3 AAC 110.350. Best interests standard for a proposed second class city in the unorganized borough

(a) In determining whether reclassification of a home rule city or first class city to a second class city in the unorganized borough is in the best interests of the state under AS 29.04.040 (a), the commission may consider relevant factors, including the

(1) reasonably anticipated fiscal impact to the state from the elimination of local contributions to the city school district under AS 14.17.410 , changes in the district cost factors under AS 14.17.460 , changes in funding under 20 U.S.C. 7703, and other effects;

(2) reasonably anticipated impacts on education from combining the city school district and the regional educational attendance area in which the city is located;

(3) ability of the city to provide essential city services, meet its financial and contractual obligations, and otherwise function under the more limited authority of a second class city to levy a property tax;

(4) reasonably anticipated need for mandatory planning, platting, and land use regulation within the boundaries of the city;

(5) reasonably anticipated need for the city to exercise the power of eminent domain; and

(6) likelihood that reclassification may promote formation of an organized borough in the region.

(b) In considering the factors in (a)(1) and (a)(2) of this section, the commission will consult with the commissioner of education and early development, the superintendent and school board of the city school district, and the superintendent, school board, and advisory school boards established under AS 14.08.115 of the regional educational attendance area in which the city is located.

(c) The commission may make a determination that reclassification is in the state's best interest, subject to legislative review in the manner provided by art. X, sec. 12, Constitution of the State of Alaska. In those circumstances, legislative review of a reclassification proposal does not eliminate the requirement for voter approval of a reclassification proposal under AS 29.04.040 .

(d) Absent a specific and persuasive showing to the contrary, the commission will presume that reclassification of a city under this section is not in the best interests of the state if reclassification will result in the transfer of the city's debt for educational facilities to the state.

History: Eff. 11/27/96, Register 140; am 5/19/2002, Register 162; am 5/19/2002, Register 162

Authority: Art. X, sec. 12,

Ak Const.

AS 29.04.040

AS 44.33.812

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