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HomeMy WebLinkAboutRES2025-015 Fish Tax Alternative Allocation1 1 Sponsored by: Sorensen CITY OF SEWARD, ALASKA RESOLUTION 2025-015 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, ADOPTING AN ALTERNATIVE ALLOCATION METHOD FOR THE FY25 SHARED FISHERIES BUSINESS TAX PROGRAM, AND CERTIFYING THIS ALLOCATION METHOD FAIRLY REPRESENTS THE DISTRIBUTION OF SIGNIFICANT EFFECTS OF FISHERIES BUSINESS ACTIVITY IN THE COOK INLET FISHERIES MANAGEMENT AREA AND AUTHORIZING THE CITY MANAGER TO APPLY FOR FUNDS FROM THE SHARED FISHERIES BUSINESS TAX PROGRAM WHEREAS, Alaska Statute 29.60.450 requires that for a municipality to participate in the FY2025 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 2023 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, 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 therelative 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 FY2025 funding available within the FMA 14: Cook Inlet Fisheries Management Area, in agreement with all other municipalities in the area participating in the FY2025 Shared Fisheries Business Tax Program. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: Section 1. The City Council certifies that the City of Seward did experience significant effects during calendar year 2023 from fisheries business activities that occurred within the Cook Inlet fisheries management area and seeks to apply for funding under the FY2025 Shared Fisheries Business Tax Program. CITY OF SEWARD, ALASKA RESOLUTION 2025-015 Page 2 of 2 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 adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska this 27th day of January 2025. THE CITY OF SEWARD, ALASKA Sue McClure, Mayor AYES: Barnwell, Finch, Crites, Osenga, Wells, Warner, McClure NOES: None ABSENT: None ABSTAIN: None ATTEST: Kris Peck City Clerk (City Seal) 1 1 1 City Council Agenda Statement Meeting Date: January 27, 2025 To: City Council Through: Kat Sorensen, City Manager From: Sully Jusino, Finance Director Subject: Resolution 2025-015: Adopting an Alternative Allocation Method for the FY25 Shared Fisheries Business Tax Program, and Certifying this Allocation Method Fairly Represents the Distribution of Significant Effects of Fisheries Business Activity in the Cook Inlet Fisheries Management Area and Authorizing the City Manager to Apply for Funds from the Shared Fisheries Business Tax Program Background and 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 31' year of this program, and municipalities across the state will share tax revenues from 2023 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 eleven communities: Anchorage, Homer, Kenai, Kenai Peninsula Borough, Kachemak, Seldovia, Soldotna, Seward, Houston, Palmer and Wasilla. The final deadline for submitting an application for the FY2025 Shared Fisheries Business Tax and Landing Tax Program is February 15, 2025. 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 2023. Once the Impacts have been established for each of the municipalities, the DCCED will calculate the allocation for each municipality using the following formula: X 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 eighteenth consecutive year of using this method. Using this same allocation method, Seward expects to receive approximately $398.20 in Shared Fisheries Business Tax Allocation, an increase from the FY2023 allocation of $376.72. Comprehensive and Strategic Plan Consistency Information This legislation is consistent with (citation listed): Comprehensive Plan: Strategic Plan: Other: Total amount of funds listed in this legislation: $ 0 This legislation (✓): Creates revenue in the amount of: Creates expenditure in amount of: Creates a savings in the amount of: Has no fiscal impact Funds are (✓): Budgeted Line item(s): 01000-0000-4207 Fisheries Resource Landing Tax Not budgeted Not applicable $ $ $ Fund Balance Information Affected Fund (✓): General SMIC Electric Wastewater Boat Harbor Motor Pool Available Fund Balance Parking Other X Yes Water Attorney Signature: Not applicable Comments: Healthcare Note: amounts are unaudited Finance Director Signature: Attorney Review Administration Recommendation X Adopt Resolution Other: THE STATE °fAASKA GOVERNOR MIKE DUNLEAVY November 8, 2024 City of Seward PO Box 167 Seward, AK 99664 Department of Commerce, Community, and Economic Development DIVISION OF COMMUNITY AND REGIONAL AFFAIRS Anchorage Office 550 W 71t1 Ave, Suite 1650 Anchorage, Alaska 99501 Main: 907.269.4501 Fax: 907.269.4563 Dear Kristin Erchinger: The Department of Commerce, Community, and Economic Development is pleased to announce availability of the FY 2025 Shared Fisheries Business Tax Program. The