City Manager
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HOMER, ALASKA AMENDING THE ASSESSMENT METHODOLOGY FOR PENDING WATER AND/OR SEWER IMPROVEMENT/ASSESSMENT DISTRICTS TO 50% PROPERTY OWNER SHARE AND 50% CITY SHARE OF THE TOTAL PROJECT COSTS AND AMENDING THE ASSESSMENT METHODOLOGY FOR FUTURE WATER AND/OR SEWER IMPROVEMENT/ASSESMENT DISTRICTS TO 75% PROPERTY OWNER SHARE AND 25% CITY SHARE OF TOTAL PROJECT COSTS .
WHEREAS, there are nine water and/or sewer improvement/assessment districts on the books awaiting construction; and
WHEREAS, the improvements have been found to be necessary, the property owners have voted in favor of these improvements; and
WHEREAS, the present methodology, City share 75% property owner share 25%, was adopted during a time in which State funding was available to cities for funding at the 75% level; and
WHEREAS, most of these projects were assessed with the basis of the City receiving funds from the State of Alaska, the Alaska Department of Environmental Conservation and/or other State funding and there have been and are no State funds for these projects; and
WHEREAS, funding at the 75% level is no longer available to the City from any source; and
WHEREAS, using the existing assessment methodology, City share 75% property owner share 25%, the total cost of the City's share is $5,420,337; and
WHEREAS, the City presently has on hand only $1,743,000 available for the City's share of the total costs; and
WHEREAS, although the voters of the City of Homer during the 1999 General Municipal Election approved the use of unexpended sales tax revenue for water and/or sewer improvements, this only increases the projection of available funding for the City's share at the rate of approximately $300,000 per year; and
WHEREAS, some of these projects have been awaiting funding for nearly seven years; and
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WHEREAS, the Water and Sewer Standards Committee has been tasked, in part, with bringing these projects to fruition using available funds; and
WHEREAS, many hours have been spent ascertaining the most efficient method of utilizing the sales tax funds and the funds presently available to complete construction of these improvement/assessment districts and to establish a policy for assured future funding of water and sewer improvement districts; and
WHEREAS, the Water and Sewer Standards Committee has made the recommendations outlined in this resolution; and
WHEREAS, it is the conclusion of the Council that assessment methodology must be changed if water and sewer projects are to actually be constructed in a timely, orderly and equitable fashion; and
WHEREAS, the Council has determined that a two step process is necessary in the implementation of an assessment methodology change fairly address the required change to this City policy; and
WHEREAS, the first step would be to establish an assessment methodology for the aforementioned nine improvement districts of 50% share for the property owner and 50% for the City; and
WHEREAS, the change in the methodology must be approved by petition by the members of each improvement district for construction to proceed in each improvement district; and
WHEREAS, it may be necessary for the boundaries of the nine districts to be modified by the property owners to accomplish their goals with the assistance of the City; and
WHEREAS, a reasonable time to accomplish the reconsideration by the property owners is ninety days; and
WHEREAS, any of the nine aforementioned improvement districts that would fail to be endorsed by a majority of the property owners within the 90 days, or with such extension(s) granted by Council, would be dissolved and no longer be in existence; and
WHEREAS, if the 50%-50% change is approved by property owners in each district, Harrington Heights, Mariner Village, Thompson Drive, Saltwater Drive, Forest Glen and East Road could be constructed in the first year and Hillside Acres [sewer], Hillside Acres [water] and Lakeshore Drive could be completed with the next four years; and
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City of Homer
WHEREAS, the second step of the methodology change is to implement an assessment policy for all future water and sewer improvement districts by which the City would pay 25% and the property owner would pay 75% of the total costs; and
WHEREAS, a methodology by which the shares are 25% City and 75% property owner, could permit the construction of $1.2 million in projects per year, indefinitely, if the Council decides to allocate all water/sewer sales tax revenues to Local Improvement Districts (LIDs); and
WHEREAS, pursuant to Homer City Code 17.04.030, Improvement districts--Formation and assessment, the Council may create local improvement districts and assess the real property benefitting from such capital improvements for all or a portion of the cost of acquiring, installing and constructing such improvements; and
WHEREAS, pursuant to Homer City Code 17.04.070(b), Assessments and assessment roll, the Council shall be the sole authority for determining the method of assessments to the affected district.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Homer, Alaska:
1. The Council concludes that the present assessment methodology of the City paying for 75% and the property owner paying for 25% of the total costs of the improvement districts is impractical and unworkable considering the funding source available; and
2. The Council concludes that a two phase implementation of new assessment methodology is necessary because it must fairly deal with both presently approved improvement districts and future improvement districts; and
3. The Council hereby establishes the assessment methodology for the presently approved improvement districts as City share 50% and property owner share 50%; and
4. The property owners in each presently approved LIDs shall have 90 days from the date of this Resolution's enactment to approve this change in policy; and
5. The property owners, with the assistance of the City, shall have the opportunity to adjust the boundaries of their LIDs during the 90 day period; and
6. Following the expiration of the 90 day period, plus any Council approved extension(s,) it is the intention of the Council to adopt a resolution to forward to the construction phase any and all of the nine improvement districts approved by the property owners; and
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City of Homer
7. The Council hereby establishes the assessment methodology for all future water and sewer improvement districts at 25% City share and 75% property owner share of total costs.
BE IT FURTHER RESOLVED, that all the property owners of the current nine improvement/assessment districts shall be notified of this action by the Council and the process followed as set forth in the Homer City Code for a public hearing date set, objection period and notifications thereof.
PASSED AND ADOPTED by the Homer City Council this 27th day of March, 2001.
CITY OF HOMER
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ATTEST: JACK CUSHING, MAYOR
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MARY L. CALHOUN, CMC, CITY CLERK
Fiscal note: notification and advertising costs.