FY2021-28 Kodiak Island Borough Code Of Ordinances Title 3 Revenue And Finance Chapter 3.251
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Introduced by: Mayor at the request of the Borough Manager
Drafted by: Borough Attorney
Introduced on: 02/04/2021
Public Hearing Date: 02/18/2021
Adopted on: 02/18/2021
KODIAK ISLAND BOROUGH
ORDINANCE NO. FY2021-28
AN ORDINANCE OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH AMENDING
KODIAK ISLAND BOROUGH CODE OF ORDINANCES TITLE 3 REVENUE AND FINANCE
CHAPTER 3.25 APPROPRIATION AND LEVY SECTION 3.25.030 MAXIMUM ALLOWABLE
TAX REVENUES, LIMITING RESTRICTIONS TO GENERAL FUND PROPERTY TAX
REVENUES
WHEREAS, On October 2, 2018 the voters of the Kodiak Island Borough approved an
ordinance by initiative setting out a maximum allowable tax revenue limit for Borough taxes; and
WHEREAS, Implementation of the revenue limit was primarily intended to apply to areawide
general fund property taxes and expenditures, and application to service areas or non -property
tax revenues such as bed taxes, tobacco excise taxes, marijuana excise taxes and severance
taxes makes calculation of the revenue limit more difficult; and
WHEREAS, unlike areawide property taxes, service areas or non -property tax revenues such
as bed taxes, tobacco excise taxes, marijuana excise taxes and severance taxes are paid by
recipients of the service area services or users of the product or service, and are not generally
owed or paid by all borough residents; and
WHEREAS, the amendment of the revenue limit to focus on areawide property tax revenues
would honor the purpose of the revenue limitation while easing the administration of the revenue
limitation ordinance and avoiding potential adverse impacts on service areas; and
WHEREAS, the Kodiak Island Borough seeks to maintain a property tax revenue limitation but
leave severance taxes, service areas and non -property based excise taxes separate.
NOW, THEREFORE, BE IT ORDAINED BY THE ASSEMBLY OF THE KODIAK ISLAND
BOROUGH that:
Section 1: This ordinance is of permanent nature and shall become a part of the Kodiak Island
Borough Code of Ordinances.
Section 2: That section 3.25.030 of the Kodiak Island Borough Code of Ordinances is amended
to read as follows:
3.25.030 Maximum Allowable Property Tax Revenues
A. Except as provided in this section, the total amount of real and personal property taxes that
can be levied or imposed on an areawide basis during a fiscal year shall not exceed the total
amount approved by the borough assembly for the preceding year by more than a percentage
determined by adding the percentage increase in the Consumer Price Index for Kodiak (or the
Federal Consumer Price Index for Anchorage if there is none available for Kodiak) from the
preceding fiscal year.
Kodiak Island Borough, Alaska
Deletion — Red, Strikeout
Insertion — Blue Bold, Underlined
Ordinance No. FY2021-28
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B. The limitations set forth in subsection A of this section do not apply to the following:
1. Tax on new construction or property improvements which occur during the current fiscal
year;
2. Any appropriation made to pay or secure payment of principal and/or interest on bonds;
3. Taxes required to fund services authorized by voter -approved ballot issues;
4. Funding of new judgments entered against the Kodiak Island Borough;
5. Special appropriations necessary on an emergency basis to fund unavoidable expenses
ensuring the public peace, health or safety;
6. Excise taxes, service area property taxes, non-areawide property taxes, and
severance taxes.
C. The borough assembly shall use the formula and definitions for computation of the total amount
of borough property tax that can be levied or imposed by applying the provisions in this section
and shall, by May 31st of each fiscal year, publish its calculations showing these computations
fee each taxing }uflsdiGtien.
