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More than $720,000 in cruise ship passenger tax proceeds received by the borough could be appropriated to city of Seward port projects when the Kenai Peninsula Borough Assembly meets Tuesday in Soldotna. 120108 NEWS 1 Peninsula Clarion More than $720,000 in cruise ship passenger tax proceeds received by the borough could be appropriated to city of Seward port projects when the Kenai Peninsula Borough Assembly meets Tuesday in Soldotna.
Monday, December 01, 2008

Story last updated at 12/1/2008 - 1:18 pm

Cruise ship taxes on tap: Assembly will discuss revenue expenditures

More than $720,000 in cruise ship passenger tax proceeds received by the borough could be appropriated to city of Seward port projects when the Kenai Peninsula Borough Assembly meets Tuesday in Soldotna.

Ordinance 2008-19-33, which authorizes use of the state Commercial Passenger Vessel (CPV) excise tax revenue, is set for a public hearing. The money, $720,357.50 in all, represents passenger taxes collected in FY 2007 and FY 2008.

However, a second measure, Ordinance 2008-19-33 (substitute), would instead appropriate only the tax revenue collected in calendar year 2007, some $383,652, holding back the 2008 revenues.

"This would allow the administration time to research and develop its own plan regarding the use of the 2008 CPV funds which were received from the cruise ships that docked at both the city of Homer and the city of Seward," Finance Director Craig Chapman told the assembly in a Nov. 19 memo.

Alaska voters approved a ballot measure in 2006 imposing the cruise ship travel tax. The Alaska Legislature followed that by passing two bills that authorized sharing the Commercial Passenger Vessel (CPV) excise tax proceeds with the first five ports of call of each vessel in Alaska.

Seward officials formally requested the funding received by the borough and would use it to improve port security and fire protection for cruise ships docking in Seward.

Assembly President Milli Martin, of Diamond Ridge, said she wants to know if Homer, which got a small share of the total number of passengers, also is due some funding.

Another appropriations measure up for a public hearing Tuesday is Ordinance 2008-19-34, which would divvy up $525,200 of state Community Revenue Sharing Program money to borough community projects. The state program will distribute a total of $180 million over three years across Alaska.

The Kenai Peninsula Borough's share this year will go to projects in 26 unincorporated communities within the borough certified as eligible under the state's criteria.

The assembly must approve each project by resolution before distributing the CPV money. Tuesday's agenda includes Resolution 2008-090 in which the borough has identified 28 projects from 15 of those eligible communities who have already submitted requests.

That list includes such things as operating a teen center in Ninilchik, museum improvements and staffing in Kasilof, equipment and truck repairs at the Moose Pass Fire Department, and trail maintenance and access at Clam Gulch, among other things. Costs range from as little as $3,500 for a "Toughbook" computer system needed by Cooper Landing Emergency Services to a high of $19,604 for a Head Start program in Sterling.

Other measures up for public hearings Tuesday are:

* Ordinance 2008-19-35, which would appropriate $120,000 to cover excess costs associated with erecting new teacher housing in Nanwalek and authorize award of a contract for construction.

* Ordinance 2008-33, which would amend borough code concerning subdivision design to require a minimum width of 60 feet for street rights-of-way.

Hal Spence can be reached at hspence@ptialaska.net.




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