06/20/1968KODIAK WAND BOROUGH]
ASS ,Y MEE.'PING - June 20, 1968
I CALL 10 ORDER
The meeting was called to order at 7 :50 p by the Presiding Officer, Jo Hajdu in
the Courtroom, Donnelley Building, Kodiak, Alaska.
II ROLL CALL
Present Absent
Sara -Best, Chairman Don Bullock
Tars. Jo Hajdu, Presiding Officer Mrs. Betty Springhill
Jim Barr
Don Arndt
Also present: Roy-Good. City Manager: Roll Madsen., Borough Attorney; Howard Keiser,
Sanitarian; Rdbert Summers, Assistant. City Engineer; John Welch; Edittr-icr ni.re;
Representative Chuck Powell; Senator Rill ...Poland;-Pete-Deveau, Mayor; E nil Mortcin ,.. _
Douglas Presto, Clerk reasur+er;-.sev ral others, - -and Ruth Crcrey taking lainutes.._
III MIMES- Cr PREVIOUS IEETI GS
Comments on regular meeting of Joe 6, 1968: It was ci t ' to o_, `he
Assembly Vases that the motion, passing the.woe 68-9 -0 was not remedied in the
minutes of June 6, 1968. Be it now recorded that motion_ was . carried ky. » L7: awe.
•moo
Mts. Jo Hajdu. Jim .Barr
Don Arndt
IV OAR MINUTES
NO comments
V - COMMUNICATIONS - COSSESPONDENCE - PEOPLE MBE HEARD
A. Borough Sales Tax Election of June 25, 1968. Mr. Chuck Powell stated that he was
asked to convey the action taken at the Kodiak der of *amerce meeting this noon,
that they atIO in opposition of the 2% Sales Tax as proposed by the Borough, and any
increase in real property taxes until such time as adequate study would indicate the
need or the necessity for the increase. It was felt that there was not sufficient
evidence presented to the public and that there has only been two alternatives pre-
sented to the people at this time, namely a sales tax or a property tax increase.
Mr. Powell said he felt that is the third alternative and this is to decrease the
Borough and the School budget. Mss, Hajdu rented that she wished the Chamber of
Commerce had seen fit to attend the '_.. im...;na Meetings on the School budget and
came forth atthat time with reconmemlations because the School Board budget has
been approved by the Assembly with only one dissenting vote. Mr. Powell further said
that he is opposed to dedicated tax funds for aid to a specific unit. There is no
time limit to the Saipa Tax as presented and he felt that there has been an assump-
tion that the Borough must have an increase rather than a decrease in budgets. Mr.
Barr at that time suggested that the Assembly separate the sections into three
ments for discussion as follows: 1. Budget inns, to determine whether- the.Borough
needs money, 2. If the Borough does need money, then where to get it, and 3. If the
sales tax is voted in, how do we administer the money. Mrs. Hajda.suggested "that
Since this was a logical progression, that the Assembly take this matter into -the
three sections as suggested by Mr. Barr. Senator Poland stated also tfied7he felt
enough information has not been given to the general public and t:hey d be given
the opportunity to review this matter. He feels that the election is premature, and
felt it should be held over to allow further discussion by the people. He also said
that there was not adequate information given out to be able to vote intelligently on
the election. Mr. Deveau stated that the previous two years budget - should be known
in order to analyze what is needed in the present budget, and why the taxes-should be
raised. Mrs. Hajdu told Mr. Deveau that she would gladly furnish hinrwith this in-
formation, however, she stated that the mill increase is not for new construction, as
most of it is for the maintennce and operating costs of the sdmols and the present
buffet does not allow for any new construction. Although she has not seen _ the pro-
jected Borough Budget, the only increase is the hospital support, utd.ct was decided
upon when the Hospital Bond was issued and mold not be changed now Mrs. Hajdu said,
Mr. Norton said that the City of Kodiak is not accredited in the higher grades be-
cause of lack of certain types of teachers. He also expressed that the village
schools are not going to get the support of the State that they have. rP.ce3.ved - the
past, and the Borough has to make up for that support. He said that the School Board
was going to try to give support to the Special Education Program, the
Program, and the building and Maintenance of Larson Bay School and this is the reason
for the . increase in the school. budget. as Senator Poland felt_that..since
KODIAKITA11WDECKUCV 1 A 1
ASSEMBDIY G - June 20,'1968
the Borough is providing support of the Village Schools and receiving no government
support, he felt that the Borough should change its boundaries. He said that the
Kodiak Community could not support the entire Island. Mr. Dick Berg stated that al-
though he had attended the meeting when the School Board budget had been approved, he
felt that the necessary information was not available to the general ?xbli.c to makes
a true analysis. Mr. Barr said that he had spent many hours on the school budget and
went over the last three years and the projected budget for the coming year. He agreed
with Mrs. Hajdu's view that the figures of the budget as presented the first time were
disturbing. Be felt that the people administering this had done a good job in the past
and that there should not be any further delay in passing this budget as presented.
