HOMER,
Heimbuch
ORDINANCE 07-18(S-2)(A)
AN ORDINANCE OF THE
HOMER
WHEREAS, There is strong community support for non-profit recreational organizations, and;
WHEREAS, the community and Council recognize the social and economic value added to the community by these non-profit recreational organizations, and;
WHEREAS, There
are continual requests to have the City provide financial assistance for capital
improvements desired by these organizations to help them expand and develop,
and;
WHEREAS, The development of a dedicated funding source to provide assistance with financing these capital improvements is an idea whose time has come; and
WHEREAS, The community and the Council recognize that
the provision of capital funding assistance in no way obligates the City of
Homer with future maintenance or operating expenses for these non-profit
recreational programs or projects, and;
WHEREAS, criteria need to be established to identify the organizations and capital improvements that will qualify funding from the revenues of such a program; and
WHEREAS, the proposed source of revenue to establish the funding of such a program can not diminish the provision of existing community services, and;
Section 1. Homer City Code § 9.16.010 is hereby
amended to read as follows:
9.16.010 Levied. a. A consumer’s sales tax in the
amount of 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 at the rate of three-quarters percent (3/4%) is
hereby levied by the City of Homer on all sales, rents, and services within the
City except as the same may otherwise be 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 at the rate of three-quarters
percent (3/4%) is hereby levied by the City of
d. An additional consumer's sales tax at the rate of one-quarter percent
(1/4%) is hereby levied on all sales, rents, and services within the city
except as the same may be otherwise exempted by law, for the purpose of funding
local recreation opportunities and development of the town center and a new
city hall as provided in section 9.16.015.
This levy shall expire upon the
later of (i)
Section 2. The Homer City Code is hereby amended by the enactment of a new section 9.16.015 to read as follows:
9.16.015 Dedication of revenue. a. Each year the revenue resulting from the
one-quarter percent sales tax levied by subsection 9.16.010(d) is dedicated to the following purposes:
(1) One-half of the
annual revenue or $200,000, whichever is less, is dedicated to capital
expenditures for the improvement of local recreational opportunities beneficial
to the community of Homer. Such revenues
shall be deposited in a fund designated for such purposes, and may be
appropriated and disbursed as grants for such purposes to qualified public and
private entities, as approved by the City Council; and
(2) the remainder of the revenue is dedicated to
and may be appropriated and disbursed for development of a town center plaza or
a
b. Revenues dedicated to and appropriated for the purposes provided in this section shall not lapse at the end of the fiscal year, notwithstanding anything to the contrary in section 3.05.035. Unless the City Council approves otherwise by ordinance or by the terms of the appropriation or grant agreement:
(1) an appropriation or
grant made under the authority of this section for a specific purpose or capital
expenditure shall continue in force until the purpose for which it is made has
been accomplished or abandoned; and
(2) the purpose of such
appropriation or grant shall be deemed abandoned if three years pass without
disbursement or encumbrance of the funds.
c. The requirements for qualifying under subsection
(a)(1) to receive a grant of funds for a capital improvement for local recreational
opportunities shall include:
(1) Non-profit and tax-exempt status, evidenced
by a determination by the Internal Revenue Service that the entity is a tax
exempt organization under IRC § 501(c); or satisfactory proof of exemption
under another provision of the Internal Revenue Code,
(2) The demonstrated ability to secure matching
funds for the proposed project;
(3) A developed business plan which demonstrates
the ability of the organization to have continued operational success; and,
(4) The binding commitment that all capital improvements
acquired, installed, or constructed with the benefit of funding under this
section shall remain the property of the qualified non-profit organization or a
governmental entity and will remain available for the benefit of citizens of
the City of
(5) The City of
d. Nothing in section 9.16.015 or subsection
9.16.010(d) shall be construed to prevent the city council from appropriating
funds in the recreation account to meet an unforeseen budget emergency. The
council shall make good faith efforts to restore any funds appropriated and
disbursed from the recreation account for such purposes. In the event that the council shall make an
emergency
appropriation from this fund such appropriation shall
include a plan for the restoration of such funds in a time frame which will
create limited future financial impact.
Section 3. The City Clerk shall submit the following
question to the voters at the regular city
election to be held on
PROPOSITION _____
Shall the city be authorized to increase the sales tax
rate by 1/4% (from 4.5% currently to 4.75% ) and shall the increased revenue be
dedicated to provide a source of matching funds for local recreation
opportunity and a source of funds for development of the town center plaza with
a new city hall?
If this ballot
measure passes city sales tax revenues are projected to increase by
approximately $422,000.00 dollars next year, with similar increases in future
years. 50% of the revenue from this increase, but no more than $200,000.00
dollars a year, shall be set aside in an account for recreational purposes.
This account will be a source of matching funds that may be provided to
qualifying non-profit entities (including the city of
If this measure
passes it is projected that of the increased revenue an estimated $220,000.00
dollars in the first year and similar amounts in future years will also be
available to support development of the town center plaza, including a
Nothing in this measure shall prevent the city council from appropriating funds in the recreation account to offset an unforeseen budget emergency. The council shall make good faith efforts to restore any funds taken from the recreation account and used for other purposes. In the event that the council shall make an emergency appropriation from this fund such appropriation shall include a plan for the restoration of such funds in a time frame which will create limited future financial impact.
This tax rate
increase will expire at the end of the year of retirement of all long term city
indebtedness for town center development or city hall capital improvements
incurred within five years of this election, but in no event sooner than
Shall this proposition be approved?
YES ____ NO ____
Section 4. If the ballot proposition set forth in this
ordinance is approved by the voters, the City Council shall, before
Section 5.
If the ballot proposition set forth in this ordinance is approved by the
voters, sections 1 and 2 of this ordinance shall take effect immediately upon
certification of the election results, except the increased sales tax rate of levy shall first
become effective on
PASSED
____________________________
JAMES
C. HORNADAY, MAYOR
ATTEST:
______________________________
JO JOHNSON,
Introduction:
Public Hearing:
Second
Effective Date:
Ayes:
Noes:
Abstain:
Absent:
Reviewed and approved as to form:
_______________________ _______________________
Date: __________________
Date: __________________
Fiscal Note: Expected Sales Tax Increase due to Rate Change
$422,891.00.