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FY2012-02 Sale Tax on the October 2011 Election Ballot • Introduced by: Borough Assembly 1 Requested by: Borough Assembly 2 Drafted by: Finance Director Introduced: 06/16/2011 3 Amended: 07/21/2011 4 Public Hearing: 07/21/2011 5 Adopted: 07/21/2011 6 7 KODIAK ISLAND BOROUGH 8 ORDINANCE NO. FY2012 -02 9 10 AN ORDINANCE OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH 11 SUBMITTING THE QUESTION OF THE ADOPTION OF A SALES TAX 12 TO THE QUALIFIED VOTERS OF THE BOROUGH AT THE 13 OCTOBER 4, 2011 REGULAR ELECTION 14 15 WHEREAS, in the October 6, 2009 general election, the voters of the Kodiak Island 16 Borough approved a $76,310,000 bond issue to finance the planning, design, and 17 construction of school and related capital improvement projects; and 18 19 WHEREAS, when these bonds are sold, the Kodiak Island Borough must increase its 20 revenues to make the principal and interest payments due on these bonds; and 21 22 WHEREAS, the Assembly desires to implement tax measures which will generate 23 additional revenues needed to finance education and debt retirement in a way that spreads 24 the tax burden across the general public instead of just on the property owners; and 25 26 WHEREAS, a new sales tax or an increase in the rate of levy of a sales tax approved by 27 ordinance does not take effect until ratified by a majority of the voters at an election (AS 28 29.45.670). 29 30 NOW, THEREFORE, BE IT ORDAINED BY THE ASSEMBLY OF THE KODIAK ISLAND 31 BOROUGH THAT: 32 33 Section 1: This ordinance is a non -Code ordinance and shall not become a part of the 34 Kodiak Island Borough Code of Ordinances; 35 36 Section 2: It is the intent of the Kodiak Island Borough Assembly that the Kodiak Island 37 Borough levy, assess and collect sales tax as follows: 38 • The sales tax shall be levied, assessed and collected on sales, services 39 and rentals in the Kodiak Island Borough on a year round basis. 40 • The sales tax shall be an amount not to exceed one percent (1 %). 41 • This will be a Borough -wide sales tax and will be in addition to any sales 42 taxes imposed by cities within the Borough. 43 • This sales tax will only be used to pay principal and interest on bonds 44 issued by the Kodiak Island Borough to finance costs of planning, 45 designing and constructing school and related capital improvements in 46 the Borough, including without limitation the reconstruction and 47 renovation of the Kodiak High School, approved by the voters at the 48 regular Borough election held on October 6, 2009 as Proposition No. 1 49 (the "2009 Proposition "). Kodiak Island Borough Ordinance No. FY2012 -02 Page 1 of 2 50 • The Kodiak Island Borough Assembly is empowered to enact such 51 ordinances as necessary to implement and administer the collection of a 52 sales tax. 53 • The sales tax amount may not be increased without further voter 54 approval. 55 • This sales tax will sunset on September 30, 2035, provided that any 56 bonds (including refunding bonds) issued pursuant to the 2009 57 Proposition are no longer outstanding. 58 59 Section 3: The Borough shall submit the following proposition to the qualified voters of 60 the Borough at the October 4, 2011 regular Borough election. The proposition 61 must receive an affirmative vote from a majority of the qualified voters voting 62 on the question to be approved. 63 64 Proposition No. 1 65 Sales Tax 66 67 Shall the Kodiak Island Borough levy, assess, and collect a sales tax not 68 to exceed one percent (1 %) of sales, rents, and services in the Borough 69 on a year round basis? This sales tax will only be used to pay principal 70 and interest on bonds, including refunding bonds, issued by the Kodiak 71 Island Borough to finance costs of planning, designing and constructing 72 school and related capital improvements in the Borough, including without 73 limitation the reconstruction and renovation of the Kodiak High School, 74 approved by the voters at the regular Borough election held on October 6, 75 2009 as Proposition No. 1. 76 C - YES C7 NO 77 78 Section 4: If approved by the voters, the sales tax becomes effective April 1, 2012, 79 subject to and following adoption by the Assembly of implementing 80 ordinances. This ordinance becomes effective immediately. 81 82 ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH 83 THIS TWENTY FIRST DAY OF JULY, 2011 84 85 - 86 KODIAK ISLAND BOROUGH 87 88 89 90 ATTEST: Jer9me M. Sew, Borough Ma or 91 92 93 L j 94 �J 95 Nova M. Javier, MMC, Borough Clerk Kodiak Island Borough Ordinance No. FY2012 -02 Page 2 of 2