HomeMy WebLinkAboutRes2019-061 FAILED I Sponsored by: Meszaro5.
CITY OF SEWARD. ALASKA
RESOLUTION 2019-061
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD.
ALASKA, OPPOSING KENAI PENINSULA BOROUGH ORDINANCE
2019-09 LEVYING A 12 PERCENT (12%) TAX ON TEMPORARY
LODGING, EXEMPTING TEMPORARY LODGING RENTALS FROM
GENERAL BOROUGH SALES TAX AND ALLOWING CITIES THAT
LEVY A SIMILAR SALES TAX ON TEMPORARY LODGING TO
EXEMPT UP TO ONE-HALF OF THE BOROUGH TEMPORARY
LODGING TAX, SUBJECT TO VOTER APPROVAL
WHEREAS, administration attended a joint work session between the Kenai Peninsula
Borough Assembly and local municipalities to discuss the proposed Ordinance 2019-09 that
would levy a 12%temporary lodging tax and provide for particular exemptions; and
WHEREAS, the Kenai Peninsula Borough asked that the Seward City Council provide
input on Ordinance 2019-09; and
WHEREAS, the proposed lodging tax would increase the overall tax collected by short
term lodging establishments by 3%within the City of Seward; and
WHEREAS, the proposed lodging tax would increase the overall tax collected by short
term lodging establishments by 9%outside of Seward city limits; and
WHEREAS, the City of Seward attracts a significant number of visitors each year and
already collects a 4%bed tax; and
WHEREAS, revenues from the City of Seward bed tax have steadily increased over the
life of the tax and are used to promote the City of Seward through a contract with the Chamber
of Commerce, as well as support other governmental operations; and
WHEREAS, the proposed tax increase will be passed directly on to short term lodging
customers, reducing the amount of money they would be able to spend throughout the
community; and
WHEREAS, during the June 10, 2019 regular City Council Meeting, a discussion item
on the agenda provided the opportunity for the public and Council Members to weigh-in on the
proposed Ordinance; and
WHEREAS, the overwhelming majority of public comments and sentiment on the
council opposed the proposed Ordinance.
CITY OF SEWARD,ALASKA
RESOLUTION 2019-061
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF SEWARD,ALASKA that:
Section 1. The Seward City Council hereby opposes Kenai Peninsula Borough Ordinance
2019-09 and urges the Kenai Peninsula Borough Assembly to vote no.
Section 2. This resolution shall take effect immediately upon adoption.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this
24th day of June, 2019.
THE CITY OF SEWARD, ALASKA
FAILED
David Squires, Mayor
AYES: None
NOES: Horn, Lane,Towsley, Seese,McClure, Osenga, Squires
ABSENT: None
ABSTAIN: None
ATTEST:
FAILED
Brenda J. Ballou, MMC
City Clerk
(City Seal)
Council Agenda Statement
Meeting Date: June 24, 2019
To: City Council
From: Scott Meszaros, City Manager
Agenda Item: Opposing Kenai Peninsula Borough Ordinance 2019- 09
BACKGROUND & JUSTIFICATION:
On June 4, 2019, administration attended a joint work session between the Kenai Peninsula
Borough Assembly (Assembly) and local municipalities to discuss two proposed Ordinances that
would have a significant impact on local government. The Assembly asked that the Seward City
Council provide input specifically on Ordinance 2019-09 which would levy a twelve-percent
(12%) temporary lodging tax and provide for particular exemptions. The impact to Seward would
be as follows:
Current City of Current Borough Proposed Tax Proposed Tax
Seward Tax Tax Structure Structure Inside Structure
Structure City Limits Outside City
Limits
City of Seward 4% N/A 4% N/A
Sales Tax
KPB Sales Tax 3% 3% Exempt Exempt
City of Seward 4% N/A 4% NIA
Bed Tax
KPB N/A N/A 6% 12%
Temporary
Lodging Tax
Total Tax 11% 3% 14% 12%
Collected
During the June 10,2019 regular City Council meeting,a discussion item was placed on the agenda
in order to provide the opportunity for the community and the Council to express their opinions
regarding the proposed Ordinance. An overwhelming majority of public comments and Council
member input opposed the Ordinance. Attached is a Resolution that reflects the direction that
Council gave administration regarding KPB Ordinance 2019-09.
INTENT:
Oppose Kenai Peninsula Borough Ordinance 2019-09.
74
CONSISTENCY CHECKLIST: Yes No N/A
1. Comprehensive Plan (document source here): X
2. Strategic Plan (docunient source here): X
3. Other (list): X
FISCAL NOTE:
The City of Seward will have no costs associated with this opposition Resolution.
Approved by Finance Department_ Npwwpw
ATTORNEY REVIEW: Yes No X
RECOMMENDATION:
Seward City Council approve Resolution 2019-061 apposing Kenai Peninsula Borough
Ordinance 2019-09.
75