HomeMy WebLinkAboutORDINANCE 0736-1981U
Introduced by Councilman Wise
CITY OF KENAI
ORDINANCE NO. 736-81
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA,
REPEALING KMC 7.10.010(a) AND KMC 7.10.030(a) TO REDUCE THE CITY
OF KENAI SALES TAX RATE FROM 3$ TO 2S, EFFECTIVE APRIL 1, 1982.
WHEREAS, currently the City of Kenai has a 1% sales tax imposed
by KMC 7.10.010(a) which is dedicated to Debt Service for
retirement of bonded indebtedness by KMC 7.10.030(a) and a 2%
sales tax imposed by KMC 7.10.010(b) which is dedicated to
current operating expenses by KMC 7.10.030(c), and
WHEREAS, the balance of the Debt Principal and Interest as of
June 30, 1981, for the 1964, 1967, 1974, and 1980 bonded
indebtedness through maturity in the year 2001 is $5,818,170, and
WHEREAS, after adjustments for 1981-E2 payment of principal and
interest and revenue from interest already allocated to Debt
Service and anticipated receipts from special assessments, there
will be a cash balance in the Debt Service Funds of $2,637,261
and an unfunded balance of $2,676,688, and
WHEREAS, if a $25,000 Annual Debt Service appropriations were
made through 2001 and if the Dp!7,t Service cash fund balances were
invested to the extent possible at an assumed 10% interest rate
of return to the Debt Service Funds, the Funds would be
liquidated on maturity in 2001.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
KENAI, ALASKA, am follows:
$action 1: KMC 7.10.010(a) is repealed so that the total
Sales Tax Levy of the City of Kenai is reduced from 3% to 2%.
section 2t KMC 7.10.030(a) is repealed so that the
remaining Sales Tax Levy is dedicated to General Fund Operations.
Section,: KMC 7.10.060(a) is repealed and reenacted to
conform to the Kenai Peninsula Borough Code provision which reads
as follows:
"(a) The tax to be added to the sales price, charge,
or rental shall be rounded off to the nearest cent by
eliminating any fraction of one-half cent or less and
by increasing any fraction over one-half cent to the
next highest cent. Any one sale of items separately
priced shall be taxed upon the aggregate amount."
Section 4: All interest proceeds from investment of Debt
Services Fund Cash Balances shall accrue to the several Debt
Service Funds only.
1982. section : This ordinance shall be effective on April 1,
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 2nd day
of July 1982.
ATTEST:
Janet Whelan, City Clerk
a
K
VINCENT O'REILLY, MAYOR
First Readings November 18, 1981
Second Readings May 19, 1982
Effccti e Date: