CITY OF HOMER

HOMER, ALASKA

Manager, Finance Director

RESOLUTION 04-47

A RESOLUTION OF THE CITY COUNCIL OF HOMER, ALASKA EXPRESSING SUPPORT FOR BOROUGH ORDINANCE 2004-13; AN ORDINANCE AMENDING KPB 5.18.430 BY RAISING THE BOROUGH MAXIMUM SALES TAX COMPUTATION (SALES TAX CAP) FROM $500.00 TO $1,000.00.

WHEREAS, Mayor Bagley has introduced Ordinance 2004-13; an ordinance amending KPB 5.18.430 by raising the Borough sales tax cap from $500.00 to $1,000.00, and

WHEREAS, if the Borough sales tax cap is raised, the City of Homer sales tax cap will automatically be raised as well unless the City Council adopts an ordinance establishing a different cap, and

WHEREAS, the current sales tax cap was established in 1965 and an item costing $500.00 then is worth $1,802 today, and

WHEREAS, the Borough estimates that raising the sales tax cap to $1,000 will translate into approximately $300,000 in additional revenues for the City of Homer, and

WHEREAS, the Homer City Council has been working on a Long Range Fiscal Plan which includes a list of options for raising new revenues in order to meet raising operating and capital costs, and

WHEREAS, raising the sales tax cap is one of the revenue enhancement options that the Council has identified as feasible and prudent.

NOW THEREFORE BE IT RESOLVED, that the Homer City Council finds that raising the sales tax cap from $500.00 to $1,000.00 is in the best interest of both the Borough and the City of Homer, and

BE IT FURTHER RESOLVED, that the Council hereby urges the Borough Assembly to adopt Borough Ordinance 2004-13.

PASSED AND ADOPTED by the Homer City Council this 10th day of May, 2004.

CITY OF HOMER

JACK CUSHING, MAYOR

ATTEST:

MARY L CALHOUN, CMC, CITY CLERK

Fiscal Note: Increased sales tax revenue.