August sales tax revenue drops $294,060
• Chamber sees 25 percent drop in walk-in traffic, businesses report 18 percent less
by Aaron Selbig
Homer Tribune
Members of the Homer City Council received yet another dose of bad economic news as they met Monday night to continue deliberations over proposed sweeping budget cuts. Sales tax revenues for the month of August – typically the city’s biggest month – were down 18 percent compared to last year, said Finance Director Regina Harville.
“This is significant as it speaks to how our economy is doing,” said Harville in her report. “This one month should not have been affected by the non-prepared sales tax issue.”
Last week’s voter rejection a proposed 3 percent seasonal grocery tax, combined with lower than expected sales tax revenue for fiscal year 2009, means next year’s budget will have to be cut by nearly $1 million, said Harville.
It’s a problem that’s not lost on Homer Chamber of Commerce Executive Director Tina Day, who appeared before council members to plead for continued funding for the chamber.
“We fully understand that everybody needs to tighten our belts but we wouldn’t be doing our jobs if we didn’t come here and let you know what’s going on with us,” said Day.
The chamber was forced to make $7,500 in cuts to their marketing budget this year – including less radio and print advertising – and simultaneously saw a 25 percent drop in walk-in traffic at the visitors center.
If the council follows through with the proposed elimination of their city funding, the chamber will no longer be able to leverage that money into more grants and will be looking at making more drastic cuts in 2010, said Day, including eliminating the Fourth of July parade and SeaFest.
The good news for 2009 was that more Alaskans came to visit Homer than ever before, the chamber’s membership remains strong at more than 600 members and events like the Winter King Salmon Derby, Homer Halibut Derby and the Shorebird Festival continue to be big draws, said Day.
In a time of economic turmoil, the city’s support for tourism marketing is more important than ever, she said.
“We challenge you to find another agency that can provide the same services and leverage your funding contribution by 900 percent as we did this year at the same funding level,” said Day. “In light of the city’s budget constraints, we hope you would not reduce this request to anything less than $25,000.”
Election results certified
Results of the Oct. 6 municipal election, as counted and tallied by the Canvass Board, were officially certified by the council Monday. On Proposition 1 – the question of a 3 percent seasonal sales tax on groceries – 631 voters voted “no” while 457 voted in favor. For two available seats on the council, voters selected incumbent Francie Roberts – with 604 total votes – and businessman Kevin Hogan, who edged out charter operator Kent Haina, 439 votes to 398.
Fund for public art proposed
By unanimous vote, council members introduced an ordinance that will create a dedicated fund for public art. The fund would be set up “to address funds received by the city from sources other than revenue,” such as money from private donors specifically earmarked for public art. It would be an interest bearing account, administered by the city with help from the Public Arts Committee. The ordinance comes up for public hearing at the council’s next regular meeting, scheduled for Oct. 26.
Council to hear from Enstar spokesperson
Displeased that the city was left out of plans by Enstar Natural gas company to ship gas from a new well in the North Fork area to Anchor Point, council members voted 5 to 0 – council member Beth Wythe, who works for Homer Electric Association, was excused from the vote – in favor of a resolution requesting that the Regulatory Commission of Alaska “address and review the failure of Enstar … to deliver natural gas to Homer.”
Enstar spokesperson John Sims plans to attend the next council meeting Oct. 26 to explain the company’s long-term plans, said City Manager Walt Wrede.
Posted by Newsroom on Oct 14th, 2009 and filed under Headline News. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.
10 Responses for “August sales tax revenue drops $294,060”
Comments are closed
I dont believe their numbers… I dont believe anything they say… August was full of people in this town..the city is lying orcant not count…
Well, it’s a real shame that the city council refuses listen to its constituents. Not too long ago a vote was put to the citizens of Homer in regards to box stores, namely, Fred Meyer. The people voted overwhelmingly in favor of allowing the large chain to be built here in Homer. The city council thought maybe we just didn’t understand on what we were voting. So Fred Meyer eventually drops it’s plans to build here because the city council seems to have a mentality of “us 4, no more!” and is not pro-development.
