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2021-01-05 Work SessionKodiak Island Borough Assembly Work Session Tuesday, January 5, 2021, 6:30 p.m. For public participation this meeting will be livestreamed through KIB UstreamTV (https://video.ibm.com/channel/kodiakislandborough) Work Sessions are informal meetings of the Assembly where Assembly members review the upcoming regular meeting agenda packet and seek or receive information from staff. 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 Assembly action are placed on regular Assembly meeting agenda. Citizen's comments at work sessions are NOT considered part of the official record. Citizen's comments intended for the "official record" should be made at a regular Assembly meeting. Page 1. Citizens' comments. 1-907-486-3231 or Toll Free 1-855-492-9202. (Limited To Three Minutes Per Speaker) 4 a. Citizen Comment Re Severance Tax, Colleen Helligso A 2. Agenda items. Complete Agenda Packets can be obtain by: • Going To The KIB Website - https://kodiakak.civicweb.net/portal/ • For A PDF File, Email The Clerk at clerks(cDkodiakak.us • For A Paper Copy, Email The Clerk at clerks(o-)_kodiakak.us (packets are available 24 hours before the beginning of the meeting) 5 - 6 a. Ordinance No. FY2021-26 Amending the Budget Due Date Ordinance No. FY2021-26 Amending the Budget Due Date 7-29 b. Alternative Revenue Sources - Memo Updated Alternate Revenue Memo 7-30-20 C. Borough Building Prioritized Projects And Costs 3. Manager's comments. 30-31 a. Acting Official Report A 4. Clerks comments. 5. Packet Review for the Regular Meeting of January 7, 2021 Visit our website at www.facebook.com/Kodiakislandborough 0@KodiakBorough www.kodiakak.us Page 1 of 31 Items may be added during the work session for inclusion on the Regular Meeting agenda. The item title needs to be provided/developed at the work session in enough detail to give assembly and public reasonable notice. Awards and presentations. • Proclaiming the Month Of January 2021 As National Stalking Awareness Month. Public hearing. • Ordinance No. FY2021-18 Rezoning A Portion Of Tract 37, Township 30 South, Range 20 West, Section 32, Seward Meridian From C - Conservation To R1 - Single Family Residential And PL - Public Use Land (Zoning Will Correspond To Lots Created By Abbreviated Subdivision S21-002). • Ordinance No. FY2021-25 An Ordinance Of The Assembly Of The Kodiak Island Borough Amending Chapter 18.20 Of The Kodiak Island Borough Code Regarding The Process For Disposition Of Tax Foreclosed Property. Consideration of the calendar - Unfinished Business. • Ordinance No. FY2021-07A Supplementing Ordinance No. FY2021-07 Regarding The Disposition Of A Tax Foreclosed Property, 810 Hillside Drive Formally Owned By Ada And Susan Panamarioff, Setting A Minimum Bid And Sale Process As Borough Land Sale Number Twenty -One. • Resolution No. FY2021-23 Setting New Stipend Amounts For Fire Protection Area No.1 (Bayside Fire). • Amendment No. 1 Amending Contract No. FY2019-25 Residential And Commercial Solid Waste Collection And Recycling Services. Consideration of the calendar - New Business. Contracts_ • None Resolutions. • Resolution No. FY2021-24 Accepting A $1,000 Grant From The Kodiak Community Foundation On Behalf Of The Womens Bay Community Council Playground Improvements At Sargent Creek Park. • Resolution No. FY2021-25 Accepting A Grant From The Alaska Division Of Homeland Security And Emergency Management In The Amount Of $91,785 For The Purchase And Installation Of Three Tsunami Warning Sirens. • Resolution No. FY2020-26 Accepting An Award Of $270,359 From The Pacific States Marine Commission To Provide Disaster Relief Funding Related To The Gulf Of Alaska Pink Salmon Disaster. • *Resolution No. FY2021-27 Adopting An Alternative Allocation Method For The FY21 Shared Fisheries Business Tax Program And Certifying That This Allocation Method Fairly Represents The Distribution Of Significant Effects Of Fisheries Business Activity In FMA 13: Kodiak Area. Ordinances for introduction. • None Other items. • None 6. Assembly member' comments. Visit our website at www.facebook.com/Kodiakislandborough 0@KodiakBorough www.kodiakak.us Page 2 of 31 Mayor comments. Visit our website at@ www.facebook.com/Kodiakislandborough 0@KodiakBorough www.kodiakak.us Page 3 of 31 AGENDA ITEM #1.a. Alise Rice From: Colleen & Kent Helligso <helligso@ak.net> Sent: Tuesday, January 5, 2021 2:00 PM To: duane.dvorak@kibassembly.org; julie.kavanaugh@kibassembly.org; geoffrey.smith@kibassembly.org; dennis.symmons@kibassembly.org; james.turner@kibassembly.org; aimee.williams@kibassembly.org; Clerks Cc: 'Colleen Helligso (gmail)' Subject: Severance tax Good afternoon Borough Assembly, Regarding your work session this evening in consideration of potential revenue resources as outlined in Ms. Cross's memo to Mr. Powers dated 7/29/20, 1 would like to state my opposition to several of the suggestions. • Changing the severance tax rate — by decoupling the severance from the mill rate pits two groups against each other —property owners vs fishing families. Viewing your General Fund Budgetary comparison schedule for Y/E 6/30/2019, your 2019 actual fish tax income is down 36k from what you budgeted and further down 500k from 2018 actual figures. This can be attributed to deliveries made elsewhere as well as lower volume. Considering that if you raise this amount significantly, you are not encouraging one of your main sources of income already being stretched thin, especially given the damage 2020 has inflicted on many fisher families. • Adding an ad valorem tax on commercial vessels — no thank you. Try something else. • Adding a keel length tax on commercial vessels — again, you're hitting us harder than any other user group. These requests speak to the fact that we as fishermen, are already squeezed between a rock and a hard place. We see many people making the decision to deliver to other ports as well as leaving Kodiak entirely because of the higher taxes being charged as well as tax increases considered for the future. Consider cutting expenses instead of increasing income. Take a look, a hard look at the school districts requests. Their enrollment has decreased steadily over the last several years yet the ask from the KIB increases each year (by my estimations $1m). I have grandchildren that will be a part of the education process so don't think I'm not affected. In my experience with private school budgets, there is a way to make it work with