HomeMy WebLinkAboutRes2007-049
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Sponsored by: Oates
CITY OF SEWARD, ALASKA
RESOLUTION 2007-049
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, SETTING THE MILL RATE UNCHANGED AT 3.12
WHEREAS, on October 9, 2006, the city manager submitted to the City Council a
proposed budget for the City of Seward for Calendar Year 2007; and
WHEREAS, the budget was introduced at the regularly scheduled Council meeting on
October 9, 2006, and work sessions conducted on October 16, 17, 19, and 20, 2006 were
televised; and
WHEREAS, a public hearing was held on the proposed budget on October 23 and the
budget was adopted on November 20, 2006; and
WHEREAS, the 2007 budget was predicated on no change in the property tax mill rate,
but the mill rate was not forwarded for approval during the budget process in anticipation of
possible future discussion regarding alternative revenue enhancement ideas, which failed to
materialize prior to the deadline for adopting Seward's mill rate and the mill rate will remain at
3.12 mills.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF SEWARD, ALASKA, that:
Section 1. The total assessed valuation as determined by the Kenai Peninsula Borough
Assessor, and any supplemental assessment rolls for said period which may be certified by the
Borough Assessor at a future date, shall be the basis for computing estimated property tax
revenues for the City of Seward, Alaska.
Section 2. The rate of levy on the 2007 real and personal property tax rolls shall be and is
hereby levied at the rate of3.12 mills per dollar of assessed valuation in Municipal Service Zones
One (Borough designation TCA 40) and Two (Borough designation TCA 41).
Section 3. This resolution shall take effect immediately upon adoption.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 14th
day of May, 2007.
CITY OF SEWARD, ALASKA
RESOLUTION 2007-049
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THE CITY OF SEWARD, ALASKA
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AYES:
NOES:
ABSENT:
ABSTAIN:
Dunham, Valdatta, Schafer, Thomas, Amberg, Shafer
None
Bardarson
None
ATTEST:
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Jean ewis, C~
Cit Clerk "\\~1111",,, .
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Council Agenda Statement
Meeting Date: May 14, 2007
Through: Phillip Oates, City Manager
From: Kristin Erchinger, Finance Director
Agenda Item: Setting the Mill Rate (unchanged) at 3.12 mills
BACKGROUND & JUSTIFICATION
The City of Seward has historically set the mill rate during the annual budget process. During the 2007 budget
preparation process, considerable discussion surrounded the fact that more than half of Seward’s properties are
non-taxable; that is, they are owned by government or non-profit entities. The administration proposed
postponing action on adopting a mill rate until the City Council was able to consider alternative revenue sources
to address the fact that non-taxable entities benefit from significant public services but, the cost of those services
is borne entirely by the taxable individuals and businesses in the community.
The administration had hoped to engage the community and Council in discussions about potential new service
fees to be assessed to all entities benefiting from those services, whether or not they currently contribute to the
cost of those services. The hope was that additional revenues raised through potential new service fees could lead
to property tax rate relief for local property owners, and more fairly allocate the cost of services to the
beneficiaries of the services.
Pending the hiring of a new city manager, the administration did not forward a proposal to the City Council. The
City has reached a deadline for forwarding the adopted mill rate to the Kenai Peninsula Borough for
implementation. Therefore, the administration recommends maintaining the rate of levy on the 2007 real and
personal property tax rolls at the current rate of 3.12 mills (representing $312 in tax on every $100,000 in
assessed value). This mill rate will apply to both of Seward’s municipal service zones; zone one (KPB TCA 40)
and zone two (KPB TCA 41). The total assessed valuation as determined by the Kenai Peninsula Borough
Assessor, and any supplemental assessment rolls which may be certified by the Borough Assessor at a future date,
.
shall be the basis for computing estimated property tax revenues for the City of Seward, Alaska
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.
FISCAL NOTE
The 2007 Budget is predicated on maintaining the current mill rate of 3.12 mills, so passage of this resolution will
have no financial impact on the City’s bottom line.
Approved by Finance: ___________________________________
RECOMMENDATION
Seward City Council approve Resolution 2007- , setting the mill rate (unchanged) at 3.12 mills for Seward
Municipal Service Zones One (KPB TCA 40) and Two (KPB TCA 41), for 2007.