HomeMy WebLinkAboutResolution No. 2005-11Suggested by:
CITY OF KENAI
RESOLUTION NO. 2005-11
Councilor Joe Moore
.)
A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, REQUESTING
THE STATE LEGISLATURE PROVIDE FUNDING TO MUNICIPALITIES FOR PERS
INCREASES.
WHEREAS, the State has notified communities that rates for the State Public
Employee Retirement System (PERS)will increase by more than 400%; and,
WHEREAS, PERS rates have been increasing annually by 5% of total salaries paid by
municipalities and will reach approximately 30% of the salary of every public employee
for the next 25 years to pay the "unfunded liability" of the State PERS program; and,
WHEREAS, the City of Kenai has paid the PERS contribution rate as determined by
the State of Alaska; and,
WHEREAS, mandatory State PERS increases on top of the loss of municipal revenue
sharing, and fuel, insurance and other cost increases leave many municipalities
without the resources to fully fund schools, police or other basic services; and,
WHEREAS, municipalities with property taxes face 1 to 6-mill property tax increases
just to pay state mandated PERS costs over the next three years (average 1.65 mills).
However, many municipalities have local tax caps that preclude such increases which
will require municipalities to make deeper cuts to local basic services; and,
WHEREAS, the Alaska Municipal League and many municipal elected officials and
finance directors have been "at the table" to help the State adopt a new PERS/TRS
"tier" to help control future costs; and,
WHEREAS, the State has received a huge increase in oil revenue while communities
face steeply higher expenses. For every $1 increase in the price of a barrel of oil the
State government receives an additional $65 million of new revenue per year while
Alaskan cities, boroughs, schools, businesses, other organizations and families pay
$20 million of higher new costs for fuel, transportation, etc. based on federal fuel
usage figures for Alaska; and,
WHEREAS, if the State fails to share a small portion of its huge oil revenue increases
with our community/local taxpayers to offset State required PERS payment increases
for at least the next two years, the impact on the City of Kenai will be $566,000, which
is equivalent to 1.4 mills of property tax.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI,
ALASKA, that the members of the Alaska State House and Senate are strongly urged
to approve the Governor's proposed $37.5 million appropriation to offset
Resolution No. 2005-11
Page 2 of 2
cost of State required municipal PERS increases for the next two years. This action
will help to avoid higher local taxes and/or large cuts to local services.
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this sixth day of April,
2005.
PAT PORTER, MAYOR
ATTEST:
Carol L. Freas, City Cler~
Approved by Finance:~__
(3 / 28/05 sp)