sacrifices made by those affected. The school district has got to be a part of the solution, especially considering the bond debt that KIB is absorbing with the reduction of funds received via the State. Thank you for your consideration. FIV Evie Grace and 97/V 'Pmr� cf't.mi, PO Box 319; Kodiak, AK 99615 Cell 907-539-2801 Office 907-486-7062 Msg 907-486-6380 Page 4 of 31 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 Ordinance AGENDA ITEM #2.a. Introduced by: Borough Assembly Drafted by: Assembly member Arndt Introduced on: 01/07/2021 Public Hearing Date: Adopted on: KODIAK ISLAND BOROUGH ORDINANCE NO. FY2021-26 AN ORDINANCE OF THE KODIAK ISLAND BOROUGH ASSEMBLY AMENDING THE KODIAK ISLAND BOROUGH CODE OF ORDINANCES TITLE 3 REVENUE AND FINANCE CHAPTER 3.15.030 PUBLIC FINANCE - BUDGET TO CHANGE THE BUDGET AND CAPITAL PROGRAM SUBMITTAL DATE WHEREAS, it is desirable for the assembly to begin the budget process early; and WHEREAS, it is desirable to include the proposed budget and local support of the school district into the borough budget; and NOW, THEREFORE, BE IT ORDAINED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH that: Section 1 : This ordinance is of a general and permanent nature and shall become a part of the Kodiak Island Borough Code of Ordinances. Section 2: Kodiak Island Borough Code of Ordinances Title 3 Revenue and Finance Chapter 3.15.030 Public Finance - Budget is hereby amended as follows: A. On or before the first thrtieth of April of each year, the manager shall submit the budget and capital program to the assembly. The budget and budget message shall contain the proposed appropriation and tax levy ordinance. B. The school district shall submit to the manager the proposed budget and local support requirements for the school by the thirtieth of March April so the major funding can be incorporated into the borough budget and budget message. Effective Date: This ordinance takes effect upon adoption. ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THIS DAY OF KODIAK ISLAND BOROUGH ATTEST: Kodiak Island Borough, Alaska Ordinance No. FY2021-26 Oe1et'OR Red, Str*keout Page 1 of 2 Insertion — Bold Blue Page 5 oefrMon 1 FY2021-26 Amending the Budget Due Date 45 William Roberts, Mayor 46 47 48 VOTES: 49 Ayes: 50 Noes: Kodiak Island Borough, Alaska BetetiOR Red, tFikeeut Insertion — Bold Blue Ordinance Nd. FY2021-26 Amending the Budget Due Date AGENDA ITEM #2.a. Alise L Rice, Borough Clerk Ordinance No. FY2021-26 Page 2 of 2 Page 6 oefrMon 1 AGENDA ITEM #2.b. KODIAKISLANDBOROUGH Finance Department MEMORANDUM TO: Michael Powers, Borough Manager FROM: Dora Cross, Finance Director DATE: July 29, 2020 SUBJECT: Update of Mr. Roberts prior memo regarding alternate revenue sources As requested, I have reviewed Mr. Roberts prior memo dated March 2017, which is attached, regarding alternate revenue sources for the borough. Although many of the items on Mr. Roberts' list are still current, I have updated his list and added some additional items and information. As well as including the indicated attachments in the body of the memo, I have also included the `Alaska Tax Facts' from the Alaska Office of the State Assessor's webpage and a portion of their `Alaska Taxable 2019' annual compilation report for municipal comparison information. List of Potential Revenue Sources (details to follow) • Change the severance tax rate.* • Add an ad valorem tax on commercial vessels.* • Add a per keel length tax on commercial vessels.* • Add an excise tax or sales tax on alcohol.* • Remove or reduce optional exemptions from personal property.* • Add a gross receipts tax.* • Add a general borough sales tax.* • Add a per head school tax (checking legality) • Increase in fees. • Change the excise tax rate on tobacco.* • Change the excise tax on rate on marijuana.* • Change the ad valorem tax on motor vehicles.* * Indicates it affects the MATR (maximum allowable tax revenue) calculations. Severance tax rate: Currently the local severance tax is tied to the mill rate and is 10.75 mills or 1.075% and generated $1.491 M in 2015. A 2% tax would generate additional revenue of just over $1,000,000. • Tax collections in FY2019 totaled $1,206,697; FY2020 (as of 7/29) is $1,127,716. • The assembly debated a flat rate and made the decision to keep it tied to the mill rate during their June 2019 budget process. Page 7 of 31 Alternative Revenue Sources - Memo AGENDA ITEM #2.b. Ad Valorem Tax on Commercial Vessels: 2015 was our last year for tracking vessels and fishing gear and we carried a full and true value of $219,125,800. At 10.75 mills the tax levy was $2,355,709; vessel value $190,127,400, and gear value $29,008,400. It must be stressed that we did not assess vessels or gear but required owners to estimate and report those values. If this tax were to be levied, we would need to train an assessing employee in boat valuation. Per Foot Tax on Vessels: In 2015 the total vessel keel length was roughly 25,119 feet and was taxed at $1/foot. This tax was eliminated due to the administration costs outweighing the revenues generated at the $/foot rate. If the per foot tax were raised to $50/foot the tax generated would be $1,255,955 and at $100/ foot it would be $2,511,910. Sales or Excise or Tax on Alcohol: Taxing alcohol is a more involved process and we would need to have a sales tax on more than one item. In this case, we do have a 5% transient accommodations tax (bed tax), which is basically a sales tax. We would also need to submit the sales tax question to the voters for approval. For an excise tax, which does not require submitting a question to the voters, we could charge a tax on the wholesale value at the point of delivery to the retailer. There are some court cases covering this. A very rough guesstimate would be an addition $400,000-$500,000 in alcohol tax revenues. Option Exemption on Personal Property: The Ordinance exempting the first $20,000 of personal property was approved in FY2011. For 2015, the effect of exempting the first $20,000 in personal property meant a revenue loss of $188,000; the ad valorem revenue loss for aircrafts was $39,000. Gross Receipts Tax: A gross receipts tax is basically an excise tax on all sales and services. The tax is applied to the owner of a business and is based on their gross receipts with no deductions for cost, labor, etc. I have reviewed some states with a gross receipts tax and it is very straight forward. Some states like Nevada have various tax rates for differing