HomeMy WebLinkAboutNon CodeOrd2009-005Sponsored by: Oates
Introduction: July 13, 2009
Public Hearing: July 27, 2009
Enactment: July 27, 2009
CITY OF SEWARD, ALASKA
NON-CODE ORDINANCE 2009-005
A NON-CODE ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
SEWARD, ALASKA, APPROPRIATING $500 TO MAKE EXPENDITURES
THAT COULD INFLUENCE THE OUTCOME OF AN ELECTION
CONCERNING ADVISORY BALLOT PROPOSITION #2 WHICH ASKS
THE QUALIFIED VOTERS IF THE CITY SHOULD INCREASE THE
SALES TAX FROM 4.0% TO 4.5% WITH THE UNDERSTANDING THAT
THE ADDITIONAL FUNDS ARE EXPECTED TO BE IN AN AMOUNT
SUFFICIENT TO COVER A PORTION OF THE PROPOSED
LIBRARY/MUSEUM OPERATING AND CONSTRUCTION COSTS
WHEREAS, in 2003, the community selected a new library/museum project as part of the
Seward Centennial celebration to reach completion by 2012, the l OOt~ anniversary of the incorporation of
the city; and
WHEREAS, the estimated cost of the new library/museum including planning, design,
construction, project management, furniture and fixtures is $10 million; and
WHEREAS, on June 22, 2009 Resolution 2009-054 was approved by the city council which will
submit Advisory Proposition #2 to the qualified voters asking whether to increase the sales tax rate by
0.5% to fund operating and capital costs of the new library/museum, with the understanding that sales
tax revenues cannot be dedicated for a specific purpose; and
WHEREAS, a 0.5% increase in sales tax is expected to generate approximately $500,000 per
year that could assist paying the annual general obligation (GO) bond payments; and
WHEREAS, the intent for the increase in sales tax is expected to fund operating and capital
costs associated with the construction and ongoing maintenance of a new library/museum; and
WHEREAS, over $l million has been committed to this project through private donations,
grants, city contributions and professional in-kind services; and
WHEREAS, the library/museum building committee plan includes raising $1 million from
private and individual foundations and donations, and $4-5 million from state and federal funding; and
WHEREAS, the remaining $5 million would come from general obligation (GO) bonds if
approved by the voters; and
CITY OF SEWARD, ALASKA
NON-CODE ORDINANCE 2009-005
WHEREAS, the estimated annual debt service on general obligation (GO) bonds fora 25-year
period with an assumed 5.75% borrowing rate is approximately $380,000 per year, with the remainder of
the additional sales tax available to be used to pay for increased operating, repairs, and maintenance
costs; and
WHEREAS, choosing to increase the sales tax places the burden of the new library/museum
capital and operating costs on all individuals who benefit from city services, whether they live outside
the boundaries of the City of Seward or are visitors; and
WHEREAS, the city may need to expend municipal funds in order to educate the public about
this project; and
WHEREAS, the city council has determined it is in the public interest this issue be
submitted to the qualified voters of the city; and
WHEREAS, 2 AAC 50.356 and 2 AAC 50.360 allow for municipalities to seek budgeted
municipal funds to influence the outcome of an election and require registering and reporting under
AS 14.13.040 and AS 15.13.050; and
WHEREAS, in order to educate the public in accordance with the provisions of 2AAC
50.360(b), the City Council must appropriate funds since the education process may influence the
outcome of an election; and
WHEREAS, under AS15.13.145, a municipality may not use money to influence the
outcome of an election concerning a ballot proposition unless the funds have been specifically
appropriated for that purpose by the elected body.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, that:
Section 1. The City Council hereby appropriates and authorizes for expenditure $500, if
needed, from the city manager's training and education account #101-1120-5160 to be used to
influence the outcome of an advisory vote regarding a proposed increase in sales tax of 0.5%.
Section 2. The City Council further directs and authorizes the city manager and other City
officers, officials, and employees, as may be appropriate, to register and to complete and file all
necessary reports, forms, and notices relating to election-related expenditures as required by law.
Section 3. This ordinance shall take effect ten (10) days following enactment.
CITY OF SEWARD, ALASKA
NON-CODE ORDINANCE 2009-005
,,,~ ENACTED by the City Council of the City of Seward, Alaska this 27t" day of July, 2009.
THE CITY OF SEWARD, ALASKA
F "
..
,,
~ '~,f. ~ ' i. ~
illard Dunham, Vice Mayor
AYES: Valdatta, Kellar, Smith, Dunham
NOES: None
ABSENT: Bardarson, Keil, Corbridge
ABSTAIN: None
ATTEST:
,,
Jean Lewis ~
C~Ky Clerk
,os~rrrawp~o
(City Seal) •`~~ EZ~ ~~'~''~ ~'•
~ a ~4 ~''rRa d
• a ""~-~. a.. ~
P
®~S ~' c~tl
~ ,; o
s '~ ~ , ~-
~~ I/ rrrrrerir~Nrr ~2 '~
~~~r~ei~~~~ ~ e~~
Council Agenda Statement
Meeting Date: July 13, 2009
To: Mayor Corbridge, City Council Members
From: Jean Lewis, City Clerk .
Agenda Item: Expending public funds that could influence the outcome
of an election -Library/Museum Sales Tax Increase
Advisory Proposition #2
BACKGROUND & JUSTIFICATION:
Advisory Proposition #2 will submit to the qualified voters the question of whether the city should
increase the sales tax from 4.0% to 4.5% with the understanding that the additional funds are
expected to be in an amount sufficient to cover a portion of the proposed Library/Museum operating
and construction costs.
AS 15.13.145 states that money held by a municipality may be used to influence the outcome of an
election concerning a ballot proposition or question, but only if those funds have been specifically
appropriated for that purpose by state law or municipal ordinance.
The city foresees material possibly being disseminated by the Library/Museum Building Committee.
Although the city is asking the qualified voters of the community to decide this issue, the city may
find it needs to disseminate information on this subject to educate the public, therefore, this non-code
ordinance authorizes the expenditure of public funds and provides the flexibility to expend funds if
needed. Such information could influence the outcome of the election.
The City is allowed to prepare and distribute neutral materials to educate the public on the
proposition before them. However, under AS 15.13.145, a municipality may not use money to
influence the outcome of an election unless the funds have been specifically appropriated for that
purpose by the elected body.
Since dissemination and postage would cost money, and the City may wish to educate the public on
this matter, this non-code ordinance is needed to use budgeted municipal funds and follow the
reporting requirements as stated in 2 AAC 50.360 and AS 15.13.140-155.
TNTRNT~
To have budgeted funds available in case the city council found it needed to put out educational
materials related to this matter and the new Library/Museum Project for Advisory Proposition #2.
CONSISTENCY CHECKLIST: Where applicable, this resolution/ordinance is consistent with the
Seward City Code, Charter, Comprehensive Plans, Land Use Plans, Strategic Plan and City Council
Rules of Procedures.
Other:
13
FISCAL NOTE:
If needed, funds would come from the City Manager Training and Education account #101-1120-
5160.
Approved by Finance Department:
i "~~-I~-~,~~L ~'7
RECOMMENDATION:
City Council introduce and enact Non-Code Ordinance 2009-005 appropriating funds for the purpose
of possible expenditures to educate the public which could influence the outcome of an election
concerning advisory ballot proposition #2, which would increase the sales tax from 4.0 to 4.5% with
the understanding that the additional funds are expected to be in an amount sufficient to cover a
portion of the proposed Library/Museum operating and construction costs.
~~