HomeMy WebLinkAboutResolution No. 2020-92KENAI
CITY OF KENAI
RESOLUTION NO. 2020-92
Sponsored by: Administration
A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, ADOPTING AN
ALTERNATIVE ALLOCATION METHOD FOR THE FY21 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 FY21 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 2019 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,
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA:
Section 1. City Council of the City of Kenai proposes to use an alternative allocation method
for allocation of FY21 funding available within FMA 14: Cook Inlet Area in agreement with all other
municipalities in this area participating in the FY21 Shared Fisheries Business Tax Program.
Section 2. That the Kenai City Council by this Resolution certifies that the following alternative
allocation method fairly represents the distribution of significant effects during 2018 of fisheries
business activity in FMA 14: Cook Inlet Area:
That all municipalities share equally 50% of the allocation; all municipalities share the
remaining 50% on a per capita basis.
Section 3. That this resolution takes effect immediately upon adoption.
ADOPTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 2nd day of December,
2020.
BRIAN GABRIEL SR.. MAYOR
KENAI
City of Kenai 1210 Ficialgo Ave. Kenai. AK 99611-7794 1907.283.7535 1 www.6naixity
MEMORANDUM
TO: Mayor Gabriel and Council Members
THROUGH: Paul Ostrander, City Manager
FROM: Terry Eubank, Finance Director
DATE: November 19, 2020
SUBJECT: Resolution No. 2020-92 Adopting an Alternate Allocation Method for
FY20 Shared 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 FY2020 share was $60,284.09 and was
based upon 2018 collections by the DOR.
The second method by which the City receives fish tax revenue is through the Alaska Department
of Commerce Community and Economic Development (ADCCED) Shared Fisheries Business
Tax Program. ADCCED receives 50% of the undistributed Raw Fish Tax from the DOR to
distribute to impacted communities. For the Cook Inlet Fisheries Management Area, which the
City is a part of, the amount to be distributed in FY21 is $8,351.72. Twelve communities will
receive a portion of that amount with the City of Kenai estimated to receive $407.68.
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
($8,351.72 for FY2021) 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
2020-92 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 FY21 will again
include an 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,
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Resolution 2020-92
Soldotna, Matsu Borough, Houston, Palmer, and Wasilla. Allocations to each community under
the alternative allocation method will be the following:
Anchorage
Homer
Kachemak
Kenai
Matsu Borough
Palmer
Thank you for your consideration.
$2,817.09
Kenai Peninsula Borough
$841.79
394.33
Seldovia
349.90
352.27
Seward
369.52
407.68
Soldotna
383.80
1,248.49
Houston
365.86
399.10
Wasilla
421.89
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