industries. They also have a non -tax limit of $4M. If we lowered the non -tax limit to say $500,000 we would be only taxing larger corporations, such as fish processing plants. How much revenue this would generate is difficult to discover. The city sales tax could be used as a guideline but they stop charging tax after $750. One scenario is to look just at fish processing plants (the tax could not legally be that limiting, but for revenue estimates, it is a beginning). The ex -vessel value of fish in 2015 was $137.5M. Just using that value at, a 1 % tax would generate $1.37M and a'/2% would generate $687,500. This demonstrates that a broad gross receipts tax could generate well in excess of $1.5 to $2M. General Borough Sales Tax: A general sales tax would also need to be approved by the voters and has been voted down twice in Mr. Roberts history in the borough. The city generates about $1.4M per percent of tax with their present structure which has a $750 taxable limit. If we were to structure a sales tax it would be best to follow the city's model for the ease of retailers. I would expect only slightly higher revenue borough - wide, as there are fewer retailers and service providers that are outside of the city limits. Page 8 of 31 Alternative Revenue Sources - Memo AGENDA ITEM #2.b. Per Head School Tax: Currently there is a bill in the State house to raise a school tax as part of a general income tax. It does not appear that the borough can institute a per head school tax on its own. Increasing Fees: An increase in fees and permits would help fund those departments that have fees, most notably the building department. • The assembly debated increasing fees in June 2020 and did make decisions to change some fees. These fees are reviewed and authorized annually by the assembly. Excise Tax on Tobacco: An excise tax on tobacco and tobacco products was levied in 2018. The current tax rate is $0.05 per cigarette and 25% of the wholesale price of tobacco products brought into the borough. • Tax collections in FY2019 totaled $423,979; FY2020 (as of 7/29) are $275,499. • There is an ordinance currently being considered by the assembly to raise the tax rate to $0.075 per cigarette and to 37.5% for other tobacco products. The ordinance also includes vaping products which were previously excluded from taxation. Excise Tax on Marijuana: An excise tax on marijuana cultivation was enacted in 2017. The current tax rate is 20% of the per -ounce tax imposed by the state of Alaska. • Tax collections in FY2019 totaled $1,465; FY2020 (as of 7/29) are $1,449. Ad Valorem Tax on Motor Vehicles: The current tax structure was last changed with Ordinance FY2006 (attached) and taxes vehicle years 2007 and older. For comparison the tax rates for the Ketchikan Gateway Borough and the Municipality of Anchorage are attached. • Tax collections in FY2019 totaled $220,392; FY2020 (as of 7/29) are $181,620. Respectfully, Dora Cross Page 9of31 Alternative Revenue Sources - Memo AGENDA ITEM #2.b. KODIAK ISLAND BOROUGH Assessing Department MEMORANDUM TO: Michael Powers, KIB Manager FROM: Bill Roberts, KIB Assessor DATE: March 28, 2017 SUBJECT: Preliminary research in to alternate revenue sources. Michael, As requested I have been researching revenue sources for the borough, other than an increase of the mill rate on property owners. Following is a list of the potential revenue sources I am investigating: 1. RAISE FISH AND SEVERANCE TAX TO A FLAT 2% 2. BRING BACK A TAX ON COMMERCIAL VESSELS EITHER AD VALOREM OR A REASONABLE AMOUNT PER KEEL LENGTH, SAY $50 PER FOOT. 3. SIN TAX ON TOBACCO AND ALCOHOL 4. REVIEW OPTIONAL EXEMPTIONS FROM PERSONAL PROPERTY TAX, I.E. EXEMPTION OF INVENTORIES, FIRST $20,000, FISHING GEAR, AIRPLANES, ETC. 5. GROSS RECEIPTS TAX 6. A GENERAL BOROUGH SALES TAX 7. A PER HEAD SCHOOL TAX (CHECKING LEGALITY) 8.. INCREASING FEES TO COVER ACTUAL COSTS, I.E., BUILDING PERMITS, ZONING PERMITS, etc. Raising fish tax to a flat rate of 2%: Currently the raw fish and severance tax is tied to the mill rate an d is 10.75 mills or 1.075% and generated $1.491 M in 2015. A 2% tax would generate an additional revenue of just over $1,000,000. Commercial Vessel Ad Valorem Tax: Our last year for tracking vessels and fishing gear, 2015, we carried a full and true value of $219,125,800. At 10.75 mills the tax liability is $2,355,709.85. The breakdown in value is: Vessel Value $190,127,400, Gear $29,008,400. It must be stressed that these are owner supplied values as we did not tax vessels or gear, but required owners to report estimated values. If this tax were to be levied, we would need to train a current KIB appraiser in boat valuation. Page 10 of 31 Alternative Revenue Sources - Memo AGENDA ITEM #2.b. Per Foot Tax on Vessels: In 2015 the total vessel keel length taxed at $1/foot was roughly 25,119 feet. If the per foot tax were raised to $50/foot the tax generated would be $1,255,955 and at $100/ foot it would be $2,511,910. Tax on Tobacco and Alcohol: We can place an excise tax on tobacco. Sitka and Anchorage tax on a mill rate of about 120 mills per cigarette. I feel that it would be easier to craft a tax based on five cents per cigarette. Sitka, which is most similar to Kodiak in total population generates a revenue of just under $400,000 with a mill rate of 123.1 mills per cigarette. By charging the tax to the supplier as an excise tax, this would not require a vote as a sales tax. Alcohol is more involved and we can charge a sales tax as long as we also have a sales tax on another item. In this case we do have a 5% bed tax, which is basically a sales tax. We would need to have a vote if it is to be a sales tax. It is possible that we could charge an excise tax at delivery to the retailer, which would not require a vote. There are some court cases covering this. A very rough guesstimate would be an addition $4-500,000 in alcohol tax. We would be taxing the wholesale value as an excise tax. Removing Option Exemption for first $20,000 of personal property: Based on the spreadsheet that we used to determine the effect of exempting the firs $20,000 in personal property, the revenue loss was $188,000. The ad valorem tax loss in aircraft was $39,000. Gross Receipts Tax: A gross receipts tax is basically an excise tax on all sales and services. The tax is applied to the owner of a business and is based on their gross receipts with no deductions for cost, labor, etc. I have reviewed some states with a gross receipts tax and it is very straight