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Home My WebLink AboutRes2007-136Sponsored hy: Oates CI'1'V' OF SE~~':\RD, .aI.AS1La RFSOLGTION :11117-1.ifi A RESOLLTION OF'I`HF CITY COUVCII. OF TITE CI'I'1' OF SG~Y:1Ri), .al..aSF:A, ;~DUYI'ING ~7.N ;~L1'ERN.aTIVE :~LLUC'ATION 1[E'T'HUD F'UR TILE FY2N+)R S'ILIRED I•'ItiHERILS BL'SI(YF;SS 7',TrX PRUC:Ra~zi, aVD CERTIFYING TII;1T 'T'HIS AI:LOC:11'TUV MIiTIIOD F'.aIRI.I' RFPRESEV'T'ti 'I"HF. DISTRIBll1'TON OF SIGNIF'LC'ANT EFFECTS OF F'IS'IIERIrS 1,++~(N`F:SS :LCTti`I'!'S' Tti TIIE COUK ItiI.ET FISHEKIF;S ~TAN:~GI:M1TT;\ I aRE:1 Ij`IIEIZF'Ati, :1S Z9.ti0.4?U requires that for a municipality to participate. in the FY'2005 Shared Fishcues Rosiness Tax Program, the municipality must demonstrate to the Depanment ul' Commcn•e, C'omnnmity and 1conomic Development drat the uumicipaliry experienced significant effects during calendar year 2006 from fisheries business activities; and ~i'HERF:AS, i :~-AC l3-}.U(ii) provides for the. allocation of available program fundink tv eligible uumicipalities located within fisheries management areas specified by the Department of Commerce, Community, and Economic Development; and V1'HERE:~S, 3 AAC 13=4.070 provides fi,r the use, at the discrchon of the Department of Commerce, Connuunity, and Lcom~tnic. Development, of alternative allocation methods which may be used wititin fisheries management areas if all eligible municipalities ~ailhin the urea agree to use this method, and lhu method incor),orates some measure of the relative significant effect of fisheries business activity on the respective municipalities in the area; and ~~'HEREAS, the City Council of the Cily of Seward, :\laska proposes to use aft ahernativ~ allocation method for allocating the approximately b34,149.~6 in F'Y'2tIQFC funding avaik+b)e within the Cook Irakt Fisheries 'tlan;~sctttetat ,4rea, in agrccaaertt :+ith 37! o:hcr uuinicipalities in the area participating in the FY'211(1$ Shared I'ishurics Tusiness Tax Frvgram. .l'OL1', THF;RF.FORE, BE !1' RI?SnI.~'LD Bl" TII>; C'17'l' COL"tiCIL tIF' THE CITY OF SE~~'aRD, AL:~SKa, tltat: Section i. Liy this resolu(ion the C'vuncif certifies that the City of Seward did experience significam ulTccts during calendar guar 2006 from tishrrics business activities that occurred within the Cool: Inlet fisheries management area, and seeks to apply for fundiug under the F}e'?ir(i5' Shared Fisheries tusiness 'faz (grogram. Section 2. .All eligible commuuitius in the Cook Intel fisheries management area will receive tiilft percent (~0"~j divided ulual[y and fifty percent (~UY:6) divided on a per capita basis. c~rr~' of s>r«~ARn kESOLUTIC ~v Zoos-1 ~i/ Section 3. This resolution shall take effect immediately upon its adoption. PASSED .A~i (1 :1PPROV ED by the City Council of the City of Seward. llaska, this 1 it°i day of i)eccmber. 21111?. TIIC CI7 1' OF STN 4}tD, ;~LASKa / a `+ t ('lark Corbrid~e, ~Cayor ~- Al'1-a: Uunhflm, Valdatta, Arnberg, Snuth, Kellar.. Corbrid_e NOES: None ABSENT: Bardarson \IiSLaIN: Nouc ATTFS'C: Jca.~ Lewis, C_"viC + Cif Clerk i' +~cuatr s. ~~ d 1.. r ~ . '.~:,J ,~• '. -v- ,!~/fl/IiS1 SS' COUNCIL AGENDA STATEMENT ;~ A9eetingDate: Ik:cembcr 10.2007 j~• I hrough: Phillip Oates, City Mrutager~~ ~' ~ rr~ . '? ;, ,I~~~ ,~% From: Kristin Erchinger, Finance Direc[or {~~~ ~' Agenda item: 2008 Shared Fisheries Business Tax Program IiAt _Kt;AO(.~-Il & TZJSTfFICATTON• T'hc City of Seward is required to apply to the State of Alaska Department i+f Community' and Economic Development (I)CED) each year, to qualify tilt funding under the State's .ti{toted !•'is{rerres business Tirc Arugrum. 