CITY OF HOMER

HOMER, ALASKA

Heimbuch

RESOLUTION 06-32

A RESOLUTION OF THE HOMER CITY COUNCIL REQUESTING THE FINANCE DEPARTMENT TO APPROXIMATE THE THREE SUMMER MONTHS GENERAL SALES TAX INCREASE IT WOULD TAKE TO OFFSET THE EFFECT OF A NINE MONTH SALES TAX DECREASE.

WHEREAS, The City of Homer has a strong interest in retaining year round residents in this area; and

WHEREAS, The entirety of City services are sized to meet the requirements of the maximum population density which occurs in the summer months; and

WHEREAS, The cost of taxes added to the basic purchases is a significant component of the cost of living; and

WHEREAS, The documented stagnation and decline of student enrollment paints a picture of a City that needs to do all that it can to attract young families; and

WHEREAS, It is in our best interest to review the impacts of tax policies on the ability of people to reside here.

NOW THEREFORE BE IT RESOLVED That the Homer City Council hereby requests that the Finance Department examine the relationship between the sales tax revenue in the three summer months and the nine other months and to direct City Finance to provide some picture of the impact and the mathematic relationship of the decrease in sales tax for September through May and the increase in sales tax June through August and the ratio of impact and implication of and what that increase would need to be to offset the decrease.

PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF HOMER, ALASKA, this 13th day of March, 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: NA.

MH/mlc