68; 123 Stat. 2023), the Further Continuing Appropriations Resolution, 2010, approved October 30, 2009 (Pub. L. No. 111-88; 123 Stat. 2904), the District of Columbia Appropriations Act, 2010, approved December 16, 2009 (Pub. L. No. 111-117; 123 Stat. 3034), the Continuing Appropriations Resolution, 2011, approved September 30, 2010 (Pub. L. No. 111-242; 124 Stat. 2607), and are included within the schedule of capital projects for which the District of Columbia is authorized to incur indebtedness under the General Obligation Bonds and Bond Anticipation Notes for Fiscal Years 1999--2004 Authorization Act of 1999, effective July 29, 1999 (D.C. Law 13-22; D.C. Official Code § 1- 204.61, note); the General Obligation Bonds and Bond Anticipation Notes for Fiscal Years 2002-2007 Authorization Act of 2002, effective March 25, 2003 (D.C. Law 14-214; D.C. Official Code § 1-204.61, note); and the General Obligation Bonds and Bond Anticipation Notes for Fiscal Years 2007-2012 Authorization Act of 2006, effective March 6, 2007 (D.C. Law 16-212; D.C. Official Code § 1.204.61, note) ('Bond Acts')."
Section 8(b) of D.C. Law 18-308 provides that the act shall expire after 225 days of its having taken effect.
Emergency Act Amendments
For temporary (90-day) addition of section, see § 3302 of the Fiscal Year 2001 Budget Support Emergency Act of 2000 (D.C. Act 13-376, July 24, 2000, 47 DCR 6574).
For temporary (90 day) amendment of section, see § 3302 of the Fiscal Year 2001 Budget Support Congressional Review Emergency Act of 2000 (D.C. Act 13-438, October 20, 2000, 47 DCR 8740).
For temporary (90 day) authorization to borrow funds for capital projects through the issuance of general obligation bonds, see § 2 of Fiscal Year 2005 General Obligation Bond Issuance Emergency Approval Act of 2004 (D.C. Act 15- 593, October 26, 2004, 51 DCR 10734).
For temporary (90 day) addition of section, see § 3 of Fiscal Year 2011 Income Tax Secured Revenue Bond and General Obligation Bond Issuance Emergency Approval Act of 2010 (D.C. Act 18-607, November 17, 2010, 57 DCR 11054).
Legislative History of Laws
Law 13-172, the "Fiscal Year 2001 Budget Support Act of 2000," was introduced in Council and assigned Bill No. 13-679, which was referred to the Committee of the Whole. The Bill was adopted on first and second readings on May 15, 2000, and June 6, 2000, respectively. Signed by the Mayor on June 26, 2000, it was assigned Act No. 13-175 and transmitted to both Houses of Congress for its review. D.C. Law 13-172 became effective on October 19, 2000.
Resolutions
Resolution 14-224, the "General Obligation Bond Issuance Authorization Resolution of 2001", was approved effective October 16, 2001.
Resolution 14-225, the "General Obligation Bond Proceeds Financing Reallocation Authorization Resolution of 2001", was approved effective October 16, 2001.
Resolution 14-585, the "General Obligation Bond Issuance Authorization Emergency Resolution of 2002", was approved effective October 18, 2002.
Resolution 15-129, the "General Obligation Bond Issuance Approval Resolution of 2003", was approved effective July 8, 2003.
Resolution 16-356, the "Fiscal Year 2006 General Obligation Bond Issuance Approval Emergency Resolution of 2005", was approved effective November 1, 2005.
(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.
(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.
