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2017-07-27 Work SessionPage Kodiak Island Borough Assembly Work Session Thursday, July 27, 2017,6:30 p.m. School District Conference Room Work Sessions are informal meetings of the Ass ernbly w here Assembly members review the upcorring regular meeting agenda packet and seek or receive infornadonfromstaff. Although additional items not listed on the work session agenda are discussed when introduced by the Mayor, Assembly, or staff, no formal action is taken at work sessions and items that require formal Ass ernbly action are placed on regular Assernoly meeting agenda. citizen's corrrrents at works essions are NOT considered part of the official record. citizen's comrents intended for the "official record" should be made at a regular Assembly meeting. 1. CITIZENS' COMMENTS (Limited to Three Minutes per Speaker) 2. AGENDA ITEMS 3-22 a. Investment Policy Offerings - 7-27-17 Investments - 7-27-17 Investment presentation - 7-27-17 23-79 b. Review of AML Resolutions DraftAMLSummer2017 updated 6.26 2017 AML Resolution Position Packet 2017 Position Statements Packet Position Statement Guidelines Summer 2017 C. Harvest Of Slash And Timber In The Chiniak Burn Area 3. PACKETREVIEW a. PUBLIC HEARING Ordinance No.FY2018-04 Amending KIBC Title 3 Revenue And Finance To Add Chapter 3.80 Excise Tax On Cigarettes And Other Tobacco Products. UNFINISHED BUSINESS Resolution No. FY2018-05 Changing The 911 Surcharge On All Local Exchange Access Lines In The Area From Seventy-five Cents To Two Dollars Per Month. RESOLUTIONS Resolution No. FY2018-02A Amending Resolution No. FY2018- 02 Schedule Of Fees Of The Kodiak Island Borough. Resolution No. FY2018-08 Authorizing The Assessor To Assess Visit our website at AWbA www.kodiakak.us ' wfacebook.com/Kodiakislandburough @KoPagel Page 1 of 79 The Spruce Cape Homes Low -Income HousingTax Credit (LIHTC) Project Based On Restricted Rents. ORDINANCES FOR INTRODUCTION Ordinance No. FY 2017-23 Amending The Future Land Use Designation Of Tract A-1, Block 4, Kadiak Alaska Subdivision, 1st Addition From Public Facilities/Ownership To Urban Residential (P&Z Case No. 17-004). Ordinance No. FY2017-24 Rezoning Tract A-1, Block 4, Kadiak Alaska Subdivision, 1st Addition From PL -Public Use Lands District To R2 -Two -Family Residential District (P&Z Case No. 17- 005). Ordinance No. FY2018-05 Amending The 2008 Comprehensive Plan By Changing The Future Land Use Designation Of Lot 1A, Block 3, Tract A, Larsen Bay Subdivision from Residential to Mixed Commercial/Waterfront/Residential (P&Z Case No. 17- 025). Ordinance No. FY2018-06 Rezoning Lot 1A, Block 3, Tract A, Larsen Bay Subdivision From R1 -Single -Family Residential District To B -Business District(P&Z Case No. 17-026). Ordinance No. FY2018-07 Rezoning Lot 4, Block 19, Tract A, Larsen Bay Subdivision From R1 -Single -Family Residential District To B -Business District(P&Z Case No. 17-030). 4. MANAGER'S COMMENTS 5. CLERK'S COMMENTS G1l TA Me] V&IWe] &I • I: I a�y 7. ASSEMBLY MEMBERS COMMENTS Visit our website atwwwfacebook.com/Kadiekislandborouah © @KodiakBorough w. wwkodiakak.us Page 2 of 79 AGENDA ITEM #2. a. Treasury yields: 1 year 1.212 2 year 1.363 3 year 1.519 5 year 1.859 7 year 2.122 10 year 2.317 30 year 2.933 T -Notes: 2 year 7/19 1.354 2.5 year 1/20 1.427 3 year 7/20 1.523 3.5 year 1/21 1.635 4 year 7/21 1.723 4.5 year 1/22 1.803 5 year 7/22 1.864 AGENCY BULLET RUN 7/27/2017 1MM+ FAMCA 1.460 12/12/19 +17.5 2YR {3132XOLU3 Corp <Go>) 20MM+ FFCB 1.500 12/24/19 +12.5 2YR {2W)13133EHSD6 corp <Go>) 15MM+ FFCB 1.400 12/26/19 +12.5 2YR (3133EHKP7 Corp <Go>) 6MM+ FHLB 3.375 06/12/20 +6 3YR TAP 131337OE38 Corp <Go>) 1MM+ FHLMC 1.500 07/15/20 +6.5 3YR 13134GBTQ5 Corp <Go>) 16MM+ FNMA 1.375 02/26/21 +14 3YR BENCH 13135GOJ20 Corp <Go>) 2MM FHLB 2.250 06/11/21 +21 3YR TAP (313OA1W95 Corp <Go>) 8MM+ FFCB 1.720 07/26/21 +22 3YR 12W)(3133EHSR5 corp <Go>) 19MM+ FHLMC 1.125 08/12/21 —11 5YR BENCH (3137EAEC9 Corp <Go>) 10MM+ IBRD 2.000 04/19/22 +9.5 5YR (45905UG81 Corp <Go>) 5MM FHLB 2.125 06/10/22 +3.5 5YR 1313379Q69 Corp <Go>) 10MM FFCB 1.875 09/26/22 +6.5 5YR 12W)(3133EHSS3 corp <Go>) 8MM+ FFCB 2.000 06/15/23 +20.5 5YR (3133EHNM1 Corp <Go>) 4MM+ FFCB 3.190 03/09/33 +73 10YR (3133EESV3 Corp <Go>) IMM+ TVA 5.250 09/15/39 +40 30YR 1880591EH1 Corp <Go>) Page 3 of 79 Investment Policy AGENDA ITEM #2.a. CUSIP 3134GBWP3 Security FHLMC 1.519 CP" 1.500 Maturity 7/26/2019 Next Call 1/26/2018 Call Type Quarterly Price 100.000 YTNC 1.500 "M 1.500 Notes 2-NC6M0 Settle 07/28/17 3133EHTFO FFCB 1.4819 1.480 8/1/2019 11/1/2017 Anytime 100.000 1.480 1.480 2-NC3MO 08/01/17 3130ABWKS FHLB 1.519 1.500 8/22/2019 11/22/2017 Quarterly 100.000 1.500 1.500 2-NC3MO 08/22/17 3130ABWXO FHLB 1.519 1.500 8/22/2019 2/22/2018 Quarterly 100.000 1.500 1.500 2-NC6MO 08/22/17 3134138X20 FHLMC 1.519 1.500 10/25/2019 7/25/2018 Onetime 99.950 1.551 1.520 2.25-NC3 07/28/17 3134GBV01 FHLMC 1.625 20 1.625 6/29/2020 6/29/2018 Onetime 99.930 1.702 1.640 3-NC1 1X 07/28/17 3130ABWV4 FHLB 1.6520 1.650 7/27/2020 7/27/2018 Onetime 100.000 1.650 1.650 3-NC13X 07/28/17 3130ABVU7 FHLB 1.625 20 1.625 7/27/2020 7/27/2018 Onetime 99.980 1.645 1.630 3-NC3 1X 07/28/17 3134GBB35 FHLMC 1.720 1.700 8/10/2020 8/10/2018 Onetime 99.980 1.720 1.700 N.A. 08/10/17 3136G4NU3 FNMA 1.6720 1.670 8/10/2020 8/10/2018 Onetime 100.000 1.670 1.670 3-NC11X 08/10/17 3136G4NT6 FNMA 1.7520 1.750 8/14/2020 2/14/2018 Quarterly 100.000 1.750 1.750 NA. 08/14/17 3136G4NW9 FNMA 1.7520 1.750 8/21/2020 2/21/2018 Quarterly 100.050 1.649 1.730 3-NC6M0 08/21/17 3133EHPV9 FFCB 1.7320 1.730 12/29/2020 12/29/2017 Anytime 99.865 2.052 1.770 3.5-NC6M 07/28/17 3134GBXE7 FHLMC 1.821 1.800 1/11/2021 1/11/2018 Quarterly 99.970 1.865 1.800 3.5-NC6M 07/28/17 3136G4NS8 FNMA 1.7521 1.750 1/27/2021 7/27/2018 Onetime 100.000 1.750 1.750 3.5-NC3. 07/28/17 3136G4NR0 FNMA 1.7521 1.750 2/16/2021 8/16/2018 Onetime 100.000 1.750 1.750 3.5-NC1 08/16/17 3136G4NR0 FNMA 1.75 21 1.750 2/16/2021 8/16/2018 Onetime 100.000 1.750 1.750 3.5-NC1 08/16/17 3133EHNJO FOR 1.8421 1.840 3/15/2021 9/15/2017 Anytime 99.965 2.104 1.850 3.75-NC3 07/28/17 3133EHNS5 FFCB 1.8721 1.870 6/14/2021 9/14/2017 Anytime 99.925 2.453 1.890 4-NC3M0 07/28/17 3134GBVVVO FHLMC 1.9521 1.950 6/29/2021 9/29/2017 Quarterly 100.000 1.947 1.950 N.A. 07/28/17 3130ABXFB FHLB 221 2.000 7/23/2021 10/23/2017 Quarterly 100.000 2.000 2.000 4-NC3MO 07/28/17 3133EHSZ7 FFCB 1.921 1.900 8/2/2021 8/2/2018 Anytime 100.000 1.900 1.900 4-NC1 CO 08/02/17 3130ABXE3 FHLB 1.8421 1.840 8/11/2021 2/11/2019 Onetime 100.000 1.840 1.840 4-NC3.5 08/11/17 3133EHTE3 FFCB 221 2.000 11/1/2021 11/1/2017 Anytime 100.000 2.000 2.000 4.25-140 08/01/17 3133EGAPO FFCB 1.73 21 1.730 11/16/2021 8/3/2017 Anytime 99.400 45.040 1.870 5.5-NC3M 07/28/17 3130ABVW3 FHL8222 2.000 2/16/2022 2/16/2018 Quarterly 99.925 2.152 2.010 4.5-NC6M 08/16/17 3130ABWJ1 FHLB 1.922 1.900 5/16/2022 8/16/2018 Onetime 99.960 1.941 1.900 4.75-NC1 08/16/17 3134GBWY4 FHLMC 2.12522 2.125 6/29/2022 12/29/2017 Quarterly 99.900 2.362 2.140 5-NC6MO 07/28/17 3133EHRN5 FFCB 2.2322 2.730 7/18/2022 10/18/2017 Anytime 100.035 2.070 2.220 5-NC3MO 07/28/17 3133EHSBO FFCB 2.122 2.100 7/25/2022 7/25/2018 Anytime 100.000 2.100 2.100 5-NC1 CO 07/28/17 3130ABXR2 FHLB 222 10/2022 8/10/2020 Anytime 100.000 2.000 2.000 5-NC3 CO 08/10/17 313664NQ2 FNMA 222 /23/2022 2/23/2018 Quarterly99.800 2.405 2.040 5-NC6M0 08/23/17 3130ABWZS FHLB 2.1522 /23/2022 2/23/2018 Quarterly 100.065 2.019 2.130 5-NC6MO 08/23/17 3136G4NY5 FNMA 2.222 /23/2022 2/23/2018 Quarterly100.025 2.149 2.190 5-NC6MO 08/23/17 3130ABWU6 FHLB 222 /24/2022 E12/12/2022 8/24/2018 Onetime 100.065 1.934 1.980 5 -NCI 1X 08/24/17 3133EHMJ9 FFCB 2.1922 2/12/2022 9/12/2017 Anytime 99.850 3.413 2.220 5.5 -NUM 07/28/17 3133EGCR4 FFCB 2.07 23 /1/2023 8/3/2017 Anytime 99.030 72.370 2.240 7-NC3 CO 07/28/173133EGEH4 FFCB 2.0223 /13/2023 8/3/2017 Anytime 99.637 28.180 2.080 7-NC3M007/28/17 3133EHTA3 FFCB 2.35 23 /1/2023 8/1/2018 Anytime 100.000 2.350 2.350 6-NC1 CO 08/01/17 Page 4 of 79 Investment Policy AGENDA ITEM #2.a. Kodiak Island Borough Temporary Investments 7/27/2017 Total Certificates 1,683,607.20 Total Federal Agencles 57,496,305.10 Sub -Total 59,179, 912.30 Total AML Inv Pool 9,716,762.37 Total 68,896,674.67 Wells Fargo checking 3,298,517.50 Grand Totals 72,195,192.17 Page 5 of 79 Investment Policy Interest Market Value Maturity Type Rate Certificate Num AML Investment Pool 742.2 5,022.22 AML Investment Pool 742.3 658,326.75 663,348.97 AML Investment Pool 742.1 9,053,413.40 9,716,762.37 Certificate of Deposit 1.600% 02006LUSO 241,152.00 1.600% 02587DD47 241,152.00 1.800% 14042RAV3 241,152.00 1.200% 17284CFE9 239,949.60 1.200% 254671 PV6 239,952.00 1.200% 38147JFP2 239,952.00 1.200% 8562841<37 240,297.60 1,683,607.20 Federal Agencies 08/25117 FHLMC 2.150% 3134GBMJB 2,000,400.00 01/31/18 UST 0.750% 91282BP20 1,994,220.00 02/28/18 FNMA 1.750% 3136G4LW1 2,002,700.00 03/09/18 FHLB 4.250% 3133XPCT9 4,093,280.00 06127/18 FNMA 1.300% 3136GOOLB 2,851,995.00 06129118 FHLB 0.875% 3130ABBD4 1,991,100.00 06/30/18 AKSHSG 2.250% 662523YQB 157,049.10 07127118 FHLMC 1.050% 3134G9Q67 997,550.00 09/01/18 AKSHSG 5.000% 01179PX85 1,312,150.00 09101/18 AKSHSG 5.000% 033161TZ3 1,365,585.00 01/30119 FHLMC 0.950% 3134G92B2 5,960,580.00 02/21/19 FHLMC 1.700% 3134G3PA2 3,013,710.00 03101119 AKSHSG 2.100% 01779RCSO 506,618.00 05/23119 FHLB 1.240% 313382ZB2 1,989,280.00 06128119 FHLB 1.375% 3130AADN5 1,996,740.00 01/03120 FFCB 1.625% 3133EHEJ8 1,998,700.00 03127120 FHLMC 1.250% 3134GA7MO 2,000,820.00 04/27120 FNMA 1.700% 3136G4NJ8 2,000,700.00 01/19/21 FFCS 1.930% 3133EFG4F9 2,003,500.00 01127/21 FNMA 1.950% 3135GOS79 2,000,800.00 02117/21 FFCB 1.580% 3133EGAZ8 1,984,400.00 05117121 FFCB 2.000% 3133EHJP9 1,999,800.00 06129121 FHLMC 1.9509/0 3134GBWVO 2,000,650.00 02125122 FHLB 1.750% 313376BR5 2,011,000.00 02128122 FFCB 2.170% 3133EHAX1 2,001,600.00 05/09122 FFCB 2.070% 3133EHHV8 1,999,500.00 06/29122 FHLB 2.125% 3130ABPEO 1,998,000.00 10/01122 AKSHSG 3.000% 576550BF3 62,718.00 08101127 AKSHSG 5.3429/0 011770T87 1,200,960.00 57,496,305.10 Total Certificates 1,683,607.20 Total Federal Agencles 57,496,305.10 Sub -Total 59,179, 912.30 Total AML Inv Pool 9,716,762.37 Total 68,896,674.67 Wells Fargo checking 3,298,517.50 Grand Totals 72,195,192.17 Page 5 of 79 Investment Policy AGENDA ITEM #2.a. Page 6 of 79 Investment Policy �� r— U O CL AGENDA ITEM #2.a. Page 7 of 79 Investment Policy N � o N 4-1 N rl OW 4-j> Q E Ln d -J LO U 0 O ._ V) / 0� N � O O =3:3— O CO ii O O a , N CO 000 N fa E Q � L C6 M o v N N ` E M 03 N YO O a U O Y 0 m LL m m v (D AGENDA ITEM #2.a. Page 7 of 79 Investment Policy c/1 0 U N E W Q O C: 0 v � Lp Ln a--+ . _ () C6 Ln Q) � 4-) Q 0 0 a--+ � 0 C6 C- -1-j _0 (n E 0 0 U 4— AGENDA ITEM #2.a. Page 8 of 79 Investment Policy V O CL E U CO Investment Policy N �U 0- 4-j Cu E a O LnO 0 m O � Q i U aj U O EC 4-J 0 a) aJ u > f6 U- ,S •� O E E Q C7 O (U�? a. 0 o O (O v .O cn v'f a 4-J N N Ln N 76 O O O m AGENDA ITEM #2.a. N -0 O -0 C: C: ZZ ca O }' O- aJ ca aJ L N U_ QJ ,70 0-0 O U N E u a) C: a) L o a,o — o O Ln L a� N E L v v o �- > Cu 4-j o ( E Page 9 of 79 U O CL E Ln I me Investment Policy +J V) rfF, AGENDA ITEM #2. a. 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One Sealaska Plaza, Suite 200 • Juneau, Alaska 99801 Tel (907) 586-1325 • Fax (907) 463-5480 • www.akml.org DRAFT For Travel Planning Alaska Municipal League Summer Legislative Conference ANB/ANS Hall, Haines, Alaska — August 15-18, 2017 Tuesday, August 15, 2017 2:00 p.m. Allen Marine Charter Leaves Auke Bay Harbor, Juneau, AK Transportation will be provided to Auke Bay Harbor from Airport 5:00 p.m. Allen Marine Charter Arrives in Haines Wednesday, August 16, 2017 8:30 a.m. — 4:00 p.m. Alaska Conference of Mayors Meeting 8:30 a.m. — 4:00 p.m. Alaska Municipal Management Association Meeting 5:00 p.m. — 7:00 p.m. Haines Borough — Welcome Reception - TBA Thursday, August 17, 2017 AML Legislative Conference 7:30 a.m. — 8:30 a.m. Position Committee Meeting 8:00 a.m. Breakfast 8:30 a.m. — 8:45 a.m. Welcome and Introductions — Clay Walker, AML President 8:45 a.m. — 9:45 a.m. Legislative Update and Lessons Learned — Ray Gillespie & Associates and Kathie Wasserman 9:45 a.m. —10:00 a.m. Break 10:00 a.m. —11:00 a.m. Department of Commerce, Community & Economic Development Report — Fred Parady, Deputy Commissioner 11:00 a.m. — 11:45 a.m. Federal Issues Report — National League of Cities & National Association of Counties — Invited 11:45 a.m. —12:00 p.m. Break 12:00 p.m. —1:00 p.m. Luncheon Guest Speaker — Gov. Walker — Invited 1:15 p.m. —1:30 p.m. Alaska — LNG Update — Larry Persily, Chief of Staff, Kenai Peninsula Borough 1:30 p.m. — 4:30 p.m. FY18 Legislative Issues Discussion/Plan 5:00 p.m. AML Board of Directors Meeting Friday, August 18, 2017 8:00 a.m. Allen Marine Charter Leaves Haines 11:00 p.m. Allen Marine Charter Arrives in Auke Bay Harbor, Juneau, AK Transportation will be provided to airport. Page 23 of 79 Review of AML Resolutions Member of the National League of Cities and the National Association of Counties AGENDA ITEM #2.b. 2017 Priorities, Resolutions & Position Statements Approved by AML Membership November 2016 Alaska Municipal League Kathie Wasserman, Executive Director One Sealaska Plaza, Suite 200 Juneau, Alaska 99801 Phone (907) 586-1325 — Fax (907) 463-5480 www.akmi.org Page 24 of 79 Review of AML Resolutions AGENDA ITEM #2.b. Page 25 of 79 Review of AML Resolutions ALASKA MUNICIPAL LEAGUE Priorities: AGENDA ITEM #2.b. 2017 Statewide Priorities............................................................... Page 1 2017 Federal Priorities...................................................................Page 2 Resolutions: Resolution #2017-01......................................................................Page 3 A RESOLUTION URGING THE ALASKA STATE LEGISLATURE TO ADOPT A SUSTAINABLE BUDGET PLAN FOR FY18 AND BEYOND; TO CAREFULLY CONCENTRATE ON INCREASED REVENUES RATHER THAN JUST CUTS; AND TO GIVE SERIOUS CONSIDERATION TO THE FY17 SUSTAINABILITY PLAN SUBMITTED BY THE ALASKA MUNICIPAL LEAGUE AML Sustainability Plan..................................................................Page 5 AML Sustainability Committee Recommendations.............................Page 6 Resolution #2017-02 — Failed to Pass Resolution #2017-03......................................................................Page 7 A RESOLUTION OF THE ALASKA MUNICIPAL LEAGUE SUPPORTING PUBLIC EMPLOYEES RETIREMENT SYSTEM REFORM Resolution #2017-04......................................................................Page 9 A RESOLUTION SUPPORTING LEGISLATION ADOPTING REAL PROPERTY SALES DISCLOSURE IN ALASKA Resolution #2017-05 — Failed to Pass Resolution #2017-06......................................................................Page 11 A RESOLUTION OF THE ALASKA MUNICIPAL LEAGUE OPPOSING ANY LEGISLATION WHICH WOULD INCREASE THE BURDEN ON PERS/TRS EMPLOYERS BEYOND THE CURRENT EMPLOYER CONTRIBUTION LIMITS OF 22% FOR PERS AND 12.56% FOR TRS Resolution #2017-07 — Failed to Pass Resolution #2017-08......................................................................Page 15 A RESOLUTION SUPPORTING PROVISIONS FOR ENHANCED LOCAL CONTROL IN THE ISSUANCE OF ALCOHOL BEVERAGE LICENSES AND PERMITS WITHIN ALL MUNICIPALITIES Page 26 of 79 Review of AML Resolutions AGENDA ITEM #2.b. Resolution #2017-09......................................................................Page 17 A RESOLUTION OF THE ALASKA MUNICIPAL LEAGUE SUPPORTING AN AMENDMENT TO ALASKA STATUTE TO CHANGE THE FIRE SPRINKLER EXEMPTION FROM A MANDATORY EXEMPTION TO AN ORIGINAL EXEMPTION Resolution #2017-10 — Failed to Pass Resolution#2017-11.......................................................................Page 19 A RESOLUTION IN SUPPORT OF FULL FUNDING FOR THE STATE OF ALASKA MUNICIPAL HARBOR FACILITY GRANT PROGRAM IN THE FY2018 CAPITAL BUDGET Resolution #2017-12 — Failed to Pass Resolution#2017-13......................................................................Page 21 A RESOLUTION OF THE ALASKA MUNICIPAL LEAGUE IN SUPPORT OF PROPOSED CHANGES TO ALASKA STATUTES 30.30 AND 05.25, IMPROVING THE MANAGEMENT AND PREVENTION OF DERELICT VESSELS Resolution #2017-14 — Failed to Pass Resolution #2017-15......................................................................Page 23 A RESOLUTION IN SUPPORT OF FULL FUNDING FROM THE STATE OF ALASKA FOR SCHOOL BOND DEBT REIMBURSEMENT AND STATE AID FOR CONSTRUCTION IN REGIONAL EDUCATIONAL ATTENDANCE AREAS Resolution #2017-16......................................................................Page 25 A RESOLUTION REQUESTING THE ALASKA LEGISLATURE AND GOVERNOR WALKER TO NOT IMPOSE ANY MORE CUTS TO THE ADF&g BUDGET AND PARTICULARLY TO THE DIVISION OF COMMERCIAL FISHERIS BUDGET AND THAT ANY TAX REVENUE GENERATED FROM NEW OR INCREASED STATE TAXES ON THE COMMERCIAL SEAFOOD INDUSTRY BE USED TO FILL THE FUNDING GAP FOR ADF&G AND PAY FOR CONTINUING EFFECTIVE MANAGEMENT OF ALASKA'S COMMERCIAL FISHERIES AML 2017 Position Statement......................................................... Page 27 Page 27 of 79 Review of AML Resolutions AGENDA ITEM #2.b. One Sealaska Plaza, Suite 200 • Juneau, Alaska 99801 Tel (907) 586-1325 • Fax (907) 463-5480 • www.akml.org ALASKA MUNICIPAL LEAGUE FY 2017 STATEWIDE PRIORITIES • LEGISLATIVE ADOPTION OF A SUSTAINABLE BUDGET PLAN The Alaska Municipal League supports a Legislative adoption of a sustainable budget plan that does not rely primarily on cuts, but on new sources of revenues. We feel that the leaders of our State must immediately adopt changes that stop the bleeding that we are currently experiencing. Despite the cuts experienced this last year by local governments, municipalities must continue to provide basic and essential services. The Alaska Municipal League stands behind their updated FY 2017 Sustainability Plan and encourages the Legislature to quickly take action. As more responsibilities are passed down to the "political subdivisions" of the state, municipalities must be given the tools to provide for themselves. REVENUE SHARING (COMMUNITY ASSISTANCE) The Alaska Municipal League realizes that the State is in a fiscal crisis. We have attempted to work with the Legislature through the decrease of Revenue Sharing by half. We cannot agree to the ending of Revenue Sharing, however. As our Revenue Sharing goes down and as the State continues to cost shift to municipalities, many local governments will find themselves in the position of closing their doors. The current $30 million is a small part of the yearly state budget. With the recent loss of Timber Receipts and the potential loss of PILT, a sustainable and predictable allocation is necessary for municipal budget purposes. This money allows for the provision of basic local services and as a means to keep taxes down. PERS/TRS The Alaska Municipal League recently fought back a proposal by the Alaska State Legislature that would have seen municipalities acquire a larger percentage of the PERS/TRS unfunded liability. The PERS/TRS system is the legal and moral responsibility of the State, as it is THEIR program. Municipalities simply pay an amount set by the State in order to be participants in the plan. We do not provide retirement benefits; we do not have a say in any of the fiduciary decisions. AML and its member municipalities will hold fast to the previously agreed upon 22% of salary towards the pay down of the unfunded liability. Page 28 of 79 Review of AML ResolutiMWber of the National League of Cities and the National Association of Counties Page 1 AGENDA ITEM #2.b. One Sealaska Plaza, Suite 200 • Juneau, Alaska 99801 Tel (907) 586-1325 • Fax (907) 463-5480 • www.akml.org ALASKA MUNICIPAL LEAGUE FY 2017 FEDERAL PRIORITIES • SUPPORT PILT AND SRS The Alaska Municipal League supports restoring full mandatory funding for the Payment in Lieu of Taxes (PILT) program, which compensates municipalities for tax-exempt federal land within their boundaries. The Alaska Municipal League also supports extending the Secure Rural Schools (SRS) program as a transitional funding mechanism until the federal government fully implements a sustainable long-term forest management program with adequate revenue sharing for forest counties and school. • PROTECT MUNICIPAL BONDS The Alaska Municipal League supports preserving the federal deductibility of local property and income taxes and the tax-exempt status of municipal bonds that provide critical funding for public facilities, infrastructure and development. Provisions like the tax exemption for municipal bond interest have been part of the federal tax code for over 100 years, helping finance trillions of dollars in public works projects. • PRESERVE MUNICIPAL INTERESTS IN "WATERS OF THE U.S." REGULATIONS The Alaska Municipal League believes that local streets, gutters and human -made ditches should be excluded from the definition of "Waters of the U.S.," under the federal Clean Water Act. The Alaska Municipal League calls on Congress to require the U.S. Environmental Protection Agency and U.S. Army Corps of Engineers to withdraw the new rule and rewrite it in consultation and collaboration with state and local governments. • PROMOTE LOCAL GOVERNMENT PRIORITIES IN SURFACE TRANSPORTATION IMPLEMENTATION The Alaska Municipal League will work to ensure that the new surface transportation law is implemented to reflect municipal priorities, including allocating more funding for locally owned infrastructure, increasing local decision making authority, prioritizing investments that increase safety, as well as continuing to urge Congress to resolve the long-term solvency of the Highway Trust Fund. Page 29 of 79 Review of AML ResolutiMWber of the National League of Cities and the National Association of Counties Page 2 AGENDA ITEM #2.b. One Sealaska Plaza, Suite 200 • Juneau, Alaska 99801 Tel (907) 586-1325 • Fax (907) 463-5480 • www.akml.org ALASKA MUNICIPAL LEAGUE RESOLUTION #2017-01 A RESOLUTION URGING THE ALASKA STATE LEGISLATURE TO ADOPT A SUSTAINABLE BUDGET PLAN FOR FY18 AND BEYOND; TO CAREFULLY CONCENTRATE ON INCREASED REVENUES RATHER THAN JUST CUTS; AND TO GIVE SERIOUS CONSIDERATION TO THE FY17 SUSTAINABILITY PLAN SUBMITTED BY THE ALASKA MUNICIPAL LEAGUE WHEREAS, due to the continued plunge in the price of oil, coupled with the decreased amount of oil flowing through the pipeline, the State of Alaska continues to find itself in a huge budget deficit situation for FY 18; and WHEREAS, the Legislature alleviated some of the problem through a number of cuts to government provisions and services; and WHEREAS, the Legislature basically cut down the capital budget to necessities only; and WHEREAS, cutting across the board alone will not solve our fiscal challenge and will only serve to push our state into an economic recession; and WHEREAS, there is not a sufficient balance in the Constitutional Budget Reserve to cover next years' projected budget deficit, which will for the first time, likely require the use of the Permanent Fund Earnings Reserve to help fund state government operations; and WHEREAS, municipal Revenue Sharing has been reduced by 50%; an additional $2.5 billion in PERS liability costs have been shifted to municipalities; school debt reimbursement has been significantly reduced; and airport funding, community jails, road maintenance, the capital budget, and infrastructure support has been reduced or eliminated; and it appears that other cost shifts are on the horizon; and WHEREAS, Alaska's local governments have also federal Secure Funding for Rural Schools (Timber Receipts) and might yet be faced with the elimination of federal Payment in Lieu of Taxes funding (PILT); and WHEREAS, In February of 2015, the President of AML created an ad hoc committee to address this issue from the perspective of local government; and WHEREAS, this committee is cognizant that municipalities must have a sustainable commitment from the Legislature in order for municipalities to remain viable; and WHEREAS, despite a fiscal challenge, municipalities must continue to provide basic and essential services; and Page 30 of 79 Review of AML ResolutiMWber of the National League of Cities and the National Association of Counties Page 3 • Page 2 December 12, 2016 AGENDA ITEM #2.b. WHEREAS, with these facts in mind, and taking into consideration what happened last session, the Sustainability Committee has revisited their Sustainability Plan from the perspective of Alaska's local governments; and WHEREAS, AML believes that the leaders of our state should immediately adopt changes to the manner with which the State of Alaska raises revenues, while continuing to watch for situations of obvious government waste or redundancy; and WHEREAS, AML believes that the lack of new state revenues, as part of a balanced fiscal plan, will force additional state budget cuts to programs such as the municipal school debt reimbursement program, PERS/TRS state on -behalf payments for municipalities, state funding for the BSA education formula, as well as other current state functions that will "roll downhill," becoming the responsibility of municipal governments to fund; and WHEREAS, at the same time, Alaska's local governments realize that the state and federal government will no longer be able to fund local government as in the past; and WHEREAS, as more responsibilities are passed down to the "subdivisions" of the state during this fiscal challenge, local governments must be given the "tools" in order to provide those services required under law. NOW, THEREFORE BE IT RESOLVED that the Alaska Municipal League urges the Alaska Legislature to adopt a sustainable budget plan for FY18 and beyond; to carefully concentrate on increased revenues rather than just cuts; and to give serious consideration to the Sustainability Plan submitted by the Alaska Municipal League. AML also calls upon every member municipality to actively engage with the Legislature and the Administration during the Legislative process throughout the entire session of the 301h Alaska State Legislature. PASSED AND APPROVED by the Alaska Municipal League on this 18th day of November, 2016. Signed: Mayor Clay Walker resident, Alaska Municipal League Attest: Kathie Wasserman, Executive Director, Alaska Municipal League Review of AML Resolutions Page 4 Page 31 of 79 AGENDA ITEM #2.b. One Sealaska Plaza, Suite 200 • Juneau, Alaska 99801 Tel (907) 586-1325 • Fax (907) 463-5480 • www.akml.org ALASKA MUNICIPAL LEAGUE SUSTAINABILITY PLAN The Alaska Municipal League appointed a committee of interested local elected and appointed officials tasked with the goal of helping to identify available options through a municipal perspective that will allow our State to remain financially healthy. As local elected officials, we are adamant that local governments are in great need of stability and predictability, a luxury that we do not have at the present time. We first want to thank those State elected officials who stepped up to the plate and proposed changes that would lead to a more sustainable future. We know the task is not simple, but local elected officials feel very strongly that Alaska cannot cut its way to financial health. We believe that the leaders of our State, as they find ways to lower the cost of government, must also identify ways in which our State can raise revenues. Cuts can only accomplish a portion of the answer to our problems and cuts without restraint will have a serious impact on the credit rating of our state and will cause massive economic dislocation issues. The choices made by the Legislature and the Administration will have a huge impact on the viability of municipalities. Local governments have only three ways in which to raise revenue: • Taxation (sales/property) • Fees • Revenue passed down from the federal or state government As the revenues from the federal or state government decrease, the gap must be filled through taxation and/or an increase in fees. While we agree with the Governor that our fiscal situation is an "opportunity" to rethink how we spend money, local governments must still provide basic and essential services to their citizens. We have discussed our findings at great length. While many of the revenue options are painful, we believe it is time to make the decisions that will bring us back to the path that will allow Alaska to remain a viable, inviting, safe and healthy state in which to live. Alaska's municipalities are ready and willing to step up and be part of the solution rather than part of the problem. While we believe decisions to address this situation must be made immediately, we believe the actions themselves can be spread over a number of years in order to soften the effects to some degree. Page 32 of 79 Review of AML ResolutiMWber of the National League of Cities and the National Association of Counties Page 5 AGENDA ITEM #2.b. One Sealaska Plaza, Suite 200 • Juneau, Alaska 99801 Tel (907) 586-1325 • Fax (907) 463-5480 • www.akml.org ALASKA MUNICIPAL