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1% sales tax, $25M bond to appear on Oct. ballot

Assembly tackles ballot questions ­ and more

Posted: August 14, 2012 - 12:03am

The City and Borough of Juneau Assembly adopted ordinances placing a five-year extension of the 1 percent temporary sales tax and a $25 million bond issue for capital projects on the October ballot Monday evening after hearing public comment on the initiatives.

The sizable majority of members of the public who commented on the sales tax ordinance at the well-attended meeting, including Juneau Arts and Humanities Council executive director Nancy DeCherney and Sealaska Heritage Institute chief executive officer Lee Cadinger, offered support for it.

“You have discussed, deliberated, and I’m certain spent an awful lot of time coming to the decisions you make,” Juneau resident Paul Beran told the Assembly. “And I want to say thank you for doing that.”

DeCherney said she likes the slate of projects that would receive funding from the sales tax extension, should voters approve it in October.

“I think you put a really good selection in here,” said DeCherney. She added that she was glad to see certain projects, including Centennial Hall renovations, covered by the bond issue instead, saying, “We can immediately get started on Centennial Hall, for example.”

Resident Tom Williams said that while he supports the sales tax initiative, he wanted to see more public participation in deciding which projects it will fund.

“I would recommend that you take a different approach to this. I would hope you do not act on this tonight,” Williams said. “You’ve got a couple of weeks to consider it.”

Assemblymember Randy Wanamaker said he agreed with that and offered a motion to refer the ordinance to the Finance Committee, which forwarded it to the full Assembly last month.

“I think it merits further discussion by this body and it should not be adopted tonight,” said Wanamaker.

But Wanamaker was outvoted, with only Assemblymember Mary Becker joining the motion.

After it was defeated, Becker voted in favor of Assemblymember Karen Crane’s motion for adoption of the ordinance, leaving Wanamaker the only one of the eight Assembly members participating in the meeting to vote against it.

The extension of the 1 percent sales tax, which makes up one-fifth of the CBJ’s current 5 percent areawide sales tax rate, would prevent it from expiring until September 2018. It is expected to raise $44.8 million over five years.

Projects that it would help fund include deferred maintenance for public buildings, a haul-out at Don D. Statter Harbor, a new public library facility in Dimond Park, a Juneau Arts and Culture Center expansion, and a Snow Removal Equipment Facility at the Juneau International Airport.

The infrastructure bond issue, which would help fund Centennial Hall renovations, the airport terminal remodel and the proposed Eaglecrest Learning Center, among others, also drew objection from Williams and Wanamaker.

If the 1 percent sales tax extension that will contribute to retiring the bond does not pass in October, an annual property tax levy of about $42 per $100,000 of assessed value would be needed for debt service, according to the meeting agenda.

Williams said the bond issue would hike property taxes on Juneau residents, something he opposes. He urged the Assembly to reconsider it.

“Don’t pass this. Don’t even put it out there,” said Williams. “You people were elected to make some hard decisions. … I encourage you to make the hard decision tonight.”

Wanamaker again sided with Williams, saying, “I think that this community is facing serious financial uncertainty, and adding to the public debt is not what we should be doing.”

Wanamaker was joined again by Becker in his motion to refer the ordinance back to the Finance Committee. After a prolonged moment of hesitation, Assemblymember Ruth Danner voted with them as well.

But Wanamaker’s motion again failed, and Becker and Danner both spoke in reluctant support of adopting the ordinance afterward.

“Most of the things on there I really do approve of and think should have been on the 1 percent, but they weren’t,” said Becker. “I don’t like that we’re putting them on the backs of the property owners.”

Danner said she is “not a fan of the bond issue” but would support the ordinance regardless.

Both voted with the majority for another 7-1 vote placing the bond issue on the ballot, with Wanamaker again the sole “no” vote.

At the meeting, the Assembly also approved changes to the marine passenger fee code that would subject boats with accommodations for between 21 and 40 passengers to the city’s per-passenger fee, among other ordinances.

The Assembly also agreed to hear an appeal by Arthur and Linnea Osborne of the Planning Commission’s decision approving construction of two new cruise ship berths downtown. Assemblymember Johan Dybdahl agreed to serve as presiding officer.

Assemblymember Jesse Kiehl was not present at the meeting. Dybdahl participated by telephone.

• Contact reporter Mark D. Miller at 523-2279 or at mark.d.miller@juneauempire.com.

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Johnny Red
36
Points
Johnny Red 08/14/12 - 01:44 am
13
3

Time to Compromise

I’ve been paying this “temporary” tax to the city since I moved here 20 years ago. It’s about time the CBJ compromised a little bit and exempted gas, fuel oil and food. I’m tired of having to pay an extra 20 cents a gallon just to put gas in my car, oil in my house, and milk in my kid. And yes, that is right, for every gallon of gas you buy, you pay the city about 20 cents. You just don't see it on your receipt for some reason.

While all the projects are certainly worthy, it's about time that the assembly helped reduce the cost of living in Juneau, not increase it. There's a reason why Juneau has the title of "The Aspen of Alaska." I'll give you a hint, it's not for the skiing.

Since the exemptions were not offered, I will be voting no for the extension.

alaskabobc
3923
Points
alaskabobc 08/14/12 - 07:42 am
12
2

Temporary?

There exists nothing quite as permanent as a temporary tax! It is my firm belief that Mr. Wanamaker is the only sane member on the assembly.

skirkz
6681
Points
skirkz 08/14/12 - 07:48 am
16
2

Making an offer we can't refuse.