purpose of the program is to allocate a share of state fish tax collected outside municipal boundaries with municipalities affected by fishing industry activities. Municipalities around the state will share approximately $770,000.00 based on 2023 fisheries activity as reported by fish processors on their fish tax returns. Details of how the program works are included in the application under Program Description. Historically, your municipality along with the other communities in your fisheries management area, FMA 14: Cook Inlet has filed using the Alternative Method found on the last four pages of this application. A breakdown is included that details the communities in your FMA, in addition to the anticipated payment based on the agreed upon allocation method for your FMA. If this agreement is still in place with your FMA, you will only need to have your Council/Assembly pass the enclosed alternative method sample resolution in order to participate in the program. If your FMA intends to change the alternative method of allocation, the new proposal must be submitted to our office no later than January 15, 2025. If an agreement cannot be made with all communities in your FMA, you will need to file using the standard method and claim your significant effects. Instructions on both of these methods are detailed in the application packet. DEADLINE FOR SUBMISSION OF COMPLETED APPLICATION IS FEBRUARY 15, 2025 Applications can be scanned and emailed to aa(j'alaska.goy with the subject line "City of Seward. FY25, SFBT". if you have any questions about the program or require assistance in completing the application, please contact Lindsay Reese at kndsay.reese(aaalaska.gov or call (907) 269-7906. Sincerely, LC i4 ay Reece Lindsay Reese Grants Administrator 2 MA 14- Cook Inlet Total allocation. $7.115.01 50% Divided $3.557.50 50% per capita $3,557.50 Calculated Community Population 50% divided share 0% per capita shah Allocation City of Homer • 5.669 $355.75 $53.08 $408.83 City of Houston F 2,140 $355.75 $20.04 $375.79 City of Kachemak • 669 $355.75 $6.26 $362.01 City of Kenai F 7,614 $355.75 $71.29 $427.04 City of Palmer ' 5.918 $355.75 $55.41 $411.16 City of Seldovia F 250 $355.75 52.34 $358.09 City of Seward F 2.582 $355.75 $24.17 5379.92 City of Soldotna ' 4,574 $355.75 $42.82 5398.58 Kenai Peninsula Borough ' 60.898 $355.75 $570.17 $925.92 MunicipeI.ty of Anchorage • 289.653 $355.75 $2,711.92 $3,067.67 Totals 379,967 $3,557.50 $3,557.50 $7,115.01 Community Count 10 • All municipalities share 50% of allocation equally; share remaining 50% on a per capita basis. LONG FBT + FLT CHECK FY 22 Landing Tax Allocatlo Reference $342.21 Number Calculated Allocation $19.66 $18.07 $17.41 $20.54 $19.78 $17.22 $18.27 $19.17 $44.53 $147.55 $7,457.21 OKAY $342.21 Total Distribution 25-SF14-02 $ 428.49 25-SF14-03 $ 393.86 25-SF14-04 $ 379.43 25-SF14-05 $ 447.58 25-SF14-06 $ 430.93 25-SF14-07 $ 375.31 25-SF14-08 $ 398.20 25-SF14-09 $ 417.75 25-SF14-11 $ 970.45 25-SF14-01 $ 3,215.22 $ 7,457.21 DCCED Shared Fisheries Business Tax Program FY 25 Long -Form Application For FMA 14: COOK INLET AREA APPLICATION MUST BE SUBMITTED TO DCCED NO LATER THAN FEBRUARY 15, 2025 State of Alaska Mike Dunleavy, Governor Department of Commerce, Community, and Economic Development Julie Sande, Commissioner Division of Community and Regional Affairs Sandra Moller, Director FY 25 SHARED FISHERIES BUSINESS TAX PROGRAM DESCRIPTION The purpose of the Shared Fisheries Business Tax Program is to provide for an annual sharing of fish tax collected outside municipal boundaries to municipalities that can demonstrate they suffered significant effects from fisheries business activities. This program is administered separately from the state fish tax sharing program administered by the Department of Revenue which shares fish tax revenues collected inside municipal boundaries. Program Eligibility To be eligible for an allocation under this program, applicants must: 1. Be a municipality (city or borough); and 2. Demonstrate the municipality suffered significant effects as a result of fisheries business activity that occurred within its respective fisheries management area(s). Program Funding The funding available for the program this year is equal to half the amount of state fisheries business tax revenues collected outside of municipal boundaries during calendar year 2023. Program funding is allocated in two stages: 1st Stage: Nineteen Fisheries Management Areas (FMAs) were established using existing commercial fishing area boundaries. The available funding is allocated among these 19 FMAs based on the pounds of fish and shellfish processed in the whole state during the 2023 calendar year. For example, if an area processed 10% of all the fish and shellfish processed in the whole state during 2023, then that area would receive 10% of the funding available for the program this year. These allocations are calculated based on Fisheries Business Tax Return information for calendar year 2023. 