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1990-08-21 Special MeetingKODIAK ISLAND BOROUGH Special Assembly Meeting August 21, 1990 A special meeting of the Kodiak Island Borough SPECIAL MEETING Assembly was held August 21, 1990 in the Assembly Chambers of the Kodiak Island Borough Building, 710 Mill Bay Road. The meeting was called to order at 7:04 p.m. There were present: ROLL CALL Lorne White, Presiding Suzanne Hancock Jack McFarland Tom Merriman Gary Stevens Bob Shuttlesworth absent: Mary Monroe (excused) comprising a quorum of the assembly; and Jerome Selby, Borough Mayor Gaye J. Vaughan, Borough Clerk Donna F. Smith, Deputy Clerk CITIZENS' COMMENTS CITIZENS' COMMENTS None PUBLIC HEARING PUBLIC HEARING A. Resolution No. 90-45 Placing the Question of the RESOLUTION Adoption of a Sales Tax on the October 2 Regular NO. 90-45 Election Ballot. Presented for consideration was Resolution No. 90-45 which placed the question of sales tax powers of one percent (1%) borough wide on the October ballot. The revenue generated would be appropriated for school operation in addition to the 5.26 mills of property tax levy appropriated for the previous year, due to the governor's budget cuts. MCFARLAND, moved to adopt seconded by MERRIMAN Resolution No. 90-45. The presiding officer called for public testimony. Petrina Peterson expressed her concern about the way money would be raised for the school district. She asked if the residents have other options than increased mill levy or sales tax. Special Assembly Meeting Volume XIII August 21, 1990 Page 162 Andy Peterson opposed the 1% sales tax or increasing property taxes unless absolutely necessary and asked if there were other options. John Burt thought education could be cut. Jeri Jensen spoke in favor of placing a borough wide sales tax on the October ballot. She understands the revenues would be dedicated to school operations and was her preference to pay a sales tax on local purchases rather than have the property tax mill rate increased. She commended the school district for the quality eduction students receive. She would prefer the borough to be the tax collector and hoped the city council supports the effort to maintain quality education in the community. Mike Milligan supported the resolution and urged the assembly to keep the funds earmarked for schools. Betty Fitziearl opposed the sales tax and was irate that the other option to the sales tax was increased property taxes. She felt the borough must bring its spending in line with the current revenues. Bill Oliver, School Board President, commended the assembly for putting the resolution on the ballot and giving the voters a chance to choose. Betty Fitzjearl added that she was not against taxes for education, but felt there were other ways to raise revenue and use taxation as a last resort. Okey Chandler felt that the assembly should take whatever action is necessary to collect from everybody. Chris Kinter opposed the borough wide sales tax as it continued the policy of more spending. Bob Brodie, City of Kodiak Mayor, said the city council took no position but supported the educational system and the assembly's decision. Beatrice Geddes opposed the sales tax as a way of generating revenues as there were other ways. John Witteveen, school Superintendent, agreed with the speaker that said the school district was looking to provide quality education. He supported the efforts of the assembly because he felt the state would look to local communities to provide their own services. Special Assembly Meeting Volume XIII August 21. 1990 page 163 John Burt added that he thought if state revenues go down, cuts needed to be made. Tuck Bonney thought the best way was responsible spending. Wally Johnson felt real estate taxes was the way to raise more money. He urged no new local taxes. The Presiding Officer closed the public hearing and reconvened the special meeting at 7:42 p.m. Assemblymember Merriman felt the sales tax was a step in the right direction emphasized that any increase in the sales tax would have to be voted upon by the voters. He said the assembly would look at other measures to generate revenue but that would not take care of the immediate future. Assemblymember Stevens opposed the sales tax resolution because he felt property tax was more stable and the borough did not belong in sales tax business. He said we need to know the true cost of education and once sales tax and property tax was mixed, it became quite confusing. Assemblymember Hancock felt both a tax increase and cuts were needed at the same time because of state funding. She said the issue on the ballot clearly gave the voters a choice. She added that property tax was passed down to the consumer in higher costs. Assemblymember McFarland said even though he had been a proponent of no new taxes, he realized that we are faced with decisions now that may include some taxation. He thought a good job had been done maintaining level spending. He hoped the sales tax would bring in for the FY91-92 budget a level of education we had in the FY90-91 budget. He gave the school board, city council, and assembly credit for looking to the future. He was concerned that all the burden of the community was placed on property taxes only. He agreed this option was one the voters should decide. Mayor Selby discussed numbers to give an accurate overall funding picture. He said the borough balanced the budgets of the school district, hospital, and borough with $32,000,000. He reported that $19,000,000 came from the State of Alaska, $2,500,000 came from property tax which was mostly spent on borough operations. He said virtually two- thirds of the budget came from the State of Alaska and those revenues were declining. He hoped this Special Assembly Meeting Volume %III August 21, 1990 Page 164 helped residents to understand why the assembly was looking at the issue of a sales tax. Assemblymember White said there was no way the status quo could be maintained without taxation because of declining state revenues and increase in population. He felt the resolution asked the voters where they want the revenues to come from. VOTE ON MOTION Ayes: Hancock, McFarland, Merriman, Shuttlesworth, White Noes: Stevens MOTION CARRIED 5 Ayes, 1 No CITIZENS' COMMENTS CITIZENS' COMMENTS Bob Brodie commended the assembly for coming to a decision with a situation in the community and now it was up to the voters to make that decision. He encouraged voters to file for public office. John Burt again stated his opposition to increasing taxes in any form. Okev Chandler restated his views. Beatrice Geddes questioned why boat -owners could not be taxed, especially the owners that do not live in Kodiak all year. ASSEMBLYMEMBER'S ASSEMBLYMEMBER'S COMMENTS COMMENTS None. There being no further business to come before the assembly, the meeting adjourned at 8:09 p.m. rl<.— LL/ P,r6oiding Officer ATTEST: Bbrough Jerk Special Assembly Meeting Volume %III August 21, 1990 Page 165