HomeMy WebLinkAboutRes2013-046 FAILED FAILED Sponsored by: Seaward & Valdatta
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CITY OF SEWARD, ALASKA
RESOLUTION 2013 -046
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, SUBMITTING AN ADVISORY BALLOT PROPOSITION TO
THE QUALIFIED VOTERS AT THE OCTOBER 1, 2013 REGULAR
MUNICIPAL ELECTION REGARDING WHETHER THE MILL RATE
SHOULD BE INCREASED BY .77 MILLS IN PROPERTY TAXES TO
GENERATE A REVENUE SOURCE FOR REPAYMENT OF THE $3.48
MILLION GENERAL OBLIGATION BOND FOR THE CONSTRUCTION
OF THE SEWARD COMMUNITY LIBRARY MUSEUM
WHEREAS, the City of Seward and the Seward Community Library Museum Building
Committee have been working since 2003 to obtain funding and design a new library museum;
and
WHEREAS, the Seward Community Library Museum Building Committee and the City
of Seward have secured $5.1 million in state and private foundation funding and $1.1 million in
grant applications pending; and
WHEREAS, in October 2009 voters approved a General Obligation Bond in an amount
of not to exceed $5.1 million for construction of the library museum; and
WHEREAS, in a report to City Council on November 29, 2010, RISE Alaska and
ECI /Hyer estimated the remaining capital construction costs for the library museum project to be
$10,294,560. City Administration and project managers have estimated that $3.48 million of the
additional funding in the form of General Obligation Bonds will be needed to complete the
project as currently projected; and
WHEREAS, the annual debt service for a 25 -year $3.48 million General Obligation
Bond is at an interest rate of 3.99 %; and
WHEREAS, a revenue source is necessary to establish and pay the debt service of a
General Obligation Bond; and
WHEREAS, a property tax is a revenue source where property owners in the City of
Seward contribute to the construction and operations costs of the new library museum; and
WHEREAS, the current City of Seward property tax mill rate is 3.12; and
WHEREAS, increasing the current City of Seward property tax mill rate from 3.12 to
3.89 for approximately 600 property owners within the city limits will generate an estimated
$250,000 annually; and
CITY OF SEWARD, ALASKA
RESOLUTION 2013 -046
WHEREAS, an increase in the City of Seward property tax mill rate to 3.89 is expected ..r
to provide sufficient revenue to repay a 25 year $3.48 million General Obligation Bond, allow
remainder of the debt service payment for the new library museum; and
WHEREAS, a .77 mill increase in property tax rate will equate to an annual increase in
tax of $77 on a home valued at $100,000; and
WHEREAS, the current City Council of the City of Seward recommends to a future City
Council that this mill rate increase should sunset when the $3.48 million General Obligation
Bond is paid in full: and
WHEREAS, this resolution will place the issue of whether the mill rate should be
increased in property taxes by .77 mills to generate a revenue source for repayment of the $3.48
million General Obligation Bond for the construction of the Seward Community Library
Museum on the ballot as an advisory vote allowing the qualified voters to advise the City
Council on whether the mill rate should be increased in property taxes by .77 mills to generate a
revenue source for repayment of the $3.48 million General Obligation Bond for the construction
of the Seward Community Library Museum; and
WHEREAS, the advisory vote on a .77 mill rate increase in property taxes to generate a
revenue source for repayment of the $3.48 million General Obligation Bond for the construction
of the Seward Community Library Museum is non - binding, the City Council will consider the
tedi voting results.
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 as a non-
binding advisory vote to the qualified voters at the October 1, 2013 regular municipal election in
substantially the following form:
ADVISORY PROPOSITION NO. 1
Shall the mill rate be increased in property taxes by .77 mills to generate a revenue source
for repayment of the $3.48 million General Obligation Bond for the construction of the Seward
Community Library Museum?
Yes No
A "Yes" vote advises the Seward City Council that voters recommend the mill rate be
increased in property taxes by .77 mills to generate a revenue source for repayment of the $3.48
million General Obligation Bond for the construction of the Seward Community Library
Museum.
j
CITY OF SEWARD, ALASKA
RESOLUTION 2013 -046
A "No" vote advises the Seward City Council that the voters do not recommend the mill
6,• rate be increased in property taxes by .77 mills to generate a revenue source for repayment of
the $3.48 million General Obligation Bond for the construction of the Seward Community
Library Museum.
Section 2. This resolution shall take effect immediately.
PASSED AND APPROVED by the City Council of the City of Seward. Alaska. this
10 day of June, 2013.
THE CITY OF SEWARD, ALASKA
FAILED
David Seaward, Mayor
AYES: Valdatta, Seaward
NOES: Bardarson, Shafer, Casagranda, Terry
ABSENT: Keil
ABSTAIN: None
ATTEST:
FAILED
Brenda Ballou
Deputy City Clerk
(City Seal)