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HomeMy WebLinkAbout1986-05-06 Council Minutes - Special MeetingCITY OF KENAI 140d &#W o f 4"** m =W^.o tun�oNu�a.ra� NOTICE OF SPECIAL MEETING There will be a special meeting of the Kenai City Council on Tuendey, May 69 1986 at 5l00 PM in the Council Chambers. To be discussed: 1. Finishing Work on the Budget, FY 86-67 2, Resolution Opposing -Kenai Borough Ordinance 66-25 - Intent to Raise Sales Tax 3. Resolution Opposing Kenai Borough Ordinance 86-40 - Attempt to Eliminate Sales Tax on Rentals The Public is invited to attend and participate. uv�F g/jaA,0, 3enet Whelan # CMC City Clark OATEO: May 29 1986 t r • ,- KENAI CITY COUNCIL* SPECIAL MEETING, MINUTES 'MAY ft 19669 3100 PM KENAI CITY HALL MAYOR TOM WAGONER PRESIDING A. ROLL CALL Present, John Wiee, Tom Wagoner, Tom Ackerly, Sally Bailie, Ray Measles, Chris Monfor Absents Jess Hall (arrived late) Be AGENDA APPROVAL - s. Mayor Wagoner asked that Rea. 86-48, distributed this o date, be discussed as item C-1 . b. Mayor Wagoner asked that Res. 66-49, distributed this - :- —= date, be discussed as item C-2. Council approved the agenda as amended. : ' • - 1,Y;. Co PUBLIC HEARINGS C-1 Rea. 66-48 - Encouraging Kenai Peninsula Borough to Defeat KPB Ord. 86-25, Increasing Sales Tax Rate to 3%9 ds Encouraging Them to Find Other Areas to Raise the Needed Moneys for Support of KPB School District = MOTION,y. ` :... Councilmen Ackerly moved, seconded by Councilwomen Bailie, to adopt the resolution. There was no public comment._ - Councilman Measles suggested the heading encourage them to reduce support rather than find other areas to raise money. Mayor Wagoner said they have passed the school budget already. City Manager Brighton noted it is not in effect = yet, there is further proceedings. Mayor Wagoner said they n.., can add, but not decrease the budget. Councilwoman Monfor said they have out $1.9 Million. They are having a meeting -,� 5-8-66, they are waiting to hear from the State. Mayor .. Wagoner explained, this has nothing to do with the school s budget, the Borough will take no further action with the school budget. Mr. Brighton said it will take 10 on sales o°=,>- tax to fund this. Councilwoman Bailie asked if there were any other municipalities with similar ordinances. Mayor Wagoner replied no, they did not know till 5-2-86 that these ordinances would be discussed. He felt the City should take a stand on this. The Borough will meet th wanted to be there to testify# t is imperative someone say something to them. Councilman Wise said he would speak regarding the sales tax but not for the reasons stated here. Mr. Brighton suggested amending the resolution in the r KENAI CITY COUNCILS SPECIAL MEETING MAY 69 1986 Page 2 heading, line 4� to read, "to 3% and encouraging them to reduce the echo ol budget to the point it can be funded by present school taxes." Mayor Wagoner said this was impossible# it is too late. He suggested a resolution be prepared to move the date back to the last meeting in June for final approval of the Borough budget. Then they would know what the State would do. Atty. Rogers suggested amending the heeding, line 49 after the word "monies," add the word "imperative." This avoids making a valued judgement on what is needed. 507 PM, COUNCILMAN HALL ARRIVED. Councilwoman Bailie asked what the majority votes on the Assembly were. Mayor Wagoner replied he did not knowp but he felt this wee the easy way out and not as visible as an Increase in property tax. In his business, if he was selling a smaller commodity, he would agree with this. It is easier for people to go to Anchorage where there is no sales tax. MOTION, Amendments Councilwoman Bailie moved, seconded by Councilwoman Monforg to amend the resolution, in the heading, line 49 delete all wording after the words "to 3%." VOTE, Amendments Motion passed unanimously by roll call vote. Councilman Hall asked if there were other methods of raising income. Mayor Wagoner replied, only real and personal property tax. He thought both will be raised. Councilmen Wise said a 6% sales tax is difficult with Anchorage having no sales tax. Councilman Measles asked what 1S sales tax and 1 mill property tax means. Mr. Brighton replied, $3 Million each. Councilwoman Bailie suggested it •ould be cheaper to raise property tax 1 mill then sales tax It. People would spend more on sales tax than property tax. VOTE, Main Motion as Amended (Paseed)s Yeet Wagoner, Ackerly, Bailie, Hall, Measles, Monfor Not Wise . , t•tv • _ ._ ___.,. �. • �__ _._ _ __ .... _ _ i 3 C _ ._ ..t t 71 KENAI CITY COUNCILS SPECIAL MEETING NAY 6, 1986 Page 3 C-2 Re/. 86-49 - Urging Kenai Peninsula Borough Assembly to Withhold Introduction of KPB Ord. 66-40 Till Such Time as Each of the Municipalities in the Borough have an Opportunity to Analyze Now Much Revenues will be Decreased for said Municipalities MOTIONi Councilman Measles moved, seconded by Councilman Ackerlyt to adopt the resolution. PUBLIC COMMENT: a. Doug Keeting, 215 N. Fireweedv Soldotne. He is not a resident of Kenai and does not own property in Kenai or collect sales tax. He feels the sales tax on rents is not fair. The property is already taxed. The sole reason for sales tax on property is because it is occupied by tenants. They are not 2nd class citizens and should not be discriminated against. He urged the sales tax on rentals be eliminated. Councilmen Hall said cost to homeowners would not change. It may be more if the rental is empty. Councilman Wise sold 35% of housing units in Kenai are rentale, higher than any in the Borough. It is not fair. taxation. The landlord does not pay sales toxg the tenant does. Councilmen Measles noted that could be taken to, any business that hae property tax passes it on to buyers. VOTE (Passed)s Yes: Wagoners Ackerlyt Bailieg Hell, Measles, Monfor Nos wise AD3OURNMENT: Meeting adjourned 405 PM. /net Whelan City Clerk AppROM By ceYryCIL DAU o D 3 7t• _j ~ F.. �ti.. 4 i. �2' - y ... 'O. 4F� r} � o �. _ _ _ yn_� '` �C ,iS9 `�..-QZp•�yi' -,r� �,t.. �� �'. �- v s K _ .. ... .. , �..... r 6. '-..}j a.- � � r _.:_ ' a '