HOMER,
Stark
ORDINANCE 07-33
AN ORDINANCE OF THE
WHEREAS, The Kenai Peninsula Borough is raising its sales tax rate 1% on
WHEREAS, The impact of the 15% increase in sales tax will fall heavily on those
least able to afford it; and
WHEREAS, Consumers in Homer will increasingly shop in other communities to avoid
the additional cost, which will impact local businesses and lead to reduced
employment in Homer, aggravating an already serious economic problem; and
WHEREAS, The City needs the income it receives from its 3% general sales tax and
its 3/4 of 1% for sewer and water, a large part of which is committed to repay
loans for sewer and water projects; and
WHEREAS, The Homer Accelerated Roads and Trails program has a balance in excess
of $2.8 million and receives about $880,000 each year for 1/2 of 1% of the
sales tax income; and
WHEREAS, The appetite for roads and trails funds is unlimited, but tough
choices have to be made to preserve the economy of Homer; and
WHEREAS, Reducing the HART sales tax of 3/4 of 1% to 1/2 of 1% will reduce the
projected sales tax to 7 1/4 percent and save consumers in Homer about $440,000
per year.
PASSED
_____________________________
JAMES
C. HORNADAY, MAYOR
ATTEST:
______________________________
JO JOHNSON,
Introduction:
Public Hearing:
Second
Effective Date:
Ayes:
Noes:
Abstain:
Absent:
Reviewed and approved as to form and content:
__________________________ ___________________________
Date:______________________ Date:_______________________
Fiscal Note: Fiscal information included in body of Ordinance.