A RESOLUTION OF THE CITY COUNCIL OF HOMER, ALASKA URGING THE GOVERNOR AND LEGISLATURE TO ESTABLISH A MUNICIPAL DIVIDEND.

WHEREAS, the City of Homer has partnered with state officials to find a solution to steadily increasing local property taxes due to continuing state cuts to municipal revenue sharing; and

WHEREAS, the Municipal Dividend is the first step toward a long-range financial plan for Alaska; and

WHEREAS, the Municipal Dividend goes directly to communities and its use is directly controlled by local governments and citizens; and

WHEREAS, a Municipal Dividend does not impact the currently calculated amount of the Permanent Fund Dividend over the next 20 years, while it provides local support in the amount of $125 - $150 per capita that would otherwise be required from local taxes; and

WHEREAS, a Municipal Dividend is a long term solution to stabilize funding for municipal revenue sharing and Municipal Capital Matching Grants, and will have major impact on stabilizing local taxes; and

WHEREAS, the Municipal Dividend will allow the Governor and Legislature to decrease State General Fund spending (previous State General Fund support for revenue sharing and capital matching grants) by approximately $45 - $55 million, allow the Legislative Majority to meet its $30 million General Fund reduction goal, while increasing the option for funding of schools, the University, PCE, etc.

NOW, THEREFORE, BE IT RESOLVED that the Homer City Council hereby urges the Governor and Legislature to establish a Municipal Dividend.

PASSED AND ADOPTED by the Homer City Council this 24th day of April, 2000.

CITY OF HOMER

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ATTEST: JACK CUSHING, MAYOR

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MARY L. CALHOUN, CMC, CITY CLERK

Fiscal Note: NA