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Home My WebLink AboutRES2026-007 Shared Fisheries Business TaxSponsored by: Sorensen CITY OF SEWARD, ALASKA RESOLUTION 2026-007 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, ADOPTING AN ALTERNATIVE ALLOCATION METHOD FOR THE FY26 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 FY2026 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 2024 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 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 FY2026 funding available within the FMA 14: Cook Inlet Fisheries Management Area, in agreement with all other municipalities in the area participating in the FY2026 Shared Fisheries Business Tax Program. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA: Section 1. The City Council certifies that the City of Seward did experience significant effects during calendar year 2024 from fisheries business activities that occurred within the Cook Inlet fisheries management area and seeks to apply for funding under the FY2026 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. CITY OF SEWARD, ALASKA RESOLUTION 2026-007 Page 2 of 2 Section 3. This resolution shall take effect immediately upon adoption. APPROVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA THIS 12TH DAY OF JANUARY 2026. Sue McClure, Mayor AYES: Warner, Barnwell, Crites, Osenga, Draper, Calhoon, McClure NOES: None ABSENT: None ABSTAIN: None ATTEST: Kris Peck City Clerk City Council Agenda Statement Meeting Date: January 12, 2026 To: City Council Through: Kat Sorensen, City Manager From: Sully Jusino, Finance Director Subject: Resolution 2026-007: Adopting an Alternative Allocation Method for the FY26 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 32nd year of this program, and municipalities across the state will share tax revenues from 2024 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 FY2026 Shared Fisheries Business Tax and Landing Tax Program is February 15, 2026. 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 2024. Once the Impacts have been established for each of the municipalities, the DCCED 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 eighteenth consecutive year of using this method. Using this same allocation method, Seward expects to receive approximately $342.97 in Shared Fisheries Business Tax Allocation, a decrease from the FY2024 allocation of $398.20. 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: $ 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 X Not budgeted Not applicable $ $ $ Affected Fund (✓): General Boat Harbor Motor Pool Available Fund Balance SMIC Parking Other Electric Water Wastewater Healthcare Note: amounts are unaudited Finance Director Signature: 511 X Yes Attorney Signature: Not applicable Comments: Attorney Review Administration Recommendation X Adopt Resolution Other: