Memorandum 19-021 Legislative Priorities

Memorandum 19-021

TO:                        Mayor Castner and Homer City Council

FROM:                 Katie Koester, City Manager

DATE:                   February 6, 2019

SUBJECT:          Legislative Priorities 

The purpose of this memo is to review the legislative priorities the City of Homer has taken a position on in order to inform discussion during the worksession on items to bring to the attention of legislators and members of the administration during the upcoming trip to Juneau for the 2019 Alaska Municipal League Winter Conference in Juneau.

Pertinent Resolutions passed since 2016:

-Resolution 18-088: A Resolution of the City Council of Homer, Alaska, Supporting Full Funding ($7,409,439) for the State of Alaska Municipal Harbor Facility Grant Program in the FY 2020 State Capital Budget. 

Governor Walker’s budget included $5 million for the program, which was maintained in the first draft release of Governor Dunleavy’s budget. However, a final budget won’t be released until February 13.

-Resolution 18-070(A): A Resolution of the Homer City Council Adopting the 2019-2024 Capital Improvement Plan (CIP) and Establishing Capital Project Legislative Priorities for Fiscal Year 2020.

Homer’s CIP book has been mailed to legislators, however we will hand-deliver the legislative priorities again during our meetings in Juneau. Though there continues to be fiscal uncertainty that will likely constrain any capital budget, it is important for our delegation to know the City’s priorities so they can be on the lookout for any and all opportunities. These meetings will also be a good chance to update legislators on the Large Vessel Moorage Facility project.  

-Resolution 16-017: A Resolution of the City Council of Homer, Alaska, Expressing a Deep Sense of Urgency for the Alaska State Legislature to Take Immediate and Decisive Action During the 2016 Legislative Session to Enact a Complete Package of Initiatives to Provide for a Balanced, Sustainable, and Predictable State Budget for the Foreseeable Future.  

-March 13, 2017 Letter from Homer City Council to Governor Walker regarding the impact of proposed budget cuts and revenue measures.

Fiscal issues continue to be the largest challenge the state faces. Stay tuned for how these issues will be addressed by the current administration. We will know more once the final budget is released on the 13th, but it is clear that cuts will continue to be part of the conversation. Municipalities need to stay alert and watch out for the downstream effect of state budget cuts.

-July 15, 2016 Letter to Governor Walker regarding importance of sales tax revenue to the City of Homer.

In 2018, the Supreme Court ruled in South Dakota v. Wayfair Inc. that states can mandate online retailers to collect sales tax. The landscape on sales tax has thus changed since the Wayfair decision and municipalities are struggling to interpret how to take advantage of opportunities the decision provides for expanding the local sales tax base and putting online companies on an even playing field with local retailers. It is possible the state will reopen the topic of a statewide sales tax given the increased revenue to be captured with online sales. The City of Homer contributed $4,500 to the Alaska Municipal League’s (AML) efforts to investigate a municipality-based tax alternative to the state sales tax collection.  AML will provide updates to the participating municipalities while we are in Juneau.

-Resolution 18-091: A Resolution of the City Council of Homer, Alaska, Supporting the Siting of the Alaska Gasline Development Corporation’s (AGDC) Alaska LNG Liquefaction Plant and Marine Terminal in Nikiski, Alaska.

After speaking with ADGC, staff told me that they think a different location for the terminus of the project at this point is very unlikely. They explained that the rigorous review process that went into site selection, along with the funds and time that have been invested thus far in Nikiski as the terminus, make it unlikely for the location to change. The bigger question is how committed the current administration and the Alaska State Legislature are to the project.

Resolution 19-008 (yet to be adopted, on agenda for February 11 meeting): A Resolution of the City Council of Homer, Alaska, Opposing the $20 Million Dollar Repeal of the K-12 State Aide to School Districts for the Fiscal Year Ending June 30, 2019.

Issues/ Legislation to Watch:

Comprehensive reform to Title IV: Stakeholders have been working on sweeping changes to Title IV, the statutes that govern alcohol in the State of Alaska. Though the City of Homer has not taken any official stance on this very large and evolving piece of legislation (SB76 during the previous legislature: http://www.legis.state.ak.us/PDF/30/Bills/SB0076F.PDF) , we have been following this issue due to the economic impact beverage and restaurant establishments have in our area. As an FYI, the Alcoholic Beverage Control Board will be having a meeting at the Alaska State Library while we are in Juneau this month (February 19-20).

Senate Bill 5: Senator Stevens has introduced a bill that would allow municipalities to invest in the Alaska Permanent Fund. With an excellent track record for protecting capital and rate of return, this could be an interesting opportunity for municipalities looking to increase the value of their savings. This would be a good issue to ask the Senator about during our visit.

State Budget items that pertain to the City:

• - Funding for Alaska Land Mobile Radio
• - Winter maintenance contract with Department of Transportation (DOT)
• - Contract with State Troopers for use of Police Station
• - Contract with Department of Corrections for use of Community Jail
• - Maintaining the municipal PERS contribution rate at 22%
• - Health of the Community Assistance Program
• - Online With Libraries (OWL) grant funding for Library programing
• - Number of State Troopers in our region
• - Number of DOT regional staff
• - Alaska Marine Highway funding
• - Code Blue (emergency services grant program)

Visit http://www.akleg.gov/basis/Home/BillsandLaws for complete information on introduced legislation.

Enc:

Draft schedule for Juneau
Resolution 18-088
Resolution 18-070(A)
Resolution 16-017
March 13, 2017 Letter to Governor Walker
July 15, 2016 Letter to Governor Walker
Resolution 18-091
KTUU Post on AKLNG
Resolution 19-008