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CITY OF SEWARD, ALASKA
RESOLUTION NO. 98-99
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, SUBMITTING AN ADVISORY PROPOSITION TO THE VOTERS
AT THE OCTOBER 6,1998, ELECTION WHICH SHALL AMEND THE
SEWARD CITY CODE 5.35.035, IMPOSITION OF SALES TAX, BY
AMENDING THE SALES TAX RATE FROM 3% TO 4%
WHEREAS, in an effort to continue to fund the delivery of public services at the level we
have become accustomed to and to spread the burden of costs as broadly as possible, the
administration is asking that a 1 % sales tax rate increase be included on the October 6, 1998, ballot;
and
WHEREAS, a 1 % increase in the annual sales tax rate generates approximately $640,000
in additional revenues for the City, where in comparison, an increase of 1 mil of taxes on real
property generates only $154,000 in additional revenue; and
WHEREAS, 70% ofthe sales tax revenue is collected during the summer months (April-
September), indicating that the majority of sales tax revenues are paid by visitors; and
WHEREAS, visitors do use city services, impact our infrastructure, and therefore should
pay; and
WHEREAS, although we currently collect a 3% sales tax, the City only keeps 2% and 1 %
goes directly to support the hospital; and
WHEREAS, all other general fund services and capital improvements must be paid for with
revenues from the 2% sales tax and taxes on real property;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, that:
Section 1. The City Clerk is hereby directed to submit Proposition No. 1 to the voters at the
October 6, 1998, regular municipal election which would allow a 1 % sales tax increase.
Section 2. The question of the proposition shall be substantially in the following form:
CITY OF SEWARD, ALASKA
RESOLUTION NO. 98-99
Proposition No.1
Shall the City of Seward amend the Seward City Code 5.35.035, imposition of sales tax, by
increasing the city sales tax from 3% to 4%. (This is an advisory vote only.)
Yes
No
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 10th
day of August, 1998.
THE CITY OF SEWARD, ALASKA
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Lowell R. Satin, Mayor
AYES:
NOES:
ABSENT:
ABSTAIN:
Blatchford, Callahan, Clark, Orr, Satin
Gage, King
None
None
ATTEST:
Patrick Reilly
Cit Clerk" ;~:';:'~~"" !
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