The economy is hurting. People are really watching their spending and having to cut back. A trip to Soldotna or Anchorage for groceries can really mean big savings for a family. It is ironic that had the city council listened to the people in the first place, most folks would stay here in Homer to spend their grocery money at Freddies, and the city would get to collect the tax revenue. So, quit crying in your beer, city government, start cutting back like the rest of us, and spare us the whining.
Fred Meyer was issued a conditional use permit. They dropped their plans to build in Homer because, after reassessing the economics of locating in Homer the numbers just didn’t pencil out.
Exactly my point, Bruce. Here, Freddies, jump through this hoop, leap over this ridiculous obstacle. City of Homer is not user-friendly to business coming into the community. They legislated Fred Meyer out of existence! Fred Meyers original plan was to open a 95,000 sf store, so the city promptly put a smaller cap on the size of stores to be 66,000sf, with only 35,000sf of retail space within those 66,000sf..The City knew full well that the smallest store that Fred Meyer would build would need to have 45,000sf, minimum, to be cost effective.
clarification: the 45,000sf would be the space designated for retail, within a larger building
Here are the facts about Fred Meyer. Their representatives present during the issuance of their CUP indicated they had no problems with the large retail standards put in place by this community or the conditions of their permit. They, in fact, have had to meet much more stringent standards in other communities they have located. If you don’t want to believe it was a economic decision that kept Fred Myer from locating in Homer ask them yourself. It was widely reported when they decided to pull the plug on their development . As far as Homer being non business friendly, if your talking about the zoning permit process in Homer, it is a much easier and shorter process to go through than the majority of communities throughout the country.
And don’t forget about the 86 pages of ordinance details every aspect of retail development, from roof slope, exterior wall design, signage, landscaping, parking and traffic flow. No wonder the “numbers just didn’t pencil out”!
Yes and dont forget the foliage study to see how many drips of rain on a leaf fell to the ground …. the city of Homer made sure Fred Meyers could not afford to build here… it was not because Fred Meyers didnt think the city would ne nig enouhg to make them money.. that is more LIES from the clique who runs the city and sadly Bruce was one of them… Fred Meyers was not allowed to be in Homer by the CITY COUNCIL and there is no denying that…remember that famous quote that the voters just didnt understand what they were voting for… the city council knew better than the ignorant voters…
I do not believe anything this city has to say about numbers… they told us a year ago the coffers were FULL…build the tajmahal… and now its kick the kids out on the street… no police, no fire department and no snow plowing… FEAR tactics… and now they want to stop us from having Natural GAS because they are not getting their way… if ANchor Point gets natural gas the next step is Homer… QUIT BEING BABIES and start thinking… and if you cant think resign and let someone else in there…
Remember a few years prior to that when the tree clearing ordinance was proposed.
The native corp read the bill, figured out they wouldn’t be able to clear their land so they got in with the chain saws before the debate ended and got their trees harvested.
Everybody who crunchs granola got really upset, but it serves them right!
I do believe that the revenue overall is down and that the city is feeling the effect of the tax changes, but that is only part of why they are feeling the pinch, looking for money and cutting services. It appears that the current crunch is due in large part to the Homer Fire Department. This year alone the Homer Fire Department is likely to lose the city over one and a half million dollars. and that is why these last minute cuts are so drastic and deep.
I have no doubt that had the city management and the Homer Fire Department made more of an effort the borough would not have pulled that two hundred and thirty thousand dollar annual fire and EMS service contract. In most years that lost revenue really wouldn’t make no never mind but it comes in conjunction with a one point three million dollar suit by a terminated employee. Sadly most indications are that the Fire Chief didn’t have things documented or done properly. The former employee will probably win and that money will come directly out of the city budget witch is why so many programs are expected to be cut down or eliminated.
There have been indications for years that their are problems within the Homer Fire Department and yet the city manager has seemingly not taken corrective action. It’s well past time for a change, just hope that the city chooses to do it before it costs another 1.3 million dollars.