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Assembly responds to Chamber sales tax survey

Chamber Members blast allotments for deferred maintenance

Posted: August 12, 2012 - 12:15am

Three quarters of respondents to an internal Chamber of Commerce survey said they disapproved of the use of sales tax funds for deferred building maintenance.

The Chamber of Commerce queried its members regarding the Assembly’s handling of the 1 percent sales tax CIP process.

Assembly Members, Mary Becker, David Stone and Karen Crane stopped by for the Chamber lunch lecture to defend their Finance Committee votes on a 1 percent sales tax extension, general obligation bond and an ordinance to spend their proceeds.

Chamber Member Max Mertz of Elgee Rehfeld Mertz moderated the question-and-answer session Thursday at the Moose Lodge.

Mertz tipped his hat to the hard work of committee members as they winnowed tens of millions of dollars worth of project proposals. Dozens of project requests outstripped CBJ resources.

“It was a very hard job to try to get that list whittled down,” Mertz said.

Voters may see a general obligation bond on the ballot soon. If passed, the bond could give the Assembly a total of $59.8 million.

Mertz, who took part in writing the survey questions, said the questionnaire was not scientific, but was intended to help educate Chamber members. He said the authors tried to keep the questions neutral.

The questionnaire asked members if the process gave sufficient opportunity for public input on the tax extension, bond and ordinance. Of the 108 chamber members who responded, nearly 54 percent said no.

Slightly more than half of responders voted yes, that the assembly should postpone the tax extension and ordinance until a special election in the spring or the Oct. 2013 election.

Three-quarters of chamber responders said yes to a question regarding deferred building maintenance.

“Is it appropriate public policy to pay for deferred maintenance with future sales tax dollars and property tax-supported bonds, or should CBJ maintenance needs be paid out of the general operating budget each year,” the chamber questionnaire asked.

Mertz said he understood that the city budget has been hit hard in the last few years. He said the question’s response indicated city government should reprioritize maintenance spending.

“Instead of kicking the can down the road,” Mertz said.

Assembly Member Mary Beck agreed.

“Maintenance should not be deferred,” she said.

She said the city and borough put money toward other projects, mainly education funding. Now, however, she said she sees what happens when a city defers its maintenance.

“We have a lot of financial requirements to keep out buildings up, to keep our projects going,” Becker said.

Assembly Member David Stone said CBJ has benefited from high oil prices during the financial crisis.

“We’ve gotten bailed out,” Stone said. However, the city is going to have a tougher time in the future, he said.

Karen Crane said CBJ has funded maintenance, but the city could do it differently.

“In a perfect world, deferred maintenance should be in the budget,” Crane said.

The Assembly is scheduled to hear the ordinance and receive public comment on Aug. 13. The bond must be passed by the Aug. 27 meeting.

• Contact reporter Russell Stigall at 523-2276 or at russell.stigall@juneauempire.com.

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Mama T
2396
Points
Mama T 08/12/12 - 06:32 am
15
2

“In a perfect world, deferred

“In a perfect world, deferred maintenance should be in the budget,”

In a perfect world it would be in my household budget or be in a savings account to which I made regular contributions...but I'm not as good at that as I'd like and sometimes cope by borrowing short term.

If the city budget is so strained that we can't live in that perfect world....why are we planning new luxury projects? Why not prioritize upkeep expenses on the existing property over new facilities?

Latitude58
14403
Points
Latitude58 08/12/12 - 07:09 am
3
7

Good question, Mama

In a perfect world we would not build any new buildings until we had a deferred maintenance budget established for them. That would even go for 'free' buildings like Valley skating rinks.

Or...for every new building we construct, we should demolish one old, decrepit building. Our population isn't growing. Why the push for ever more built space?

timeinmemorial
232
Points
timeinmemorial 08/12/12 - 08:32 am
5
6

Updgrade buildings to ground source heat pumps

The largest operating expense of city owned buildings is energy heating costs.

Inefficient oil burners are akin to burning dollars.

A cost benefit analysis would likely show that the CBJ should be replacing old diesel burning boilers with multi-fuel (electric and diesel) ground source heat pumps. The pay off is relatively quick and will save the taxpayers millions of dollars over time. The airport, the valley school and the Auke Bay school have proven the technology works and saves taxpayers cash.

It is unlikely that the cost of oil is going down. In fact, our CBJ building operating budget will become devastated at $6 gallon oil. At $8 a gallon, the operating budget will be beyond painful. Now is the time to plan and upgrade to ground source heat pumps, not later.

Energy efficiency and replacing expensive and inefficient oil heating systems should be a top CBJ priority.

maxmertz
315
Points
maxmertz 08/12/12 - 08:39 am
6
3

Talk to your Assembly

One of Mr. Stones comments on Thursday was that he rarely hears from members of the business community (and I believe he would include in that community members in general) who have concerns about proposals like the current sales tax and go bond proposals, but he hears extensively from proponents of projects. I would encourage you to contact your assembly members, which can be done thought the cbj website, to share your thoughts about these proposed ordinances, whether positive or negative.

alaskabobc
3923
Points
alaskabobc 08/12/12 - 08:41 am
2
6

Judging from thumbs down

responses anytime deferred maintenance comes up it seems, at least the readers of the Empire, would rather “Fiddle while Rome burns” that is quite a heads in the sand response from those intelligent enough to be able to read? They just can’t see.

villagevelveeta
326
Points
villagevelveeta 08/12/12 - 10:00 am
4
4

Deferred maintenance is not sexy

but it is responsible.

akman59
2106
Points
akman59 08/12/12 - 10:43 am
9
2

Why defer?