forward. Some states like Nevada have various tax rates for differing industries. They also have a non -tax limit of $4M. If we lowered the non -tax limit to say $500,000 we would be only taxing larger corporations, such as fish processing plants. How much revenue this would generate is difficult to discover. The city sales tax could be used as a guideline but they stop charging tax after $750. One scenario is to look just at fish processing plants (the tax could not legally be that limiting, but for revenue estimates, it's a beginning). The ex -vessel value of fish in 2015 was $137.5M. Just using that value at 1 % is $1. How much revenue this would generate is difficult to discover. The city sales tax could be used as a guideline but they stop charging tax after $750. One scenario is to look just at fish processing plants (the tax could not be that narrow, but for revenue estimates, it's a beginning). The ex -vessel value of fish in 2015 was $137.5M. Just using that value at 1 % is $1.37M at 1/2% is$687,500. This demonstrates that a broad gross receipts tax could generate well in excess of $1.5 to 2M. A general Borough Sales Tax: A general sales tax would need to be approved by the voters and has been voted down twice in my history in the borough. The city generates about $1.4M per percent of tax with their present structure which has a $750 limit that can be taxed. If we were to structure a sales tax it would be best to follow the city's model for ease of retailers. I would expect only slightly higher revenue borough -wide, as there are fewer retailers and service providers that are outside of the city limits. Page 11 of 31 Alternative Revenue Sources - Memo AGENDA ITEM #2.b. A Per Head School Tax: Currently there is a bill in the house to raise a school tax as part of a general income tax. It does not appear that the borough can institute a per head school tax on its own. Increasing Fees: An increase in fees would help fund those departments that actually have fees, most notably the building department. A recent move to increase these fees was voted down by the assembly, but if opinions have changed we can dust off the numbers from the report presented to the assembly by Bob Pederson on building fees. We could also raise fees for zoning compliance and subdivisions. Respectfully Bill Roberts Page 12 of 31 Alternative Revenue Sources - Memo AGENDA ITEM #2.b. Introduced by. Manager Gifford Requested by Manager Gifford Drafted by. Rnance Department Introduced: 03/02/2006 Public Hearing: 0311612006 Adopted: 0311 &2006 KODIAK ISLAND BOROUGH ORDINANCE NO. FY 2006-09 AN ORDINANCE OF THE KODIAK ISLAND BOROUGH AMENDING KODIAK ISLAND BOROUGH CODE OF ORDINANCES TITLE 3 REVENUE AND FINANCE CHAPTER 3.32 MOTOR VEHICLE REGISTRATION AND TAX SECTION 3.32.010 ESTABLISHED AND SECTION 3.32.020 ALLOCATION AND BY ADDING SECTION 3.32.030 FEE IMPOSED TO INCREASE THE MOTOR VEHICLE REGISTRATION TAX WHEREAS, in Ordinance 79-42-0, and recorded in the borough code section 3.32.010 coverage was elected under the biannual motor vehicle registration tax in lieu of ad valorem property tax as established in AS 28.10.431; and WHEREAS, the administration filed a written notice on December 7, 2005 informing the department of motor vehicles of the borough's intent to change the tax charged for vehicles registered on or after January 1, 2007; and WHEREAS, administration must forward a copy of this ordinance to the appropriate agency on or before April 1, 2006; and WHEREAS, the borough may change the tax under this section no more than once every two years per AS 28.10.4310); and WHEREAS, the use of the biannual motor vehicle registration tax is allocated to the area wide school system per borough code section 3.32.020; and WHEREAS, if the borough adopts the same fee schedule now used by another Alaska government already in the state system their one-time fee will not be charged for the change, and WHEREAS, the revenue collected will increase by approximately 50% or $100,000 in a fiscal year; and WHEREAS, Kenai Peninsula Borough has the lowest rate of all municipality/borough which have elected to set their own tax rates; and NOW, THEREFORE, BE IT RESOLVED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THAT: Section 1: This ordinance is of a general and permanent nature and shall become a part of the Kodiak Island Borough Code of Ordinances. Section 2: Title 3 Revenue and Finance Chapter 3.32 Motor Vehicle Registration and Tax Section 3.32.010 Established, and Section 3.32.020 Allocation are hereby amended and Section 3.32.030 Fee Imposed is hereby added as follows: Kd'+ak Islami Borougurces -F Ordinance No. i 2006-09 Alternative Revenue ounces - emo Page 1 of 2 AGENDA ITEM #2.b. Chapter 3.32 MOTOR VEHICLE REGISTRATION TAX Sections: 3.32.010 Established. 3.32.020 Allocation. 3.32.030 Fee imposed. 3.32.010 Established. The borough hereby elects coverage under the bi-annual motor vehicle registration tax established in AS 28.10.431 et seq. 3.32.020 Allocation. The use of the arffma.4motor vehicle registration tax is allocated to the area wide school system. 3.32.030 Fee imposed. The rate imposed is reflected on the following_ table: Proposed rate for 2007 A Psgr, MH, PK B Motorcycle & Non -Comm Trlr C Taxi & Commercial 0 - 5000 lbs D Tour Buss & Comm 5,001 - 12,000 lbs E Commercial 12,001 - 18,000 lbs F Commercial 18,001 & over G Dealer ATTEST: Year's old 1 2 3 4 5 6 7 8 9 2007 2006 2005 2004 2003 2002 2Q01 2000 1999< $140 $140 $120 $100 $ 80 $ 60 $ 50 $ 40 $ 30 20 20 18 16 14 12 10 10 10 150 150 930 110 90 70 60 50 40 200 200 180 160 140 120 100 75 50 450 450 410 370 330 290 250 230 210 550 550 500 450 400 350 300 250 220 100 100 100 100 100 100 100 100 100 ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THIS SIXTEENTH DAY OF MARCH 2006 Judith A. Nielsen, CMqjorough Clerk KODIAK ISLAND BOROUGH Jek6rne M. Selby, B r A1ternatA090eW9N9R%hMemo Ordinance No. - Page 2 of 2 AGENDA ITEM #2.b. 4.45.030 Annual motor vehicle registration tax. (a) There is levied an annual motor vehicle registration tax within the borough pursuant to the provisions of AS 28.10.431 and as such statute may hereafter be amended, revised or replaced. The rate of such tax shall be based upon the age of vehicles as determined by model year according to the following schedule: Page 15 of 31 Alternative Revenue Sources - Memo Tax According to Age of Vehicle Since Model Year 8th Motor Vehicle 1st 2nd 3rd 4th 5th 6th 7th or Over (1) Motorcycle $10 $9 $8 $7 $5 $3 $2 $2 (2) Vehicles specified in 76 63 51 38 25 20 13 9 AS 28.10.421(b)(1) (3) Vehicles specified in 76 63 51 38 25 20 13 9 AS 28.10.421(b)(3) (4) Vehicles specified in AS 28.10.421(c)(1) -- (4) 5,000 pounds or less 76 63 51 38 25 20 13 9 5,001 — 12,000 pounds 127 101 76 63 51 38 25 13 12,001 — 18,000 pounds 265 227 202 176 151 126 113 100 18,001 pounds or over 328 277 239 202 176 151 126 100 (5) Vehicles specified in 127 101 76 63 51 38 25 13 AS 28.10.421(b)(4) (6) Vehicles specified in 10 9 8 7 5 3 2 2 AS 28.10.421(b)(6) (7) Vehicles specified in 76 63 51 38 25 20 13 9 AS 28.10.421(d)(8) (8) Vehicles specified in 76 63 51 38 25 20 13 9 AS 28.10.421(b)(2) Page 15 of 31 Alternative Revenue Sources - Memo AGENDA ITEM #2.b. Motor Vehicle Tax According to Age of Vehicle Since Model Year 8th 1st 2nd 3rd 4th 5th 6th 7th or Over (9) Vehicles eligible for dealer plates 51 under AS 28.10.421(d)(9) (b) All money received by the borough under this section and AS 28.10.431, and as such statute may hereafter be amended, revised or replaced, which is not utilized under subsection (c) of this section, shall be allocated by the borough for city, borough, and service area purposes within the borough in the proportions yielded by dividing the total borough population into the population of each of their respective taxing districts, and multiplying the result of each taxing district by the mill levy of such taxing district upon the property in that district for the fiscal year. Population shall be established by the latest figures determined by the Ketchikan Gateway Borough planning department and accepted by the State of Alaska Department of Community and Regional Affairs for allocation of state revenue sharing funds or other reliable data. (c) Subject to assembly appropriations, up to fifty (50) percent of the money received by the borough under this section and AS 28.10.431, and as such statute may hereafter be amended, revised or replaced, shall be allocated by the borough to fund a vehicle disposal system providing an enforcement program for impoundment and disposal of abandoned or junk vehicles and a program for voluntary disposal of vehicles. [Ord. No. 1529, §1, 07-06-09; Ord. No. 1005, §2, 12-2-96; Ord. No. 546, §3,12-2-85. Code 1974 §45.11.011.] Page 16 of 31 Alternative Revenue Sources - Memo AGENDA ITEM #2.b. Chapter 12.07 - MOTOR VEHICLE REGISTRATION TAX 12.07.010 - Tax levy on motor vehicle registration. Tax levy. There is levied in the municipality a motor vehicle registration tax pursuant to the provisions of AS 28.10.431 (Biennial Motor Vehicle Registration Tax) as such statute may be hereafter amended, revised, or replaced. Pursuant to AS 28.10.4310) the municipality modifies the scheduled amount of tax imposed under subsections (b) and (1) of the statute according to the following schedules: A. There is a biennial tax levied in the municipality upon motor vehicles subject to the registration fee under AS 28.10.411 and 28.10.421. The biennial tax shall be according to the following schedule: BIENNIAL TAX ACCORDING TO AGE OF VEHICLE SINCE MODEL YEAR 8 to VEHICLE 1 2; 3 4.5 6 7 .TYPE st nd rd th th th ,h or over 1. Motorcycle 20 120 20 20 20 20 20 20 2. Vehicles specified in AS 28.10.421(b)(1): Noncommercial passenger 150 140-130 120 110 100 90 ' 70 vehicles, motor homes, and low speed vehicles 3. Vehicles specified in AS r 28.10.421(b)(3): Taxicabs 150 140 130 120 110 100 90 C70 i 4. Vehicles specified in A5 1 28.10.421(c)(1)—(4): commercial vehicles for hire based on unladen + weight of 7 a. 5,000 pounds or less 15C 140 130 120 110 100 90 170 b. 5,001-12,000 pounds 12201220122012201220111011101110 c. 12,001-18,000 1330 330 330 3301330 170 170 170 pounds d. 18,001 pounds and 500 464 428 392 356 320 i 284 250 Page 17 of 31 Alternative Revenue Sources - Memo aver M 5 5. Vehicles specified in AS , 28.10.421(b)(4): Motor i buses with a seating ' capacity for 20 or more persons and used :150 140 130 120 110 100 90 ,70 exclusively for commercial - i purposes in the i transporting of visitors or I ; tourists i f 6. Vehicles specified in AS 28.10.421(j): Noncommercial trailers, including rental trailers 7. Vehicles specified in AS 28.10.421(d)(8): Amateur mobile radio station vehicles B. Vehicles specified in A5 28.10.421(b)(2): Pick up trucks or vans not exceeding 10,000 pounds unladen weight and not registered in the name of a company or business 9. Vehicles eligible for dealer plates under AS 28.10.421(d)(9) 20 [20 120 120 i20 120 150 140 130 1201 110 100 I 20 '20 •M Q7 150 140 130 120'110 100 90 '70 AGENDA ITEM #2.b. B. Notwithstanding subsection A of this section, there is an annual tax levied in the municipality upon motor vehicles specified in AS 28.10.421(c) and subject to the registration fee under AS 28.10.411 and AS 28.10.421 if the owner elects to register the vehicle annually as allowed under AS 28.10.108(f). The annual tax under this subsection shall be according to the following schedule: Page 18 of 31 Alternative Revenue Sources - Memo AGENDA ITEM #2.b. ANNUAL TAX ACCORDING TO AGE OF VEHICLE SINCE MODEL YEAR MOTOR VEHICLE i it 2 "tl �3'd 4 0% 5 an 6 nn 7 nn 8 " or over 1. 5,000 pounds or less 75 70 65 60 55 50 45 35 2. 5,001-12,000 pounds 110 .110 1110 110 110 55 55 155 3. 12,001-18,000 pounds 165 1155 165 165 165 85 85 85 4. 18,001 pounds and x250 232 214 196 178 16Q 142 1125 over C. Should a motor vehicle for any reason be subject to an annual tax in lieu of a biennial tax but is not described in subsection B., then the annual tax shall be half of the biennial tax rate for that vehicle as specified in subsection A. D. Reserved. E. Permanent registration—Trailers. The municipality elected to allow permanent registration of trailers under AS 28.10.4210). Pursuant to AS 28.10.4310), there is established a tax on any trailer that is permanently registered under AS 28.10.4210). The tax levied under this subsection is equal to the biennial rate established in subsection A., and is payable only once at the time a trailer is permanently registered in the municipality_ The option for permanent registration under this subsection shall be available on January 1, 2017 and thereafter. (AO No. 2010-81(S-1), § 16, 12-7-2010; AO No. 2011-30, § 1, 3-8-11, eff. 1-1-12; AO No. 2014- 146 , § 2, 12-2-14) Page 19 of 31 Alternative Revenue Sources - Memo AGENDA ITEM #2.b. Department of Commerce, Community, and Economic Development DIVISION OF COMMUNITY AND REGIONAL AFFAIRS SOA / DCCED / DCRA / Office of the State Assessor / Alaska