CITY OF HOMER

HOMER, ALASKA

                                                                                                              Wythe, Yourkowski,

City Manager

RESOLUTION 05-28(A)

 

 

A RESOLUTION OF THE HOMER CITY COUNCIL URGING THE KENAI PENINSULA BOROUGH ASSEMBLY TO AMEND BOROUGH ORDINANCE 2005-05(S) REGARDING THE PROPOSED TRANSIENT ACCOMMODATION TAX TO PROVIDE FOR AN EQUITABLE DISTRIBUTION AND SHARING OF THE TAX REVENUES WITH CITIES WITHIN THE BOROUGH. 

 

            WHEREAS, the Kenai Peninsula Borough Assembly has introduced Ordinance 2005-05(S) entitled “ AN ORDINANCE ENACTING KPB CHAPTER 5.19, PROVIDING FOR A TRANSIENT ACCOMMODATION TAX, AND PROVIDING FOR THE SUBMISSION TO THE VOTERS OF A PROPOSITION AUTHORIZING THE BOROUGH TO IMPOSE THIS TAX.” and

 

            [WHEREAS, Ordinance 2005-05 (S), as presently written, does not provide a mechanism to share anticipated new tax revenues with cities located within the Borough, and]

 

WHEREAS, Ordinance 2005-05 (S), as presently written, does not  provide a mechanism for [permit] cities to levy their own transient accommodations tax; and [and to have that levy deducted from the Borough’s rate of levy, and]

 

WHEREAS, the Cities of Homer, Seward, Seldovia, Kenai, and Soldotna provide a very large proportion of the services, including accommodations, that visitors to the Kenai Peninsula enjoy, and

 

[WHEREAS, a uniform tax rate throughout the entire Borough is important because it avoids confusion for tourists and it prevents businesses located outside of City Boundaries from having a competitive advantage over those that are located within Cities, and]

 

WHEREAS, Businesses that will be charged with levying these taxes would want the revenue reinvested into promoting growth in the Visitor’s industry; and

 

 

 

Page Two

Resolution 05-28(A)

City of Homer

 

WHEREAS, the City of Homer has considered levying its own transient accommodations tax in recent years but has[ delayed action, in large part, because it believed that this type of tax should be levied by the Borough and should be uniform throughout the Borough, and] been legally unable to levy such a tax; and

 

WHEREAS, Ordinance 2005-05(S), as presently written, could [would] have an [very] adverse financial impact[s] upon the [City of Homer because it would effectively preclude the community from levying a transient accommodations tax in the future.      ] Peninsula Cities, which already have sales taxes.

 

NOW THEREFORE BE IT RESOLVED, that Homer City Council hereby recommends that the Borough Assembly amend Ordinance 2005-05 (S) to allow municipalities to levy their own accommodations tax [and have the full amount deducted from the Borough tax], and

 

BE IT FURTHER RESOLVED, the Council recognizes that the Borough and the Cities within it are all facing budget challenges and it urges the Assembly to work cooperatively with Cities to solve these problems by mechanisms such as looking at other uncaptured revenues.[  in the best interest of all Borough residents.]

 

PASSED AND ADOPTED by a duly constituted quorum of the City Council of Homer, Alaska, this 29th day of March, 2005

 

CITY OF HOMER

 

 

 

JAMES C. HORNADAY, MAYOR

ATTEST:

 

 

 

MARY L. CALHOUN, CMC, CITY CLERK

 

Fiscal Impact:  NA