Memorandum 17-103 Rescind Ordinance 17-23

Memorandum 17-103

TO:                         MAYOR ZAK AND HOMER CITY COUNCIL

FROM:                  MELISSA JACOBSEN, MMC, CITY CLERK

DATE:                    JULY 14, 2017

SUBJECT:           RESCIND ORDINANCE 17-23, AN ORDINANCE OF THE CITY COUNCIL OF HOMER, ALASKA, APPROPRIATING FUNDS IN THE AMOUNT OF $2,344,784 FROM THE HOMER PERMANENT FUND TO PAY OFF THE LIBRARY CONSTRUCTION LOAN AND HELP FUND A NEW POLICE STATION, AND REPEALING HCC CHAPTER 3.12, PERMANENT FUND. LEWIS.

At the June 26, 2017 Committee of the Whole and Regular City Council Meeting, City Manager Koester informed Council that they had adopted Ordinance 17-23 on June 12th with incomplete financial information.  City Manager Koester reviewed the updated financials included in the City Manager’s Report and advised Council they had three options to address the problem:

No change, maintain policy decision to abolish Permanent Fund. No need to take action.
Rescind Ordinance 17-23. Maintain Permanent Fund and do not pay off library loan or dedicate funds to a new police station at this time.
Rescind Ordinance 17-23 and replace it with a new ordinance liquidating only a portion of the fund. For example, Council could liquidate $1.2m to pay off the library loan and leave the remainder in the Permanent Fund until needed by the Police Station project.

Councilmember Erickson gave previous notice of her intent to move to rescind Ordinance 17-23 at the July 24th regular meeting.

RECOMMENDATION:  The following motion by Councilmember Erickson is appropriate at this time:

I move to rescind Ordinance 17-23, An Ordinance of the City Council of Homer, Alaska, Appropriating Funds in the Amount of $2,344,784 from the Homer Permanent Fund to Pay Off the Library Construction Loan and Help Fund a New Police Station, and Repealing HCC Chapter 3.12, Permanent Fund.