LEAGUE FY 2017 SUSTAINABILITY COMMITTEE RECOMMENDATIONS Endowment/Permanent Fund • Imperative to protect corpus of Permanent Fund; • Support and move to Permanent Fund Board's position on Endowment Fund or similar approach that sustainability utilizes earnings; • Continue to ensure growth of the permanent fund, continue to inflation proof, and set a minimum floor on the Permanent Fund Dividend; • Continue to pay permanent fund dividends without a cap while enabling an adjustable Percent of Market Value (POMV) or other sustainable system that allows a portion of permanent fund dividend earnings to support state government, benefitting all Alaskans. • Using part of the permanent fund dividend payout, as one piece of a larger balanced and sustainable state fiscal plan, is now a necessary consideration; • Action on a comprehensive state fiscal plan needs to continue. Income Tax • Income tax captures out-of-state employees • Income leaving state is 20% of total Alaska income • Income tax is deductible from Federal Income Tax • Income Tax gives Alaska residents skin -in -the -game Sales Tax • This would be last choice of Alaska's municipalities • Would erode tax base and simply shift revenue from one entity to another • We believe it should remain a local government power • Municipalities will, however, not take it off the table and agree to work on solutions revolving around Sales Tax Other Revenues • School Tax Collatorization of Assets is too risky Consider adjusting oil tax credits Other Actions Cuts have been addressed; now is the time to address revenues Cost shifting (PERS, state responsibilities) is not a solution School bond debt reimbursement must be restored A successful solution to our financial challenges involves shared sacrifices from Alaskans, resources industries and in finding government efficiencies. Page 33 of 79 Review of AML ResolutiMWber of the National League of Cities and the National Association of Counties Page 6 AGENDA ITEM #2.b. One Sealaska Plaza, Suite 200 • Juneau, Alaska 99801 Tel (907) 586-1325 • Fax (907) 463-5480 • www.akmi.org ALASKA MUNICIPAL LEAGUE RESOLUTION #2017-03 A RESOLUTION OF THE ALASKA MUNICIPAL LEAGUE SUPPORTING PUBLIC EMPLOYEES RETIREMENT SYSTEM REFORM WHEREAS, most of Alaska's municipalities contribute to the Public Employee Retirement System (PERS); and WHEREAS, included in SB 125 in 2008, was language requiring municipalities to pay for a termination study and ensuring costs upon the termination of a "department, group or classification" of employees; and WHEREAS, also included in SB 125, was language requiring municipalities to pay a penalty when and if their salary base went below the 2008 salary base; and WHEREAS, termination study costs must be paid to the state actuarial company plus the past service cost for those positions for the next 30 years; and WHEREAS, if the municipal total base salary falls below what it was in 2008, charges will be assessed on that drop; and WHEREAS, in light of the financial situation, municipalities will most likely have to lay off more people than usual; resulting in higher costs; and WHEREAS, the State of Alaska will also be facing more layoffs than usual and the state has exempted themselves from these costs; and WHEREAS, these rules severely limit the ability of municipalities from being agile with regards to their workforce and tends to prohibit wise financial choices; and WHEREAS, these rules also severely limit municipalities from creating new needed departments, groups, or classifications for fear of future termination study costs; and WHEREAS, municipalities require agility and adaptability in the workforce to meet our changing needs; and WHEREAS, with our current state fiscal crisis, municipalities may need to make reductions or increases in the workforce, including entire departments, groups or classifications of employees; and Page 34 of 79 Review of AML ResolutiMWber of the National League of Cities and the National Association of Counties Page 7 • Page 2 December 12, 2016 AGENDA ITEM #2.b. NOW, THEREFORE BE IT RESOLVED that the Alaska Municipal League supports reform in the Public Employees Retirement System (PERS). These reforms might include eliminating termination studies or requiring the State to also pay termination study costs for reducing or eliminating departments, groups or classifications of employees. PASSED AND APPROVED by the Alaska Municipal League on this 18th day of November, 2016. Signed: Mayor Clay Wa er, President, Alaska Municipal League Attest: ��ti� �v75z�rc�Cts� Kathie Wasserman, Executive Director, Alaska Municipal Review of AML Resolutions Page 8 Page 35 of 79 AGENDA ITEM #2.b. One Sealaska Plaza, Suite 200 • Juneau, Alaska 99801 Tel (907) 586-1325 • Fax (907) 463-5480 • www.akmi.org ALASKA MUNICIPAL LEAGUE RESOLUTION #2017-04 A RESOLUTION SUPPORTING LEGISLATION ADOPTING REAL PROPERTY SALES DISCLOSURE IN ALASKA WHEREAS, the Alaska Association of Assessing Officers' (AAAO) overall goal is to promote the fair and equitable distribution of the property tax burden which funds local governments; and WHEREAS, the goals of AAAO include education of government officials and the public on the assessment process and the importance of achieving fair and equitable values of real property within all taxing jurisdictions in the State of Alaska; and WHEREAS, an assessor is required, per AS 29.45.110, to assess all property at full and true value, as of January 1 of the assessment year. The full and true value is the estimated price that the property would bring in an open market and under the then prevailing market conditions in a sale between a willing seller and a willing buyer both conversant with the property and with prevailing general price levels; and WHEREAS, while the legal mandate for assessment at full and true value exists, the sales data that is necessary to determine full and true value is not readily available due to the lack of sales disclosure in the State of Alaska; and WHEREAS, the Legislative Research Services Division reported in 2014, that Alaska is one of six states for which sales disclosure for property exchanges are not disclosed; and WHEREAS, sales disclosure would assist in the fair distribution of the tax burden to all taxpayers and would enhance the accuracy and the timeliness of assessments; and WHEREAS, sales disclosure would enhance the ability of assessment professionals to meet the full and true value mandate and would also aid the public in obtaining information in order to interact within local real estate markets; and WHEREAS, the lack of sales data in some jurisdictions limits the ability to fairly distribute the tax burden and also to fund local services; and WHEREAS, sales disclosure would enable property owners to gather data to provide support for legally entitled property tax appeals under AS 29.45.190. Page 36 of 79 Review of AML ResolutiMwber of the National League of Cities and the National Association of Counties Page 9 • Page 2 December 12, 2016 AGENDA ITEM #2.b. NOW, THEREFORE BE IT RESOLVED that the Alaska Municipal League urges the Alaska State Legislature to enact legislation requiring disclosures of all real property sales in the State of Alaska. PASSED AND APPROVED by the Alaska Municipal League on this 181h day of November. 2016. Signed: ✓ Vt�i Mayor Clay Walker, P Attest: G� l6L' int, Alaska Municipal League W�.75Z�r-��Ctr� Kathie Wasserman, Executive Director, Alaska ML Review of AML Resolutions Page 10 e Page 37 of 79 AGENDA ITEM #2.b. One Sealaska Plaza, Suite 200 • Juneau, Alaska 99801 Tel (907) 586-1325 • Fax (907) 463-5480 • www.akml.org ALASKA MUNICIPAL LEAGUE RESOLUTION #2017-06 A RESOLUTION OF THE ALASKA MUNICIPAL LEAGUE OPPOSING ANY LEGISLATION WHICH WOULD INCREASE THE BURDEN ON PERS/TRS EMPLOYERS BEYOND THE CURRENT EMPLOYER CONTRIBUTION LIMITS OF 22% FOR PERS AND 12.56% FOR TRS WHEREAS, the State of Alaska established the Public Employee Retirement System (PERS) in 1961 and since that time has: 1. Had sole administrative control of the plan; and 2. Selected, contracted with, and been the sole contact with PERS actuaries; and 3. Had sole access to oversight for, and responsibility for actuarial methods and assumptions for PERS; and 4. Had sole control over the investment of all PERS assets; and 5. Set the rates for, billed for, and collected on all PERS contributions; and WHEREAS, the state caused the shifting of employees from cities to boroughs as it formed mandatory boroughs in 1963/64; and WHEREAS, the state has managed the investment income since 1969 and has credited investment income to employee accounts solely from the current employer's active account, versus directly; and WHEREAS, the state administratively created the Retirement Reserve Account (RRA) in 1971, although it was not authorized by statute until 1974; and WHEREAS, the state began paying retiree benefits with "blended" employer dollars in 1971 and absorbed the RRA shortfall balance in 1972; and WHEREAS, although member employers were told, and believed, from 1961 until approximately 2006, that individual employer retirement accounts and activity were kept and tracked separately by the state since 1971, the state has actually blended, reallocated and comingled employer contributions such that no single employer's contributions can be accounted for accurately; and Page 38 of 79 Review of AML ResolutibiWber of the National League of Cities and the National Association of Counties Page 11 • Page 2 December 12, 2016 AGENDA ITEM #2.b. WHEREAS, the comingled nature of the funds creates a statewide system such that one employer's actions affect other employer's liabilities; and WHEREAS, the state did not administer PERS in accordance with its own laws; and WHEREAS, the state established the "shared consolidated (blended) normal cost" rate in 1977; and WHEREAS, the state started allocating income to the RRA in 1984; and WHEREAS, in 1994, the state stopped transferring employer contributions to the RRA as employees retired; and WHEREAS, the state controlled the timing of employee "appointment' to retirement and the subsequent employee account transfers to the RRA; and WHEREAS, the state reallocated each employers' and employees' RRA contributed assets, based upon RRA liabilities; and WHEREAS, the state determined each employers' unfunded obligation after reallocating the employer's assets; and WHEREAS, the state, prior to 2006, set the employer's past service cost rates, based upon reallocated asset results; and WHEREAS, the state, before 2006, set and paid prior normal cost rates that were lower than they should have been; and WHEREAS, the state, from July 1999 until as recently as 2006, paid refunds from employee accounts, yet booked payments as if they were coming from the RRA; and WHEREAS, the state, from July 1999 until as recently as 2006, sent direct employee accounts, yet booked payments as if they were coming from the RRA; and WHEREAS, the state has pervasive authority over public education in Alaska, a responsibility which it shares with no other unit of government; and WHEREAS, in the exercise of its pervasive authority over public education, the state established a Teachers' Retirement System (TRS) and statutorily requires that all teachers in public schools be included in that system; and WHEREAS, the state has prescribed the terms of the TRS system and program since the beginning and has exercised exclusive control over the operation, investment and administration of that system in much the same manner as it has the PERS system; and Review of AML Resolutions Page 12 Page 39 of 79 • Page 3 December 12, 2016 AGENDA ITEM #2.b. WHEREAS, the state does not allow any local school district the discretion to decline to have teachers employed in those districts participate in TRS; and WHEREAS, the state has, as with PERS, comingled each district's contributions to TRS and set rates at inadequate levels such that there is no method to accurately allocate the unfunded liability for TRS pension or health benefits to any particular school district; and WHEREAS, in recognition of the state's responsibility for the majority of the unfunded pension and health benefit liability, in 2008, the state amended its statutes regarding employer contributions to PERS and TRS, placing a cap on employer contributions to PERS at 225 of payroll and on TRS contributions at 12.56% of payroll, with the State accepting responsibility for any costs in excess of this amount. This action substantially reduced the reported individual liability of many communities, and increased the allocation of liability to others. The reallocation of responsibility was acquiesced in by PERS employers and the state, in recognition that it was in the best interests of all to settle the allocation of liability and provide certainty of set rates for all employers; and WHEREAS, in connection with the 2008 legislative change, the Legislature acknowledged state responsibility for the unfunded liability in the TRS system and accepted responsibility, subject to annual appropriation, for payments required to satisfy the PERS/TRS contribution rates required to amortize the unfunded pension liability over 25 years; and WHEREAS, during the 2016 regular legislative session, the second regular session of the 29th Legislature, bills were introduced which would have increased the employer contribution rates for PERS and TRS employers from the rates set in 2008, in accordance with the resolution of the problem the state had in accurately allocating liability to individual employers; and WHEREAS, the Alaska Municipal League believes that apart from being unfair, any increase from the employer contribution rates set in 2008 would risk unraveling the resolution of the liability allocation reached in 2008, and could motivate PERS employers to seek to enforce their rights to limit their individual employer liability. Such action would likely cost the state and all employers more in the long run due to the overwhelming costs of sorting out individual employer responsibilities. NOW, THEREFORE BE IT RESOLVED that the Alaska Municipal League opposes any legislation which would increase the burden on PERS/TRS employers beyond the current employer contribution limits of 22% for PERS and 12.56% for TRS. Review of AML Resolutions Page 13 Page 40 of 79 • Page 4 December 12, 2016 AGENDA ITEM #2.b. PASSED AND APPROVED by the Alaska Municipal League on this 18th day of November, 2016. 