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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