CITY OF HOMER

HOMER, ALASKA

Fenske/City Manager/Finance

RESOLUTION 03-60

A RESOLUTION OF THE CITY COUNCIL OF HOMER, ALASKA URGING THE LEGISLATURE TO FUND THE REVENUE SHARING AND SAFE COMMUNITIES PROGRAM AT THE FY 2003 LEVEL.

WHEREAS, Governor Murkowski has proposed cutting the Revenue Sharing and Safe Communities Program by 25 percent; a continuation of the trend toward eventual elimination of the program, and

WHEREAS, every state shares revenues with its municipalities in order to equalize resources and maintain lower taxes, and

WHEREAS, Alaskan statehood was based in large part upon an equitable distribution of revenues from natural resources because it was recognized that adequate public services could not be affordable through local taxes alone, and

WHEREAS, during the election campaign, the Governor stated that he had no intention of raising taxes however, the impacts of cuts to the Revenue Sharing Program may in fact lead to increased municipal taxes and reductions in basic public services, and

WHEREAS, many municipalities, including Homer, are already close to or are operating at their tax cap limits, and

WHEREAS, A 25% cut represents a $44,123.00 reduction to the Homer Operating Budget and is the equivalent of .14 mills in property tax, and

WHEREAS, Over the past few years it has become increasingly difficult for the Homer City Council to balance the Operating Budget due to inflation, increases in insurance premiums, and increases in population and the demand for city services,

WHEREAS, Revenue Sharing and Safe Communities Funding is used to provide basic and essential public services in Homer including road maintenance and support for eight different public health facilities, and

WHEREAS, the Governor has proposed a variety of measures to raise new revenues for the State but has not indicated that those revenues would be shared with municipalities; subdivisions of the State which provide the most basic public services, and

Page Two

Resolution 03-60

City of Homer

WHEREAS, the State of Alaska has a responsibility to share revenues derived from commonly held resources and help local governments provide basic public services, including but not limited to the Municipal Dividend, sharing marine fuel tax and highway fuel tax.

NOW THEREFORE BE IT RESOLVED, that the Homer City Council hereby urges the Legislature to maintain funding for the Revenue Sharing and Safe Communities Program at the FY 2003 level, and

BE IT FURTHER RESOLVED, that the Council urges the Governor and the Legislature to aggressively explore new methods to fund the Revenue Sharing and Safe Communities Program including, but not limited to, the Municipal Dividend Program.

PASSED AND ADOPTED by the City Council of Homer, Alaska this 14th day of April, 2003.

CITY OF HOMER

_____________________________

JACK CUSHING, MAYOR

ATTEST:

___________________________

MARY L. CALHOUN, CITY CLERK

Fiscal Note: NA