(a) Subject to appropriations for the purpose, during each fiscal year, the Department of Transportation and Public Facilities shall allocate to each municipality an amount to reimburse the costs paid by the municipality during the immediately preceding fiscal year for the principal and interest on outstanding debt for projects listed in (b) of this section. An allocation may be made to a municipality only if

(1) the debt was incurred by the municipality before July 1, 2007, or, if the debt is for a small boat harbor, before July 1, 2012; and

(2) the project or facility financed with the debt proceeds is located in the municipality and the project or facility is operated or controlled by the municipality.

(b) The Department of Transportation and Public Facilities may make an allocation to a municipality under (a) of this section only for reimbursement of costs incurred for the following construction and renovation projects and only for reimbursement of total project costs incurred up to the following amounts:

PROJECTValdez$ 3,013,500Nome1,000,000Anchorage (Port of Anchorage expansion) 15,000,000Matanuska-Susitna Borough (deep water port and road upgrade)10,000,000Unalaska (LSA small boat harbor)5,000,000Aleutians East Borough/Akutan4,000,000 (small boat harbor)Lake and Peninsula Borough/Chignik (dock project) 1,000,000Aleutians East Borough/False Pass (small boat harbor) 2,000,000Fairbanks North Star Borough (Eielson AFB schools, major maintenance and upgrades)4,500,000City of Fairbanks (fire headquarters station replacement) 7,500,000Saxman (public safety building) 1,500,000