7 Signed: Mayor Clay Wal r, President, Alask; Attest: Review of AML Resolutions Executive Director, Alaska Municipal League Page 14 Page 41 of 79 AGENDA ITEM #2.b. One Sealaska Plaza, Suite 200 • Juneau, Alaska 99801 Tel (907) 586-1325 • Fax (907) 463-5480 • www.akmi.org ALASKA MUNICIPAL LEAGUE RESOLUTION #2017-08 A RESOLUTION SUPPORTING PROVISIONS FOR ENHANCED LOCAL CONTROL IN THE ISSUANCE OF ALCOHOL BEVERAGE LICENSES AND PERMITS WITHIN ALL MUNICIPALITIES WHEREAS, the Alaska Municipal League position statement on Local Control is that, "...... it is imperative that, unless prohibited by law, municipalities closest to the electorate be able to provide their constituents with the laws, services, benefits, and taxation that the local populations, through their local elected officials, feel is appropriate;" and WHEREAS, Article X of the Alaska State Constitution references the intent of "maximum local self-government;" and WHEREAS, the issuance of alcohol beverage licenses and permits within organized municipalities in the state is regulated by Title 4 of the Alaska State Statutes; and WHEREAS, under Alaska Statutes, Title 4, local municipalities are provided the opportunity to object to the issuance or renewal of alcoholic beverage licenses and permits within their jurisdiction, but otherwise have no authority in the issuance, number, or type of licenses or permits; and WHEREAS, the recently implemented marijuana regulations provide for "maximum local self-government" by giving local municipalities the authority to determine whether to allow marijuana establishments within its border, and if allowed, the number and types of establishments to be permitted; and WHEREAS, the same level of local control is not afforded to municipalities when it comes to regulating alcoholic beverage licenses and permits under Alaska Statutes, Title 4; and WHEREAS, local control is the preferred method of regulating, controlling and managing socially affected economic issues; and WHEREAS, municipalities with effective law enforcement powers, land use controls, and health facilities, are well-suited to determine the number and types of alcoholic beverage industries within their borders, and the effects and impacts thereof; and WHEREAS, providing a mechanism for municipalities to participate in determining the appropriate number and types of alcoholic beverage licenses and permits within their community, will provide for more effective regulation of licenses and permits across our vast and diverse state. Page 42 of 79 Review of AML ResolutiMWber of the National League of Cities and the National Association of Counties Page 15 • Page 2 December 12, 2016 AGENDA ITEM #2.b. NOW, THEREFORE BE IT RESOLVED that the Alaska Municipal League supports amendments to Title 4 of the Alaska State Statutes which would provide for maximum local self-government to include establishing a mechanism for municipalities to participate in determining the appropriate number and types of alcoholic beverage licenses and permits in their communities, especially in those municipalities with local law enforcement powers, land use controls and sufficient health and human services resources. PASSED AND APPROVED by the Alaska Municipal League on this 18th day of November, 2016. Signed: V, L' /!/c C Mayor Clay Walker, Presi nt, Alaska Municipal League Attest: Director, Alaska Municipal League Page 43 of 79 Review of AML Resolutions Page 16 AGENDA ITEM #2.b. One Sealaska Plaza, Suite 200 • Juneau, Alaska 99801 Tel (907) 586-1325 • Fax (907) 463-5480 • www.akmi.org ALASKA MUNICIPAL LEAGUE RESOLUTION #2017-09 A RESOLUTION OF THE ALASKA MUNICIPAL LEAGUE SUPPORTING AN AMENDMENT TO ALASKA STATUTE TO CHANGE THE FIRE SPRINKLER EXEMPTION FROM A MANDATORY EXEMPTION TO AN OPTIONAL EXEMPTION WHEREAS, AS 29.45.030(1) requires municipalities to provide a property tax exemption of 2% of the assessed value of a structure that has a fire protection system installed, such as sprinklers; and WHEREAS, the value of this property tax exemption in 2015 was $815,637; and WHEREAS, building codes in many of the larger municipalities require fire sprinkler systems in many buildings; and WHEREAS, relocating the fire sprinkler exemption from AS 29.45.030 — Required Exemptions — to AS 29.45.050 — Optional Exemptions and Exclusions — allows other municipalities without fire sprinkler requirements in code to offer the exemption as an incentive for safe building practices; and WHEREAS, elimination of the mandatory fire sprinkler tax exemption was suggested by the Municipality of Anchorage Budget Advisory Commission. NOW, THEREFORE BE IT RESOLVED that the Alaska Municipal League supports changing the fire sprinkler statute from a mandatory exemption to an optional exemption. PASSED AND APPROVED by the Alaska Municipal League on this 181h day of November, 2016. Signed Attest: Mayor Clay Walker Alaska Municipal League Kathie Wasserman, Executive Director, Alaska Municipal League Page 44 of 79 Review of AML ResolutiblW ber of the National League of Cities and the National Association of Counties Page 17 Review of AML Resolutions Page 18 AGENDA ITEM #2.b. Page 45 of 79 AGENDA ITEM #2.b. One Sealaska Plaza, Suite 200 • Juneau, Alaska 99801 Tel (907) 586-1325 • Fax (907) 463-5480 • www.akml.org ALASKA MUNICIPAL LEAGUE RESOLUTION #2017-11 A RESOLUTION IN SUPPORT OF FULL FUNDING FOR THE STATE OF ALASKA MUNICIPAL HARBOR FACILITY GRANT PROGRAM IN THE FY2018 STATE CAPITAL BUDGET WHEREAS, the Alaska Municipal League recognizes the majority of the public boat harbors in Alaska were constructed by the State during the 1060s and the 1970s; and WHEREAS, these harbor facilities represent critical transportation links and are the transportation hubs for waterfront commerce and economic development in Alaska coastal communities; and WHEREAS, these harbor facilities are ports of refuge and areas for protection for ocean- going vessels and fishermen throughout the State of Alaska, especially in coastal Alaskan communities: and WHEREAS, the State of Alaska, over the past nearly 30 years, has transferred ownership of most of these State owned harbors, many of which were at or near the end of their service life at the time of transfer, to local municipalities; and WHEREAS, the municipalities took over this important responsibility even though they knew that these same harbor facilities were in poor condition at the time of transfer due to the state's failure to keep up with deferred maintenance; and WHEREAS, consequently, when local municipal harbormasters formulated their annual harbor facility budgets, they inherited a major financial burden that their local municipal governments could not afford; and WHEREAS, in response to this financial burden, the Governor and the Legislature passed legislation in 2006, supported by the Alaska Association of Harbormasters and Port Administrators, to create the Municipal Harbor Facility Grant program, AS 29.60.800; and WHEREAS, AML is pleased with the Department of Transportation and Public Facilities administrative process to review, score and rank applicants to the Municipal Harbor Facility Grant Program, since state funds may be limited; and WHEREAS, for each harbor facility grant application, these municipalities have committed to invest 100% of the design and permitting costs and 50% of the construction costs; and Page 46 of 79 Review of AML ResolutiMwber of the National League of Cities and the National Association of Counties Page 19 • Page 2 December 12, 2016 AGENDA ITEM #2.b. WHEREAS, the municipalities of the City of Kake, the City of Ketchikan, the City and Borough of Sitka, the Municipality of Skagway, the City of Valdez and the City and Borough of Wrangell have offered to contribution $18,160,055 in local match funding for FY18 towards seven harbor projects of significant importance locally, as required in the Harbor Facility Grant Program; and WHEREAS, completion of these harbor facility projects is all dependent on the 50% match from the State of Alaska's Municipal Harbor Facility Grant Program; and WHEREAS, during the last ten years, the backlog of projects necessary to repair and replace these former State-owned harbors has increased to over $100,000,000. NOW, THEREFORE BE IT RESOLVED that the Alaska Municipal League urges full funding by the Governor and the Alaska Legislature for the State of Alaska's Municipal Harbor Facility Grant Program in the FY18 State Capital Budget, in order to ensure enhanced safety and economic prosperity among Alaskan coastal communities. PASSED AND APPROVED by the Alaska Municipal League on this 18th day of November. 2016. Signed: Mayor Clay Walker, Presid nt, Alaska Municipal League Attest: Kathie Wasserman, Executive Director, Alaska Review of AML Resolutions Page 20 Page 47 of 79 AGENDA ITEM #2.b. One Sealaska Plaza, Suite 200 • Juneau, Alaska 99801 Tel (907) 586-1325 • Fax (907) 463-5480 • www.akmi.org ALASKA MUNICIPAL LEAGUE RESOLUTION #2017-13 A RESOLUTION OF THE ALASKA MUNICIPAL LEAGUE IN SUPPORT OF PROPOSED CHANGES TO ALASKA STATUTES 30.30 AND 05.25, IMPROVING THE MANAGEMENT AND PREVENTION OF DERELICT VESSELS WHEREAS, hundreds of derelict vessels currently litter Alaska's coastline and harbors and these numbers will increase every year unless action is taken to address aging fleets and changing commercial fisheries; and WHEREAS, in the past year alone, there have been numerous derelict vessel situations that have cost the state, municipalities and the federal government, considerable expense, including two ex -Navy tugs in Adak, abandoned barges in Steamboat Slough near Bethel, and the tug Challenger that sank off Juneau; and WHEREAS, the Alaska Municipal League recognizes the widespread costs and the environmental and navigational risks for both municipalities and the state, associated with derelict vessels; and WHEREAS, neighboring states have dramatically strengthened their derelict vessel prevention laws in the past five years to better prevent, track and manage derelict vessels, including raising fees to support state management of derelict vessels and requiring vessel insurance; and WHEREAS, in 1990, the Alaska Legislature passed a resolution acknowledging the need to better understand and address the existing and growing problem of derelict vessels around the state: and WHEREAS, the State of Alaska has outdated statutes regarding derelict vessels which lack the ability to track vessel owners, agency enforcement authority, statewide coordination of response, funding or vessel insurance requirements; and WHEREAS, in 2013, the Alaska Clean Harbors program convened an ad-hoc derelict vessel task force at the urging of the Alaska Association of Harbormasters and Port Administrators which includes representatives from state and federal agencies, as well as the Alaska Association of Harbormasters and Port Administrators, regional tribal representatives, federal and state legislative offices, and private industry; and WHEREAS, over nine full-day meetings, the task force developed thoughtful, robust and meaningful proposed changes that will help all stakeholders around the state, including harbor facilities better address and prevent derelict vessels; and Page 48 of 79 Review of AML ResolutiMWber of the National League of Cities and the National Association of Counties Page 21 • Page 2 December 12, 2016 AGENDA ITEM #2.b. WHEREAS, these changes will protect municipal harbor infrastructure, keep valuable moorage space in harbors available, and will prevent unsustainable economic, environmental and navigational hazards; and WHEREAS, the proposed changes will improve communication and coordination between Alaska's harbors and state and federal agencies, directly leading to decreased costs associated with managing derelict vessels. NOW, THEREFORE BE IT RESOLVED that the Alaska Municipal League fully supports the passage by the State Legislature, of all proposed revisions in Alaska Statutes 30.30 and 05.25. PASSED AND APPROVED by the Alaska Municipal League on this 18th day of November, 2016. Signed: Mayor Clay \J) President, Alaska Municipal League Attest: Kathie Wasserman, Executive Director, Alaska Municipal League Review of AML Resolutions Page 22 Page 49 of 79 AGENDA ITEM #2.b. One Sealaska Plaza, Suite 200 • Juneau, Alaska 99801 Tel (907) 586-1325 • Fax (907) 463-5480 • www.akmi.org ALASKA MUNICIPAL LEAGUE RESOLUTION #2017-15 A RESOLUTION IN SUPPORT OF FULL FUNDING FROM THE STATE OF ALASKA FOR SCHOOL BOND DEBT REIMBURSEMENT AND STATE AID FOR CONSTRUCTION IN REGIONAL EDUCATIONAL ATTENDANCE AREAS WHEREAS, the State of Alaska has a constitutional responsibility to "maintain a system of public schools" under Article 7, Section 1 of the Alaska Constitution; and WHEREAS, since 1970, the State of Alaska has encouraged municipalities to bond for school major maintenance projects by reimbursing municipalities with bonding authority for a fixed portion of principal and interest payments; and WHEREAS, the Alaska Legislature has, for decades, provided major maintenance for rural Regional Educational Attendance Area schools through appropriations in the annual capital budget; and WHEREAS, between 2006 and 2015, the Legislature determined that school projects which passed the Department of Education and Early Development's criteria and were approved by local voters, would receive 70% debt reimbursement, and those that did not meet the department's criteria would receive 60% reimbursement; and WHEREAS, since 2010, the Legislature provided consistent funding parity for rural schools' major maintenance needs by automatically funding major maintenance projects in areas without the ability to bond, with a percentage of the school bond debt reimbursement funding; and WHEREAS, relying on these programs and the State of Alaska's commitment to fund its moral and constitutional obligations, Alaskan municipalities and Regional Educational Attendance Areas have maintained schools for the education of our state's most precious resource, our children; and WHEREAS, Alaskan municipalities issued bonds relying in good faith on the State of Alaska to live up to its financial and constitutional commitments to education; and WHEREAS, in 2015, the Legislature responded to a difficult fiscal situation by placing a five-year moratorium on any new projects being eligible for school bond debt reimbursement, thus giving municipalities and voters across the state, notice that bonds sold within the five-year period would be the sole responsibility of local taxpayers; and Page 50 of 79 Review of AML ResolutiMwber of the National League of Cities and the National Association of Counties Page 23 • Page 2 December 12, 2016 AGENDA ITEM #2.b. WHEREAS, some municipalities, in an effort to mitigate deterioration of school facilities during the capital funding moratorium, began allocating local tax revenues to provide funding for major deferred maintenance school projects; and WHEREAS, in 2016, the Legislature recognized the State responsibility to honor past project funding and appropriated funds to the municipalities for school debt reimbursement, as well as major maintenance funding for schools in Regional Educational Attendance Areas; and WHEREAS, in 2016, Governor Bill Walker, in trying to address the budget deficit, cut 25% of the funding for both municipal and rural schools from appropriation bills, using his line - item reduction power; and WHEREAS, this unexpected fiscal shift required municipalities to use large portions of their fiscal reserve accounts; and WHEREAS, Alaska's municipalities do not have the fiscal resources to close the state's revenue gap; and WHEREAS, the State of Alaska should not reach a long-term solution to its revenue problems by ignoring its constitutional obligation to public education. NOW, THEREFORE BE IT RESOLVED that the Alaska Municipal League: 1. Calls on Governor Bill Walker to fully fund the FY18 and future State of Alaska's moral and constitutional obligation to public schools through both school bond debt reimbursement and state aid for construction in Regional Educational Attendance Areas in his submittal to the Alaska State Legislature. 