HomeMy WebLinkAboutRes2017-089Sponsored by: Hunt
CITY OF SEWARD, ALASKA
RESOLUTION 2017-089
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, ADOPTING AN ALTERNATIVE ALLOCATION METHOD
FOR THE FY2018 SHARED FISHERIES BUSINESS TAX PROGRAM,
AND CERTIFYING THAT THIS ALLOCATION METHOD FAIRLY
REPRESENTS THE DISTRIBUTION OF SIGNIFICANT EFFECTS OF
FISHERIES BUSINESS ACTIVITY IN THE COOK INLET FISHERIES
MANAGEMENT AREA
WHEREAS, Alaska Statute 29.60.450 requires that, for a municipality to participate in
the FY2018 Shared Fisheries Business Tax Program ("Program"), the municipality must
demonstrate to the Department of Commerce, Community and Economic Development that the
municipality experienced significant effects during calendar year 2016 from fisheries business
activities; and
WHEREAS, 3 AAC 134.060 provides for the allocation of available Program funding to
eligible municipalities located within fisheries management areas specified by the Department of
Commerce, Community, and Economic Development; and
WHEREAS, 3 AAC 134.070 provides for the allocation of available program funding to
eligible municipalities located within fisheries management areas specified by the Department of
Commerce, Community, and Economic Development; and
WHEREAS, the Program provides for the use, at the discretion of the Department of
Commerce, Community, and Economic Development, of alternative allocation methods which
may be used within fisheries management areas if all eligible municipalities within the area agree
to use the method, and the method incorporates some measure of the relative significant effect of
fisheries business activity on the respective municipalities in the area; and
WHEREAS, the City Council of the City of Seward, Alaska proposes to use an
alternative allocation method for allocating FY2018 funding available within the FMA 14: Cook
Inlet Fisheries Management Area, in agreement with all other municipalities in the area
participating in the FY2018 Shared Fisheries Business Tax Program.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF SEWARD, ALASKA, that:
Section 1. By this resolution the Council certifies that the City of Seward did experience
significant effects during calendar year 2016 from fisheries business activities that occurred
CITY OF SEWARD
RESOLUTION 2017-089
within the Cook Inlet fisheries management area, and seeks to apply for funding under the
FY2015 Shared Fisheries Business Tax Program.
Section 2. All eligible communities in the Cook Inlet fisheries management area will
receive fifty percent (50%) divided equally and fifty percent (50%) divided on a per capita basis.
Section 3. This resolution shall take effect immediately upon its adoption.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 1 Ith
day of December, 2017.
THE CITY OF SEWARD, ALASKA
Lun:�
David Squires, M or
AYES: Casagranda, Keil, McClure, Slater, Towsley, Horn, Squires
NOES: None
ABSENT: None
ABSTAIN: None
ATTEST:
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rends J. Ballo , MC
City Clerk
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(City Seal)�4 `'`[.,.••QPO "•••.,
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1
COUNCIL AGENDA STATEMENT
Meeting Date: December 11, 2017
Through: James Hunt, City Manageli___
From: Kristin Erchinger, Finance Director O
Agenda Item: 2018 Shared Fisheries Business Tax and Landing Tax Program
BACKGROUND & JUSTIFICATION:
The City of Seward is required to apply to the State of Alaska Department of Community and Economic
Development (DCED) each year, to qualify for funding under the State's Shared Fisheries Business Tax
Program and the State Landing Tax Allocation. The purpose of the program is to provide for a sharing
of state fish tax collected outside municipal boundaries, with municipalities that have been affected by
fishing industry activities. This program is different from the state fish tax sharing program which shares
fish tax revenues collected inside municipal boundaries.
This is the 25th year of this program, and municipalities across the state will share tax revenues from
2016 fisheries activity as reported by fish processors on their fish tax returns. The law that created this
program requires that funding be allocated first to fisheries management areas across the state based on
the level of fish and shellfish processed in each area, compared to the total fish and shellfish processed
for the whole state. Then, funds are allocated among the municipalities located within each fisheries
management area, based on the relative level of impacts experienced by each municipality.
