CITY OF HOMER

HOMER, ALASKA

Shadle/McLay.

RESOLUTION 06-147

A RESOLUTION OF THE CITY COUNCIL OF HOMER, ALASKA REPEALING RESOLUTION 06-122(A) AND SETTING THE PROPERTY TAX RATE (MILL RATE) FOR FISCAL YEAR 2007 AT 4.00 MILLS.

WHEREAS, Resolution 06-122(A) setting a property tax rate for 2007 has some legal problems and should be repealed and replaced with another Resolution; and

WHEREAS, The City of Homer considered a 4.00 mill property tax rate for 2006 but decided to wait to see how the revenue came in; and

WHEREAS, Because of increased property assessments property tax revenue far exceeded that budgeted, and in fact a 4.00 mill rate would have exceeded the budgeted amount; and

WHEREAS, The City is basking in a substantial increase in revenue, including sales tax income greater than budgeted, $250,000 in State Revenue Sharing with an even greater amount expected in 2007, and anticipated opening of the Fred Meyer store resulting in increased sales and property tax income of about $40,000 per month; and

WHEREAS, The responsibility of a municipal corporation is to take from the citizens only what it needs to perform its services, knowing that the citizens are the wisest stewards of their finances and will supply what the City truly needs; and

WHEREAS. The administration needs to know what the mill rate will be for the preparation of the 2007 Budget.

NOW THEREFORE BE IT RESOLVED That the City Council hereby repeals Resolution 06-122(A) and sets the property tax mill rate for Fiscal Year 2007 at 4.00 mills.

PASSED AND ADOPTED by the City Council of Homer Alaska this 9th day of October, 2006.

CITY OF HOMER

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ATTEST: JAMES C. HORNADAY, MAYOR

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MARY L. CALHOUN, CMC, CITY CLERK

Fiscal note: ($261,402.00) as provided by Finance