CITY OF HOMER

HOMER, ALASKA

                                                                                                   Stark

 

ORDINANCE 07-33

 

AN ORDINANCE OF THE CITY COUNCIL OF HOMER, ALASKA, REDUCING SALES TAX FOR HOMER ACCELERATED ROADS AND TRAILS PROGRAM FROM 3/4 OF ONE PERCENT TO 1/2 OF ONE PERCENT EFFECTIVE  JANUARY 1, 2008.

 

          WHEREAS, The Kenai Peninsula Borough is raising its sales tax rate 1% on January 1, 2008 which will make the total City/Borough sales tax rate at that time 7 1/2 percent; and

 

          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.

 

          NOW, THEREFORE, BE IT RESOLVED that the HART sales tax rate is reduced from 3/4 of 1% to 1/2 of 1% effective when the Kenai Peninsula Borough sales tax is raised 1%, now scheduled for January 1, 2008.

 

          PASSED AND ENACTED by the Homer City Council this _____ day of ________________, 2007.

 

 

                                                                                    CITY OF HOMER

 

 

 

                                                                                    _____________________________
                                                                                    JAMES C. HORNADAY, MAYOR

 

ATTEST:




______________________________

JO JOHNSON, 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: Fiscal information included in body of Ordinance.