Tax Facts OFFICE OF THE STATE ASSESSOR Alaska Tax Facts • Alaska is the largest of the United States; however, for all its vastness only a small portion of the land mass is subject to a property tax. • There are approximately 321 communities in Alaska, many of which still remain unincorporated. • There are 165 incorporated municipalities (local governments), 19 of which are incorporated into boroughs (boroughs are a rough equivalent to counties) and the remainder are incorporated as cities. • Of the 19 boroughs in Alaska, only 15 levy a property tax. • Only 9 cities located outside of boroughs levy a property tax; therefore, only 24 municipalities in Alaska (either cities or boroughs) levy a property tax. • One hundred and seven municipalities (reporting) levy a general sales tax. Sales tax rates range from a low of 1 % to a high of 7%. • The "typical" sales tax rates within Alaska range from 2%-5%. • Other types of local taxes levied are raw fish taxes, hotel/motel "bed" taxes, severance taxes, liquor and tobacco taxes, gaming (pull tabs) taxes and fuel transfer taxes. • In 2014, local governments generated approximately $1.66 billion in revenues from property taxes, sales taxes and other taxes. Of that amount, $1.34 billion was from property taxes. • Oil & Gas properties, such as the Trans -Alaska Pipeline, contribute a little over $426 million in property taxes to local government. • Alaska exempts from property taxes the first $150,000 of assessed value for all senior citizens (65 years of age and over) and disabled veterans (50% or more service connected disability). • The average assessed value exempted from taxes for senior citizens and disabled veterans is $139,393 which equated to a tax exemption of $1,965 for 2017. • In 2014, the total full value for all municipalities was $108.6 billion (including TAPS). For 2014 the statewide population was 736,399, which means that the per -capita full value was $147,519. • The average per -capita property tax paid in all municipalities, excluding oil and gas properties, was $1,435. • There is no statewide sales tax levied. • There is no personal state income tax. Page 20 of 31 Alternative Revenue Sources - Memo AGENDA ITEM K1.6. LAS%KA TAXABLE 2019 Municipal Taxation - Rates and Policies • Full Value Determination REPORT January, LIX 2020 Alternative Revenue Sources - Memo r Sandra Moller, Director nunity, Division of Community & Regional Affairs https://www.commerce.alaska.gov/web/dcra/ ov/web/ Page 21 of 31 AGENDA ITEM #2.b. Table 1 This table lists only those municipalities which levy a sales, severance, property or other type of local tax. Municipality Property Tax Sales Tax Other Tax (1) Total Tax Population Tax Per Capita North Slope Borough $397,384,995 $0 $0 $397,384,995 10812 $36,754 Egegik $0 $0 $1,048,978 $1,048,978 77 $13,623 Pilot Point $0 $1,080,509 $0 $1,080,509 83 $13,018 Valdez $44,672,851 $0 $449,733 $45,122,584 3903 $11,561 False Pass $0 $69,847 $379,545 $449,392 39 $11,523 Skagway $1,951,208 $8,882,220 $189,806 $11,023,234 1088 $10,132 Bristol Bay Borough $5,184,784 $0 $2,441,425 $7,626,209 879 $8,676 Whittier $615,409 $591,889 $405,363 $1,612,661 245 $6,582 Unalaska $6,379,040 $10,911,874 $5,040,476 $22,331,390 4333 $5,154 Saint Paul $0 $342,997 $1,120,918 $1,463,915 390 $3,754 Yakutat $381,951 $1,176,770 $302,036 $1,860,757 523 $3,558 Juneau $51,106,286 $50,693,173 $5,820,168 $107,619,627 32247 $3,337 Adak $0 $550,992 $361,111 $912,103 296 $3,081 Seward $1,466,060 $5,326,437 $556,065 $7,348,562 2584 $2,844 Haines Borough $2,994,265 $3,499,333 $221,918 $6,715,516 2480 $2,708 Nome $3,638,860 $5,742,795 $135,149 $9,516,804 3662 $2,599 Dillingham $2,596,292 $2,684,535 $717,833 $5,998,660 2382 $2,518 Cordova $2,447,089 $3,127,512 $298,337 $5,872,938 2360 $2,489 Sitka $6,681,724 $12,710,614 $1,766,512 $21,158,850 8652 $2,446 Kodiak $1,187,013 $13,068,105 $227,744 $14,482,862 5942 $2,437 Wasilla $0 $20,989,922 $0 $20,989,922 8801 $2,385 North Pole $602,892 $3,864,533 $539,495 $5,006,920 2101 $2,383 Hoonah $0 $1,705,089 $132,098 $1,837,187 789 $2,329 King Cove $0 $758,638 $1,335,516 $2,094,154 920 $2,276 Ketchikan $5,696,627 $12,489,754 $234,854 $18,421,235 8157 $2,258 Craig $655,931 $1,641,745 $144,994 $2,442,670 1095 $2,231 Wrangell $1,802,428 $3,532,025 $46,687 $5,381,140 2426 $2,218 Denali Borough $0 $0 $3,940,728 $3,940,728 1825 $2,159 Petersburg Borough $3,347,614 $3,192,021 $332,763 $6,872,398 3198 $2,149 Anchorage $547,004,387 $0 $79,872,372 $626,876,759 295365 $2,122 Homer $3,220,914 $8,062,653 $0 $11,283,567 5443 $2,073 Akutan $0 $1,985,328 $0 $1,985,328 994 $1,997 Soldotna $312,470 $7,851,446 $0 $8,163,916 4327 $1,887 Seldovia $266,201 $144,738 $0 $410,939 220 $1,868 Pelican $74,938 $45,430 $0 $120,368 68 $1,770 Matanuska- Susitna Bor $153,722,205 $0 $11,353,176 $165,075,381 105743 $1,561 Kenai $3,598,388 $7,120,952 $0 $10,719,340 6999 $1,532 Aleutians East Borough $0 $0 $4,530,157 $4,530,157 2959 $1,531 Kenai Peninsula Boroul $57,165,461 $32,265,467 $0 $89,430,928 58471 $1,529 Ketchikan Gateway Bo $9,195,716 $9,723,960 $1,452,039 $20,371,715 13843 $1,472 Kodiak Island Borough $16,799,869 $0 $1,911,215 $18,711,084 13136 $1,424 Bethel $0 $6,593,004 $1,868,800 $8,461,804 6135 $1,379 16 Page 22 of 31 Alternative Revenue Sources - Memo AGENDA ITEM #2.b. Palmer $1,294,866 $7,279,716 $0 $8,574,582 6223 $1,378 Sand Point $0 $742,071 $473,681 $1,215,752 911 $1,335 Lake and Peninsula Bo $0 $0 $1,997,044 $1,997,044 1663 $1,201 Fairbanks North Star B $105,566,906 $0 $4,702,403 $110,269,309 97121 $1,135 Klawock $0 $763,238 $16,335 $779,573 777 $1,003 Aleknagik $0 $105,931 $139,209 $245,140 251 $977 Nenana $244,018 $94,277 $0 $338,295 363 $932 Gustavus $0 $418,216 $82,855 $501,071 554 $904 Kotzebue $0 $2,099,262 $681,564 $2,780,826 3121 $891 Fairbanks $19,118,252 $0 $7,454,389 $26,572,641 31668 $839 Thorne Bay $0 $423,099 $13,939 $437,038 524 $834 Larsen Bay $0 $48,233 $4,188 $52,421 80 $655 Unalakleet $0 $420,356 $11,705 $432,061 722 $598 Chignik $0 $0 $55,453 $55,453 98 $566 Galena $0 $173,026 $67,473 $240,499 460 $523 Nuiqsut $0 $0 $208,344 $208,344 481 $433 Houston $408,005 $329,076 $170,467 $907,548 2100 $432 Port Alexander $0 $19,934 $2,507 $22,441 55 $408 Emmonak $0 $349,523 $0 $349,523 867 $403 Bettles $0 $0 $4,284 $4,284 11 $389 Russian Mission $0 $123,753 $0 $123,753 340 $364 Teller $0 $82,945 $390 $83,335 237 $352 Hooper Bay $0 $396,869 $19,975 $416,844 1247 $334 Buckland $0 $170,677 $0 $170,677 511 $334 Kake $0 $166,097 $30,838 $196,935 