Chapter 2.10
FINANCIAL DISCLOSURE AND CONFLICT OF INTEREST
Sections
2.10.010 Report of financial and business interests
2.10.020 Contents of statement
2.10.030 Modified requirements for professionals
2.10.050 Refusal or failure to disclose
2.10.060 Conflicts of interest prohibited
2.10.065 Employment prohibited
For statutory provisions governing conflict of interest, see AS 29.20.010.
2.10.010 Report of financial and business interests
(a) A candidate for elective municipal office shall file a statement under oath with the city clerk, at the time of filing a nominating petition and declaration of candidacy, specifying the candidate’s business interests and income sources.
(b) The city manager and any appointed mayor or councilmember shall file a statement under oath with the city clerk, within 30 days after appointment to office, specifying sources of business interests and income.
(c) The city manager and each municipal officer shall file a similar statement of income sources and business interests with the city clerk not later than April 15 of each year that office is held. [Ord. 475 §1, 1976]
2.10.020 Contents of statement
(a) The statement filed by a municipal officer or candidate under this chapter shall be an accurate representation of the financial affairs of the business interests and sources of income for the officer’s or candidate’s spouse, dependent children, and nondependent children residing with the officer or candidate, to the extent those sources of income or business interests are ascertainable by the officer or candidate. An asset or liability under $500.00, household goods, and personal effects need not be identified.
(b) The statement filed shall include the following information relating to the municipal officer or candidate and the officer’s or candidate’s spouse, dependent children, and nondependent children residing with the officer or candidate:
(1) The source of all income of $1,000 or more received as dividends or interest;
(2) The source of all other income over $5,000, including capital gains received during the preceding calendar year;
(3) The name and address of each business entity owned or in which an interest was held during the preceding calendar year, including a statement of the nature of the interest owned or held;
(4) The name and address of each business in which the municipal officer or candidate is an officer, director, manager, or employee during the preceding calendar year;
(5) A description of each interest in real property and a statement of the nature of the interest owned;
(6) Each loan, loan guarantee, or other indebtedness of $5,000 or more, including the identity of the maker of the loan and each creditor and the nature and terms of the transaction;
(7) A list of all contracts, bids, or offers to contract with the city during the preceding year, including those made through a proprietorship, partnership, or corporation in which the officer or candidate or a member of their family, or a combination of them, hold a controlling interest;
(8) A list of each mineral, timber, oil, or other natural resource lease held, or lease offer made during the preceding calendar year, including those held or made by a partnership or professional corporation, or a corporation in which the officer or candidate or the officer’s or candidate’s spouse or children, or a combination of them, hold a controlling interest.
(c) The statement shall be filed on a form prescribed by the city clerk. [Ord. 1060 §2, 1998; Ord. 475 §1, 1976]
2.10.030 Modified requirements for professionals
Notwithstanding other provisions of this chapter, medical and psychiatric doctors, attorneys, and psychologists are not required to disclose as sources of income the names of individual patients or clients who receive professional services normally considered to be confidential. This exemption shall not apply to the identity of any corporation or other business entity having a contract with the professional producing income of $5,000 or more for services to its members or a defined group, nor to the identity of clients receiving services that do not fall within the candidate’s or official’s field of professional expertise. [Ord. 475 §1, 1976]
2.10.040 Records, public
All statements required to be filed by this chapter are public records. [Ord. 475 §1, 1976]
2.10.050 Refusal or failure to disclose
(a) If a candidate fails or refuses to file the statement required by KCC 2.10.010, the candidate’s filing and any accompanying fees shall be refused or, if previously accepted, shall be returned and the candidate’s name shall be withheld or removed from the filing records of candidates.
(b) A person failing or refusing to comply with the requirements of this chapter shall forfeit the nomination and shall not be seated or sworn to the office for which this person is a candidate.
(c) A person who refuses or knowingly fails to make a required disclosure of information as provided in this chapter or who files a statement containing false or misleading information knowing it to be false or misleading shall, upon conviction, be punished by a fine of not more than $300.00, plus any surcharge required to be imposed by AS 29.25.072. [Ord. 1081 §4, 1998; Ord. 475 §1, 1976]
2.10.060 Conflicts of interest prohibited
(a) A municipal officer, appointed official, or employee may not solicit or receive money for advice or assistance given in the course of the officer’s or employee’s employment or relating to that employment.
(b) A municipal officer, appointed official, or employee may not represent a client before the city council for a fee, except employee members of the unions pursuant to labor agreements.
(c) A municipal officer, appointed official, or employee may not accept a gift, loan, gratuity, or other valuable consideration, or a promise of any of them, with the understanding or agreement, expressed or implied, that the officer will cast a vote or give an opinion, decision, or judgment in a particular manner, in a matter, question, cause, or proceeding which then is or may by law come or be brought before the municipal officer, appointed official, or employee, or with the understanding or agreement that the officer or employee will, in official capacity, act in a particular manner to produce or prevent a particular result.
(d) No member of the governing body may vote on any question in which the member has a direct or indirect substantial financial interest. Direct or indirect financial interest shall be disclosed to the presiding officer prior to the vote on the question, for a ruling on a request from the member with the financial interest to be excused from the vote. The decision of the presiding officer on a request by a member of the governing body to be excused from a vote may be overridden by the majority vote of the council. If there are not at least four councilmembers in attendance who are qualified to vote, the matter shall be tabled until the next regular or special meeting at which four councilmembers qualified to vote on the matter are in attendance.
(e) A municipal employee or official, other than a member of the governing body, may not participate in an official action in which the employee or official has a substantial financial interest. [Ord. 792 §§1, 2, 1986; Ord. 576, 1980; Ord. 475 §1, 1976]
2.10.065 Employment prohibited
Neither the mayor nor any member of the council may be employed by the city in any capacity within a 12-month period immediately following the term of that individual. [Ord. 1011, 1995]
2.10.070 Definitions
As used in this chapter, the following definitions shall apply:
“Municipal officer” means the mayor, the city manager, and city councilmembers.
“Source of income” means an employer or other person or entity paying compensation, dividends, or interest, directly or indirectly, for services, products, or investments. If the income being reported is derived from employment by a sole proprietorship, partnership, or corporation in which the reporting person, the spouse or children, or a combination of them hold a controlling interest, that proprietorship, partnership, or corporation may be designated as the source of income without specifying clients or customers if the business is one that is normally conducted on a cash basis and typically does not keep records of individual customers. In all other cases, the clients or customers of the proprietorship, partnership, or corporation shall be listed as sources of income of the person whose income is being reported, whose spouse, children, or a combination of them hold a controlling interest. [Ord. 475 §1, 1977]