2005-23 Municipal PERS Governors $37.5 Million AppropriationWHEREAS, the State has notified the Kodiak Island Borough that its' PERS rate will increase
from 5% in FY2005 to 10% in FY2006, and will continue to increase until it reaches a total rate
of 28.34 %; and
A RESOLUTION OF THE KODIAK ISLAND BOROUGH ASSEMBLY URGING
THE ALASKA STATE HOUSE AND SENATE TO APPROVE THE GOVERNOR'S
PROPOSED $37.5 MILLION APPROPRIATION TO OFFSET THE COST OF
STATE REQUIRED MUNICIPAL PERS INCREASES FOR THE NEXT TWO YEARS
WHEREAS, PERS is a single employer retirement system and the Kodiak Island Borough has an
unfunded liability of $4,119,487, not shared with other PERS employers; and
WHEREAS, mandatory State PERS increases on top of the loss of municipal revenue sharing as
well as fuel, insurance and other cost increases leave many municipalities without the resources
to fully fund schools, police, or other basic services; and
WHEREAS, the Kodiak Island Borough would have to raise its' mill levy close to 1 mill to fully
fund its' state mandated PERS costs but has a tax cap that precludes such increases and will
require the Borough to make deeper cuts to local basic services; and
WHEREAS, the Alaska Municipal League and many municipal elected officials and finance
directors have been "at the table" to help the State adopt a new PERS /TRS "tier" to help control
future costs; and
WHEREAS, the State has received a huge increase in oil revenue while communities are facing
steeply higher expenses. For every Si increase in the price of a barrel of oil the State
government receives an additional $65 million of new revenue per year while Alaskan cities,
boroughs, schools, businesses, other organizations, and families pay $20 million of higher new
costs for fuel, transportation, etc. based on federal fuel usage figures for Alaska; and
WHEREAS, if the State fails to share a small portion of its huge oil revenue increases with our
community /local taxpayers to offset State required PERS payment increases for at least the next
two years, the impact on Kodiak Island Borough will be higher taxes plus a reduction in the
ability to pay for education, planning and zoning, health, and other basic Borough functions.
NOW, THEREFORE, BE IT RESOLVED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH
that the members of the Alaska State House and Senate are strongly urged to approve the
Governor's proposed $37.5 million appropriation to offset the cost of State required municipal
PERS increases for the next two years. This action will avoid large local tax increases and /or
large cuts to local services including schools, maintenance of Borough buildings and other
improvements, planning and zoning, equity in Borough property assessments, and other services.
ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH
THIS SEVENTH DAY OF APRIL 2005
ATTEST:
1.4 TdC
udith A. Nielserf AMC, Borough Clerk
Kodiak Island Borough, Alaska
KODIAK ISLAND BOROUGH
RESOLUTION NO. FY2005 -23
Introduced by: Mayor Selby
Requested by: Mayor Selby
Introduced: 04/07/2005
Adopted: 04/07/2005
KODIAK ISLAND BOROUGH
Jq>tome M. Selby, Borou
Resolution No. FY2005 -23
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