Ordinance 11-49(S) Ocean Drive Loop Special Service District & Differential Property Tax Zone

CITY OF HOMER
HOMER, ALASKA

City Manager, City Attorney

ORDINANCE 11-49(S)

AN ORDINANCE OF THE HOMER CITY COUNCIL ADOPTING HOMER CITY CODE CHAPTER 15.10, OCEAN DRIVE LOOP SPECIAL SERVICE DISTRICT, TO CREATE A DIFFERENTIAL PROPERTY TAX ZONE TO LEVY PROPERTY TAXES TO FUND SPECIAL SERVICES PROVIDED IN THE DISTRICT.

WHEREAS, The City may by ordinance establish, alter, and abolish differential tax zones to provide and levy property taxes for services not provided generally in the City, or a different level of service than that provided generally in the City; and

WHEREAS, The City by Ordinance 06-53(S) established a differential tax zone known as the Ocean Drive Loop Special Service District (“District") for the purpose of providing special services to the properties in the Ocean Drive Loop Bluff Erosion Control Improvement District that are not provided elsewhere in the City; and

WHEREAS, Ordinance 06-53(S) provided for the formation of an association of property owners to receive and expend taxes levied in the District for the purpose of operating and maintaining the seawall that had been constructed in the Ocean Drive Loop Bluff Erosion Control Improvement District; and

WHEREAS, When no association of property owners formed as contemplated by Ordinance 06-53(S), the Council enacted Ordinance 10-19, finding that it would be in the best interest of the City to allow the owners of property in the District to determine among themselves what collective arrangements, if any, to make for funding the operation of the seawall, and abolishing the District; and

WHEREAS, Some property owners in the Ocean Drive Loop Bluff Erosion Control Improvement District continue to assert that the City is responsible for maintaining the seawall, and have induced the Army Corps of Engineers to require the City to repair damage to the seawall under the terms of the permit the Corps issued to the City for the seawall; and

WHEREAS, Until the issue of the City’s obligations under the Corps permit can be resolved, it is necessary for the City to have a source of funds to pay costs of repairing the seawall; and

WHEREAS, For the purpose of providing funds required to pay the cost of repairs to the seawall, it is in the best interest of the City to immediately establish a new differential tax zone known as the Ocean Drive Loop Special Service District for the purpose of providing special services to the properties in the Ocean Drive Loop Bluff Erosion Control Improvement District of a special kind and greater level of service than those provided generally in the City.

NOW, THEREFORE, THE CITY OF HOMER ORDAINS:

Section 1.  Homer City Code Chapter 15.10, Ocean Drive Loop Special Service District, is adopted to read as follows:
Chapter 15.10

OCEAN DRIVE LOOP SPECIAL SERVICE DISTRICT

Sections:

15.10.005 Definitions
15.10.010 Ocean Drive Loop Special Service District established
15.10.020 Property tax levy
15.10.030 Payment in lieu of taxes
15.10.040 Administration
15.10.050 Services authorized
15.10.060 Excess tax revenue

15.10.005 Definitions. As used in this chapter:

"Improvement District" means the Ocean Drive Loop Bluff Erosion Control Improvement District previously established by the City as a local improvement district to construct an erosion control seawall.

"Operate" and "Operation" with respect to the Seawall includes operation, maintenance, repair, reconstruction, improvement, insurance, administration and other related or similar activities conducted in the course of making and keeping the Seawall operational for its intended erosion control purpose for the benefit of the properties in the Improvement District.

"Seawall" means the erosion control seawall constructed in the Improvement District.

"Special Service District" means the Ocean Drive Loop Special Service District established under this chapter.

15.10.010 Ocean Drive Loop Special Service District established. a. There is established a special service district within the City designated as the "Ocean Drive Loop Special Service District" for the purpose of providing special services to the properties in the Ocean Drive Loop Bluff Erosion Control Improvement/Assessment District that are not provided elsewhere in the City.
b. The Special Service District consists of the properties in the Homer Recording District that are described as follows:

Oscar Munson Subdivision Lot 34

Oscar Munson Subdivision Lot 35

Oscar Munson Subdivision Lot 36

Oscar Munson Subdivision Lot 37

Oscar Munson Subdivision Lot 38

Oscar Munson Subdivision Lot 39

Oscar Munson Subdivision Lot 40

Oscar Munson Subdivision Lot 41

Oscar Munson Subdivision Lot 42

Oscar Munson Subdivision Lot 43

Oscar Munson Subdivision Lot 44

Oscar Munson Subdivision No. 18 Lot 45B

Oscar Munson Subdivision No. 18 Lot 45A

Tamian Subdivision Lot 1

A portion of T6S R13W Section 21, Beginning at corner of Sections 20, 21, 28, and 29; thence N 64 degrees 10 minutes E a distance of 50.00 feet; thence S 64 degrees 10 minutes E a distance of 50.00 feet; thence E a distance of 35.00 feet; thence N 0 degrees 05 minutes W a distance of 450.00 feet; thence W a distance of 125.00 feet; thence S 0 degrees 05 minutes E a distance of 450.00 feet to the point of beginning.

Seabreeze Subdivision Lot 5

Lake St ROW south of Ocean Drive Loop

Pedestrian Easement south of Ocean Drive Loop between Lots 37 and 38, Oscar Munson Subdivision

15.10.020 Property tax levy. a. The Special Service District shall be funded by a property tax levied on the properties in the Special Service District. The City Council shall annually set the mill levy pursuant to Section 9.04.040. The tax shall be assessed and collected as other real property taxes levied by the City.
b. Any property tax levied for the purpose of funding the Special Service District shall be excluded from the calculation of the mill rate contingency set forth in Section 9.16.020 for purpose of determining whether the City's sales tax levy shall remain in effect.

15.10.030 Payment in lieu of taxes. In lieu of paying taxes on tax exempt property owned by the City in the Special Service District, the City will annually appropriate money to the district or perform in-kind services for the district equivalent in value to the amount of taxes that would be levied on the City property if it were taxable.

15.10.040 Administration. The administration of this chapter is a function of the Department of Administration.

15.10.050 Services Authorized. Revenue collected by the City under this chapter may be appropriated and expended for the limited purpose of funding Operation of the Seawall for the benefit of all properties in the Improvement District.

15.10.060 Excess tax revenue. If at any time the City Council determines Special Service District tax revenues exceed the needs of the Special Service District, the City Council may authorize a refund of the excess tax revenues collected under this chapter to the taxpayers in proportion to amounts paid in by such taxpayers.

Section 2. This Ordinance is of a permanent and general character and shall be included in the City Code.

ENACTED BY THE CITY COUNCIL OF HOMER, ALASKA, this ______ day of __________________, 2012.

       CITY OF HOMER

       _____________________________
       JAMES C. HORNADAY, MAYOR

ATTEST:

______________________________
JO JOHNSON, CMC, CITY CLERK

YES:
NO:
ABSTAIN:
ABSENT:

First Reading:
Public Hearing:
Second Reading:
Effective Date: 
 
Reviewed and approved as to form:

________________________   ____________________________
Walt E. Wrede, City Manager    Thomas F. Klinkner, City Attorney

Date: ___________________    Date: _______________________