2. Calls on the Alaska Legislature to continue its practice of fully funding these moral and constitutional obligations to public schools as it has in the past. 3. Calls on Governor Bill Walker and the Alaska Legislature to adopt an FY17 budget supplemental that reinstates full funding for this year's school debt reimbursement payments and state aid for school major maintenance in Regional Educational Attendance Areas. PASSED AND APPROVED by the Alaska Municipal League on this 18th day of November, 2016. Signed: 1 C Mayor Clay Walk Attest: Review of AML Resolutions Municipal League a� Szr' c^�1Ctn Executive Director, Alaska Municipal League Page 24 Page 51 of 79 AGENDA ITEM #2.b. One Sealaska Plaza, Suite 200 • Juneau, Alaska 99801 Tel (907) 586-1325 • Fax (907) 463-5480 • www.akml.org ALASKA MUNICIPAL LEAGUE RESOLUTION #2017-16 A RESOLUTION REQUESTING THE ALASKA LEGISLATURE AND GOVERNOR WALKER TO NOT IMPOSE ANY MORE CUTS TO THE ADF&G BUDGET AND PARTICULARLY TO THE DIVISION OF COMMERCIAL FISHERIES BUDGET AND THAT ANY TAX REVENUE GENERATED FROM NEW OR INCREASED STATE TAXES ON THE COMMERCIAL SEAFOOD INDUSTRY BE USED TO FILL THE FUNDING GAP FOR ADF&G AND PAY FOR CONTINUING EFFECTIVE MANAGEMENT OF ALASKA'S COMMERCIAL FISHERIES WHEREAS, subsistence, sport and commercial harvests of Alaska's fish and game resources are vital to the social, cultural and economic health of the State of Alaska; and WHEREAS, the Alaska seafood industry is the second largest contributor to Alaska's economy; and WHEREAS, the Alaska seafood industry directly provides over 60,000 direct jobs and thousands more indirectly, making it the largest private -sector employer in the state; and WHEREAS, Alaska's commercial seafood industry directly pays over $250 million annually in taxes and fees which exceeds current State commercial fisheries management spending; and WHEREAS, Alaska's seafood industry pays business and landing taxes that directly benefit over 65 communities and boroughs in Alaska and reduces community dependence on State funds; and WHEREAS, the seafood industry relies on strong State commercial fishery research and management programs in order to provide that economic benefit; and WHEREAS, the Commercial Fisheries Division budget has been reduced by more than 20% in the past 2 years, from $50 million to $40 million, which includes offsets from CFEC funding and the unrestricted general fund has been reduced by 30%; and WHEREAS, the Alaska Department of Fish and Game (ADF&G) is preparing for additional budget cuts of 10-14% in FY18 which could result in another $5.7 million reduction to the Division of Commercial Fisheries; and WHEREAS, when the Division of Commercial Fisheries budget is reduced, the seafood industry loses research and resource management programs that are necessary to allow for harvest opportunity; and Page 52 of 79 Review of AML ResolutiMWber of the National League of Cities and the National Association of Counties Page 25 • Page 2 December 12, 2016 AGENDA ITEM #2.b. WHEREAS, impacts of these budget cuts are already apparent in the recently released Togiak herring fishery 2017 harvest forecast and harvest limits where inadequate funding precluded sampling necessary for scientific modeling used to set harvest limits, resulting in reliance on historical average catch and a 20% harvest reduction for an uncertainty buffer; and WHEREAS, reduced harvest opportunities in any fishery result in fewerjobs, less income and decreased tax revenue for the State of Alaska and coastal communities; and WHEREAS, Governor Walker's previous fiscal plan included raising taxes on the fishing industry, up to 33% in some areas, and the future fiscal plan is as yet, unknown. NOW, THEREFORE BE IT RESOLVED that the Alaska Municipal League strongly requests the Alaska Legislature and Governor Walker to not impose any more cuts to the ADF&G budget and particularly to the Division of Commercial Fisheries budget. PASSED AND APPROVED by the Alaska Municipal League on this 18th day of November, 2016. Signed: Attest; Mayor Clay Walker, Kathie Review of AML Resolutions Alaska Municipal League �a�Stxc-nc>`n 1, Executive Director, Alaska Municip Page 26 Page 53 of 79 AGENDA ITEM #2.b. One Sealaska Plaza, Suite 200 • Juneau, Alaska 99801 Tel (907) 586-1325 • Fax (907) 463-5480 • www.akmi.org Local Control Article X of the Alaska State Constitution makes mention, throughout, of "maximum local self-government..." The Alaska Supreme Court has used this section to make close calls in favor of municipalities in many court proceedings. While Title 29 lays out the laws underwhich a municipal government must operate, liberal construction is given to municipalities under the State Constitution. Due to the large geographical land mass of Alaska; due to the different cultures that are in place in the many large areas of Alaska; due to the differing array of climates and environment experienced by each area of Alaska; and due to the differing infrastructure, facilities and services provided within each area, it is common knowledge that most "one size fits all" legislation that might attempt to envelop the entire State does not usually work well in Alaska. Therefore, it is imperative that, unless prohibited by law, municipalities closest to the electorate be able to provide their constituents with the laws, services, benefits, and taxation that the local populations, through their local elected officials, feel is appropriate. The Alaska Municipal League has always based their positions upon two guiding principles: Does it allow for maximum local control, and/or does it create an unfunded mandate. Member of the National League of Cities and the National Association of Counties Review of AML Resolutions Page 27 Page 54 of 79 AGENDA ITEM #2.b. One Sealaska Plaza, Suite 200 • Juneau, Alaska 99801 Tel (907) 586-1325 • Fax (907) 463-5480 • www.akml.org Revenue Sharing The State's Constitution entrusts state government with managing the state's resources to the maximum benefit of all Alaskans. The Constitution also promotes maximum self -governance at the local level. It is therefore incumbent upon the Governor and Legislature to manage and distribute the wealth of Alaska's resources to local governments each and every year. Predictable, dependable, and direct Revenue Sharing is therefore required for the State to meet its Constitutional obligations. To that end, the State should designate a specific long-term funding source that would perpetually sustain the Municipal Revenue Sharing Program. Member of the National League of Cities and the National Association of Counties Review of AML Resolutions Page 28 Page 55 of 79 AGENDA ITEM #2.b. One Sealaska Plaza, Suite 200 • Juneau, Alaska 99801 Tel (907) 586-1325 • Fax (907) 463-5480 • www.akml.org PERS/TRS Unfunded Liability Management of Alaska's public retirement system has always been the responsibility of State government. Participating municipalities have had no choice but to rely on information provided by the State when making decisions regarding their own contributions to the system. Decades of improper accounting and inaccurate actuarial data provided by the State to municipalities, has now created a huge unfunded pension liability that can no longer be accurately apportioned among all participating employers. The League recognizes that there is municipal responsibility to participate in solving this fiscal problem. However, as the primary responsible party and the only entity with the long-term resources to effectively deal with the magnitude of the issue, the State should incorporate into its long-term fiscal planning strategy a leading position that ensures this ongoing obligation is met, while maintaining close coordination with participating employers to avoid the potential of shifting too great a burden to local governments. The Alaska Municipal League strongly supports reforms that would allow flexibility with regards to the management of the local government workforce (i.e., termination study costs, below -the -floor penalties). Member of the National League of Cities and the National Association of Counties Page 56 of 79 Review of AML Resolutions Page 29 AGENDA ITEM #2.b. One Sealaska Plaza, Suite 200 • Juneau, Alaska 99801 Tel (907) 586-1325 • Fax (907) 463-5480 • www.akml.org Fiscal Policy It is critical for the State to establish long-term financial policy as opposed to short-term reactive approaches that primarily focus on annual revenue/expenditure fluctuations or fiscal austerity. Accumulation of reserves during good years should continue as part of that policy, however draws from reserves during lean years should be more process driven and not as subject to political bartering. When necessary, State budget cuts in one department's program area must be coordinated with complimentary programs in other departments. The same needs to occur between State and local municipal programs. To do otherwise will sacrifice critical service delivery and the health of the economy statewide. The League calls upon the Governor to provide Cabinet level leadership during budget formulation to balance these interrelated effects. At the legislative level the League asks that the Director of Management and Budget works closely with the Director of the Legislative Finance Division to assure that programs remain balanced during the Legislature's budget deliberations. The Legislature must also ensure that State initiatives always include the necessary State resources required for implementation. Unfunded mandates to local governments are tantamount to unilaterally usurping critical local income and priorities. State funding reductions to municipalities, when necessary, should occur over a number of years to provide those municipalities with the reaction time to make adjustments. New revenue sources, if considered, must always consider impacts to existing local government revenue sources first. Local municipal sources already in place must always take primacy over new State revenue schemes. Member of the National League of Cities and the National Association of Counties Review of AML Resolutions Page 30 Page 57 of 79 AGENDA ITEM #2.b. One Sealaska Plaza, Suite 200 • Juneau, Alaska 99801 Tel (907) 586-1325 • Fax (907) 463-5480 • www.akmi.org Education Funding of Public School Districts: The Alaska Constitution provides that the State shall "establish and maintain a system of public schools." The State established school districts to be the basic unit for the administration of schools. The funding of these school districts is complex and segmented with Federal, State, and local sources. Additionally, State and Federal categorical funds are available to meet special circumstances, which adds to the complexity. • Sudden alterations in funding and dramatic shifts in funding levels cause havoc as the districts try to implement programs. Thus, stability of funding is required for the adequate management of school districts. Funding levels will change; but predictable,hp ased increases (or reductions if necessary) are essential. • Additionally, billions of State and local dollars have been expended on educational infrastructure, sudden reductions in funding inevitably cause the deferral in maintenance of this massive investment. Such deferral of maintenance increases the eventual price tag when minor maintenance issues become critical failures. Local Control: One of the League's guiding principles is local control. AML recognizes that ultimate control of education rests with the State Legislature by constitutional dictate; but also recognizes that every educational mandate by the Legislature can impact other important locally developed programs. Every School District is unique with widely different populations, cultures, lifestyles, educational backgrounds, and expectations. AML therefore challenges the Legislature to maximize local control over education and to provide flexibility for local circumstance wherever possible. Evaluation of School Performance: Evaluation of schools is a process of assessing and reporting a set of key indicators, such as student standardized test results, proficiency rates, graduation rates, drop-out rates, etc. This evaluation process should provide the community with the data on how well the students and district are performing, and to provide the school district with the benchmarks for programmatic improvement. The goal is to continuously improve local educational programs. Almost every new Administration brings a new performance or accountability program, with a different twist, tool, or plan requiring school district action or adaptation. Each alteration has the potential of interfering with the longitudinal evaluation data stream. Thus it is essential that each change be tailored to avoid that disruption. In Alaska, the evaluation process needs to be local, positive, and focused on continually