HomeMy WebLinkAboutResolution No. 2024-517/
KENAI
CITY OF KENAI
RESOLUTION NO. 2024-51
Sponsored by: Administration
A RESOLUTION ADOPTING AN ALTERNATIVE ALLOCATION METHOD FOR THE FY25 SHARED
FISHERIES BUSINESS TAX PROGRAM AND CERTIFYING THAT THIS ALLOCATION METHOD
FAIRLY REPRESENTS THE DISTRIBUTION OF SIGNIFICANT EFFECTS OF FISHERIES BUSINESS
ACTIVITY IN FISHERIES MANAGEMENT AREA 14: COOK INLET AREA.
WHEREAS, Alaska Statute 29.60.450 requires that for a municipality to participate in the FY25 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 2023
from fisheries business activities; and,
WHEREAS, regulation 3 AAC 134.060 provides the allocation method for available program funding to
eligible municipalities located within fisheries management areas; and,
WHEREAS, regulation 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,
WHEREAS, utilization of the alternative allocation method under 3 AAC 134.070 is in the best interest of
the City.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA:
Section 1. City Council proposes to use an alternative allocation method for allocation of FY25
funding available within FMA 14: Cook Inlet Area in agreement with all other municipalities in this area
participating in the FY25 Shared Fisheries Business Tax Program.
Section 2. That the Council by this Resolution certifies that the following alternative allocation method
fairly represents the distribution of significant effects during 2023 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 pa;�l
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THI DAY O ,� ER, 2024.
New Text Underlined; [DELETED TEXT BRACKETED]
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City of Kenai 1210 Fidalgo Ave, Kenai, AK 99611-7794 1907.283.7535 1 wwwkenaixity
MEMORANDUM
TO: Mayor Gabriel and Council Members
THROUGH: Terry Eubank, City Manager
FROM: David Swarner, Finance Director
DATE: November 25, 2024
SUBJECT: Resolution No. 2024-51 Adopting an Alternate Allocation Method for
FY25 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 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 FY25 is $7,115.01. Eleven communities will
receive a portion of that amount with the City of Kenai estimated to receive $427.04.
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
($3,557.50 for FY2025) is divided equally amongst the communities, and the remaining half
($3,557.50 for FY2025) 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 2024-51 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 FY25 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
Area are Anchorage, Homer, Kachemak, Kenai, Kenai Peninsula Borough, Seldovia, Seward,
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Resolution 2024-51
Soldotna, Houston, and Palmer. Allocations to each community under the alternative allocation
method will be the following:
Anchorage
Homer
Kachemak
Kenai
Seldovia
Thank you for your consideration.
$3,067.67
Kenai Peninsula Borough
$925.92
408.83
Seward
379.92
362.01
Soldotna
398.58
427.04
Houston
375.79
358.09
Palmer
411.16
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