AMENDING THE BOROUGH CODE TO REDUCE THE PROPERTY TAX CAP

FROM 8 MILLS TO 6.5 MILS, AND REQUIRING THAT ANY FUTURE INCREASE

TO THIS CAP BE APPROVED BY A LEAST 60% OF VOTERS AT A REGULARLY

SCHEDULED BOROUGH ELECTION

 

WHEREAS, the Borough is currently in a deficit spending crisis, and is using saving (or "fund balance")

to cover shortfalls in revenue to pay for general Borough operations; and

WHEREAS, the petro-chemical industry, which has been a major source of Borough tax revenue,

is shrinking and downsizing in the Kenai Peninsula Borough; and

WHEREAS, the cost of Borough government has substantially increased over the past few years,

and this cost is projected to continue to grow, despite a current overall economic decline in the

private sector in the Kenai Peninsula Borough; and 

WHEREAS, the Borough Administration and Assembly approach to dealing with the Borough's

deficit spending crisis has focused mainly on raising property or sales taxes, and not on reducing

expenses and the cost of government; and

WHEREAS, the current Borough deficit spending crisis is best addressed by first reducing the cost

of Borough government, before raising the mill rate; 

NOW THEREFORE, BE IT ORDAINED BY THE VOTERS OF THE KENAI PENINSULA BOROUGH;

SECTION 1. That Kenai Peninsula Borough Code Chapter 5.12 shall be amended to read;

A. 5.12.010. Levied-- Amount--Statutory authority. All real property within the corporate limits of the

borough which is not exempt from taxation by low or ordinance is subject and liable to an annual tax,

for school and borough purposes, of not more than 6.5 mills on the assessed valuation of such property,

unless the people of the borough by referendum authorize a tax levy at a higher rate and except as

authorized by  5.12.250 of the code. The borough shall collect such tax as is levied on the property

within a city by the city council pursuant to law and Charter.

B.  5.12.120. Personal property tax--Levied--Amount--Statutory authority. All personal property within

the corporate limits of the borough which is not exempt from taxation by law or ordinance, is subject

and liable to an annual tax for school and borough purposes, of not more than 6.5 mills on the

assessed valuation of such property, unless the people of the borough by referendum, authorize a

tax levy at a higher rate and except as authorized by Section  5.12.250 and the owner thereof shall

be liable for payment of the tax. This shall not apply to property subject to a flat tax and exempted

from the ad valorem tax in this chapter. The borough shall collect such tax as is levied on the property

within a city by the city council pursuant to law and Charter.

C.  5.12.250. Other taxes and tax liens--Levy to meet debt or natural disaster authorized when.

All real and personal property of the borough is subject to and liable for a tax levy at the maximum

rate allowed by law without referendum, when a levy in excess of 6.5 mills is necessary to the

obligation of a debt contracted for capital improvements and ratified by a majority vote of those

qualified to vote and voting on the question, or to meet an emergency threatening the public peace,

health or safety.

SECTION 2. That a new section be added to Kenai Peninsula Borough Code Chapter 5.12 to read:

Any increase to the 6.5 mill cap set forth in sections  5.12.010,  5.12.120 and  5.12.250 of this

chapter must be approved by at least 60% of voters cast at a regular Borough election.

SECTION 3. This ordinance shall take effect July 1, 2005.