If approved, Proposition 1 would create a seasonal sales tax by raising the tax by 1 percent from April through September and lowering it by 1 percent from October through March.
The change would make the city and Kenai Peninsula Borough combined sales tax 7.5 percent during the summer and drop it to 5.5 percent in the winter. The current combined year-long sales tax rate in Homer is 6.5 percent.
The ordinance’s author, council member Mike Heimbuch, said in May that such a tax was the fairest way to cash in on increased summer traffic.
“It’s time to recognize the changing nature of town,” he said. Giving a tax break to year-long citizens during the winter would encourage people to live in Homer throughout the year, he said.
But others, like council member Beth Wythe said everyone spends more money during the summer, regardless of residency.
“It does tax many (year-long residents) that spend more money during the summer,” she said. With higher gas prices and property taxes, such a tax adds insult to injury, while gouging tourists, she said.
Proposition 2 asks the voters if the city should make permanent its financial and administrative responsibility for the Community Schools program after June 30, 2007.
In April the council decided to take over the program from the Kenai Peninsula School District on a one-year trial basis after months of talks, negotiations and public testimony that overwhelmingly supported the program.
The October election will determine if the city will continue the program beyond that one-year commitment.
“I think it’s encouraging to allow the city voters to share their opinion of Community Schools and keep it around,” said Homer Community Schools Coordinator Mike Illg, in June.
“I’m optimistic that the voters will pass this ballot, because there is a lot of support for the program,” he said.
It also provides other community organizations, including Little League Baseball and Pop Warner football, access to school district property during nonschool hours.
According to Illg, the program drew 6,000 participants to 213 classes and activities last year. More than 280 volunteers donated more than 3,300 hours of time to the program.
The Kenai Peninsula Borough School District stopped paying salaries and administrative services June 30.
So far, the transition from school district to city support for the program has been smooth. But in the latest city manager report two issues were raised regarding that transition.
First, the city is now estimating that the program will cost $122,000 and revenues will be $50,000 in 2007, leaving a $72,000 deficit that the city will have to pay.
And there is an ongoing discussion as to what events at the high school the city should or will be able schedule under the banner of Community Schools, who should be responsible for liability issues and who will pay for cleanup and maintenance.
Propositions 3 through 5 relate to the city’s Homer Accelerated Roads Program, also known as HARP.
For nearly 20 years, this program has been used as a mechanism to maintain existing city roads without waiting for state or federal government money, and was paid for by a three-fourth percent sales tax.
The money can also be used to leverage additional state or federal dollars through matching programs, said Homer City Manager Walt Wrede. And there is currently about $3 million in the account.
Proposition 3 asks the voters if the program should continue for up to 20 additional years.
If Proposition 3 is approved, Proposition 4 would expand the use of that money to include construction of new city streets.
Proposition 5 would allow HARP funds to pay for new nonmotorized trails.
Ben Stuart can be reached at ben.stuart@homernews.com.
The Community Schools program offers residents recreational and educational opportunities throughout the year at a low cost.
Homer Proposition 1: Shall the city raise the sales tax base rate by 1 percent from April through September and lower the sales tax base rate by 1 percent from October through March?
Homer Proposition 2: The City of Homer has created a division of Community Schools within the Department of Administration and has assumed financial and administrative responsibility for the Community Schools program through June 30, 2007. Should the assumption of the Community Schools program become permanent after June 30, 2007?
Homer Proposition 3: Shall the city of Homer continue to provide a funding source for street reconstruction improvements and related utilities in accordance with the city of Homer Accelerated Roads Program (HARP) by continuing after Dec. 31, 2007, to levy a three-fourths percent sales tax to fund HARP for up to 20 additional years?
Homer Proposition 4: If Proposition 3 is approved by the voters shall the city also be authorized to use the revenue from the three-fourth percent dedicated sales tax for the construction of new local streets?
Homer Proposition 5: If Prop-osition 3 is approved by the voters, shall the city also be authorized to use the revenue from the three-fourths percent dedicated sales tax for the construction of new local nonmotorized trails?
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