601 $328 Shaktoolik $0 $87,037 $0 $87,037 275 $316 Saint Michael $0 $124,223 $0 $124,223 398 $312 Togiak $0 $141,477 $133,239 $274,716 900 $305 Saint Mary's $0 $149,500 $20,197 $169,697 566 $300 Fort Yukon $0 $146,673 $0 $146,673 540 $272 Saxman $0 $107,556 $0 $107,556 421 $255 Cold Bay $0 $0 $15,715 $15,715 63 $249 Scammon Bay $0 $147,785 $0 $147,785 598 $247 Elim $0 $87,143 $0 $87,143 368 $237 Kotlik $0 $114,864 $38,054 $152,918 655 $233 Marshall $0 $95,514 $0 $95,514 437 $219 Napakiak $0 $75,142 $0 $75,142 344 $218 Point Hope $0 $162,421 $0 $162,421 749 $217 Manokotak $0 $3,466 $100,479 $103,945 508 $205 Alakanuk $0 $146,535 $0 $146,535 728 $201 Mekoryuk $0 $24,667 $20,000 $44,667 223 $200 Mountain Village $0 $154,575 $0 $154,575 804 $192 Selawik $0 $158,210 $0 $158,210 845 $187 Noorvik $0 $116,043 $0 $116,043 629 $184 Pilot Station $0 $114,625 $0 $114,625 640 $179 Aniak $0 $51,935 $33,937 $85,872 485 $177 Deering $0 $29,344 $0 $29,344 168 $175 17 Page 23 of 31 Alternative Revenue Sources - Memo AGENDA ITEM #2.b. Quinhagak $0 $130,140 $0 $130,140 747 $174 Kachemak $84,904 $0 $0 $84,904 511 $166 Brevig Mission $0 $66,496 $0 $66,496 462 $144 Stebbins $0 $90,724 $0 $90,724 646 $140 Old Harbor $0 $24,233 $6,183 $30,416 224 $136 Diomede $0 $13,048 $0 $13,048 99 $132 Kwethluk $0 $107,073 $0 $107,073 819 5131 Shishmaref $0 $74,744 $0 $74,744 598 $125 Hydaburg $0 $49,156 $0 $49,156 398 $124 Savoonga $0 $90,000 $0 $90,000 751 $120 Wales $0 $19,478 $0 $19,478 165 $118 Tanana $0 $23,770 $0 $23,770 204 $117 Koyuk $0 $39,981 $0 $39,981 350 $114 Ambler $0 $30,887 $0 $30,887 287 $108 Angoon $0 $43,939 $57 $43,996 410 $107 Chevak $0 $113,669 $0 $113,669 1074 $106 White Mountain $0 $20,078 $0 $20,078 194 $103 Nunam Iqua $0 $22,699 $0 $22,699 225 $101 Eek $0 $35,000 $0 $35,000 347 $101 Northwest Arctic Boro $0 $0 $771,665 $771,665 7791 $99 Kivalina $0 $41,438 $0 $41,438 442 $94 Gambell $0 $67,330 $0 $67,330 722 $93 Shungnak $0 $25,496 $0 $25,496 274 $93 Tenakee Springs $0 $12,599 $724 $13,323 144 $93 Anderson $0 $0 $21,749 $21,749 269 S81 Kobuk $0 $8,987 $0 $8,987 144 S62 Kiana $0 $25,058 $0 $25,058 421 $60 Napaskiak $0 $19,281 $0 $19,281 433 $45 Ouzinkie $0 $6,733 $0 $6,733 154 $44 McGrath $0 $0 $10,856 $10,856 310 $35 Chefornak $0 $14,725 $0 $14,725 442 $33 Toksook Bay $0 $22,265 $0 $22,265 683 $33 Anaktuvuk Pass $0 $0 $2,340 $2,340 376 $6 Nightmute $0 $769 $0 $769 301 $3 Nondalton $0 $272 $0 $272 129 S2 Statewide: 124 Taxing Municipalities $1,458,870,8191 $260111409 $146,490,2491 > >> $1,865,472,4781 736 239 $2 534 > (1) Other Tax includes such taxes as bed tax, alcohol tax, raw fish tax, etc. Average Statewide per -capita revenue (including North Slope Borough) $2,533.79 Average Statewide per -capita revenue (Excluding North Slope Borough) $2,023.76 1$ Page 24 of 31 Alternative Revenue Sources - Memo AGENDA ITEM #2.b. O O O a faY V p V oa0 O N fA O p p O O V b O O V 00 P O C. O. O O. 0 0 0 0 0 0 O. O O r F N V3 A E C O O O m 0 0 O O O O O O O 0 0 0 0 O O O O O O. O. .. h m � O. O O. O. 0 0 � m -J v �a V3 e e o a 3 _ a � o '_C o 0 0 0 0 0 0 0 0 0 F o p o v a w d Wa a z ; o W a O G N fis P m N O to O u a Q 0 o e o o e e o F ;z a v � F e O G zs ss ss Fn cs .a a rn T T bs .a �n � o� o M V ..s v3 ss » zs ss zs F» zs zs ss sv � N v3 bs v3 v> v> � m zs ss �.s ss sz Da F y O � F N � F d n � 0 0 0 0 0 0 o rn o 0 0 0 0 0 0 o 0 0 0 0 0 0 0 0 0 v d as U o e A W as uF C > F 9 m N M � N FaY � FSY � � � b r to h b Vi rvi M P 0\ zs Vi F5 a T r N s9 N N vi vi O ^ r fi9 f5 d e e a N o a e O o e O m o �n 0 0 O 0 0 oo 0 m 0 m 0 0 V V a F 9 m T M '� m 69 0 0^ N OK W m O o N m O a F h � N 4�� a r/ai V V LOp O '� '� ,� .� � o � �C� sq .GdGs�'' �22 ,c � � � � `O � �o •a o .� � c S o � d° .�5 � � � .�°. = C = ro � .5 E o g o qo�q Page 25 of 31 Alternative Revenue Sources - Memo AGENDA ITEM #2.b. H 0 F� o M o o 0 o 0 0 0 0 0 0 0. o o. o o� 'WJ > �a FW e a e P C =a � C \ F $ Wa a F o 0 �a a z 0 0 0 0 0 0 0 0 00 C C C F; aa" a s> 0 0 = F ;a a m m c a F � � N F F � G � O 0 0 0 O O O 0 0 0 0 0 0 0 � N as U o �F � F N � 69 9 07 e a e o 0 0 0 o p o 0 0 o y e a � F m ° 77 M F y *1 O Z O V z J W '. z z z z z z z z z 0.°1 z O O Page 26 of 31 Alternative Revenue Sources - Memo AGENDA ITEM #2.b. �� d a O O O O O o 0 0 o O O O o 0 0 0 � 0 0 0 0 0 0. o 0 0 0 0 0 0 0 o- rn o H 0 F 00 0 0 0 0 0 0 0 0 0 0 0 o c c c O O O o 0 o c c c. o. o o. o c o c o o. o o- o o- o �a F =a ry 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 o v o 0 F N �p ern Wa a o 0 F o �a o a N a 69 69 O fA O O fA 69 O fA 69 O O fA fA O� O - O O - - 0 - 0 0 - - O - O O - - O - O - O — 0 - 0 0 — — 0 0 — — 0 0 — — 0 0 - — 0 0 — — 0 0 — — 0 0 — - 0 0 0 — — — F p O C L .a" 0 F e a e c a m v ;a F v a v o Y a `o a F x \ a o � e F 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 D o w F o v � v3 ss .n » .n va sz ss cs » vi » ss » vi » ss .a va vi zs cs sv zs zv bs zs ds zs v3 ss ss vi sa vi sv v3 sv es � m ry > as u - o �F F 9 O C �D a b o0 z F 9 P7 �O O .-. � �n S .--�^ V T vmi O N N N ,-• O r r � � ^ O N O q� a 1� �n �O ^ O o0 W I N O � a 00 0000000e�oooe�amoo�Looe�e�o�=�eeoeoeeg�oe ooee N �Na�4 �� h a N e N m Page 27 of 31 Alternative Revenue Sources - Memo AGENDA ITEM #2.b. Table 3 As of January 1, 2019 The exemptions noted on this table are only those allowed under AS 29.45.050; mandatory exemptions are excluded. Other exemptions include such programs as Historical Properties, Volunteer EMS/Firefighter Exemptions, Habitat Protection, Economic Development or any other types of locally - adopted optional exemptions. These assessments do not include any taxable value assessed for oil & gas properties under AS 43.56. Percent of Tax Base Exempted is the sum of all locally authorized optional exemptions, divided by the total locally assessed value for that commuity. LOCALLY EXEMPTED VALUES"' Boroughs/Unified Municipalites $50,000 Residential AS 29.45.050(a) Community Purpose AS 29.45.050(b)(1)(A) Other Real Property Personal Property AS 29.45.050 (b)(2) Local AssessedTax Value Percent of Base Exempted Anchorage (Municipality of) $2,290,636,424 $32,684,441 $17,839,703 $2,056,580,550 $34,479,024,689 11.31% Bristol Bay Borough $2,383,600 $182,400 $270,600 $22,132,558 $376,934,535 6.21% Fairbanks North Star Borough $752,837,352 $18,444,283 $57,273,402 $1,814,925,524 $7,726,511,032 25.49% Haines Borough $0 $6,328,300 $640,900 $62,347,879 $363,775,393 16.01% Juneau (City & Borough) $0 $13,807,348 $0 $387,764,019 $5,015,770,882 7.41% Kenai Peninsula Borough $520,969,600 $70,132,010 $464,041,690 $925,200,660 $6,897,588,722 22.31% Ketchikan Gateway Borough $0 $5,362,300 $961,900 $217,152,967 $1,553,668,300 12.58% Kodiak Island Borough $0 $3,553,600 $3,211,607 $170,148,587 $1,421,544,275 11.07% Matanuska-Susitna Borough $0 $41,317,710 $365,027,019 $1,895,910,665 $9,618,340,669 19.31% North Slope Borough $24,498,600 $5,597,100 $2,818,800 $138,000 $1,112,424,328 2.89% Petersburg Borough $0 $0 $545,600 $97,144,704 $323,352,600 23.20% Sitka (City & Borough) $0 $20,546,800 (2) $6,346,900 $160,448,483 $1,070,703,478 14.89% Skagway (Municipality of) $6,242,790 $0 $14,842 $29,406,910 $357,846,238 9.06% Wrangell (City & Borough) $0 $0 $65,200 $68,014,621 $153,071,200 30.78% Yakutat (City & Borough) 1 $0 $0 $638,800 $26,329,621 $49,585,900 35.23% Total Boroughs (15) $3,597,568,366 $217,956,292 $919,696,963 $7,933,645,749 $70,520,142,241 15.2% LOCALLY EXEMPTED VALUES"' Cities $50,000 Residential AS 29.45.050(a) Community Purpose AS 29.45.050(b)(1)(A) Other Real Property Personal Property 29.45.AS b 2 Local AssessedAS Value Percent of Tax Base Exempted Cordova $0 $0 $0 $86,032,867 $214,831,421 28.60% Craig $0 $2,560,000 $0 $42,786,236 $116,869,100 27.95% Dillingham $0 $0 $6,366,500 $39,402,142 $224,728,900 16.92% Nenana $0 $0 $0 $13,997,875 $16,378,413 46.08% Nome $0 $0 $0 $80,630,647 $331,908,544 19.54% Pelican $0 $0 $0 $2,949,149 $10,705,367 21.60% Unalaska $0 $0 $4,943,052 $20,994,664 $680,116,688 3.67% Valdez $33,738,045 $6,845,100 $3,294,247 $102,086,472 $279,061,545 34.34% Whittier $0 $0 $0 $1,968,265 $87,162,764 2.21% Total Cities (9) $33,738,045 $9,405,100 $14,603,799 $390,848,315 $1,961,762,742 18.6% Statewide (24) $3,631,306,411 $227,361,392$934,300,762 1 $8,324,494,064 1 $72,481,904,983 (1) Exempt Values are actual assessed values established by the individual borough or city, estimates by the Office of the State Assessor or both. (2) Value from 2018. Alternative Revenue Sources - Memo 29 Page 28 of 31 AGENDA ITEM #2.b. Table 9A Senior Citizen and Disabled Veteran Property Tax Exemption History AS 29.45.030(e) - (i) Ten Year Performance Summary State law exempts real property owned and occupied as a permanent home by a resident, 65 years of age or older, or, by a disabled veteran with a 50% or greater service -connected disability, or by a widow/widower to or greater than the age of 60 of either of the two prior categories. The exemption applies to the first $150,000 of assessed valuation, and applicants must apply directly to their municipality. In 2002 legislation was passed which would allow municipalities to set its filing deadline; this legislation also allows for a 'one time filing" for the program. Program costs have exceeded funding levels from the state since 1986 resulting in prorating payments to eligible municipalities. The Alaska Legislature has not funded the reimbursement for the program since FY 1997, Tax Year 1996. Tax Year No. of Applications Total Exempt Approved Assessed Value Annual Value Percent Change Total Exempt Annual Tax Taxes Percent Change Average Exempt Value $$ Per. Applicant Average Exempt Tax $$ Per Applicant 2009 25,708 $3,483,073,314 4.5% $47,584,410 8.5% $135,486 $1,851 2010 27,049 $3,662,979,523 5.2% $49,749,270 4.5% $135,420 $1,839 2011 28,525 $3,885,771,533 6.1% $53,315,762 7.2% $136,223 $1,869 2012 30,166 $4,140,792,219 6.6% $56,749,783 6.4% $137,267 $1,881 2013 31,543 $4,349,226,843 5.0% $59,833,635 5.4% $137,882 $1,897 2014 33,656 $4,622,836,100 6.3% $62,437,787 4.4% $137,355 $1,855 2015 35,561 $4,908,123,508 6.2% $66,223,849 6.1% $138,020 $1,862 2016 37,455 $5,189,865,218 5.7% $70,685,645 6.7% $138,562 $1,887 2017 39,691 $5,535,326,136 6.7% $77,992,107 10.3% $139,460 $1,965 2018 41,340 $5,821,077,204 5.2% $84,684,847 8.6% $140,810 $2,048 2019 44,057 $6,158,469,460 5.8% $90,908,082 7.3% $139,784 $2,063 Note: The numbers reflect the total number of applicants and associated values and taxes for both senior citizens and disabled veterans participating in the exemption program. Alternative Revenue Sources - Memo 38 Page 29 of 31 AGENDA ITEM #3.a. KODIAKISL"D B OR O UGH Engin eesing & Fa ciE es Departtn en t AO —Manager's Comments DATE: 1/5/2021 TO: Mayor William Roberts, Kodiak Island Borough Assembly FROM: David Conrad, Administrative Official, E/F Director RE: January 5, 2021 Assembly Work Session Manager's Comments I have been attending the Emergency Services Council and Emergency Operations Center continuing meetings. The Emergency Services Council has concluded that they will continue to meet weekly each Thursday through the current State Declared Emergency due to expire on January 15, 2021 and reevaluate the continuation of the meetings based on local conditions. They are waiting to evaluate if there is a surge associated with recent holiday travel. The Kodiak community is still at the red level until further notice. Currently there are two patients at PKIMC with COVID. There are 54 current active cases as of this date. Due to available vaccines, starting January 6, 2021 at 12:00pm appointments will be able to be scheduled for residents 65 and older through the State Website — COVIDVAX.ALASKA.GOV The vaccinations will be administered at Safeway Pharmacy and the Kodiak Ambulatory Care Clinic by appointment only. This week the boiler stack on the 610 Mill Bay Road Borough Building failed on the #1 boiler. I will discuss this at length in the upcoming agenda discussion regarding future maintenance in this facility. All the funds for the various entities designated for CARES act funding have been distributed by the December deadline. That deadline has been extended through December 31, 2021. Staff continues to watch for developments associated with a potential second round of funding. Georgia's Senate race and the incoming administration will definitely effect the future of funding associated with the pandemic. Staff is currently diminished due to pandemic related issues. The KIB is anticipating hiring part time people to assist at the airport for greeters to augment the city's majority contribution towards this informational effort. Page btgrDf13 2 AGENDA ITEM #3.a. All KIB tsunami sirens are online and functional. The damaged radio and board were replaced on December 23, 2020. Several small issues remain. The entire invoicing for the project has not been completed due to outstanding issues associated with programming. Page WF)fA2 Borough Assembly Work Session Attendance Date: A Arndt Kavanaugh Williams KODIAK ISLAND BOROUGH 4 Meeting Type: l Date: wA