M E M O R A N D U M 04-131

TO: MAYOR AND HOMER CITY COUNCIL

FROM: DOUG STARK, COUNCILMEMBER

DATE: SEPTEMBER 13, 2004

SUBJ:

ALASKA MUNICIPAL LEAGUE SUMMER LEGISLATIVE MEETING AND MADD KPB

Organizational Meeting

We attended the AML Summer Legislative Meeting in Kenai on 19-20 August as part of my duties as a member of the AML Legislative Committee. The Committee came up with a number of draft positions for consideration at the Annual Meeting in Fairbanks on 10-12 November. They included

1. Creation by statute of a municipal dividend ( to replace state revenue sharing). The proposal is to share part of the Permanent Fund earnings. The fund normally earns in excess of 8%. Leaving 3% for inflation proofing, the remaining 5% would be split 50% for dividends, 40-45% for education, and 5-10% for municipalities. Homer's estimated annual share would be $450,000 to $900,000. The proposal would sunset in 5 years and be subject to advisory voter approval in 2006.

2. State spending limit.

3. Actions to resolve the PERS financing crisis.

4. Miscellaneous state tax proposals, including 60 pages of other proposals.

We attended the Mothers Against Drunk Driving meeting on 25 August to start a Kenai Peninsula Chapter of the organization. We learned that nationally 65% of the members are male and 70% of the members have no direct connection to drunk driving victims.

I commented the contrary to what some see as a potential adversary relationship between the liquor industry and MADD, my feeling was that they had a common interest in preventing drunk driving and the substantial liability that the industry faces with the effects of drunk driving. MADD does not oppose sensible drinking, but opposes excessive drinking and carnage that results.

RECOMMENDATIONS: none

Fiscal Note: Attorney time per contract.