AN ORDINANCE OF THE CITY COUNCIL SETTING THE PROPERTY TAX RATE (MILL RATE) FOR HOMER, ALASKA FOR FISCAL YEAR 2006 AT 4.00 MILLS.

WHEREAS, The City of Homer has previously set it s property tax rate for Fiscal Year 2006 at 4.50 mills; and

WHEREAS, Since that time assessed values in Homer for this Fiscal Year have increased such that a Mill Rate of 4.00 will bring in the amount budgeted with a mill rate of 4.50; and

WHEREAS, This means that not only will a lower mill rate bring in the budgeted amount, but with the 4.50 rate the citizens would be paying more than they expect and more than many of them can afford; and

WHEREAS, The City is basking in a substantial increase in revenue, including sales tax revenue greater than budgeted, State Revenue Sharing expected somewhere between $200,000.00 and $1.2 million, a Cash settlement of the Seawall Claim of about $500,000.00, a cash settlement of the Pioneer Dock Claim of $200,000.00 probably going into the General Fund, probable opening of the Fred Meyer Store next year, resulting in a net annual income to the City of about $500,000.00 in increased sales and property tax; and

WHEREAS, The responsibility of a municipal corporation is to take from the citizens only what it needs to perform its services, knowing that the citizens are the wisest stewards of their finances and will supply what the City truly needs.

NOW, THEREFORE, the City of Homer Ordains:

Section 1. That the property tax rate (mill rate) for Fiscal Year 2006 is hereby set at 4.00 Mills.

Section 2. This ordinance is budget amendment, is not of a permanent nature, and is a non code ordinance.

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

CITY OF HOMER

_____________________________ JAMES C. HORNADAY; MAYOR

Page Two

Ordinance 06-32

City of Homer

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: See whereas clauses.

DS/MS/mlc