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HomeMy WebLinkAboutResolution No. 2009-65the ny ✓f KENAI, ALASKA Alternative Allocation Method: November, 2009. Y' f ST: dtad Si it Carol L. Freas, City Cler Approved by Finance: CITY OF KENAI RESOLUTION NO. 2009 -65 Suggested by: Administration A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA ADOPTING AN ALTERNATIVE ALLOCATION METHOD FOR THE FY10 SHARED FISHERIES BUSINESS TAX PROGRAM AND CERTIFYING THAT THIS ALLOCATION METHOD FAIRLY REPRESENTS THE DISTRIBUTION OF SIGNIFICANT EFFECTS OF FISHERIES BUSINESS ACTIVITY IN THE COOK INLET FISHERIES MANAGEMENT AREA. WHEREAS, AS 29.60.450 requires that for a municipality to participate in the FY10 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 2008 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, WHEREAS, the City Council of the City of Kenai proposes to use an alternative allocation method for allocation of FY10 funding available within Cook Inlet Fisheries Management Area in agreement with all other municipalities in this area participating in the FY10 Shared Fisheries Business Tax Program. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that by this resolution certifies that the following alternative allocation method fairly represents the distribution of significant effects during 2008 of fisheries business activity in Cook Inlet Fisheries Management Area. The program total allocation shall be divided in two parts. One part shall be allocated to the eligible municipalities equally and the other part according to population. PASSED BY THE COUNCIL OF THE CITY OF NAI, ALASKA, this �fourth day of ,t PAT PORTE', MAYOR the uy RENAL ALASKA Tillage with a Past, Ci y with a Futrsre FINANCE DEPARTMENT 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 Telephone: 907 283 -7535 ext 221 FAX: 907 283 -3014 To: Rick Koch, City Manager From Terry Eubank, Finance Director Date: October 29, 2009 Re: Resolution 2009 -65. A resolution selecting an alternate allocation method for Share 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 FY2010 share was $208,988.87 and was based upon 2008 collections by the DOR. The second method the City receives fish tax revenue is through the Alaska Department of Commerce Community and Economic Development ADCCED). ADCCED receives 50% of the undistributed Raw Fish Tax from the DOR to distribute through a program know as the Shared Fisheries Business Tax Program. For the Cook Inlet Fisheries Management Area, which the City is apart of, the amount to be distributed this fiscal year totals 557,946. Eight communities will receive a portion ofthat amount. 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 (528,973 for FY2010) 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 2009 -65 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 includes and equal distribution of one half the total (528,973 for FY20I0) and the remaining half is distributed based upon population of the community. The eight communities in the Cook Inlet Fisheries Management Area are Anchorage, Homer, Kachemak, Kenai, Kenai Peninsula Borough, Seldovia, Seward, and Soldotna. I estimate Kenai will receive a total of $4,188.93 under the alternate allocation method for FY2010.