Pass it "or else". Threatening property owners with mil rate increases if the city doesn't get it's way. Thank you, Wannamaker for standing up. Shame on the other dissenters for folding. I guess they won't get the baseball bat at the table. Dump the 1% temporary sales tax and the bond issue. Vote "No" and "No"!

concerned
572
Points
concerned 08/14/12 - 08:02 am
11
3

Im voting no.

I share Johhny's idea to eliminate the tax on fuel oil and transportation fuel.

Use temporary tax to backfill the lost revenue.

I won't support any tax that builds another Library.

Latitude58
14404
Points
Latitude58 08/14/12 - 08:11 am
3
5

I normally vote for the tax extension and bonds

This time I'm considerably more conflicted. I'm tired of pouring money into our gold-plated airport. I'm not sold of the library and arts & culture expansion, and some of the other projects.

On the other hand, bond rates are rock bottom, so if we're going to borrow, now's the time to do it. And I agree that Centennial needs help in a big way.

I might be deciding this one in the voting booth.

skirkz
6681
Points
skirkz 08/14/12 - 10:19 am
13
3

Centennial Hall...

...can, unfortunately, be considered too big to fail. This is an important venue in this community and owned by us. Why has it dilapidated to the point of voting in additional funds? Because CBJ takes it for granted that it is too big to fail and spends it's due maintenance funds on fluff until it bites them on the A$$! And, of course, they pass the 'savings' on to the taxpayers. They PI$$ the money away on luxuries while essentials get ignored creating an 'emergency' situation. I would vote on a bond issue or smaller TEMPORARY tax to BAIL OUT Centennial Hall as long as it is for that purpose only and not loaded down with all the pork of proposed "capital projects" that CBJ can solicit. Of course, I would have to be convinced that CBJ would change their prodigal ways and keep their hands to the plow so as to preclude the 'emergency' from coming up again in the future. But, I will definitely vote "NO" on the status quo.

JNUKara
8612
Points
JNUKara 08/14/12 - 09:23 am
9
1

Tired of feeling like I have

Tired of feeling like I have to vote yes on the "temporary" tax. Thank you, Assemblymember Randy Wanamaker, for saying what needed to be said and standing up for Juneauites. As long as the city continues to tax necessities, like food and fuel, I will no longer support this 1% tax..... enough is enough!

alaskaguy
553
Points
alaskaguy 08/14/12 - 09:27 am
4
2

No infastructure maintanence

But Skirkz, the Chamber voted that they did not want the 1% to go to infrastructure deferred maintenance, they want more shiny new objects that we cannot afford to keep. And we all know that the Chamber knows what is best for Juneau.

Concerned Citizen
424
Points
Concerned Citizen 08/14/12 - 09:47 am
10
3

Temporary my #@$$ !!

I am absolutely fed up with local, state, and federal beaurocrats who cannot manage to create a budget that "lives within its means". It is ludacris in this economy to ask taxpayers to continue funding the "temporary" sales tax for expenditures that may or may not be necessary. If necessary, find the means within the existing budget by doing a cost analysis of what is there vs what you need. If not necessary then stop there !!!
We, as citizens need to put a stop to this spend until the well is dry mentality. I work two jobs just to raise my kids in this community. I can barely afford to live here and it gets worse every year. The good citizens of Juneau need to stop electing people who cannot live within a reasonable budget. Issue a recall action on anyone suggesting an extension of the sales tax in the future. Do something to send a message to these career spenders of my money !!! I LIVE WITHIN MY MEANS AND MY CITY GOVERNMENT SHOULD TOO !!! Stop spending money you do not have !!!

Good
2045
Points
Good 08/14/12 - 09:49 am
11
2

This town votes stupidly

They'll pass. This town will strangle down to nothing at some point and everybody will have a stupid look on their face wondering what happened.

dennyh
3270
Points
dennyh 08/14/12 - 12:19 pm
2
6

Concerned Citizen...

Hopefully cheezypoof will post to you and straighten you out on this whole debt issue. She/He straightened me out, I tell you!

skirkz
6681
Points
skirkz 08/14/12 - 12:25 pm
4
1

Chamber of Commerce?

Who voted for them to represent the taxpayers or gave them the purse strings? Business unions don't make the law.

curtis
3474
Points
curtis 08/14/12 - 01:04 pm
6
2

"The credit rating agency

"The credit rating agency Moody’s downgraded the City and Borough of Juneau from an Aa2 to Aa3 rating on Thursday."

"Moody’s downgrade was due to the city’s “weakened financial flexibility as a result of consecutive years of draws upon reserves in the General Fund and other general operating funds,” according to Moody’s report."

This was an article in the Empire on May 20, 2012. Because of CBJ's reckless spending our bond rating was lowered so we will have to pay more interest on these loans.

Alaskastu
1629
Points
Alaskastu 08/14/12 - 01:13 pm
7
1

Enough is enough. The city

Enough is enough. The city needs to take care of the bills. Yes there are many projects want.
Our assembly members shouldn't even be allowed to bring up a topic of a new projects until we have paid for what we owe and what we k ow we will owe in 5 years time.
I'm done with this temp tax. Let's actually make it a temp tax and kill it now.

nottacheechako
470
Points
nottacheechako 08/14/12 - 07:31 pm
5
2

Wanamaker

Was the lone sane Assembly member last night for trying to be realistic!

This is a no brainier for me this election, voting NO and feeling good about it!!

fmast50
2087
Points
fmast50 08/14/12 - 08:51 pm
5
1

Voting no is not even the end of this

So if you vote no now, the assembly has another year to go back to the drawing board and try again. The 1% doesn't expire until September 2013. By voting no now, the assembly, at a minimum, will have to start over and at least try to come back with a more reasonable list for another vote next fall. A no vote will almost certainly kill the go bond for good and protect our property taxes.

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