CITY OF HOMER

HOMER, ALASKA

Heimbuch

ORDINANCE 08-18

AN ORDINANCE OF THE CITY COUNCIL OF HOMER, ALASKA, PROVIDING FOR TEMPORARY ADJUSTMENTS OF THE CITY SALES TAX RATE OF LEVY.

WHEREAS, A reduction of the sales tax rate during the off-season months will result in a more appropriate allocation of the overall sales tax burden to sales occurring in those months in which the community is, by far, the busiest and the demands for city services are the greatest; and

WHEREAS, The voters of Homer have authorized a consumer's sales tax for general governmental purposes at a rate of levy of up to three percent; and

WHEREAS, The City Council may not without voter approval increase the rate of levy above the three percent authorized by the voters, but it may, without voter approval, temporarily suspend a portion of the authorized rate of levy.

NOW, THEREFORE, THE CITY OF HOMER ORDAINS:

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 at the rate 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. This rate of levy may be temporarily adjusted as provided in section 9.16.015.

b. An additional consumer’s sales tax in the amount 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 in the amount 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 be otherwise exempted by law, for the purpose of funding of street reconstruction improvements and related utilities, construction of new local roads, and construction of new local trails.

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 Temporary adjustment of sales tax. a. The rate of levy of the sales tax levied by subsection 9.16.010(a) will be temporarily adjusted as provided in this section. This section does not affect the rates of levy under subsections 9.16.010(b)-(c).

b. From October 1 through March 31 each year a portion of the voter-authorized rate of levy is suspended to reduce the effective rate of levy to one percent. At all other times of the year the suspension is not in effect, and the rate of levy will remain at the full three percent.

c. Upon the adoption of a subsequent ordinance to repeal or temporarily suspend the effectiveness of subsection 9.16.015(b), the rate of levy will resume year-round at the voter-authorized rate of three percent, unless otherwise provided in the subsequent ordinance.

Section 3. This enactment will be included in the city code. It takes effect on the day following enactment.

PASSED AND ENACTED by the Homer City Council this _____ day of ____________, 2008.

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:

________________________                              _______________________

Walt E. Wrede, City Manager                                     Gordon Tans, City Attorney

Date: ___________________                              Date: __________________