A Resolution of the City Council of Homer, Alaska, Requesting That the Kenai Peninsula Borough Transfer its Share of State Fisheries Business Tax Proceeds that are Collected in the City of Homer to the City of Homer to Assist It with Maintenance, Repair, and Replacement of Critical Port and Harbor Infrastructure. Howard/Lewis/Wythe.
CITY OF HOMER
Howard, Lewis, Wythe
A RESOLUTION OF THE CITY COUNCIL OF HOMER, ALASKA, REQUESTING THAT THE KENAI PENINSULA BOROUGH TRANSFER ITS SHARE OF STATE FISHERIES BUSINESS TAX PROCEEDS THAT ARE COLLECTED IN THE CITY OF HOMER TO THE CITY OF HOMER TO ASSIST IT WITH MAINTENANCE, REPAIR, AND REPLACEMENT OF CRITICAL PORT AND HARBOR INFRASTRUCTURE.
WHEREAS, Chapter 43.75.130 of the Alaska Statutes entitled “Refunds to Local Governments” provides that tax revenues collected by the State of Alaska through the Fisheries Business Tax be allocated as follows:
• 50% to the State of Alaska
• 25% to the City were the tax is collected if the City is within a Borough
• 25% to a Borough which contains the City where the tax is collected; and
WHEREAS, The most appropriate use of revenues generated through the Fisheries Business Tax would be to apply them to maintenance, repair, and replacement of vital port and harbor infrastructure in the community which facilitates fisheries business and in which the tax is collected; and
WHEREAS, The Kenai Peninsula Borough does not own, operate, or maintain port and harbor facilities; and
WHEREAS, The Homer Port and Harbor is a vitally important regional economic engine which generates jobs, revenue, and taxes and supports a wide variety of industries throughout the Borough including, but not limited to, commercial fisheries, sport fisheries, recreation, marine trades, cargo and shipping, oil and gas, and transportation; and
WHEREAS, The Homer Port and Harbor has capital assets with a depreciated value estimated at $44 Million which would cost many times that to replace; and
WHEREAS, The Port and Harbor is operated as an enterprise fund and maintenance, repair, and replacement is paid for almost entirely through user fees; and
WHEREAS, It would be appropriate for the Borough to transfer its share of Fisheries Business Tax Proceeds that are collected in the City of Homer to the City of Homer so that it can reinvest the funds into Port and Harbor infrastructure that benefits the entire Borough.
NOW, THEREFORE, BE IT RESOLVED that the Homer City Council hereby respectfully requests that the Kenai Peninsula Borough transfer or “pass through” its share of Fisheries Business Tax proceeds that are collected in the City of Homer to the City of Homer to be deposited into the Port and Harbor Enterprise Fund and reinvested into maintaining, repairing, and replacing vital infrastructure.
BE IT FURTHER RESOLVED that the funds be transferred on an annual basis as a “pass through” with no grant agreement or reporting requirements since no such requirements are included in the statutes governing this program or imposed upon the Borough.
PASSED AND ADOPTED by the Homer City Council this 14th day of May, 2012.
CITY OF HOMER
JAMES C. HORNADAY, MAYOR
JO JOHNSON, CMC, CITY CLERK
Fiscal Note: Estimated revenue $80,000.