CITY OF HOMER

HOMER, ALASKA

WYTHE

ORDINANCE 05-11(S)

AN ORDINANCE OF THE CITY COUNCIL OF HOMER, ALASKA AMENDING HOMER CITY CODE TITLE 18 TO ENACT A NEW CHAPTER 18.04, DISPOSITION OF FORECLOSED PROPERTIES AND AMENDING HOMER CITY CODE CHAPTER 3.05 TO ADD A NEW SECTION 3.05.042, ALTERNATIVE FUNDING OF DEPRECIATION.

WHEREAS, The City of Homer periodically receives ownership of properties due to delinquent property tax payments; and

WHEREAS, The intended purpose of the properties being transferred to the City is the recapture of revenues lost due to the uncollected property taxes; and

WHEREAS, Additional revenue sources are needed to correct the under funding for depreciable assets and future expansion projects.

NOW THEREFORE, the City of Homer Ordains:

Section 1. The Homer City Code is hereby amended by enacting a new Chapter 18.04, entitled Disposition of Foreclosed Properties, to read as follows:

18.04.010. Disposition of Foreclosed Properties. There is established the Alternative Funding of Depreciation. The Alternative Funding of Depreciation will consist of the City real property classified by the City Council for sale according to this chapter.

18.04.020 Transfer of Funds for Foreclosed Properties Classified for Public Purpose or Undesignated. Any such property that the City Council classifies, pursuant to HCC §18.05.042 shall be purchased by the transfer of funds from the General Fund or the General Fund - Fund Balanceto the depreciation fund in the amount equal to fair market value of the property.

18.04.030 Proceeds Derived from the Sale of Foreclosed Properties. All real property received through foreclosure proceedings and designated for resale shall be sold pursuant to the provisions of HCC Chapter 18.12 and all proceeds, after satisfying delinquent taxes, assessments and/or City costs, shall be allocated to the funding of depreciation.

Section 2. The Homer City Code Chapter 3.05 is hereby amended by enacting a new section 3.05.042 Alternative Funding for Depreciation to read as follows:

3.05.042 Alternative Funding for Depreciation. a. There is established in the General Fund of the City an Alternate Funding for Depreciation.

Page Two

Ordinance 05-11(S)

City of Homer

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

PASSED AND ENACTED by the Homer City Council this 29th day of March, 2005.

CITY OF HOMER

JAMES C. HORNADAY, MAYOR

ATTEST

MARY L. CALHOUN. CMC, CITY CLERK

Introduction: 02/28/05

Public Hearing: 03/14/05

Second Reading: 03/29/05

Effective Date: 03/30/05

Ayes:

Noes:

Abstain:

Absent:

Reviewed and approved as to form and content:

Walt Wrede, City Manager Gordon Tans, City Attorney

Date: Date:

Fiscal Note: Establishing an Alternative Funding for Depreciation.