CITY OF HOMER

HOMER, ALASKA

City Manager

ORDINANCE 02-24(S)

AN ORDINANCE OF THE CITY OF HOMER PROVIDING FOR DIFFERENTIAL TAX ZONES AND AUTHORIZING THE LEVY OF PROPERTY TAXES AT A DIFFERENT RATE IN THE AREA ANNEXED TO THE CITY IN CALENDAR YEAR 2002 IN RECOGNITION OF THE DIFFERENT LEVELS OF SERVICE PROVIDED IN 2002

WHEREAS, certain properties were annexed to the City effective March 20, 2002; and

WHEREAS, all of the annexed properties were formerly part of road service and emergency services areas of the Kenai Peninsula Borough; and

WHEREAS, in the first six months of 2002 road services and emergency services were provided to the annexed properties by the Kenai Peninsula Borough through its service areas; and

WHEREAS, the emergency services for the first six months of 2002 were physically performed by the City under contract with the Borough, and the Borough has already compensated the City for performing those services; and

WHEREAS, the provision of such services to the annexed properties by the Borough during the first six months of 2002 effectively means that the City of Homer is providing to that area of the City a different level of road and emergency services than it is providing to the remainder of the City for calendar year 2002; and

WHEREAS, the City is authorized by AS 29.45.080 to "establish, alter, and abolish differential tax zones to provide and levy property taxes for … a different level of service than that provided generally in the city;" and

WHEREAS, the City Council hereby finds that it is reasonable and appropriate to levy taxes at different rates in 2002 to recognize this difference in the level services provided to the annexed property by the City in this year only.

NOW, THEREFORE, THE CITY OF HOMER HEREBY ORDAINS:

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Ordinance 02-24(S)

City of Homer

Section 1. There are hereby established two tax zones in the city for the purpose of levying property taxes at different rates. The two zones are described as follows:

Zone 1: The area within the City boundaries prior to the annexation effective on March 20, 2002

Zone 2: The area annexed to the City by the annexation effective on March 20, 2002

Section 2. In setting the City's rate of property tax levy for 2002, the City Council may take into account the different levels of services provided to the two zones and set different rates of levy for each zone.

Section 3. Personal property within Zone 2 shall not be taxed by the City of Homer for year 2002. This section applies to both personal property taxes based upon assessed valuation and vessel flat taxes.

Section 4. This ordinance is effective immediately and applies to the taxes levied for the entire 2002 tax year. Effective at 12:01 a.m. on January 1, 2003, the division of the city into two tax zones is repealed. This ordinance shall have no effect on the levy of taxes in years subsequent to 2002.

Section 5. This ordinance is of a special or temporary character and shall not be included in the City Code.

ENACTED BY THE CITY COUNCIL OF THE CITY OF HOMER, ALASKA, this __________ day of ______________________, 2002.

CITY OF HOMER

_______________________________
Jack Cushing, Mayor

ATTEST:

___________________________

Mary L. Calhoun, City Clerk

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Ordinance 02-24(S)

City of Homer

AYES:

NOES:

ABSTAIN:

ABSENT:

First Reading:

Public Hearing:

Second Reading:

Effective Date:

Reviewed and approved as to form:

_____________________________ ___________________________

Ronald Wm. Drathman Gordon J Tans

City Manager City Attorney

Fiscal note: See Ordinance 02-21 and back up.