A. The assembly establishes a policy whereby borough funds from the sale of borough lands may be invested through the creation of local improvement districts to fund projects that will improve the lives of borough residents. Such projects may include, but are not limited to, utilities, road construction, road upgrades, alternative energy, and any other improvements undertaken under the authority granted by AS 29.35 for which assessments assessed under AS 29.46 may be financed in whole or in part by the levy and collection of special assessments upon real property specifically benefited by such improvements.

B. Funds, in an amount to be determined by the assembly, may be allocated each year from the borough lands account to fund or partially fund projects.

C. The borough may provide for full or partial funding of a project within a local improvement district through issuance of special assessment bonds, by procedures set forth in this chapter and in AS 29.46.