HomeMy WebLinkAboutResolution No. 2017-07Suggested by: Administration
CITY OF KENAI
RESOLUTION NO. 2017 -07
A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA ADOPTING AN
ALTERNATIVE ALLOCATION METHOD FOR THE FY 17 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 FY17
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 2015 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 FY17 funding available within FMA 14: COOK INLET in
agreement with all other municipalities in this area participating in the FY17 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 2015 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 15th day of February, 2017.
BRIAN GABRIEL SR., MAYOR
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To: Mayor Gabriel
Council Members
"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
Thru: Paul Ostrander, City Manager 1, 'o -
7/ From: Terry Eubank, Finance Director
Date: February 7, 2017
Re: Resolution 2017 -07 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 FY2016 share was $2,945.54 and was based upon 2014
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 hilet Fisheries Management Area, which the City
is apart of, the amount to be distributed in FYI is $44,083.27. Twelve communities will receive
a portion of that amount with the City of Kenai estimated to receive $2,159.55.
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
($44,083.27 for FY2017) 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 2017-
07 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 FY17 will again
include and equal distribution of one -half the total and the remaining half is distributed based upon
population of the community. The twelve communities in the Cook Inlet Fisheries Management
Area are Anchorage, Homer, Kachemak, Kenai, Kenai Peninsula Borough, Seldovia, Seward,
Soldoma, Matsu Borough, Houston, Palmer and Wasilla. Allocations to each community under
the alternative allocation method will be the following:
Anchorage
$15,181.85
Kenai Peninsula Borough
$4,415.69
Homer
2,066.86
Seldovia
1,846.89
Kachemak
1,858.37
Seward
1,959.13
Kenai
2,159.55
Soldoma
2,029.63
Matsu Borough
6,309.35
Houston
1,930.38
Palmer
2,110.71
Wasilla
2,214.87