| What is the purpose of PILT
payments? The PILT program compensates local governments
for federal lands located within their area which restrict a community's ability
to generate local revenues and often hinder community development opportunities.
(See 31 U.S.C. 6901-6902 at FedLaw and 3 AAC 152.010 at The
Alaska Administrative Code.) How much money is distributed
annually to the Unorganized Borough? The
amount of PILT money available to distribute is dependent
upon the annual federal appropriation
level. In FY 02, Commerce distributed $5,017,286 to the 97
cities located within the unorganized borough. Since
1997, Commerce has
distributed nearly $17 million to cities under this program
(31 U.S.C. 6901-6902.) How does a city qualify for
payment? Cities in the unorganized borough
are notified on August 1 each year of the administrative requirements.
In order to receive their PILT payment, a city must submit
an approved funding resolution,
a copy of its current year operating budget, and a second
preceding year audit or certified financial statement by
October
1. For example, the FY 2000 audit or certified financial
statement would be required in order to receive a PILT payment
in FY
2002. A city must also conduct regular elections, hold regular
meetings and keep a record of them, and codify its ordinances
(31 U.S.C. 6901-6902 and 3 AAC 152.100.) How do organized boroughs
receive their payments? Organized boroughs receive their
payment directly from the U.S.
Department of Interior. Cities located within
organized boroughs are not eligible for funding (31 U.S.C.
6901-6902.) What can PILT payments be
used for? A
PILT payment received by a local government may be used
for any governmental purpose,
including services related to public safety, the environment,
housing, social services, transportation, and governmental
administration (31 U.S.C. 6901-6902 and 3 AAC 152.220.) When are PILT payments made? PILT payments are made on October
15 of each fiscal year by the Department of Community and
Economic Development. (3 AAC 152.210) How
is a city's PILT payment
calculated? PILT payments are calculated
based on population of each eligible city located within the
boundaries of the census area. (3 AAC 152.200) |