2nd Stage: The funding available within each FMA will be allocated among the municipalities in that area based on the level of fishing industry significant effects suffered by each municipality compared to the level of effects experienced by the other municipalities in that FMA. Some municipalities, because of their extensive area, are included in more than one fisheries management area. In these cases, the municipality must submit a separate program application for each area. FY 25 SHARED FISHERIES BUSINESS TAX PROGRAM DESCRIPTION There are two possible application methods: Standard and Alternative Standard Method: In the Standard Method, established by the department, each municipality in the FMA must determine and document the cost of fisheries business impacts experienced by the community in 2023. These impacts are submitted by each municipality in their applications. The department will review the applications and determine if the impacts submitted are valid. Once the impacts have been established for each of the municipalities in the FMA, the department will calculate the allocation for each municipality using the following formula: One half of the funding available within an FMA is divided up among participating municipalities on the basis of the relative dollar amount of impact in each municipality. The other half of the funding available to that area is divided equally among all eligible municipalities. Alternative Method: Alternative allocation methods may be proposed by the municipalities within the FMA. The department 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. This application packet contains the instructions and forms applying under: • STANDARD METHOD • ALTERNATIVE METHOD The chart on the following page summarizes the process for these two methods. FY 25 SHARED FISHERIES BUSINESS TAX PROGRAM DESCRIPTION -' PROCESS FOR METHODS November 15 Commerce mails program applications to municipalities STANDARD METHOD No later than February 15 Each municipality determines and documents the cost of fisheries impacts on the community and submits this information with their application. 1 1 Or No later than April 15 Department of Commerce reviews applications, makes a determination as to the validity of the submitted impacts, and notifies the municipalities of this determination. a • Within 30 days Municipalities have 30 days in which to appeal Commerce's determinations regarding submitted impacts. a Within 20 days Commerce will respond to appeals within 20 days after receiving them. a After all appeals are resolved Commerce will perform the formula calculations for each FMA based on the relative impacts approved for each municipality in the FMA, and distribute the funding allocations. 1" ALTERNATE METHOD No later than January 15 All municipalities in an FMA work together to develop an alternate allocation formula and submit their proposal to the Department of Commerce. Municipalities are encouraged to consult with Commerce during this effort regarding the acceptability of alternative methods. No later than February 1 Commerce reviews alternate proposals, determines if proposals are acceptable, and notifies the municipalities of this determination. If the proposal is accepted, municipalities may then use the Alternative Method application. If the proposal is not acceptable to Commerce, they will work with municipalities in an area to resolve problems. If the problems cannot be resolved, the municipalities in that FMA must apply using the Standard Method application. 4p- J No later than February 15 Each municipality must submit an Alternative Method application. Commerce will distribute allocations after all applications within that FMA have been received and verified. FY 25 Shared Fisheries Business Tax Program Application Instructions STANDARD METHOD • In the standard method application process each municipality determines and documents the cost to the municipality of fisheries industry significant effects suffered by the community in 2023. • Details for each of these effects are submitted by municipalities using the Declaration of Significant Effects application forms provided on the following pages. • The municipality must also submit an approved resolution by the governing body certifying that the information submitted in the application is correct and complete. A sample resolution is included in this packet. • The department will review the applications