HomeMy WebLinkAboutResolution No. 2023-01KENAI
CITY OF KENAI
RESOLUTION NO. 2023-01
Sponsored by: Administration
A RESOLUTION ADOPTING AN ALTERNATIVE ALLOCATION METHOD FOR THE FY23 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 AREA.
WHEREAS, AS 29.60.450 requires that for a municipality to participate in the FY23 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 2021 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.
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 FY23 funding available within FMA 14: Cook Inlet Area in agreement with all other
municipalities in this area participating in the FY23 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 2021 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 passage.
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 4th DAY OF JANUARY, 2023.
J mes Baisden, Vice Mayor
ATTEST:
Michelle r, M C, City Clerk
New Text Underlined; [DELETED TEXT BRACKETED]
KENAI
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MEMORANDUM
TO: Mayor Gabriel and Council Members
THROUGH: Paul Ostrander, City Manager
FROM: Lana Metcalf, Controller
DATE: December 27, 2022
SUBJECT: Resolution No. 2023-01 Adopting an Alternate Allocation Method for
FY23 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 FY2022 share was $60,284.09 and was
based upon 2020 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 FY23 is $26,230.49. Eleven communities will
receive a portion of that amount with the City of Kenai estimated to receive $1,442.66.
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
($13,115.24 for FY2023) is divided equally amongst the communities, and the remaining half
($13,115.24 for FY2023) 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 2023-01 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 FY23 will again
include an equal distribution of one-half the total and the remaining half is distributed based upon
population of the community. The eleven communities in the Cook Inlet Fisheries Management
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Resolution 2023-01
Area are Anchorage, Homer, Kachemak, Kenai, Kenai Peninsula Borough, Seldovia, Seward,
Soldotna, Houston, Palmer, and Wasilla. Allocations to each community under the alternative
allocation method will be the following:
Anchorage
$11,020.06
Kenai Peninsula Borough
$3,192.37
Homer
1,378.57
Seward
1,280.60
Kachemak
1,213.33
Soldotna
1,343.22
Kenai
1,442.66
Houston
1,259.77
Seldovia
1,201.06
Wasilla
1,505.31
Palmer
1,393.53
Thank you for your consideration.
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