enhancing the local educational performance. Education Programs for Workforce Development: The primary task for Alaska's University System and the vocational technical centers in Alaska is to prepare Alaskans with the skills needed by Alaskan industries and employers. There are, of course, other tasks performed by these educational institutions, but preparing the populace to meet the economic and workforce needs in Alaska needs to be kept as the principal priority. Member of the National League of Cities and the National Association of Counties Review of AML Resolutions Page 31 Page 58 of 79 AGENDA ITEM #2.b. One Sealaska Plaza, Suite 200 • Juneau, Alaska 99801 Tel (907) 586-1325 • Fax (907) 463-5480 • www.akmi.org Energy Energy Policy. Alaska's economy depends heavily on increasingly expensive gasoline and diesel fuel for heating, transportation, and electric power. Energy costs in rural areas are generally significantly higher, but vary widely depending on transportation costs, seasonal usage peaks, nearby petroleum development infrastructure, and many other factors. Wind and hydroelectric power are abundant and underdeveloped. Processing and distribution facilities to use some of the oil and gas produced in Alaska are virtually non-existent. There are extensive gas reserves, but no current way to get it to the lower 48 or other markets. Production, transportation, storage, and distribution systems to take advantage of these resources in Alaska must be developed immediately. Alaska's current oil and gas energy policy is complicated and to some extent, driven by the industry and national political decisions which are outside Alaskan's control. Support, other than financial, should be provided to encourage new exploration and development of oil and gas resources. Alaska policy needs to emphasize the production, distribution, use and sale of our oil and gas resources to benefit all Alaskans. Alaska's energy policy therefore requires a thorough review with emphasis on the needs of Alaska residents. Permitting and future development of energy resources need to emphasize "Alaska First." Processing facilities and distribution for Alaskans must be a very high priority. Other opportunities, although expensive, abound for the use of alternative energy from the sun, water, wind, and tidal surges. The technology to build and operate facilities utilizing some of Alaska's natural resources to provide biomass for heat and fuel also needs more emphasis. Revenues from a new natural gas pipeline must be made available for local communities and rural residents to draw upon for energy related grants or for low interest rate loans to help diversify sources and reduce energy costs. Energy Planning. Alaska is one of the most energy rich states in the union, yet the cost of energy throughout the State is far above the national average. Most local governments have identified the cost of energy as a primary detrimental influence affecting quality of life and economic expansion within their communities. As the State moves forward with plans to develop a North Slope LNG pipeline to tidewater, it is critical that strategic planning be started immediately at the State level to identify local energy needs statewide, and to develop a comprehensive plan to use either the natural gas itself, or the revenue from the sale of natural gas, to mitigate the high cost of energy throughout the State. This planning must occur in time to influence the design of any LNG pipeline and/or associated processing/shipping facilities, as to maximize the ability of those facilities to meet the strategic energy needs of the State. Member of the National League of Cities and the National Association of Counties Review of AML Resolutions Page 32 Page 59 of 79 AGENDA ITEM #2.b. One Sealaska Plaza, Suite 200 • Juneau, Alaska 99801 Tel (907) 586-1325 • Fax (907) 463-5480 • www.akml org Transportation Transportation infrastructure in Alaska includes much more than roads. When we say transportation we mean surface, air, trail, rail and water. All of these modes work together to move people, goods and services throughout our great state. Transportation investment has been studied and proven to be a critical economic driver over and over again. Alaska's transportation infrastructure is pivotal to the state's economy and facilitates access to markets, supplies, and most of all, resources. Improving and investing in Alaska's transportation system will enhance the global competitiveness of Alaska business and economic opportunities for its people. Alaska needs new transportation infrastructure development to provide access to resources, reduce barriers for communities to participate in the economy, allow for safe and efficient transportation for all Alaskans, and to dramatically improve Alaskan's quality of life statewide. It is equally important to ensure the maintenance of our existing infrastructure. Historically, the federal government has been funding 85%-90% of Alaska's transportation infrastructure budget. The Federal Highway Trust Fund is experiencing significant shortfalls, contributing to a decrease in federal funds for Alaska, which is not likely to rebound. The League therefore supports a State Transportation Fund with predictable funding that will provide continuity between Administrations and be applicable to all our modes of transportation. Member of the National League of Cities and the National Association of Counties Review of AML Resolutions Page 33 Page 60 of 79 AGENDA ITEM #2.b. One Sealaska Plaza, Suite 200 • Juneau, Alaska 99801 Tel (907) 586-1325 • Fax (907) 463-5480 • www.akml.org Fishing Alaska has over 34,000 miles of coastline on three different seas: Arctic Ocean, Pacific Ocean, and the Bering Sea. Over half of the nation's commercially harvested fish, crab and shrimp come from Alaska, nearly four times more than the next largest seafood producing state. A rich variety of other species, such as sea cucumbers, abalone, sea urchins, herring, etc. also come from Alaskan waters and provides unique export markets. More than eight of Alaska's ports consistently rate in the top 30 U.S. ports in terms of volume or value of seafood delivered. Seafood has been and remains one of Alaska's top export commodities. The vast fishery resources of Alaska are of significant importance to the economies of the state and the nation. Local benefits from these resources are not uniformly spread throughout Alaska, but heavily concentrated in communities along the coast of Alaska. The economies of many Alaskan coastal communities are largely dependent on the fishing industry. Throughout most of the state, there is also a subsistence and recreational need and lifestyle associated with fish resources. These are critically important sectors of our culture and economy that must also be considered in any resource management plan for the industry. Revenues to local communities from fishing vary considerably and are dependent on a number of factors including the overall health and strength of various fisheries, quota allocations, changing management schemes, as well as the location of processors and the public and private docks or ports to which the catches are delivered. As state funding declines many of the coastal communities face major challenges to maintain community services provided, in part, to the large seasonal influx of fisherman. It will therefore be almost impossible to maintain these current ports and harbor facilities without some other sources of revenue, including consideration of recreational demand on these facilities. As the fishing industry adjusts to change, the state needs to review its current laws and regulations regarding the collection and distribution of revenues from fishery resources and ensure they are equitably allocated to Alaska's fishing communities. Member of the National League of Cities and the National Association of Counties Page 61 of 79 Review of AML Resolutions Page 34 AGENDA ITEM #2.b. One Sealaska Plaza, Suite 200 • Juneau, Alaska 99801 Tel (907) 586-1325 • Fax (907) 463-5480 • www.akml.org Public Safety The State provides needed public safety services to areas not covered by local law enforcement agencies (per AS 44.41.020) and assistance to municipal police departments with the enforcement of criminal laws (AS 18.65.090). It is also critical for the State to maintain all necessary training for Village Public Safety Officers (VPSOs) as they provide essential public safety services to communities that otherwise would not have law enforcement. Municipalities often depend on the State, which has the responsibility for search and rescue operations (AS 18.60.120), to conduct search and rescues within their municipalities. The State provides a criminal justice information system that is utilized by State and local law enforcement agencies (AS 44.41.020(b)) and is vital to municipal law enforcement, as it provides information unavailable through any other sources. Further, the State Crime Lab provides basic forensic services to law enforcement agencies free of charge. State and local law enforcement rely on these services for aiding in the investigation and prosecution of crimes and in solving other non -criminal cases. The State has implemented and maintains an interoperable communication system that is used by an increasing number of public safety personnel in the state. This system allows for an increased range of operation and the ability to communicate with other local and state agencies. As long as the cost of these systems continues to be borne by the State, municipalities will continue to find them to be very useful tools. The State operates the Public Safety Academy which trains many law enforcement officers and provides consistency with public safety services statewide. The training for municipal police officers at the academy is generally funded, upon request through the Alaska Police Standards Council (APSC). APSC is also responsible for setting the standards for police officers and for certifying police officers. Some municipalities operate contract holding facilities for in -custody persons. These municipalities rely on funding from the State to operate these facilities. In lieu of this, the Department of Corrections or law enforcement would be required to transport prisoners at an increase in both time and state expense. Emergency Medical Technician certifications and Paramedic licensing (required by AS 18.08.84 and 12 AAC 40.300-390 respectively) represent essential life safety functions of the state that must be continued. The required Division of Forestry training for response to wild land fires is also critically important to ensure the protection of all state lands and threatened nearby infrastructure. Funding for this program should be maintained. Member of the National League of Cities and the National Association of Counties Review of AML Resolutions Page 35 Page 62 of 79 AGENDA ITEM #2.b. One Sealaska Plaza, Suite 200 • Juneau, Alaska 99801 Tel (907) 586-1325 • Fax (907) 463-5480 • www.akml.org Economic Development Economic development permeates all AML position statements. Effective communication between the Governor, the Legislature, and local governments is critical to the success of any strategic long range state or local economic development strategy. Even though government cannot affect all the factors important to economic development, it can have a significant impact through both its traditional role as a public service provider and regulator, and its entrepreneurial role as a dealmaker and business recruiter. Of these two roles, the former is essential — government must provide quality basic services and an efficient regulatory environment if it wishes to create economic development. Providing further incentives to businesses are optional; whether it makes sense depends on what government can reasonably offer, the extent to which such offerings are necessary to attract or retain firms, and that the cost of such offerings can be fully funded by the State be entirely a local option. Public policy can affect factors that are important to businesses, primarily through regulations, taxes, and incentives. It is therefore incumbent upon the Governor and Legislature to maintain a long-term commitment to Alaska's future by considering local stability and growth, as well as local community plans to develop and implement a comprehensive State vision for economic growth and diversification. Such a vision then needs to guide all future State policy and budgetary decisions. Member of the National League of Cities and the National Association of Counties Review of AML Resolutions Page 36 Page 63 of 79 AGENDA ITEM #2.b. One Sealaska Plaza, Suite 200 • Juneau, Alaska 99801 Tel (907) 586-1325 • Fax (907) 463-5480 • www.akml.org Minerals Alaska's size and complex geology provide immense opportunity for a wide variety of minerals to occur, including coal, gold, copper, silver, molybdenum, zinc, and rare earth minerals. Before statehood, the mineral industry made up about 30% of the economy as compared to about 5% today. Vast untapped mineral reserves still exist. Some of the disadvantages in Alaska are the distances from markets, lack of road systems to move the material, and in some cases, the lack of technology to develop and process the mineral. All these factors raise the cost of production and make it harder for the industry to compete with other parts of the U.S. and the world. Alaska enjoys a unique position in that there are vast untapped minerals for the future. These minerals are available to be developed when needed. Such development should occur while incorporating the best environmental practices to protect the environment. Bonds need to be required to protect the resources and people in case of default. AML supports and encourages research efforts, whether public or private, into new and improved methods to overcome Alaska's disadvantages, to negate potential adverse impacts, and to improve mineral recovery. Special emphasis should be aimed at improving discharge quality from mine operations and to reduce the risk of dam failures. The Governor and Legislature need to be active advocates in the responsible development of our mineral resources. Member of the National League of Cities and the National Association of Counties Review of AML Resolutions Page 37 Page 64 of 79 AGENDA ITEM #2.b. One Sealaska Plaza, Suite 200 • Juneau, Alaska 99801 Tel (907) 586-1325 • Fax (907) 463-5480 • www.akml.org