1 2 3 4 5 6 34 next ensuing, with appropriate supporting information as to the necessity for such improvements; (3) cost estimates, methods of financing, and recommended time schedules for each such improvement; and (4) the estimated annual cost of operating and maintaining the facilities to be constructed or acquired. (d) The capital program shall be revised and extended 8 each year with regard to capital improvements still pending 7 9 or in the process of construction or acquisition. 10 (e) Actual capital expenditures shall be carried each 11 year as the capital outlay section of the current budget. 12 These expenditures shall be in the form of direct capital 13 outlays from current revenues or debt service payments. 14 15 BUDGET ESTABLISHES APPROPRIATIONS SEC. 505. The adoption of the budget by the Council 16 shall operate to appropriate and to make available for ex17 penditure, for the purposes therein named, the several 18 amounts stated therein as proposed expenditures, subject to 19 the provisions of section 702. 20 21 SUPPLEMENTAL APPROPRIATIONS SEC. 506. The Council may at any time pass an act 22 rescinding previously appropriated funds which are then 23 available for expenditure, or appropriating funds in addition 24 to those theretofore appropriated to the extent unappropriated 25 funds are available; and for such purpose unappropriated 35 1 funds may include those borrowed in accordance with the 2 provisions of title VI. TITLE VI-BORROWING 3 4 5 6 7 8 9 10 11 12 DEFINITIONS SEC. 601. As used in this title "Capital program obligations" means all outstand ing obligations incurred by the District as a result of borrowing for capital outlay programs, but not including obligations incurred pursuant to the authority contained in the District of Columbia Stadium Act of 1957 (71 Stat. 619; D.C. Code, title 2, chapter 17, subchapter II), in the District of Columbia Redevelopment Act of 1945 (60 Stat. 790; D.C. Code, sections 5-701 through 14 5-719), and in the District of Columbia Alley Dwelling 24 Act (48 Stat. 930), as amended (D.C. Code, sections 5-103 through 5-116). "District revenues" means all revenues derived from taxes, charges, and miscellaneous receipts, including all annual Federal payments to the District authorized by law (except payments pursuant to sections 604 (a), 610 (a), and 611 (a)), but not including funds re ceived by the District under any Federal grant-in-aid program. "Secretary" means the Secretary of the Treasury. 1 2 36 DISTRICT'S AUTHORITY TO ISSUE AND REDEEM OBLIGATIONS 3 SEC. 602. (a) The District is hereby authorized to pro 4 vide for the payment of the cost of its various capital outlay 5 programs by an issue or issues of negotiable obligations of 6 the District, bearing interest, payable annually or semiannu 7 ally, at such rate or rates as the Mayor may from time to 8 time determine are necessary to make marketable each such 9 issue of obligations. No obligation shall be issued which 10 would cause the amount of principal and interest (as re 11 duced by payments pursuant to sections 604 (a) and 610 12 (a)) required to be paid in any fiscal year on the aggregate 13 amount of all outstanding capital program obligations to ex14 ceed 12 per centum of the District revenues which the Mayor 15 estimates will be credited to all funds of the District for such 16 fiscal year. 17 18 (b) The District may reserve the right to redeem any or all of its obligations before maturity in such manner and 19 at such price or prices as may be fixed by the Mayor prior 20 to the issuance of such obligations. 22 21 22 23 PURCHASE OF DISTRICT OBLIGATIONS BY THE SECRETARY SEC. 603. (a) The Secretary is authorized and directed 24 to purchase from the District all or part of any issue of its 25 obligations whenever the Secretary determines such pur 37 1 chase is necessary in order to permit the District to make 2 timely payment of the principal and interest on any of its 3 outstanding obligations. The Secretary is further authorized 4 H to purchase from the District all or any part of any proposed 5 issue of its obligations whenever, pursuant to section 604 6 (b), he determines that this is preferable to Federal pay7 ment of the net effective interest expense thereof. 8 (b) For the purpose of purchasing obligations of the 9 District pursuant to subsection (a) or section 604 (b), as 10 authorized in appropriation Acts, and such authorizations may be without fiscal year limitation, the Secretary may use 11 12 as a public debt transaction the proceeds of the sale of any 13 securities hereafter issued under the Second Liberty Bond 14 Act, as now or hereafter in force, are extended to include pur15 chases of District obligations. Each purchase of obligations by the Secretary under this section shall be upon such terms 17 and conditions as to yield a return at a rate not less than a 16 18 rate determined by the Secretary, taking into consideration 19 the current average yield on outstanding marketable obliga 20 tions of the United States of comparable maturities. The 21 225 Secretary may sell, upon such terms and conditions and at 22 such price or prices as he shall determine, any of the obliga 23 tions acquired by him under this section. All purchases and 24 sales by the Secretary of such obligations under this section 38 1 shall be treated as public debt transactions of the United 2 States. 3 FEDERAL PAYMENT OF NET EFFECTIVE 4 INTEREST EXPENSE 5 SEC. 604. (a) Except as provided in subsection (b), 6 the Secretary is authorized and directed to make periodic 7 payments to the District, upon request therefor by the 8 Mayor in such amounts as may be necessary (1) to equal 9 one-fourth of the net effective interest expense, including 10 fees, commissions, and other costs of issuance incurred by 11 the District on its obligations, or (2) to equal the difference 12 between the net effective interest expense incurred by the 13 District on account of its obligations and the net effective 14 interest expense which the District would have incurred 15 had the interest rate on its obligations been equal to the 16 interest rate on purchases by the Secretary pursuant to sec17 tion 603, whichever is greater. 18 (b) The Mayor shall, prior to making any request 19 of the Secretary as authorized by subsection (a), advise 20 him as to the net effective interest expense which the Dis21 trict expects to incur with respect to the proposed issue of 22 its obligations. The Secretary shall, on the basis of such 23 advice from the Mayor, determine whether to pay to the 24 District the periodic amounts determined as specified in 25 clause (1) or (2) of subsection (a), or, in the alternative, |