and determine if the significant effects submitted are valid. • Once the effects have been established for each of the municipalities in a Fisheries Management Area, the department will calculate the funding allocation for each municipality using the following formula: One half of the funding available within an FMA is divided up among participating municipalities on the basis of the relative dollar amount of impact in each municipality. The other half of the funding available to that area is divided equally among all eligible municipal ities. Guidelines for Completing the Declaration of Significant Effects Forms Some important definitions: The Shared Fisheries Business Tax Program provides for a sharing of State Fisheries Business Tax with municipalities that can demonstrate they suffered significant effects during the program base year from fisheries business activity in their respective fisheries management area. For the purposes of this program, "fisheries business activity" means: • activity related to fishing, including but not limited to the catching and sale of fisheries resources; • activity related to commercial vessel, moorage and gear maintenance; • activity related to preparing fisheries resources for transportation; and, • activity related to processing fisheries resources for sale by freezing, icing, cooking, salting, or other method and includes but is not limited to canneries, cold storages, freezer ships, and processing plants. And, "significant effects" means: • municipal expenditures during the program base year demonstrated by the municipality to the department to be reasonable and necessary that are the result of fisheries business activities on the municipality's: • population; • employment; • finances; • air and water quality; • fish and wildlife habitats; and, • ability to provide essential public services, including health care, public safety, education, transportation, marine garbage collection and disposal, solid waste disposal, utilities, and government administration. And, "program base year" means: • calendar year 2023. A municipality does not need to have actual expenditures in 2023 in order to include them as significant effects in the application. If a fishing business activity impacts a municipality in a manner that will result in a cost to the municipality, then the municipality can claim that impact as a significant effect. For example, a municipality's pier might have been damaged by an improperly docked fish processing vessel. The municipality might not have the funds to repair the pier during 2023, but the municipality has obtained final engineering estimates for the cost of repairs. In this case, the municipality could declare the repair cost estimates as significant effects on their application. However, these costs may not be claimed again if the municipality subsequently expended the monies to repair the pier at a later date (this would result in a double counting of significant effects). If a significant effect claimed in the application reflects expenditures that were determined by the municipality to be necessary, but for which the municipality was unable to make an expenditure during the program base year, the application must include a finding by the municipal governing body which documents and clearly describes the procedures and methods by which the need and the estimated cost of such expenditures were determined. Only that part of overall community impacts which are directly attributable to fishing business activity should be included as significant effects in the application. For example, a municipality water supply system may be impacted by the fresh water needs of the local fishing fleet and fish processing facilities. However, a municipality in this situation should not claim the entire cost of operating or maintaining the water system as a "significant effect" for the purposes of this program. In this case, the municipality must determine and document its estimate of the share of the use, and "wear and tear," of the water system that can reasonably be attributed to fisheries business activity. A place is provided on the Declaration of Significant Effects forms for municipalities to explain how they arrived at such estimates. Examples of eligible significant effects. The kinds of negative effects which a municipality might possibly claim to have suffered are many. It is the responsibility of each municipality to describe, document and justify its particular claims of negative impacts during 2023 resulting from fisheries business activities. For the purposes of this program, all significant effects must be presented in terms of expenditures of municipal funds, either actual or determined