Area nonprofit groups could apply for the city funds through a grant program and then use that money to leverage other state and federal grants, many of which require a municiple buy-in.

The resolution will be rewritten for the next meeting and, if approved by the council, would also ask voters if they support linking dedicated recreation funding to a new seasonal sales tax, Heimbuch said.

In October, voters defeated a proposition which would have raised the city's sales tax 1 percent in the summer and lowered it 1 percent in the winter, by a 633-514 margin.

In that same election, however, voters supported the city's takeover of the popular recreation and educational program, Homer Community Schools, by more than a 2-1 margin.

In previous meetings, Heimbuch had proposed dedicating one-quarter of 1 percent of taxable sales to funding parks, recreation and Community Schools without explaining how the city would make up the estimated $400,000 such a plan would cost.

Such a dedication of funds didn't sit well with some council members Monday who worried the plan was unaffordable and would tie the hands of future councils.

"The whole thrust of the (state) constitution is not to have dedicated funds," said council member Doug Stark. "I think we want to be careful. I'm not necessarily against it, but I'm not in love with it."

Tying it to a seasonal sales tax also got a lukewarm response from some. Under Heimbuch's new proposal the city's sales tax rate would drop to 3.5 percent from October through March and raise to 5.5 percent from April through September.

"I support parks and rec, but I do not support a seasonal sales tax," said council member Matt Shadle. "You could be jeopardizing the whole parks and rec idea."

Putting the issues on the ballot separately, however, didn't sit well with others.

"I don't think you can separate these two things," said council member Beth Wythe. "You know it will be a 'yes' vote on the recreation, but you won't get the money to pay for it."

A substitute resolution will come before the council at its next meeting on May 14.

In other news the council:

* Discussed its upcoming Juneau lobbying trip scheduled for April 24-28 during its committee of the whole meeting. According to discussions Homer Mayor James Hornaday had with legislators, state money for capital improvement projects is slim this year, he said. He said it's likely that the city will only get the $1.3 million water treatment plant project from its capital improvement projects list this year and about $200,000 worth of discretionary spending from the 25th Alaska Legislature, now meeting.

Of that roughly $200,000, about $80,000 has been earmarked for winter sports activities, including money for the Ohlson Mountain Rope Tow and Homer Hockey Association, he said, leaving about $120,000 for other priorities.

Hornaday called on council members to come to some sort of consensus as to what priorities they will ask for during their trip. Council members Wythe, Dennis Novak and Francie Roberts are traveling together beginning April 24. Stark has separate tickets and reservations and will begin his stay earlier. Heimbuch and Shadle are not attending.

* Approved the sale of the old library building and property located on Pioneer Avenue with the proceeds going to pay down the loan for the new library building fund.

* Approved the City of Homer 2007 Land Allocation Plan which updates the status and uses of several city-owned parcels.

* Awarded the contract for the South Douglas Place road reconstruction and paving improvement to Nelson & Associates in the Amount of $9,000.

* Heard public testimony on the Ocean Drive Loop Sewer and Ocean Drive Loop Petersen Addition Sewer final assessment roll.

* Awarded the contract for the purchase of a membrane water treatment equipment to the firm of General Electric Zenon., of Oakville, Ontario, Canada in the amount of $1,912,866.00.

Ben Stuart can be reached at ben.stuart@homernews.com.