CITY OF HOMER

Wythe

HOMER, ALASKA

ORDINANCE 05-14(A)

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF HOMER, ALASKA, AMENDING HOMER CITY CODE CHAPTER 3.05, BUDGET, TO ADD A NEW SECTION 3.05.046, GENERAL PERMANENT FUND.

WHEREAS, It is in the best interest of the Citizens of Homer and the City of Homer to set up a General Permanent Fund to address funds received by the City from sources other than revenue; and

WHEREAS, At any point in time funds may become available from the Exxon Valdez Oil Spill Settlement; and

WHEREAS, These non revenue funds may be called "wind-fall" funds; and

WHEREAS, It is in the best interest of the Citizens of Homer and the City of Homer to invest these funds in such a manner as to provide a secure source of annual revenues; and

WHEREAS, The expenditure of these funds should be open to public decision and therefore shall require a vote of the Citizens of Homer.

NOW, THEREFORE, THE CITY OF HOMER HEREBY ORDAINS:

Section 1. Homer City Code Chapter 3.05, Budget, is hereby amended by creating a new section 3.05.046 to read as follows:

3.05.046 General Permanent Fund.

a. At any point in time that funds become available from the distribution of the Exxon Valdez settlement, or other forms of "wind-fall", 100% of such funds shall be used to establish a General Permanent Fund (Fund).

b. "Wind-fall" shall be defined as any funds received by the City from any source other than standard budgeted operating revenues (State and Federal grant funds, with a specific allocation purpose, will not be considered Wind-fall).

c. The Fund shall be invested in such a manner as to provide a secure source of annual revenues.

d. An amount equal to 95% of any revenues derived from the investments in such fund shall become available for inclusion in the annual budget on a 12 month delayed basis. (i.e., as of December 31, 2005, will become available for inclusion in the 2007 Budget.)

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e. The retention of 5% of the annual earnings and the addition of subsequent "wind-fall" funds is intended to provide a margin of inflation proofing for the principle of the fund.

f. The City Council may elect to contribute a portion of the prior year's General Fund surplus. Under no circumstance shall the principle of the fund be distributed without the approving vote of a preponderance (60%) of the voting electorate.

g. Distribution of fund principal:

i. A vote of the City Council is required to place [unanimous vote of the City Council may place ]the question of spending funds from the principal on the ballot for the next regular election.

ii. A preponderance (60%) of those voting on the issue shall be required to approve the distribution.

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

ENACTED BY THE CITY COUNCIL OF THE CITY OF HOMER, ALASKA this ______ day of _________________, 2005.

CITY OF HOMER

__________________________

JAMES C. HORNADAY, MAYOR

ATTEST:

____________________________________

MARY L. CALHOUN, CMC, CITY CLERK

Introduction:

Public Hearing:

Second Reading:

Effective Date:

Ayes:

Noes:

Abstain:

Absent:

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Ordinance 05-14(A)

City of Homer

Reviewed and approved as to form and content:

___________________________ ___________________________

Walt E. Wrede City Manager Gordon Tans, City Attorney

Date Date

Fiscal Note: NA.