CITY OF HOMER

HOMER, ALASKA

                                                                        Wythe

ORDINANCE 05-14(S)

 

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, AND SUBMITTING THE ORDINANCE TO THE VOTERS FOR APPROVAL.

 

            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; and

 

            WHEREAS, The Council desires to submit the question of establishment of a permanent fund to the voters for approval.

 

            NOW, THEREFORE, THE CITY OF HOMER HEREBY ORDIANS:

 

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.)

 

            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 principal 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 principal of the fund be distributed without the approving vote of a preponderance sixty percent (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 A majority of sixty percent (60%) of those voting on the issue shall be required to approve the distribution.

 

Section 2.  The City Clerk shall submit the following question to the voters at the next regular election to be held on October 4, 2005.  The ballot measure shall read as follows:

 

BALLOT MEASURE NO. ____

ORDINANCE 05-14

 

Ordinance 05-14 will establish a General Permanent Fund for the City of Homer comprised of any Exxon Valdez settlement funds and other wind-fall revenues received by the city.  It says that up to 95% of the revenue from investment of the permanent fund may be used for the city budget.  It further says the principal of the fund may not be spent without the approval of 60% of the voters.

 

Should this ordinance become law?

 

Yes _____                    No ______ _

 

Section 3.  If the ballot measure set forth in this ordinance is approved by the voters, section 1 of this ordinance shall take effect upon certification of the election.  If the ballot measure is not approved by the voters, section 1 of this ordinance will not take effect.  Sections 2 thorugh 4 of this ordinance take effect immediately.

 

Section 4.  If the ballot measure set forth in this ordinance is approved by the voters, section 1 of this ordinance shall be of a permanent and general character and shall be included in the City code.  The remaining sections of this ordinance are not of a permanent nature and, as such, shall not be codified.

 

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:

 

 

Reviewed and approved as to form and content:

 

 

________________________                                                            ______________________

Walt E. Wrede, City Manager                                                              Gordon Tans, City Attorney

Date                                                                                                     Date

 

Fiscal Note: NA.