HomeMy WebLinkAboutRES2024-002 Shared Fisheries Business Tax Program Sponsored
OF SEWARD,ALASKA by: Sorensen
RESOLUTION 2024-002
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA,ADOPTING AN ALTERNATIVE ALLOCATION METHOD FOR
THE FY2024 SHARED FISHERIES BUSINESS TAX PROGRAM, AND
CERTIFYING THAT THIS ALLOCATION METHOD FAIRLY
REPRESENTS THE DISTRIBUTION OF SIGNIFICANT EFFECTS OF
FISHERIES BUSINESS ACTIVITY IN THE COOK INLET FISHERIES
MANAGEMENT AREA AND AUTHORIZING THE CITY MANAGER TO
APPLY FOR FUNDS FROM THE SHARED FISHERIES BUSINESS TAX
PROGRAM
WHEREAS, Alaska Statute 29.60.450 requires that for a municipality to participate in the
FY2024 Shared Fisheries Business Tax Program("Program"),the municipality must demonstrate to the
Department of Commerce, Community, and Economic Development that the municipality
experienced significant effects during calendar year 2022 from fisheries business activities;and
WHEREAS, 3 AAC 134.060 provides for the allocation of available program funding to
eligible municipalities located.within fisheries management areas specified by the Department of
Commerce,Community, and Economic Development; and
WHEREAS, 3 AAC 134.070 provides for the allocation of available program funding to
eligible municipalities located within fisheries management areas specified by the Department of
Commerce,Community, and Economic Development; and
WHEREAS, the-Program provides for the use, at the discretion of the Department of
Commerce, Community, and Economic Development, of alternative allocation methods which
may be used within fisheries management areas if all eligible municipalities within the area agree
to use the method, and the method incorporates some measure of the relative significant effect of
fisheries business activity on the respective municipalities in the area; and
WHEREAS, the City Council of the City of Seward, Alaska proposes to use an alternative
allocation method for allocating FY2024 funding available within the FMA 14: Cook Inlet
Fisheries Management Area,in agreement with all other municipalities in the area participating in the
FY2024 Shared Fisheries Business Tax Program.
NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD,ALASKA,that:
Section 1. The City Council certifies that the City of Seward did experience significant
effects during calendar year 2022 from fisheries business activities that occurred within the Cook
Inlet fisheries management area and seeks to apply for funding under the FY2024 Shared Fisheries
Business Tax Program.
CITY OF SEWARD,ALASKA
RESOLUTION 2024-002
Page 2 of 2
Section 2. All eligible communities in the Cook Inlet fisheries management area will
receive fifty percent (50%) divided equally and fifty percent (50%) divided on a per capita basis.
Section 3.This resolution shall take effect immediately upon adoption.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska this 8th
day of January, 2024.
THE CITY OF SEWARD,ALASKA
Eu4.6-ftr. Qs. e-
Sue McClure, Mayor
AYES: Osenga, Calhoon, Wells, Barnwell, Crites, Finch, McClure
NOES: None
ABSENT: None
ABSTAIN: None
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ATTEST: •� o -•�O'
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Kris Peck Pti
City Clerk : ;VNE 1:;�:•'c� '
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(City Seal) � Q��•�•••
Resolution 2024-002
City Council Agenda Statement
Meeting Date: January 8, 2024
To: City Council
Through: Kathleen Sorensen, City Manager
From: Sully Jusino, Finance Director
Subject: Resolution 2024-002: Adopting an Alternative Allocation Method
for the FY2024 Shared Fisheries Business Tax Program, and
Certifying that this Allocation Method Fairly Represents the
Distribution of Significant Effects of Fisheries Business Activity In the
Cook Inlet Fisheries Management Area and Authorizing the City
Manager to Apply for Funds from the Shared Fisheries Business Tax
Program
Background and justification:
The City of Seward is required to apply to the State of Alaska Department of Community and Economic
Development (DCED) each year, to qualify for funding under the State's Shared fisheries Business Tax
Program and the State Landing TaxAllocation.The purpose of the program is to provide for a sharing of
state fish tax collected outside municipal boundaries, with municipalities that have been affected by fishing
industry activities. This program is different from the state fish tax sharing program which shares fish tax
revenues collected inside municipal boundaries.
This is the 315t year of this program,and municipalities across the state will share tax revenues from 2022
fisheries activity as reported by fish processors on their fish tax returns. The law that created this program
requires that funding be allocated first to fisheries management areas across the state based on the level of
fish and shellfish processed in each area, compared to the total fish and shellfish processed for the whole
state. Then, funds are allocated among the municipalities located within each fisheries management area,
based on the relative level of impacts experienced by each municipality.
Seward is located in the Cook Inlet Fisheries Management Area, which includes eleven communities: Anchorage,
Homer, Kenai, Kenai Peninsula Borough, Kachemak, Seldovia, Soldotna, Seward, Houston, Palmer and Wasilla.
The final deadline for submitting application for the FY2024 Shared Fisheries Business Tax and Landing Tax
Program is February 15, 2024.
The long-form application provides for a "standard" and an "alternative" method of funding
allocation. The City of Seward will file under the alternative method.
Standard Method: Under this method, each municipality must determine and document the cost of
fisheries business Impacts experienced by the community in 2022. Once the Impacts have been established
for each of the municipalities, the DCCED will calculate the allocation for each municipality using the following
formula:
One-half of the available funding is divided among participating municipalities on the basis of the
relative dollar amount of impact in each community. The other half of the available funding is
divided among municipalities based on the relative dollar amount of impact 12er capita in each
community.
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Resolution 2024-002
Alternative Method: Alternative allocation methods may be proposed by the municipalities within the
area. DCED will consider approving the use of a proposed alternative method only if all the municipalities
in the area agree to use the method,and if the method includes some measure of the relative effects of the
fishing Industry on the respective municipalities in the area.
The short-form method allocates the available funds by sharing 50% of the funds equally among the
participating municipalities and allocating the remaining 50%on a per-capita basis.The information required
by the long-form application agrees that the allocation method be the same method 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 would be difficult and time-consuming to obtain. Therefore, it is proposed that
municipalities in our area use the alternative method and that we further that the city of Seward agree to
use the alternative method and agree that 50% of the funds will be allocated equally among the
participating municipalities, and the remaining 50% allocated on a per-capita basis. This will be the
eighteenth consecutive year of using this method.
Using this same allocation method,Seward expects to receive approximately$2,482 in Shared Fisheries
Business Tax Allocation, an increase from FY2023 allocation of $1,319.97.
Comprehensive and Strategic Plan Consistency Information
This legislation is consistent with (citation listed):
Comprehensive Plan:
Strategic Plan:
Other:
Certification of Funds
Total amount of funds listed in this legislation: $ $2,482 —Shared Fisheries Business Tax Allocation
This legislation (✓):
x Creates revenue in the amount of: $ $2,482 —Shared Fisheries Business Tax Allocation
Creates expenditure in amount of: $
Creates a savings in the amount of: $
Has no fiscal impact
Funds are (✓):
Budgeted Line item(s):
x Not budgeted
Not applicable
Fund Balance Information
Affected Fund (✓):
General SMIC Electric Wastewater
Boat Harbor Parking F1 Water PI Healthcare
Motor Pool Other
Note:amounts are unaudited
Fund Balance/Net position — restricted $
Fund Balance/Net position — unrestricted/unassigned $
33
Resolution 2024-002
Available Unrestricted Cash Balance: $
Finance Director Signature: .�cr.
Attorney Review
Yes Attorney
Signature:
x Not applicable Comments:
Administration Recommendation
Adopt
Resolution
Other:
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