HomeMy WebLinkAboutORDINANCE 1322-1989Suggested by: Administration
City of Kenai
ORDINANCE NO. 1322-89
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA INCREASING
ESTIMATED REVENUES AND APPROPRIATIONS BY $12,205.77, IN THE GENERAL
FUND FOR PAYMENT OF TAXES.
WHEREAS, the City Administration desires to pay delinquent 1986 and
1987 taxes on certain lots in Inlet Woods in order to prevent the Kenai
Peninsula Borough from transferring the foreclosed lots to the City,
and
WHEREAS, this action is desired to protect the City's interest in the
property.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI,
ALASKA that estimated revenues and appropriations be increased as
follows:
General Fund
Increase Estimated Revenues:
Appropriation of Fund Balance
Increase Appropriations:
Land Department - Land
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA,
June, 1989.
ATTEST:
6'aAA� _ A-& J&
J It Ruotsala, City Clerk
First Reading:
Second Reading:
Effective Date:
Approved by Finance:
(5/9/89)
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$12,205.77
$12,205.77
this 7th day of
May 17, 1989
June 7, 1989
June 7, 1989
•
MEMORANDUM
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TO: William J. Brighton, City Manager
Kenai City Council
FROM: Charles A. Brown, Finance Director
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DATE: May 8, 1989
SUBJECT: Inlet Woods
The Kenai Peninsula Borough has foreclosed on certain properties in
Inlet Woods for nonpayment of taxes. I asked them for a list of all
such properties owned by either Shelby and Victoria Johnson or MSM
Partnership that are due to have the one-year redemption period
expire. After this one-year redemption period, which ends on June 13,
1989, the Borough will deed the properties to the City of Kenai.
It is my opinion that the City would be in a better position if it did
not own these properties at least for another year. (The Borough will
foreclose for 1988 taxes with a redemption period ending in 1990; we
can deal with that issue at that time.)
For the benefits of keeping this land in private hands, we have
little, if any, actual cost. To begin with, about 24.7% of the tax
and interest, about $2,400, belongs to the City of Kenai as our share
of the taxes collected. Secondly, if and when the Borough deeds the
land to the City, it will be subject to unpaid taxes. When we dispose
of the land, we have to pay the taxes anyway. Also, we can attempt to
collect the taxes that we pay from the owners.
There are 44 lots in question, all owned by MSM Partnership, and the
taxes owed are:
1986 taxes $ 163.83
1987 taxes 8,656.12
Penalty, interest, and costs 3,385.82
$12.205.77