necessary. For example, a sudden population increase of 1,000 people is not in itself a negative effect. It is the demonstrable impacts on the municipality budget of dealing with these extra people that may be considered as significant effects for this program. The following examples represent the kinds of community impacts which are clearly eligible for inclusion in a municipality's Declaration of Significant Effects forms. • a municipality's expenses during 2023 in repairing a dock damaged by a fishing vessel; • a municipality's costs of hiring extra police, teachers or medical staff to cover periods during 2023 when fish processing workers or fishing crew and their families expanded the municipality's population; • a municipality's 2023 loan which was used to improve the municipality's water system to meet increased demands for fresh water by local fish processors. Only that part of the debt service which can be directly attributable to supporting the fishing industry may be counted as a significant effect. • special expenditures made by a municipality during 2023 to assist or help re-train workers who lost their jobs in the fishing industry because of a downturn in fishing activity; • a municipality's expenditures for operating and maintaining harbor facilities during 2023; • operating and maintaining a municipality's water and sewer system or landfill during 2023 that is directly attributable to the fishing industry. Examples of events which are not eligible to be significant effects The following are examples of municipal expenditures or events which are not eligible for inclusion in a municipality's Declaration of Significant Effects forms: • Municipal expenditures that occurred before or after 2023 which are the result of fishing business activities; • Revenues which a municipality did not receive during 2023 because of a downturn in local fishing business activity. If you're not sure whether an event is a valid "significant effect" or not, contact DCCED. Instructions for Completing the Standard Method Application The completed standard method application submitted by each municipality will contain three elements: • a set of Declaration of Significant Effects forms (one separate form for each significant effect claimed by the municipality). Three copies of this form are included in the application- please make as many additional copies of this form as you need. • a Cover Page that provides the total number and cost of the significant effects claimed by the municipality. • an approved resolution by the governing body adopting the application as true and correct. A sample resolution is included in the application. Instructions for the Cover Page/Summary The Cover Page must be completed and submitted as part of the application. This form summarizes the information found in the application. The number of significant effects claimed should be equal to the number of Declarations of Significant Effects forms submitted with the application and the total dollar amount should equal the sum of all the dollar amounts stated in Part 2 on the Declarations of Significant Effects forms. Instruction for the Resolution form Municipalities may use this form, or a similar form, to comply with the requirement that the submitted application be certified by the municipality's governing body. Submit completed application no later than February 15, 2025, to: E-mail caaQalaska.gov Subject Line "Municipality Name, FY25, SFBT" Or Mail State of Alaska DCCED Shared Fisheries Business Tax Program 550 W. 7t' Ave Ste 1650 Anchorage, Alaska 99501 If you have any questions regarding this program, contact Lindsay Reese at 269-7906 FY 25 Shared Fisheries Business Tax Program Application Instructions ALTERNATIVE METHOD • In the alternative method application process all municipalities in a fisheries management area may work together to develop an alternative allocation formula for distributing the available program funding among municipalities in the area. It is advised that the Department of Commerce be consulted during this process if the municipalities have questions or concerns about what constitutes an acceptable alternative to the standard allocation method. • All the municipalities in an area must reach an agreement in writing on an alternative allocation formula. • By January 15, the department must receive the proposed alternative method. If the alternative method is not acceptable, the department will work with the municipalities to resolve the problems. • If the municipalities in an area fail to satisfy the department regarding the acceptability of the alternative allocation method proposed, then each municipality in the region must return to the standard application