HomeMy WebLinkAboutRes2009-054Sponsored by: Oates
CITY OF SEWARD, ALASKA
RESOLUTION 2009-054
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SF.WARD, ALASKA,
PROVIDING FOR THE SUBMISSION TO THE QUALIb7ED VOTERS OF THE CITY
OF SEVVARD, AN AllVISORY QUESTION ON WHETHER TO INCREASE THE
SALES 'TAX RATE BY 0.5% AS NEEDED TO FUNll OPERATING AND CAPITAL
COSTS OF A NEW LIBRARY/MUSEUM, UNDERSTANDING THAT SALES TAX
REVENUES CANNOT BE DEDICATED FOR A SPECIFIC PURPOSE,
WHF,REAS, as part of the Seward Centennial celebration of the founding of Seward,
then Seward Mayor 1/dgar Blatchford sought project proposals from the public that would
directly benelit the citizens of the community, would begin in the centennial year 2003 and reach
completion during 2012, the one hundredth anniversary of the incorporation of the City; and
WHEREAS, the Seward Community Library Museum project was selected to be the
embodiment of the community's pride by preserving history and providing access to present and
future knowledge; and
WHERF,AS, the total cost of the combined community libraryhnuseum is estimated to
be 510,000,000 which includes planning, design, construction, management and furniture and
,~, fixtures; and
WHEREAS, the City of Seward, the Seward Community Library Association and the
Resurrection Bay Historical Society, through the creation of a joint Seward Community Library
Museum Building Committee, and with the assistance of Foraker Predevelopment Fund
consultants, are working to create a sustainable project; and
WHERF,AS, since ?003 progress includes purchase of a site, completion of a feasibility
study, a concept design, a business plan and a public phone survey; and
WHEREAS, the public phone survey revealed that 58% of the respondents were very
likely or likely to support bond funding for the project, supported by a %s% sales tax increase to
help pay for the capital costs of this project; and
WHEREAS, through the eflorts of the Seward Community Library Museum Building
Committee, over $1,000,000 has already been committed to this project, through private
donations, grants, City contributions, and professional in-kind services and property acquisition;
and
CITY of srwARD, ALASKA
RESOLUTION 2009-054
WHEREAS, although the amount of money raised to date and the phone survey results
demonstrate that there is overwhelming community support for this project, it is expected that an
advisory vote would provide input from more residents in the City but shall not be binding on the
City Council; and
WHEREAS, if the sales tax is increased, the additional funds would not be pledged or
dedicated to any specific purpose but would be available to be appropriated by council to help
defray the costs of the library/museum project, such as to repay $5,000,000 principal amount of
general obligation bonds; and
WHEREAS, both residents and non-residents who utilize the City's library and museum
would contribute to the construction and operation costs, thereby distributing the expense instead
of placing the entire tax burden on owners of real property within the City; and
~i'HEREAS any excess funds would be available for other expenses of the City.
NOW, THEREFORE, BE IT RESOLVED BY THE C1TY COUNCIL OF 'I'IIE
CITY OF SEWARD, ALASKA, that:
Section 1. The Cily Clerk is hereby directed to submit Proposition No. 2 as a non
binding advisory vote to the quali tied voters at the October 6, 2009 regular municipal election in
substantially the following form:
ADVISORY PROPOSITION NO. 2
Shall the Seward City Council increase the sales tax from 4.0°/, to 4.5%, with the understanding
that the additional funds are expected to he in an amount sufficient to cover a portion of the
proposed library/museum operating and constntction costs and would be available to be
appropriated by the City Council'?
Yes No
A "Yes'' vole advises the Seward City Council that the voters recommend increasing the City's
sales tax to 4.5%.
A "No" vote advises the Seward City Council that the voters do not recommend increasing the
City's sales tax to 4.5%.
(A vote on this proposition i.r advisor}~~ o~aly unrl rton-binding)
Section 2. This resolution shall take effect immediately upon its adoption.
Cl'I'Y OF SEWARD, ALASKA
RESOLUTION 2009-054
PASSED ANll APPROVED by the City Council of the City of Seward, Alaska, this
22nd day of Jttne, 2009.
THE CITY OF SF.WARD, ALASKA
Clark Corbridge, Mayor
AYES: Valdatla, Dunham, Bardarson, Kellar, Smith, Keil, Corbridge
NOES: None
ABSENT: None
ABSTAIN: None
ATTEST:
~ ,~ '~.~ t ~~ ,. ~' . .
Jean Lewis, CMC
City Clerk
(City Seal)
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COUNCIL AGENDA STATEMENT
Meeting Date: June 22, 2009
Through: City Manager Phillip Oates ~-tea'
From: Librarv Director Patricia Linville
Agenda Item: Resolution 2009-q5 ,providing for the submission to the qualified voters
of the City of Scward the question of whether to uncrease the sales tax rate
by 0.5% to cover a portion of the capita] and operating costs of a
combined library/museum
BACI{CROUND & JUSTIFICATION:
In 2003, Seward Mayor Edgar Blatchford proposed developing a community centered project in
the Centennial year of Seward's founding to he completed in 2012, the 100a' anniversary of the
incorporation of Seward. The intent of this resolution is to gauge the community's support for
funding construction of a new library/rnusewn, plus covering a portion of operating costs,
through assessment of an additional 0.5% sales tax. By late, a sales tax cannot be dedicated.
However, proceeds from an increase in the sales tax could help offset a portion of the annual
operating and capital costs, with the understanding that a future Council can determine the use of
any tax proceeds.
The estimated cost of the facility, including planning, design, construction, project management,
furniture and fixtures, is $10 million. The plan of finance includes $1 million private foundation
and uidividual donations and $4-5 million state and federal funding. The remainhtg $5 million
will he secured by general obligation bonds financed by the citizens of Seward. As of May
2009, over $1 million has been committed to this project through private donations, grants, City
contributions and professional in-kind services.
Library and museum services are offered to Scward residents, those living outside the city limits
and all seasonal workers and visitors equally. The Seward Community Library Museum will be
owned and operated by the City of Scward. Assessing a sales tax would allow both residents and
non-residents who utilize the City's library and museum to contribute to the construction and
operation costs, thereby distributing the expense instead of placing the entire tax burden on
owners ofrcal property within the City.
CONSISTENCY CHECKLIST:
Where applicable, this resolution is consistent with the Seward City Code, Charter,
Comprehensive Plans, Land Use Plans, Strategic Plan and City Council Rules of Procedures.
ATTORNEY REVIEW: Yes
FISCAL NOTE:
A 0.5°/~ increase in sales tax is expected to generate approximately 5500,000 per year. The
estimated annual debt service costs on a 25-year $5 million general obligation bond (assuming
5.75°/~ borrowing rate) are approximately $380,000, with the remainder to he used to pay for
increased operating, repairs, and maintenance costs.
Approved by Finance Department
~~
RECOMMENDATION:
Council approve Resolution 20(19- j ,providing for the submission to the voters of an advisory
vote on whether to increase the sales tax rate by 0.5% to cover a portion of the operating and
capital costs of a new library/museum.
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