D. The maximum tax revenue allowed under this section is computed for the next fiscal year as
follows:
Formula. The formula for the computation of maximum allowable tax revenue is:
(A—B)+D+F=G
where:
"A" equals the amount of property tax
revenue derived from actual taxes levied on
taxable real and personal property on an
areawide basis 47-eaGh taxingjuFisdisgen in
the current fiscal year ands a l other- tan
fevenue ;
'B" equals the amount of the actual payment
of principal and interest on bonds made in the
current fiscal year, less actual state
reimbursement for school construction debt;
'D"is product of the percentage change in the
Consumer Price Index for All Urban
Consumers (CPI-U) for Kodiak, Alaska, (or
for Anchorage, Alaska, if not available for
Kodiak) during the prior fiscal year (CPI) and
the net taxes levied (A - B) in the current fiscal
year;
"F" equals the total amount of all exclusions
under subsection B of this section, and is the
sum of all the following:
Kodiak Island Borough, Alaska
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Insertion — Blue Bold, Underlined
Ordinance No. FY2021-28
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F.1. The taxes on new construction or
property improvements equal the
projected tax revenue from the value of
that new construction or property
improvements, computed by multiplying
the areawide property tax rate applied
to properties in that tagdng ju4saiistie
during the current fiscal year by the
assessed value of the new construction
and property improvements;
F.2. The principal and interest due in the next
fiscal year on bonds, less state
reimbursement for school construction
debt, plus any over -adjustment or under -
adjustment to actual reimbursement
from the current year;
F.3. Areawide property taxes Taxes to
provide voter -approved services;
F.4. Areawide property taxes Taxes for
new judgments;
F.S. Special appropriations necessary on an
emergency basis;
"G" equals the maximum allowable tax
revenue for the next fiscal year.
E. The point in time to use for the proper calculation of allowable property tax mill rates,fer all
taX!Rg ' Sd*G R shall be the next tax rolls as certified by the borough assessor on July 1st
of each year. This specific point in time shall be utilized for both the figures in the prior year
and the current year.
F. As used in this section, the following definitions apply:
"Current fiscal year" is the fiscal year during which the next fiscal year budget is prepared.
"Emergency" is the imminent threat of or the occurrence of widespread damage, injury, or loss
of life resulting from any natural or manmade cause, including, but not limited to, fire, explosion,
flood, earthquake, landslide, mud slide, volcanic activity, avalanche, weather conditions,
epidemic, blight, infestation, riot, loss of public utilities, shortage of food, water, fuel or clothing,
or the accidental release or discharge of toxic substances or hazardous substances.
"Emergency" does not include appropriations for the normal operations of the borough. a
Fiscal year" means the fiscal year (July 1st through June 30th) for the Kodiak Island Borough.
Kodiak Island Borough, Alaska
Deletion — Red, Strikeout
Insertion — Blue Bold, Underlined
Ordinance No. FY2021-28
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"New construction or property improvements" means any improvement which generates a
taxable value not on the tax roll for the current assessment year, including but not limited to:
Construction which increases the value of the property;
2. Any change in the status of land.
"New judgment" means the judgment reserved sufficient to cover the total cost of all judgments
and arbitration awards during the next fiscal year, including:
1. Principal, interests, fees and costs;
2. Additional services which may be required by a court order.
"Next fiscal year" is the fiscal year following the current fiscal year and for which the new budget
is being prepared.
"Prior fiscal year" is the fiscal year immediately preceding the current fiscal year.
"Tamingjui:isdiGmeanstian"a taxingnit of the Kediak island Ber..,,nti AseFv!Gearea^ taxing
jurisdistien.
"Voter -approved services" includes but is not limited to:
1. An areawide service specifically authorized by the voters efr a tax;ngjUFisd t;GA in any
ballot issue;
2. Programs directly related to voter -approved capital projects which are in addition to
services in the current fiscal year budget;
3. SerwGes-added by t`� he GFeat nor alteFat on .+,.� a the beundaFies of a taxingsdiGt'„ If
the Aringfian o alterat'n of the ba .ndaFies of .tea d taxing i *sd'ntinn weFe approved by
the veteFS of said taxin , ' : ^,+•^ti^^ Taxes required to provide a "voter -approved service"
are the estimated first full -year costs of voter -approved services less revenue other than
taxes projected to be generated from the voter -approved services, for the number of
months in the next fiscal year for which the voter -approved service will be provided.
Effective Date: This ordinance takes effect upon adoption.
ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH
THIS NINETEENTH DAY OF JANUARY, 2021.
Mayor
VOTES:
Ayes: Arndt, Dvorak, Turner, and Willi
Noes: Kavanaugh, Smith, and Symmon
Kodiak Island Borough, Alaska
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Insertion — Blue Bold, Underlined
PI* J
Ordinance No. FY2021-28
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