CITY OF HOMER

HOMER, ALASKA

Mayor

RESOLUTION 06-05(S)(A)

A RESOLUTION OF THE CITY COUNCIL OF HOMER, ALASKA URGING THE STATE TO SHARE REVENUE WITH ALL ALASKAN COMMUNITIES.

WHEREAS, Alaska's great wealth is generated by the natural resources of regions, communities and cities throughout the State; and

WHEREAS, Other States share their resources with their communities; and

WHEREAS, It is in the interest of the State of Alaska to share a portion of this natural resource wealth with communities of the State in order to enhance and continue the positive economic growth throughout the Alaska; and

WHEREAS, The State of Alaska currently has over $32 billion in the Alaska Permanent Fund and a budget surplus exceeding $1 billion in this fiscal year; and

WHEREAS, The State ceased to fund all revenue sharing programs in 2003; and

WHEREAS, The elimination of revenue sharing had a significant negative effect on the ability of Alaska's cities and boroughs to provide essential service, with communities forced to reduce essential services and/or increase local taxes, fees and economic hardship; and

WHEREAS, Restoration of a revenue sharing program would provide communities with funding to reduce local taxes, build infrastructure, grow the state economy, provide for increased quality of life and in some cases, provide for the survival of small communities; and

NOW, THEREFORE BE IT RESOLVED that the Homer City Council urges the State to share revenue with all Alaskan Communities and agrees with the following:

1. That the State of Alaska is urged to resume sharing revenue or a similar substitute program with communities for fiscal year 2007 in the amount of no less than $75 million [$150 million]. Each community will receive a minimum payment of $75,000. The balance, after payment of the minimum, will be allocated on a per capita basis and services provided per instructions on form G. entitled "State Revenue Sharing, FY 04 Summary Sheet". Distribution in cases where one or more communities lie within a borough would be allocated in proportion to the relative population of and services provided by each community, including the borough.

2. The Legislature and Governor, with collaboration from the Alaska Municipal League, should develop a revenue sharing program that is sustainable and meets the goal of sharing the revenue of the State. Examples of programs they could consider as well as others include:

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Resolution 06-05(S)(A)

City of Homer

a. "$1 per barrel program." Under this plan, $1 per barrel in revenues from annual

oil production would be distributed through a revenue sharing program;

b. "An Endowment Program." Under this program, a portion of state revenues would be set aside in an endowment with the annual proceeds used for a revenue sharing program.

c. Percentage of market value.

d. Community Dividend.

[e. Earnings of Permanent Fund.]

[ f. ] e. Constitutional Budget Reserve.

3. That the Application form be modeled after the Department of Community and Economic Development Form last entitled "State Revenue Sharing, FY 04 Summary Sheet."

BE IT FURTHER RESOLVED by the City Council that this Resolution shall be sent to Governor Frank Murkowski, the Kenai Peninsula Borough Mayor, John Williams, and all Mayors in the Kenai Peninsula Borough and sent to the Alaska Municipal League, Senator Gary Stevens, Representative Paul Seaton, Senator President Ben Stevens, and the Speaker of the House John Harris.

PASSED AND APPROVED by the Homer City Council this 9th day of January, 2006.

CITY OF HOMER

JAMES C. HORNADAY, MAYOR

ATTEST:

________________________________________

MARY L. CALHOUN, CMC, CITY CLERK

Fiscal Note: Possible revenues.