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HomeMy WebLinkAboutResolution No. 2016-14` Suggested by: Administration tHcceYynf CITY OF KENAI KEN AL SKA RESOLUTION NO. 2016 -14 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, REQUESTING THAT THE LEGISLATURE AND THE GOVERNOR ENACT LEGISLATION TO INCLUDE COST REDUCTIONS AND REVENUE ENHANCEMENT TO ADDRESS CURRENT AND FUTURE STATE OF ALASKA BUDGETS DURING THE 2016 LEGISLATIVE SESSION. WHEREAS, Alaska has benefitted from the development of its vast oil reserves and the revenues generated to fund the majority of the cost of State Government since 1979; and, WHEREAS, for the past twenty -five years the production of Alaska North Slope Crude Oil has decreased from a maximum through -put of over 2 million barrels per day to a through -put of over 500,000 barrels per day; and, WHEREAS, global oil prices have dropped significantly over the past two years and are projected to remain between $25 per barrel to $60 per barrel for the foreseeable future; and, WHEREAS, the present situation brings into focus the risks inherent with Alaska's near -total dependence on oil to pay for public services; and WHEREAS, without a combination of cost reductions and revenue enhancement, cash reserves contained in the constitutional budget reserve, the permanent fund earnings reserve, and the statutory budget reserve will be depleted in less than three years; and, WHEREAS, depletion of the State's reserve accounts will threaten the Permanent Fund dividend program and the corpus of the Alaska Permanent Fund; and, WHEREAS, the State of Alaska's credit rating has been downgraded and may be downgraded further without a fiscal plan making significant progress towards a balanced, and sustainable budget; and, WHEREAS, any comprehensive fiscal plan must include a combination of cost reductions, revenue enhancements, and use of budget reserves; and WHEREAS, it is clear that a complete fiscal plan to provide a sustainable and predictable budget will require using a blend of spending reductions, use of the earnings of the Permanent Fund and additional new revenues in the form of broad - based taxes and other general fund sources; and WHEREAS, the Kenai City Council encourages residents of the City of Kenai and all Alaskans to continue to be informed and participate in the Legislative process. Page 2 of 2 Resolution 2016 -14 WHEREAS, the City Council appreciates the difficult, but extremely important, work of the Legislature and Administration in crafting a fiscal plan. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA; Section 1. That the Legislature pass and the Governor enact legislation to include cost reductions and revenue enhancement to address current and future State of Alaska budgets during the 2016 Legislative Session. Section 2. That a copy of this Resolution will be sent to each member of the Alaska State Legislature and the Governor. Section 3. That this Resolution shall become effective immediately upon its adoption. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 6th, day of April, 2016. r) -Zzlz Pat Porter, Mayor Mike Boyl Mem er L Brian Gabriel, Vice Mayor , Council Member i Tim Na re.