MEMORANDUM 06-103

TO: Mayor Hornaday / Homer City Council

FROM: Walt Wrede

DATE: June 21, 2006

SUBJECT: Homer Accelerated Roads Program (HARP)

The Homer Accelerated Roads Program (HARP) expires on January 1, 2008. As you know, this program was approved by the voters. HARP allocates .75 percent of the Homer Sales Tax for the repair and upgrade of roads in the community. Only roads that are on the official HARP list are eligible for program funds.

When we have discussed the reauthorization of this program in the past, we assumed that the Council would take this question to the voters in the October 2007 regular municipal election. However, there may be some benefit in asking the voters what they think about the program this October rather than next year.

Over the past few years, the staff, Council members, and Transportation Advisory Committee members have floated a number of ideas about how to modify the HARP program to make it more efficient and useful. Others have suggested that we might reduce the tax rate or shift the revenues to other priorities and uses (if the voters approve). Some would like to see the program modified so that it can be used for the construction of new roads and trails. Following is a list of questions and ideas that the Council should consider and that could be presented to the voters.

• Should the program be extended beyond January 1, 2008?
• Should the .75 % tax rate be changed in any way?
• Should any of the revenues generated by the .75 % tax be shifted to the General Fund or other priorities?
• Should the City be allowed to use HARP funds for the construction of new roads under certain conditions such as the extension of Heath St. and Town Center infrastructure?
• Should the City be allowed to use HARP Funds for non-motorized trails and sidewalks under certain conditions?

I am sure there are questions or ideas that I am forgetting about and I hope they come up at the meeting. As you can see, these are important questions and this is a very vital program for the future development of the community. I look forward to this discussion.

In our view, one of the most important reasons for taking this to the voters this year is so that we have the possibility of being able to use these funds for Town Center infrastructure or the Heath St. extension next summer. However, that may not be a good enough reason to rush this on to the ballot. It is more important that we get it right and ask the voters the right questions. The Council could always consider a special election early next year if it wanted to.

RECOMMENDATION:

I recommend that the Council discuss this topic and spend some quality time on it. In my view, it is a very important issue. If the Council feels that we should take this issue to the voters in this year’s election, let us know and we will bring an ordinance to you at the next meeting.