process and submit separate applications as required by that process. • If the department finds the alternative allocation method satisfactory, each municipality must then complete an alternative method application consisting of a cover page and resolution. The resolution must be adopted by the governing body and it must clearly describe the approved alternative allocation method within that area. After all alternative method applications within an area have been received and approved; the department will perform the allocations and distribute program funds. Instructions for Alternative Method Application In the alternative method application, an approved resolution constitutes the application. No other forms need to be submitted. A sample resolution has been attached for your use. General Guidelines for Developing an Alternative Allocation Method All municipalities in a fisheries management area must agree on the alternative method: There must be unanimous agreement among all eligible municipalities in a fisheries management area with regard to alternative allocation methods. It is the responsibility of community leaders in the area to work together to negotiate an alternative which is acceptable to all municipalities. The department may be consulted at any time regarding what kinds of formula approaches are considered acceptable by the department. Alternative methods must incorporate some measure of the relative significant effects experienced by the respective municipalities in the area. The measure of significant effects may take many farms. One area might agree to use the number of commercial fishing boat visits -per -year per community as a measure of significant effects. Another area might use the linear foot -length of public docks as a measure. Another area might use community population figures as an indication of the significant effects of fisheries business activity. Another area might share one half of the funding equally between the respective municipalities and share the other half based upon community population figures. Areas may decide to use one measure or may use a combination of measures. Submit your completed application no later than February 15, 2025 to: E-mail caaAalaska.gov Subject Line "Municipality Name, FY25, SFBT" Or Mail State of Alaska DCCED Shared Fisheries Business Tax Program 550 W. 7t' Ave Ste 1650 Anchorage, Alaska 99501 If you require assistance in completing this application, contact Lindsay Reese at 269-7906. FY 25 Shared Fisheries Business Tax Program Alternative Method Resolution City of Seward (City or Borough) RESOLUTION NO. A RESOLUTION ADOPTING AN ALTERNATIVE ALLOCATION METHOD FOR THE FY23 SHARED FISHERIES BUSINESS TAX PROGRAM AND CERTIFYING THAT THIS ALLOCATION METHOD FAIRLY REPRESENTS THE DISTRIBUTION OF SIGNIFICANT EFFECTS OF FISHERIES BUSINESS ACTIVITY IN FMA 14: COOK INLET AREA WHEREAS, AS 29.60.450 requires that for a municipality to participate in the FY 25 Shared Fisheries Business Tax Program, the municipality must demonstrate to the Department of Commerce, Community, and Economic Development that the municipality suffered significant effects during calendar year 2023 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 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 oflhe relative significant effect of fisheries business activity on the respective municipalities in the area; and, WHEREAS, The City of Seward _ proposes to use an alternative allocation method for (Governing Body) allocation of FY25 funding available within the FMA 14: COOK INLET AREA in agreement with all other municipalities in this area participating in the FY23 Shared Fisheries Business Tax Program; NOW THEREFORE BE IT RESOLVED THAT: The City of Seward by this resolution (Governing Body) certifies that the following alternative allocation method fairly represents the distribution of significant effects during 2023 of fisheries business activity in FMA 14: COOK INLET AREA: • All municipalities share equally 50% of allocation; all municipalities share remaining 50% on a per capita basis. PASSED and APPROVED by a duty constituted quorum of the City of Seward of 20____ SIGNED ATTEST Mayor Clerk (Governing Body) this day FY 25 SHARED FISHERIES BUSINESS TAX PROGRAM ALTERNATE METHOD APPLICATION For FMA 14: COOK INLET AREA Name of Municipality: City of Seward Mailing Address: P.O Box 167, Seward AK,99664 Contact Person: Kathleen Sorensen Title: City Manager Email Address: ksorensen@cityofseward.net Phone Number: 907-224-4012 Return with resolution E-mail caa(a,alaska.gov Subject Line "Municipality Name, FY25, SFBT" Or Mail State of Alaska DCCED Shared Fisheries Business Tax Program 550 W. 7th Ave Ste 1650 Anchorage, Alaska 99501