Ordinance 18-27(A) Funding Public Information Campaign for Ballot Proposition to Issue General Obligation Bonds for Police Station

CITY OF HOMER                                                                 
HOMER, ALASKA                                                                                    

Smith

ORDINANCE 18-27(A)

AN ORDINANCE OF THE CITY COUNCIL OF HOMER, ALASKA, APPROPRIATING FUNDS IN THE AMOUNT OF $5,000 FROM THE POLICE STATION RESERVE FUND FOR A PUBLIC INFORMATION CAMPAIGN IN SUPPORT OF THE BALLOT PROPOSITION TO ISSUE GENERAL OBLIGATION BONDS OF $5 MILLION DOLLARS TO FINANCE THE CONSTRUCTION OF A POLICE STATION AND PROVIDE FOR AN INCREASE IN THE RATE OF CITY SALES TAX FROM 4.5% TO 4.85% WITH 0.3% OF THE INCREASE PROVIDING FUNDS TO PAY DEBT SERVICE ON THE GENERAL OBLIGATION BONDS WHICH WILL EXPIRE ON DECEMBER 31 THE YEAR WHEN THE CITY HAS RECEIVED SUFFICIENT FUNDS FROM THE INCREASE TO PAY ALL OF THAT DEBT SERVICE, INCLUDING INFORMATION THAT MAY INFLUENCE THE OUTCOME OF THE ELECTION ON THE PROPOSITION.

WHEREAS, City Council has previously shown through approval of Resolution 13-087(A) and Resolution 14-093 that having a new Public Safety Building was one of the top five Capital Improvements Projects and due to the decline in revenues, particularly from the State of Alaska, the City faces the probability of the project not receiving additional funding; and            

WHEREAS, The  City  Council  views  the  acquisition  and  construction  of  a  new  police  station  and  related  capital  improvements  as  necessary  and  beneficial  to  the community, and determines that to fund such improvements general obligation bonds of the City should be authorized, issued and sold; and               

WHEREAS, It is prudent long-term planning to identify a source of funds required to properly maintain this important public asset over time; and 

WHEREAS, It is the Council’s duty and desire to ensure all city voters are aware of the impact that issuing General Obligation Bonds and implementing a 1% 0.35% sales tax would have on the construction and financing of the new Police Station; and

WHEREAS, AS 15.13.145(c)(2) permits the City to provide the public with nonpartisan information about a ballot proposition, but AS 15.13.145(b) prohibits the City from using funds to influence the outcome of an election concerning a ballot proposition unless the City specifically appropriates the funds for that purpose by ordinance; and

WHEREAS, The Alaska Public Offices Commission (“APOC”), which enforces AS 15.13.145, has interpreted nonpartisan information permitted under AS 15.13.145(c)(2) very narrowly, so that the City cannot inform the public fully about the effects of the ballot proposition to issue general obligation bonds in an amount of $5 million dollars and increase the sales tax seasonally .XX% April 1 through September 30 0.35% to pay debt service without including information that APOC likely would categorize as influencing the outcome of the election on the ballot proposition.

NOW, THEREFORE, THE CITY OF HOMER ORDAINS:

                Section 1.  The City Council hereby appropriates funds from the Police Station Reserve Fund to provide public information on the ballot proposition to issue General Obligation Bonds in the amount of $5 Million Dollars to finance the acquisition and construction of a police station and provide for an increase in the rate of city sales tax from 4.5% to 4.8% with 0.25% 4.85% with 0.3% of the increase providing funds to pay debt service on the general obligation bonds which will expire on December 31 the year when the city has received sufficient funds from the increase to pay all of that debt service and 0.05% remaining into perpetuity for the sole purpose of police station operations and maintenance , including information that may influence the outcome of the election on the proposition.

                Revenue:

                Account                                              Description                                                               Amount

                                                                            Police Station Reserve Fund                                  $5,000.00

                Expenditure:

                Account                                              Description                                                                Amount

                                                                                Public Information Campaign

                                                                                on Ballot Proposition                                                $5,000.00

Section 2. This is a budget amendment ordinance, is temporary in nature and shall not be codified.

ENACTED BY THE CITY COUNCIL OF HOMER, ALASKA, this ___day of _______, 2018.

                                                                                                CITY OF HOMER

                                                                                                _______________________

                                                                                                BRYAN ZAK, MAYOR

ATTEST:

___________________________

MELISSA JACOBSEN, MMC, CITY CLERK

YES:
NO:
ABSTAIN:
ABSENT:

First Reading:
Public Hearing:
Second Reading:
Effective Date:

Reviewed and approved as to form:

_________________________                                                             ____________________________

Katie Koester, City Manager                                                       Holly C. Wells, City Attorney

Date: ____________________                                                              Date: ________________________