'Jhe purpose of the prc+yxm is to provide fur a sharing of ,tale fish tax collected outside municipal boundaries, with municipalities that have been affected by lisping indusuy activities. This is the 15th year of this progrem, and mrnricipalities across the stflc• u•rll sham tax revenues fn+rn 2006 fisheries activity as reported by Gsh processors on their fish tax rcwms. The Inw that created this program requires that funding be allocated lint to fisheries management areas across the state based un the level of fish processed in each area, annpared to the total fish processed for tJte tvhole state. Tbcn, funding is alha;atcd among the municipalities located within each fisheries management area, based un the relative Icvcl of impacts experienced by each municipality. Seward is Icx;aled in the Cook Inlet Fisheries Management Mea, which includes Anchorage, Ilumcr, Kenai, Kenai Peninsula Borough, Kachemak. Scldovia, Soldotna, and Seward. The State's FY200R program allocation to lx shared within dtis area is approximately' $34,1-i9.ifi, down $27,500.67 Crum the prior year. In fisheries management area; where the program allrxttnion is greater than $4.000 multiplied by the number of municipalities in the area, program regufalions provide fora "fong-ti+rnt" application. In the Cook Inlet Fisheries Management Area, the threshold value is 517,474.78 (8 municipalities x $2,134.?~). The final deadline for submiging application for fire FY2008 Shared Fisheries Business 'fax Program is Lkccrnl~r 15.2007. TLc long-form application provide, for n "standard" and an "alternative" method of funding allocation. The City of Sew,vd will filr. unilcr the alternative melhud. Standard Method: Under this method, each municipality must determine and da:ument the cost of fisheries business impacts experienced by the community in 2406. Unce the impacts have been established tilt each of the municipalities, the DCED will calculate the allocation fur each municipality using the fidlowing formula: One-half of the available liuxling is divided among participating municipalities on the basis of the relative ollar amount of impact in each connnuniry. The other half of the available funding is divided among municipalities based on the relative dollar amount of impact per capita in each cununmtit}'. U'1 COUNCIL AGENDA STATEMENT FY2008 Shared Fisheries Btuiness "fax Progran[ Paec Two Alternative Method: Altemative alhxation n[ethuds may be proposed by the municipalities within the area. UCEU will consider approving the use of a proposed altemative method only if ~ the municipalities in the area agree w use the method, and if the method includes some measure of the relative effect_5 of the fishing industry on the respective municipalities in the area. The short-form method allocates the available Cunds by sharing 50% of the funds equally among the participating municipalilics, and allocating the remaining SO% on aper-capita basis. The amount alhx;alcd this year is less than in previous years, but it would not require filing the lung-form application, since it does nut meet the threshold. The information reyuircd by the lung-lurm application would be difficult and time-consuming to obtain. Therefore, it is proposed that municipalilics in our area use the altemative method and that we further agree that the allocation method be the same mcthud 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 mcthud end ab~cc that 50% of the funds will be allocnted equally among the participa[ing municipalilics, and the remaining 50% allocated on aper-capita basis. 'Phis will be the tenth year of using this method. CONSIS'I'F.NCY CHECKLIST: ~'/hcrc applicahte, Utis agenda statement is consistent with the Seward City Code, Charier, Comprehensive Plans, Land Use Plans, Strategic Plan, and City Council Rules of Procedures. FISCAL NOTE: using [his same allocation method, Seward expects to receive approximately $2,261.18 in 2008, which is dotv~n from the estimatul $8,400 in 2~00g7. d Approved by Finance Department: 1/~Zcu~.~"T/tGRl- RECOMMENUATION' Council approve Resolution 2007-13~adupling an alternative method for [he FY2008 Shared Fishenes Business 'l'ax Program, and certifying that this alkxatirn[ method fairly represents the distribution of significant effects of fisheries business activity in the ('ook Inlet Fisheries Management Arca and authorize the city manager to apply for funds Crum the Shared Fishenes Business Tax Program. U c?