HomeMy WebLinkAboutResolution No. 2015-65I IM04
Suggested by: Administration
CITY OF KENAI
RESOLUTION NO. 2015 -65
A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA ADOPTING AN
ALTERNATIVE ALLOCATION METHOD FOR THE FY16 SHARED FISHERIES BUSINESS
TAX PROGRAM AND CERTIFYING THAT THIS ALLOCATION METHOD FAIRLY
REPRESENTS THE DISTRIBUTION OF SIGNIFICANT EFFECTS OF FISHERIES
BUSINESS ACTIVITY IN FMA 14: COOK INLET.
WHEREAS, AS 29.60.450 requires that for a municipality to participate in the FY16
Shared Fisheries Business Tax Program, the municipality must demonstrate to the
Department of Community and Economic Development that the municipality suffered
significant effects during calendar year 2013 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 use, at the discretion of the Department of
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 Kenai proposes to use an alternative allocation
method for allocation of FY16 funding available within FMA 14: COOK INLET in
agreement with all other municipalities in this area participating in the FY16 Shared
Fisheries Business Tax Program.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI,
ALASKA, the Kenai City Council by this resolution certifies that the following alternative
allocation method fairly represents the distribution of significant effects during 2014 of
fisheries business activity in FMA 14: COOK INLET:
All municipalities share equally 50% of the allocation; all municipalities share the
remaining 50% on a per capita basis.
PASSED AND APPROVED BY A DULY CONSTITUTED QUORUM OF THE COUNCIL OF
THE CITY OF KENAI, ALASKA, this 2nd day of December, 2015.
PAT PORTER, MAYOR
"Villaye with a Past, C# with a Future"
FINANCE DEPARTMENT
210 Fidalgo Avenue, Kenai, Alaska 99611 -7794
Telephone: 907 - 283 -7535 / FAX: 907 - 283 -3014
N.."
To: Rick Koch, City Manager
From: Terry Eubank, Finance Director
Date: November 23, 2015
Re: Resolution 2015 -65 A resolution selecting an alternate allocation method for Share Fisheries
Business Tax.
The City receives revenue from the State of Alaska for fish tax collected by the State in two different
methods. The Department of Revenue (DOR) distributes "Raw Fish Tax ", fisheries business taxes, fishery
resource landing taxes, salmon marketing tax, and other seafood taxes from licensed seafood processors,
floating processors, and seafood exporters, to eligible municipalities as prescribed in AS 43.77.060. The
City's FY2015 share was $289,411 and was based upon 2013 collections by the DOR.
The second method the City receives fish tax revenue is through the Alaska Department of Commerce
Community and Economic Development ( ADCCED). ADCCED receives 50% of the undistributed Raw
Fish Tax from the DOR to distribute through a program know as the Shared Fisheries Business Tax
Program. For the Cook Inlet Fisheries Management Area, which the City is a part of the amount to be
distributed in FY16 is $40,240.18. Eight communities will receive a portion of that amount with the City
of Kenai estimated to receive $2,896.70.
There are two methods of allocation for the Shared Fisheries Business Tax. The first method involves a
lengthy application process in which the applicants must show the impact to their local community of the
fishing industry. Once impact is shown, half of the total amount to be distributed ($40,240.18 for FY2016)
is divided equally amongst the communities and the remaining half is distributed based upon the impact
shown in their application. The second method permits all communities in Fisheries Management Area to
elect an alternate method of allocation. This alternate method eliminates the lengthy community application
process. Since inception of the Share Fisheries Business Tax Program in fiscal year 1992, the communities
of the Cook Inlet Fisheries Management Area have selected the alternate allocation method. A resolution
like 2015 -65 has been adopted every year since fiscal year 1992 and is a required step to elect the alternate
allocation method.
The alternate method elected by the Cook Inlet Fisheries Management Area for FYI will again include
and equal distribution of one -half the total and the remaining half is distributed based upon population of
the community. The eight communities in the Cook hilet Fisheries Management Area are Anchorage,
Homer, Kachemak, Kenai, Kenai Peninsula Borough, Seldovia, Seward, and Soldotna. Allocations to each
community under the alternative allocation method will be the following:
Anchorage
$18,521.07
Kenai Peninsula Borough
$5,561.90
Homer
2,786.56
Seldovia
2,527.42
Kachemak
2,539.51
Seward
2,662.42
Kenai
2,896.70
Soldotna
2,744.60