CITY OF HOMER

Heimbuch

HOMER, ALASKA

ORDINANCE 06-30(A)

AN ORDINANCE OF THE CITY COUNCIL PLACING A PEAK SEASONAL SALES TAX ADJUSTMENT ISSUE ON THE OCTOBER 3, 2006 REGULAR ELECTION BALLOT, AND AMENDING HOMER CITY CODE SECTION 9.16.010, SALES TAX LEVIED, PURSUANT TO VOTER ACTION.

WHEREAS, Residents in the City of Homer have expressed a strong desire to create an aesthetically pleasing city that will attract visitors during the tourist season; and

WHEREAS, The growth of tourism based industry is clearly demonstrated across the area; and

WHEREAS, The impacts on city services are clearly documented during the population swelling that occurs during the tourist season; and

WHEREAS, The city is compelled to provide levels of municipal services which adequately meet the needs of a seasonally increased population; and

WHEREAS, The size and scale of city services is being planned around the seasonal and transient population increase; and

WHEREAS, The residents of Homer have a significant interest in making sure that those responsible for and benefitting from the seasonal demands of city services shoulder a significant portion of the cost; and

WHEREAS, General sales tax increase during tourist season is a suitable mechanism to fairly distribute the tax burden to those who benefit disproportionately from our weather and resources in the summer months; and

WHEREAS, A general sales tax decrease during the off season is a desirable mechanism to encourage year round residency and maintain community commitment; and

WHEREAS, Previous efforts to impose tourism taxes would have unfairly impacted select businesses when all businesses in the community have increased sales during the summer months.

NOW, THEREFORE, the City of Homer Ordains:

Section 1. That the following question shall be placed before the city voters on the October 3, 2006 Regular Election ballot to read as follows:

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Ordinance 06-30(A)

City of Homer

"Shall the City raise the sales tax base rate by 1% from April through September and lower the sales tax base rate by 1% from October through March?"

Section 2. Upon passage of the above question by the voters the City Code, Section 9.16.010, Sales Tax shall be amended accordingly:

9.16.010 Levied. a. A consumer's sales tax in the amount of four percent from April through September and two percent from October through March [three percent] is levied by the City on all sales, rents and services within the City except as the same may be otherwise exempted by law.

b. An additional consumer's sales tax in the amount of three-quarters percent (3/4%) is hereby levied by the City of Homer on all sales, rents and services within the City except the same may be otherwise exempted by law, for the purpose of funding debt retirement of the sewer treatment plant improvements, and to the extent revenues from such tax exceed such debt retirement obligations, for the purpose of funding water and sewer systems.

c. An additional consumer's sales tax in the amount of three-quarters percent (3/4%) is hereby levied by the City of Homer on all sales, rents and services within the City except the same may be otherwise exempted by law, for the purpose of funding of street reconstruction improvements and related utilities. (Ord. 05-03(A) §2, 2005; Ord. 99-14(S), Ord. 91-19 section 1, 1991; Ord. 90-29 sections 1 and 2, 1990; Ord. 87-19 section 1, 1987; Ord. 85-37 section 2, 1985).

Section 3. This ordinance is a general ordinance of a permanent nature and upon passage of the question in Section 1. and after certification of the Election results, the Code shall be so amended.The effective date is January 1, 2007.

PASSED AND ENACTED by the Homer City Council this ____ day of ___________, 2006

CITY OF HOMER

_____________________________ JAMES C. HORNADAY; MAYOR

ATTEST:

_____________________________________

MARY L. CALHOUN, CMC, CITY CLERK

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City of Homer

Ordinance 06-30(A)

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: Not defined at this time.

/mlc