“In a perfect world, deferred maintenance should be in the budget,”
Timely regular maintenance is far less costly than allowing things to become run down and fall apart before rebuilding/ replacement is the only option.
$5 in materials, and 1 hr labor to fix that small leak. Allow it to continue and the roof, wall, and floor need replaced.
Vote to get rid of the TEMP tax. The CBJ Is to busy dreaming of building the perfect park. Make them look at infrastructure and make the hard decision, give my friend what they want, or fix that broken....Look around, Juneau has many NEEDS stop spending on wants before taking care of needs.

kiki
1329
Points
kiki 08/12/12 - 11:40 am
6
3

Chamber responses

There are some things on the list that I dont agree with too, the library being one of them. I also believe the City as well as the State dont do a good job on allotting money for maintenance on buildings & structures. However, on KINY's website, it indicated that only 1/4 to 1/3 of Chamber members responded to their survey. Why should 1/4 of Chamber members hold enough clout to stop a planned vote and request a special election? They have stated one of their reasons is they want to wait til the new Assembly is in place. If we are going to stop a planned vote, then perhaps the City should send out household surveys to everyone who pays property taxes, that way their voices are heard as well. While I commend the few that voiced their concern about deferred maintenance, it was, afterall, Chamber of Commerce that supported the 10 year tax extension for a 2nd crossing which the community resoundingly voted down. If CBJ is going to pay heed to a survey response regarding what projects go forward, that survey should include everyone who pays property taxes, not just Chamber members.

nottacheechako
470
Points
nottacheechako 08/12/12 - 12:01 pm
8
3

A good dose

Of reality is needed in this town. When the airport is is considering spending upwards of 50k for a new sign, a new library, an bronze whale, a parks and rec agenda that is spend, spend and spend some more...just to name a few things that fall into the wants VS needs category.
Let the voters choose the projects on their own merits individually...the 30% of us that actually care enough to vote are capable of choosing or better yet vote them all down until the leadership gets the message!

alaskabobc
3923
Points
alaskabobc 08/12/12 - 02:21 pm
2
1

For Akman and Nota

Well said!!

aynrand
2734
Points
aynrand 08/12/12 - 06:52 pm
3
10

Causeway

Mertz, Shattuck and Sanford tried to get the public to fund a second crossing through the Mendenhall wetlands. So they want to somehow use the sales tax money to destroy wetlands if Sanford gets elected.

alaskabobc
3923
Points
alaskabobc 08/12/12 - 07:25 pm
8
4

Wetlands?

Destroy wetlands? This whole bloody place is a wetland! What we need are some "drylands" Wait for the land by the airport to rebound a little more and then just start driving across! How much "wetlands" does a place need? :-)

Latitude58
14403
Points
Latitude58 08/12/12 - 08:34 pm
2
6

Bobc

Ask the ducks

alaskabobc
3923
Points
alaskabobc 08/13/12 - 06:58 am
2
3

Latitude

They have wings, they WILL move!

Latitude58
14403
Points
Latitude58 08/13/12 - 07:03 am
2
8

bobc

How about we come bulldoze your house and turn your property into a wetlands for ducks and other wildlife (without wings). You have legs, you WILL move.

al97ct
465
Points
al97ct 08/13/12 - 10:12 am
2
8

"Three quarters of

"Three quarters of respondents to an internal Chamber of Commerce survey said they disapproved of the use of sales tax funds for deferred building maintenance".

Who cares what the Chamber people think. Most of these people are Republicans and would want the city to cut the city budget and many needed services before funding maintenance with sales tax funds.

skirkz
6681
Points
skirkz 08/13/12 - 10:42 am
5
3

Dump the 1% temporary sales tax!

If only to show these spend junkies that it is indeed TEMPORARY regardless of how "special" they claim it is. A reality check is definitely in order. Some are already backtracking in order change their sales pitch lest they lose it at the polls, not to mention their upcoming incumbencies.

conner
504
Points
conner 08/13/12 - 12:19 pm
1
3

Here is a link to todays

Here is a link to todays agenda items. The meeting starts at 7pm:

http://www.juneau.org/assembly/agendas/2012/2012-08-13/2012-08-13.php

Extend the tax for maint. but not for the haul-out at Stat. Harbor

al97ct
465
Points
al97ct 08/13/12 - 01:40 pm
1
3

In other words I do support

In other words I do support using sales tax funds for deferred building maintenance. But I don't like some of the other stuff on the list.

hug-em-then-cut-em
2372
Points
hug-em-then-cut-em 08/13/12 - 02:29 pm
2
4

Chamber Hypocracy

Unpublished

The Chamber types gripe like crazy about tax and spend Democrats. But they sought public money to try to build a non-needed causeway from Sunny Point to Douglas that would indeed destroy part of the State Refuge while also preventing fishing boats from transiting the channel to line their pockets with cash. Mertz and Sanford are big chiefs of that fiasco.

madison89
1040
Points
madison89 08/14/12 - 04:57 am
1
2

" She said the city and

Unpublished

" She said the city and borough put money toward other projects, mainly education funding."
Read: pay-off to the "to hell with to the kids" teachers union.

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