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
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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
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