Seward is located in the Cook Inlet Fisheries Management Area, which includes twelve communities:
Anchorage, Homer, Kenai, Kenai Peninsula Borough, Kachemak, Seldovia, Soldotna, Seward, Matsu
Borough, Houston, Palmer and Wasilla. The State's FY2018 Shared Fisheries Business Tax Program
allocation to be shared within this area is estimated at $39,276.39 which is lower than the prior year
allocation of $40,240.18. The final deadline for submitting application for the FY2018 Shared Fisheries
Business Tax and Landing Tax Program is February 15, 2018.
The long -form application provides for a "standard" and an "alternative" method of funding allocation.
The City of Seward will file under the alternative method.
Standard Method: Under this method, each municipality must determine and document the cost of
fisheries business impacts experienced by the community in 2016. Once the impacts have been
established for each of the municipalities, the DCED will calculate the allocation for each municipality
using the following formula:
One-half of the available funding is divided among participating municipalities on the
basis of the relative dollar amount of impact in each community. The other half of the
available funding is divided among municipalities based on the relative dollar amount of
impact per capita in each community.
Alternative Method: Alternative allocation methods may be proposed by the municipalities within the
area. DCED will consider approving the use of a proposed alternative method only if all the
municipalities in the area agree to use the method, and if the method includes some measure of the
relative effects of the fishing industry on the respective municipalities in the area.
The short -form method allocates the available funds by sharing 50% of the funds equally among the
participating municipalities, and allocating the remaining 50% on a per -capita basis. The information
required by the long -form application would be difficult and time-consuming to obtain. Therefore, it is
proposed that municipalities in our area use the alternative method and that we further agree that the
allocation method be the same method used in the short form allocation. Given the small amount of
additional funding that the City might gain by utilizing the standard method, compared to the additional
time required to complete the application, it is our recommendation that the city of Seward agree to use
the alternative method and agree that 50% of the funds will be allocated equally among the participating
municipalities, and the remaining 50% allocated on a per -capita basis. This will be the fifteenth
consecutive year of using this method.
INTENT:
The intent of this action is to authorize the City to participate in the Alternative Method of computing
Shared Fisheries Business Tax.
CONSISTENCY CHECKLIST:
Yes
No
N/A
1.
Comprehensive Plan (document source here):
X
2.
Strategic Plan (document source here):
X
3.
Other (list):
X
ATTORNEY REVIEW: Yes X No
FISCAL NOTE:
Using this same allocation method, Seward expects ,to receive approximately 4.4% or $1,741.76 of the
total available $39,276.39 in Shared Fisheries Business Tax Allocation.
Approved by Finance Department:?
RECOMMENDATION:
Council approve Resolution 2017- adopting an alternative method for the FY2018 Shared Fisheries
Business Tax Program, and certifying that this allocation method fairly represents the distribution of
significant effects of fisheries business activity in the Cook Inlet Fisheries Management Area and
authorize the city manager to apply for funds from the Shared Fisheries Business Tax Program.
Alternative Methocl*
Community
Total allocation:
$39,276.39
Population
50% Divided
$19,638.19
50% divided share
50% per capita
$19,638.19
50% per capita share
Calculated
Allocation
MOA
299,037
$1,636.52
$11,818.27
$13,454.79
Homer
5,252
'$1,636-52
$207.56
$1,844.08
Kachemak
479
$1,636.52
$18.93
$1,655.45
Kenai
7,098
$1,636.52
$280.52
$1,917.04
KPB
58,060
$1,636.52
$2,294.60
$3,931.11
Seldovia
206
$1,636.52
$8.14
$1,644.66
Seward
2,663
$1,636.52
$105.24
$1,741.76
Soldotna
4,376
$1,636.52
$172.94
$1,809.46
MSB
102,598
$1,636.52
$4,054.79
$5,691.30
Houston
2,163
$1,636..52
$85.48
$1,722M
Palmer
6,268
$1,636.52
$247.72
$1,884.23
Wasilla
8,704
$1,636.52
$34199
$1,980.51
Totals
496,904
$19,638.19
$19,638.19
$ 3-9,27-6.3-9
Community Count
12
* All municipalities share 50% of allnratin