Clean Water Alaska's abundance of rivers, lakes, wetlands, snowfields, and glaciers comprise an estimated 40% of the Nation's surface water. There are more than 12,000 rivers in Alaska, and three of those rivers, the Yukon, the Kuskokwim, and the Copper, are among the ten largest rivers in the United States. Alaska has more than 3 million lakes ranging from pond size to 1,000 square miles. Despite Alaska's wealth of water, its water resources are not uniformly distributed geographically or seasonally. Water is highly important to Alaskans, not only for domestic use, but also for the fishing and tourism industries. Alaska needs to assure that policies are in place to protect the quality of its waters, while not inhibiting responsible development, and that those policies are reviewed and updated periodically to assure they include the most up to date and proven science, and are applicable to the unique characteristics of our state. Alaska also needs to take an active role in the trans -boundary protection of rivers and streams. Treaties with Canada on the protection of rivers need to be reviewed to assure they include new technologies and practices. All types of development need to account for the costs of putting the best mitigation practices in effect. Member of the National League of Cities and the National Association of Counties Page 65 of 79 Review of AML Resolutions Page 38 AGENDA ITEM #2.b. 2017 Position Statements Approved by AML Membership November 2016 One Sealaska Plaza, Suite 200 Juneau, Alaska 99801 (907)586-1325 Fax (907) 463-5480 www.akml.or2 Kathie Wasserman, Executive Director kathie@akml.org Page 66 of 79 Review of AML Resolutions AGENDA ITEM #2.b. One Sealaska Plaza, Suite 200 • Juneau, Alaska 99801 Tel (907) 586-1325 • Fax (907) 463-5480 • www.akml.org Local Control Article X of the Alaska State Constitution makes mention, throughout, of "maximum local self-government..." The Alaska Supreme Court has used this section to make close calls in favor of municipalities in many court proceedings. While Title 29 lays out the laws under which a municipal government must operate, liberal construction is given to municipalities under the State Constitution. Due to the large geographical land mass of Alaska; due to the different cultures that are in place in the many large areas of Alaska; due to the differing array of climates and environment experienced by each area of Alaska; and due to the differing infrastructure, facilities and services provided within each area, it is common knowledge that most "one size fits all" legislation that might attempt to envelop the entire State does not usually work well in Alaska. Therefore, it is imperative that, unless prohibited by law, municipalities closest to the electorate be able to provide their constituents with the laws, services, benefits, and taxation that the local populations, through their local elected officials, feel is appropriate. The Alaska Municipal League has always based their positions upon two guiding principles: Does it allow for maximum local control, and/or does it create an unfunded mandate. Member of the National League of Cities and the National Association of Counties Page 67 of 79 Review of AML Resolutions AGENDA ITEM #2.b. One Sealaska Plaza, Suite 200 • Juneau, Alaska 99801 Tel (907) 586-1325 • Fax (907) 463-5480 • www.akml.org Revenue Sharing The State's Constitution entrusts state government with managing the state's resources to the maximum benefit of all Alaskans. The Constitution also promotes maximum self -governance at the local level. It is therefore incumbent upon the Governor and Legislature to manage and distribute the wealth of Alaska's resources to local governments each and every year. Predictable, dependable, and direct Revenue Sharing is therefore required for the State to meet its Constitutional obligations. To that end, the State should designate a specific long-term funding source that would perpetually sustain the Municipal Revenue Sharing Program. Member of the National League of Cities and the National Association of Counties Page 68 of 79 Review of AML Resolutions AGENDA ITEM #2.b. One Sealaska Plaza, Suite 200 • Juneau, Alaska 99801 Tel (907) 586-1325 • Fax (907) 463-5480 • www.akml.org PERS/TRS Unfunded Liability Management of Alaska's public retirement system has always been the responsibility of State government. Participating municipalities have had no choice but to rely on information provided by the State when making decisions regarding their own contributions to the system. Decades of improper accounting and inaccurate actuarial data provided by the State to municipalities, has now created a huge unfunded pension liability that can no longer be accurately apportioned among all participating employers. The League recognizes that there is municipal responsibility to participate in solving this fiscal problem. However, as the primary responsible party and the only entity with the long-term resources to effectively deal with the magnitude of the issue, the State should incorporate into its long-term fiscal planning strategy a leading position that ensures this ongoing obligation is met, while maintaining close coordination with participating employers to avoid the potential of shifting too great a burden to local governments. The Alaska Municipal League strongly supports reforms that would allow flexibility with regards to the management of the local government workforce (i.e., termination study costs, below -the -floor penalties). Member of the National League of Cities and the National Association of Counties Page 69 of 79 Review of AML Resolutions AGENDA ITEM #2.b. One Sealaska Plaza, Suite 200 • Juneau, Alaska 99801 Tel (907) 586-1325 • Fax (907) 463-5480 • www.akml.org Fiscal Policy It is critical for the State to establish long-term financial policy as opposed to short-term reactive approaches that primarily focus on annual revenue/expenditure fluctuations or fiscal austerity. Accumulation of reserves during good years should continue as part of that policy, however draws from reserves during lean years should be more process driven and not as subject to political bartering. When necessary, State budget cuts in one department's program area must be coordinated with complimentary programs in other departments. The same needs to occur between State and local municipal programs. To do otherwise will sacrifice critical service delivery and the health of the economy statewide. The League calls upon the Governor to provide Cabinet level leadership during budget formulation to balance these interrelated effects. At the legislative level the League asks that the Director of Management and Budget works closely with the Director of the Legislative Finance Division to assure that programs remain balanced during the Legislature's budget deliberations. The Legislature must also ensure that State initiatives always include the necessary State resources required for implementation. Unfunded mandates to local governments are tantamount to unilaterally usurping critical local income and priorities. State funding reductions to municipalities, when necessary, should occur over a number of years to provide those municipalities with the reaction time to make adjustments. New revenue sources, if considered, must always consider impacts to existing local government revenue sources first. Local municipal sources already in place must always take primacy over new State revenue schemes. Member of the National League of Cities and the National Association of Counties Page 70 of 79 Review of AML Resolutions AGENDA ITEM #2.b. One Sealaska Plaza, Suite 200 • Juneau, Alaska 99801 Tel (907) 586-1325 • Fax (907) 463-5480 • www.akml.org Education Funding of Public School Districts: The Alaska Constitution provides that the State shall "establish and maintain a system of public schools." The State established school districts to be the basic unit for the administration of schools. The funding of these school districts is complex and segmented with Federal, State, and local sources. Additionally, State and Federal categorical funds are available to meet special circumstances, which adds to the complexity. • Sudden alterations in funding and dramatic shifts in funding levels cause havoc as the districts try to implement programs. Thus, stability of funding is required for the adequate management of school districts. Funding levels will change; but predictable,hp ased increases (or reductions if necessary) are essential. • Additionally, billions of State and local dollars have been expended on educational infrastructure, sudden reductions in funding inevitably cause the deferral in maintenance of this massive investment. Such deferral of maintenance increases the eventual price tag when minor maintenance issues become critical failures. Local Control: One of the League's guiding principles is local control. AML recognizes that ultimate control of education rests with the State Legislature by constitutional dictate; but also recognizes that every educational mandate by the Legislature can impact other important locally developed programs. Every School District is unique with widely different populations, cultures, lifestyles, educational backgrounds, and expectations. AML therefore challenges the Legislature to maximize local control over education and to provide flexibility for local circumstance wherever possible. Evaluation of School Performance: Evaluation of schools is a process of assessing and reporting a set of key indicators, such as student standardized test results, proficiency rates, graduation rates, drop-out rates, etc. This evaluation process should provide the community with the data on how well the students and district are performing, and to provide the school district with the benchmarks for programmatic improvement. The goal is to continuously improve local educational programs. Almost every new Administration brings a new performance or accountability program, with a different twist, tool, or plan requiring school district action or adaptation. Each alteration has the potential of interfering with the longitudinal evaluation data stream. Thus it is essential that each change be tailored to avoid that disruption. In Alaska, the evaluation process needs to be local, positive, and focused on continually enhancing the local educational performance. Education Programs for Workforce Development: The primary task for Alaska's University System and the vocational technical centers in Alaska is to prepare Alaskans with the skills needed by Alaskan industries and employers. There are, of course, other tasks performed by these educational institutions, but preparing the populace to meet the economic and workforce needs in Alaska needs to be kept as the principal priority. Member of the National League of Cities and the National Association of Counties Page 71 of 79 Review of AML Resolutions AGENDA ITEM #2.b. One Sealaska Plaza, Suite 200 • Juneau, Alaska 99801 Tel (907) 586-1325 • Fax (907) 463-5480 • www.akml.org Energy Energy Policy. Alaska's economy depends heavily on increasingly expensive gasoline and diesel fuel for heating, transportation, and electric power. Energy costs in rural areas are generally significantly higher, but vary widely depending on transportation costs, seasonal usage peaks, nearby petroleum development infrastructure, and many other factors. Wind and hydroelectric power are abundant and underdeveloped. Processing and distribution facilities to use some of the oil and gas produced in Alaska are virtually non-existent. There are extensive gas reserves, but no current way to get it to the lower 48 or other markets. Production, transportation, storage, and distribution systems to take advantage of these resources in Alaska must be developed immediately. Alaska's current oil and gas energy policy is complicated and to some extent, driven by the industry and national political decisions which are outside Alaskan's control. Support, other than financial, should be provided to encourage new exploration and development of oil and gas resources. Alaska policy needs to emphasize the production, distribution, use and sale of our oil and gas resources to benefit all Alaskans. Alaska's energy policy therefore requires a thorough review with emphasis on the needs of Alaska residents. Permitting and future development of energy resources need to emphasize "Alaska First." Processing facilities and distribution for Alaskans must be a very high priority. Other opportunities, although expensive, abound for the use of alternative energy from the sun, water, wind, and tidal surges. The technology to build and operate facilities utilizing some of Alaska's natural resources to provide biomass for heat and fuel also needs more emphasis. Revenues from a new natural gas pipeline must be made available for local communities and rural residents to draw upon for energy related grants or for low interest rate loans to help diversify sources and reduce energy costs. Energy Planning. Alaska is one of the most energy rich states in the union, yet the cost of energy throughout the State is far above the national average. Most local governments have identified the cost of energy as a primary detrimental influence affecting quality of life and economic expansion within their communities. As the State moves forward with plans to develop a North Slope LNG pipeline to tidewater, it is critical that strategic planning be started immediately at the State level to identify local energy needs statewide, and to develop a comprehensive plan to use either the natural gas itself, or the revenue from the sale of natural gas, to mitigate the high cost of energy throughout the State. This planning must occur in time to influence the design of any LNG pipeline and/or associated processing/shipping facilities, as to maximize the ability of those facilities to meet the strategic energy needs of the State. Member of the National League of Cities and the National Association of Counties Page 72 of 79 Review of AML Resolutions AGENDA ITEM #2.b. One Sealaska Plaza, Suite 200 • Juneau, Alaska 99801 Tel (907) 586-1325 • Fax (907) 463-5480 • www.akml.org Transportation Transportation infrastructure in Alaska includes much more than roads. When we say transportation we mean surface, air, trail, rail and water. All of these modes work together to move people, goods and services throughout our great state. Transportation investment has