CITY OF HOMER

HOMER, ALASKA

Stark, Heimbuch

RESOLUTION 05-66

A RESOLUTION OF THE HOMER CITY COUNCIL ESTABLISHING PROPERTY TAX RATE FOR FISCAL YEAR 2005 AT 4.00 MILLS.

WHEREAS, The assessed value of real property in Homer has increased 22.75% in the past year, and

WHEREAS, Even though this Council reduced the property tax rate from 5.5 mills to 4.5 mills recently as promised to the voters before they approved a sales tax increase, that followed a half mill increase in December, and

WHEREAS, The increase in assessed value is such that even if the mill rate is reduced to 4.00 the City will still get 5% more income from property tax than last year, and

WHEREAS, The City had a balanced budget on 1 January prior to the increase in the sales tax and prior to the large increase in assessed value, and

WHEREAS, With the increase in the sales tax and the expansion of Safeway in November and the opening of Fred Meyer in November of next year the City's finances are satisfactory, and

WHEREAS, When the City needs additional funds the citizens will step to the plate, but when the City can afford to cut taxes the citizens are the best judge of how to manage their finances.

NOW THEREFORE BE IT RESOLVED that the Homer City Council hereby establishes the property tax mill rate for 2005 at 4.00 mills.

PASSED AND ADOPTED by the Homer City Council on this 24th day of May, 2005.

CITY OF HOMER

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ATTEST: JAMES C. HORNADAY, MAYOR

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MARY C. CALHOUN, CMC, CITY CLERK

Fiscal Note: $180,000.00 reduction.