3.12.010 Homer Permanent Fund Established.
3.12.030 Allocation to sub-funds.
3.12.040 Additions to fund.
3.12.050 Investment of fund.
3.12.060 Expenditures of income.
3.12.070 Loans from income sub-fund.
3.12.080 Expenditure of principal.
3.12.010 Homer Permanent Fund Established. There is hereby established the Homer Permanent Fund. The Permanent Fund shall be governed by this chapter. (Ord. 05-14(S) §2), 2006)
3.12.020 Contributions. a. If monies from the distribution of the Exxon Valdez settlement or other forms of Awind-fall monies@ become available to the City, 95% of such funds shall be placed in the Homer Permanent Fund.
b. AWind-fall monies@ shall be defined as any new monies received by the City from any source other than standard budgeted operating revenues and not allocated to any specific purpose. AWind-fall monies@ do not include bond proceeds, grant funds allocated to a specified purpose, or the proceeds of non-Exxon Valdez litigation when such proceeds are recovered as damages to compensate or reimburse the city for expenditures previously made by the city. In all cases, the City Council=s determination of whether monies are Awind-fall@ is final and conclusive.
c. The remaining five percent of Exxon Valdez settlement funds and other wind-fall monies are available to be appropriated by the City Council for grants to the Homer Foundation or other local non-profit organizations for the benefit of the community. (Ord. 05-14(S) §2), 2006)
3.12.030 Allocation to sub-funds. When a contribution is made to the Permanent Fund pursuant to HCC 3.12.020, the money received shall be allocated to two sub-funds as follows:
a. Sixty percent of each contribution shall be allocated to an income sub-fund.
b. Forty percent of each contribution shall be allocated to a growth sub-fund. (Ord. 05-14(S) §2), 2006)
3.12.040 Additions to fund. a. The City Council may elect to contribute monies to the Permanent Fund. Unless otherwise allocated by the council, such contributions shall be allocated to sub-funds pursuant to HCC 3.12.030. (Ord. 05-14(S) §2), 2006)
3.12.050 Investment of fund. The sub-funds of Permanent Fund shall be invested and managed in accordance with HCC 3.10.130. (Ord. 05-14(S) §2), 2006)
3.12.060 Expenditures of income. a. Expenditures of Permanent Fund income may be made only as authorized in this chapter.
b. The income from the income sub-fund may be appropriated by the City Council and be expended for general governmental purposes, including but not limited to ordinary operating expenses.
c. The income from the growth sub-fund shall not be expended. It shall be added to the principal of the growth sub-fund and reinvested. (Ord. 05-14(S) §2), 2006)
3.12.070 Loans from income sub-fund. The principal of the income sub-fund may be used as a source of loan funds for city capital projects, and not as a grant. To be eligible for such a loan the project must receive a majority of its funding from other sources. Such loans shall be on terms approved by resolution of the City Council, which must provide for the repayment of the loan over a reasonable period of time. (Ord. 05-14(S) §2), 2006)
3.12.080 Expenditure of principal. a. Expenditures of Permanent Fund principal may be made only as authorized in this section.
b. Except as a source of loan funds as provided in subsection 3.12.070, the principal of both the income sub-fund and the growth sub-fund shall neither be distributed nor spent without the authorization of sixty percent of city voters at a regular or special election.
c. Prior to submitting to the voters the question of whether to distribute or spend funds from the principal of the Permanent Fund, the City Council shall find that all reasonable options for borrowing have been exhausted, including the option of borrowing from the Homer Permanent Fund pursuant to section 3.12.070. (Ord. 05-14(S) §2), 2006)