been studied and proven to be a critical economic driver over and over again. Alaska's transportation infrastructure is pivotal to the state's economy and facilitates access to markets, supplies, and most of all, resources. Improving and investing in Alaska's transportation system will enhance the global competitiveness of Alaska business and economic opportunities for its people. Alaska needs new transportation infrastructure development to provide access to resources, reduce barriers for communities to participate in the economy, allow for safe and efficient transportation for all Alaskans, and to dramatically improve Alaskan's quality of life statewide. It is equally important to ensure the maintenance of our existing infrastructure. Historically, the federal government has been funding 85%-90% of Alaska's transportation infrastructure budget. The Federal Highway Trust Fund is experiencing significant shortfalls, contributing to a decrease in federal funds for Alaska, which is not likely to rebound. The League therefore supports a State Transportation Fund with predictable funding that will provide continuity between Administrations and be applicable to all our modes of transportation. Member of the National League of Cities and the National Association of Counties Page 73 of 79 Review of AML Resolutions AGENDA ITEM #2.b. One Sealaska Plaza, Suite 200 • Juneau, Alaska 99801 Tel (907) 586-1325 • Fax (907) 463-5480 • www.akmi.org Fishing Alaska has over 34,000 miles of coastline on three different seas: Arctic Ocean, Pacific Ocean, and the Bering Sea. Over half of the nation's commercially harvested fish, crab and shrimp come from Alaska, nearly four times more than the next largest seafood producing state. A rich variety of other species, such as sea cucumbers, abalone, sea urchins, herring, etc. also come from Alaskan waters and provides unique export markets. More than eight of Alaska's ports consistently rate in the top 30 U.S. ports in terms of volume or value of seafood delivered. Seafood has been and remains one of Alaska's top export commodities. The vast fishery resources of Alaska are of significant importance to the economies of the state and the nation. Local benefits from these resources are not uniformly spread throughout Alaska, but heavily concentrated in communities along the coast of Alaska. The economies of many Alaskan coastal communities are largely dependent on the fishing industry. Throughout most of the state, there is also a subsistence and recreational need and lifestyle associated with fish resources. These are critically important sectors of our culture and economy that must also be considered in any resource management plan for the industry. Revenues to local communities from fishing vary considerably and are dependent on a number of factors including the overall health and strength of various fisheries, quota allocations, changing management schemes, as well as the location of processors and the public and private docks or ports to which the catches are delivered. As state funding declines many of the coastal communities face major challenges to maintain community services provided, in part, to the large seasonal influx of fisherman. It will therefore be almost impossible to maintain these current ports and harbor facilities without some other sources of revenue, including consideration of recreational demand on these facilities. As the fishing industry adjusts to change, the state needs to review its current laws and regulations regarding the collection and distribution of revenues from fishery resources and ensure they are equitably allocated to Alaska's fishing communities. Member of the National League of Cities and the National Association of Counties Page 74 of 79 Review of AML Resolutions AGENDA ITEM #2.b. One Sealaska Plaza, Suite 200 • Juneau, Alaska 99801 Tel (907) 586-1325 • Fax (907) 463-5480 • www.akml.org Public Safety The State provides needed public safety services to areas not covered by local law enforcement agencies (per AS 44.41.020) and assistance to municipal police departments with the enforcement of criminal laws (AS 18.65.090). It is also critical for the State to maintain all necessary training for Village Public Safety Officers (VPSOs) as they provide essential public safety services to communities that otherwise would not have law enforcement. Municipalities often depend on the State, which has the responsibility for search and rescue operations (AS 18.60.120), to conduct search and rescues within their municipalities. The State provides a criminal justice information system that is utilized by State and local law enforcement agencies (AS 44.41.020(b)) and is vital to municipal law enforcement, as it provides information unavailable through any other sources. Further, the State Crime Lab provides basic forensic services to law enforcement agencies free of charge. State and local law enforcement rely on these services for aiding in the investigation and prosecution of crimes and in solving other non -criminal cases. The State has implemented and maintains an interoperable communication system that is used by an increasing number of public safety personnel in the state. This system allows for an increased range of operation and the ability to communicate with other local and state agencies. As long as the cost of these systems continues to be borne by the State, municipalities will continue to find them to be very useful tools. The State operates the Public Safety Academy which trains many law enforcement officers and provides consistency with public safety services statewide. The training for municipal police officers at the academy is generally funded, upon request through the Alaska Police Standards Council (APSC). APSC is also responsible for setting the standards for police officers and for certifying police officers. Some municipalities operate contract holding facilities for in -custody persons. These municipalities rely on funding from the State to operate these facilities. In lieu of this, the Department of Corrections or law enforcement would be required to transport prisoners at an increase in both time and state expense. Emergency Medical Technician certifications and Paramedic licensing (required by AS 18.08.84 and 12 AAC 40.300-390 respectively) represent essential life safety functions of the state that must be continued. The required Division of Forestry training for response to wild land fires is also critically important to ensure the protection of all state lands and threatened nearby infrastructure. Funding for this program should be maintained. Member of the National League of Cities and the National Association of Counties Page 75 of 79 Review of AML Resolutions AGENDA ITEM #2.b. One Sealaska Plaza, Suite 200 • Juneau, Alaska 99801 Tel (907) 586-1325 • Fax (907) 463-5480 • www.akml.org Economic Development Economic development permeates all AML position statements. Effective communication between the Governor, the Legislature, and local governments is critical to the success of any strategic long range state or local economic development strategy. Even though government cannot affect all the factors important to economic development, it can have a significant impact through both its traditional role as a public service provider and regulator, and its entrepreneurial role as a dealmaker and business recruiter. Of these two roles, the former is essential — government must provide quality basic services and an efficient regulatory environment if it wishes to create economic development. Providing further incentives to businesses are optional; whether it makes sense depends on what government can reasonably offer, the extent to which such offerings are necessary to attract or retain firms, and that the cost of such offerings can be fully funded by the State be entirely a local option. Public policy can affectfactors that are important to businesses, primarily through regulations, taxes, and incentives. It is therefore incumbent upon the Governor and Legislature to maintain a long-term commitment to Alaska's future by considering local stability and growth, as well as local community plans to develop and implement a comprehensive State vision for economic growth and diversification. Such a vision then needs to guide all future State policy and budgetary decisions. Member of the National League of Cities and the National Association of Counties Page 76 of 79 Review of AML Resolutions AGENDA ITEM #2.b. One Sealaska Plaza, Suite 200 • Juneau, Alaska 99801 Tel (907) 586-1325 • Fax (907) 463-5480 • www.akml.org Minerals Alaska's size and complex geology provide immense opportunity for a wide variety of minerals to occur, including coal, gold, copper, silver, molybdenum, zinc, and rare earth minerals. Before statehood, the mineral industry made up about 30% of the economy as compared to about 5% today. Vast untapped mineral reserves still exist. Some of the disadvantages in Alaska are the distances from markets, lack of road systems to move the material, and in some cases, the lack of technology to develop and process the mineral. All these factors raise the cost of production and make it harder for the industry to compete with other parts of the U.S. and the world. Alaska enjoys a unique position in that there are vast untapped minerals for the future. These minerals are available to be developed when needed. Such development should occur while incorporating the best environmental practices to protect the environment. Bonds need to be required to protect the resources and people in case of default. AML supports and encourages research efforts, whether public or private, into new and improved methods to overcome Alaska's disadvantages, to negate potential adverse impacts, and to improve mineral recovery. Special emphasis should be aimed at improving discharge quality from mine operations and to reduce the risk of dam failures. The Governor and Legislature need to be active advocates in the responsible development of our mineral resources. Member of the National League of Cities and the National Association of Counties Page 77 of 79 Review of AML Resolutions AGENDA ITEM #2.b. One Sealaska Plaza, Suite 200 • Juneau, Alaska 99801 Tel(907)586-1325 • Fax(907)463-5480 • www.akml.org Clean Water Alaska's abundance of rivers, lakes, wetlands, snowfields, and glaciers comprise an estimated 40% of the Nation's surface water. There are more than 12,000 rivers in Alaska, and three of those rivers, the Yukon, the Kuskokwim, and the Copper, are among the ten largest rivers in the United States. Alaska has more than 3 million lakes ranging from pond size to 1,000 square miles. Despite Alaska's wealth of water, its water resources are not uniformly distributed geographically or seasonally. Water is highly important to Alaskans, not only for domestic use, but also for the fishing and tourism industries. Alaska needs to assure that policies are in place to protect the quality of its waters, while not inhibiting responsible development, and that those policies are reviewed and updated periodically to assure they include the most up to date and proven science, and are applicable to the unique characteristics of our state. Alaska also needs to take an active role in the trans -boundary protection of rivers and streams. Treaties with Canada on the protection of rivers need to be reviewed to assure they include new technologies and practices. All types of development need to account for the costs of putting the best mitigation practices in effect. Member of the National League of Cities and the National Association of Counties Page 78 of 79 Review of AML Resolutions AGENDA ITEM #2.b. One Sealaska Plaza, Suite 200 • Juneau, Alaska 99801 Tel (907) 586-1325 • Fax (907) 463-5480 • www.akmi.org Position Statement Guidelines The AML Position Statement was developed by an AML standing committee composed of the AML President and appointed or elected officials from member municipalities who have expertise in one or more of the following subject areas: • Economic Development • Education • Energy • Finance/Taxation • Public Safety • Resource Management • Transportation Other committee members include: • One At -Large member • AML Executive Director • Sitting board President In order to assure that the position statements remain true to the goal of reflecting the will of our members and the League's philosophy and mission, changes to the position statements will be considered by both the committee and the membership only if endorsed by resolution, of a member's governing body. Changes begin during the AML Summer Conference in August. A copy of the current AML Position Statement was sent to all member municipalities for review (6/7/2017). For changes to be considered during the AML Summer Conference to the DRAFT 2018 Position Statement, resolutions must be received by email, mail or fax, no later than August 10, 2017. The DRAFT 2018 Position Statement is then sent to all member municipalities prior to the AML Annual Business meeting in November. For changes to be considered, resolutions supporting the change must be received in the AML office electronically by email, mail or fax, no later than October 6, 2017. Resolutions for changes to this document will not be accepted after this date. The Position Committee shall debate and act upon each resolution for final recommendations to the membership during the Position Committee meeting on November 15, 2017. If the Position Committee does not accept the submitted resolution, the governing body may bring it to the floor at the General Session on November 16, 2017 for discussion. Those resolutions accepted by the Position Committee shall also be discussed during the General Session on November 16, 2017 for incorporation into the Position Statement. The amended Position Statement shall be voted on by the full membership at the AML Business Meeting to be held on the morning of November 17, 2017. Note: These resolutions are "separate" from the Action Resolutions that AML adopts to further a specific "issue" during the Legislative or Congressional session. Please email your resolutions to: kathie(a akml.oro; fax to: (907) 463-5480; or mail to: AML, One Sealaska Plaza Suite 200, Juneau, AK 99801 Page 79 of 79 Review of AML Resolutibtwber of the National League of Cities and the National Association of Counties KODIAK ISLAND BOROUGH WORK SESSION Work Session of: I I �(G(1 Please PRINT your name Please PRINT your name