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The Assembly considered Ordinance 2113 at its meeting on May 4, 2026, and set it for public hearing on May 11, 2026. The public hearing will be conducted in the following format:
- Brief Staff Presentation – A brief synopsis of the proposed issue being considered in the hearing, along with any updates of the issue, will be provided by the Finance Director.
- Public Testimony – Citizens who signed up to speak, and additional audience members, may speak to the issue being considered.
- Brief Staff Summary – Staff can address Assembly questions or questions which may arise during the public testimony portion of the hearing.
The unreserved fund balance of the Local Education Fund (LEF) has faced increasing pressure due to growing Required Local Contribution demands and uncertainty surrounding federal Secure Rural Schools and Community Self-Determination Act funding. Federal SRS receipts totaled $1,126,025 in FY 2024 and $1,230,571 in FY 2025, with the FY 2025 payment significantly delayed, and future funding levels and timing remaining uncertain.
Ordinance 2080, adopted August 4, 2025, and effective January 1, 2026, removed the Borough exemption on Transient Occupancy Taxes imposed on lodging located within the limits of the City of Ketchikan. Currently, no provision of the KGBC directs the disposition of the additional Transient Occupancy Tax proceeds generated from lodging within City limits. Ordinance 2113 addresses this by amending KGBC 4.65.020 and adding a new section KGBC 4.55.035 to permanently dedicate one hundred percent of the Borough's portion of Transient Occupancy Tax proceeds from lodging within the City of Ketchikan to the LEF, while continuing to deposit proceeds from lodging outside City limits into the General Fund.
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