Senator Poland felt that the election should be delayed and felt that a tax increase for
real property instead of a sales tax for 10 or 15 years would be more suitable. Mrs.
Hajdu felt that a one year increase in real property taxes would not be sufficient
and that her cho is to support the sales tax and will continue to do So. Senator
Poland said that he as a member of the public has been negligent in securing the ins
formation necessary to vote intelligently on the tax election, however, he also said
that there has only been two choices given to the general public and no chance to
study or review the reason for tax increase. Nr. Norton commented that the Borough
and the City Budget should be examined wisely and agreed with the Senator that the
Sales Tax is unfair to the people. sirs. Hajdu said that if the sales tax election
did not pass, then it would be necessary to cut the School budget in half. Mr. Bisera
commented that he felt that people should know exactly what the money is used fora d
where the money is spent. Frank Peterson ASCAP said that if the sales tax was not
approved, the school system would be the first to be hurt, and that he supports a
study of the budget. Firs. Hajdu said that she personally would like to see a special
section of the newspaper devoted each year to show the City's budget and their actual
income and expenditures, and the Borough's income and expenditures, as well as the
School Board budget and their actual income and expenditures. She felt that this
meeting was a step in the right direction and would like the approval of having a
complete spread each year and then let the people decide whether they wish to con -
tinue to support the administration. Mr. Berg said that the school should only spend
what the budget allows and is approved and felt that the School Board budget should
be audited. Mr. Barr let it be known that the budget is audited every year and is
available to the public. Mr. Best expressed that he feels the approach the Borough
has made as far as sales tax concerns in relationship to school _exposes, is a sound
One. He stated he likes the method of a sales tax rather than property taxes be-
cause it reaches more people and therefore covers more of the people that are in-
volved in sending children to our schools. Personally he felt he would rather pay
taxes a little at a time based on income, rather than a lump sum twice a year based
on the value of his property. Mr. Norton asked the Assembly that if the sales tax
fails, what alternative will there be. Mrs. Hajdue stated that one alternative will
be to increase the property taxes and a second would be to take ano±her look at the
school budget and start cutting it. It was asked by Mrs. Hajdu if the budget could
be reopened after it is once approved. Mr.Madsen stated that he would have to say
no, and read the Alaska Statute regarding this matter. However, Mr. Best said that
it probably could be reopened since the total Borough budget has not been approved
as yet. Mr. Norton said that he felt the City and the Borough Budget should be
reviewed thoroughly before any increases. Mr. Barr read the mill rate for the past
three years which arez 1965 -66, 6.6 mills; 1966 -67, 3.84 mills; and 1967 -68, 3.32
mills. He said accordingly, it does not show that the Borough has been increasing
the taxes. He also said that the school enrollment for the last three years was as
follows: 1965 -66, 1,757; 1966 -67, 1,913; and 1967 -68, 2.067. Mr. Norton stated that
the School Board does not anticipate any big increase for the next year. This does not
include the Base School. It was stated by Chairman Best that the Borough budget will
be presented at the meeting of June 28, 1968, however, he said that the Borough
Budget was not complete because of the sales tax election outcome. Mr. Pcwell asked
the Assembly if the election is held and fails, what is the mill increase. Mrs.
Hajdu said that the Assembly has anticipated about 6 mills. Mr. Barr read a copy of
the advertisement that appeared in the paper about a week ago, which stated that the
present Borough mill rate for the fiscal year ending June 30, 1968 is 3.32 mills
representing the tax rate of $3.32 on each $1,000.00, and without the sales tax, the
mill rate for 1968 -69 would be approximately 9 mills. Senator Poland said that he
finds it hard to believe that the mills would increase three times. It was stated
by Mrs. Hajdu that the Borough Assembly tried to prepare the public as much as
possible. Mr. Barr said that the major influence in next years budget is the raw fish
tax which is estimated to be 30% of last year. Mr. Best felt that ample public
notice was given to the general public. He also said that he does believe in Central
Accounting system, however, this rests with the School Board to initiate this accord-
ing to Statute Mrs. Hajdu thought that it would be less costly and advantagetu jf
an approach could be reached where the City and the Borough accounting systems
could be combined. A resolution from the School Board to have a central accounting
system would have to be drawn up for approval. airs. Hajdu also suggested Central
Treasury which would involve certain duplication, but would cut down on costs. It
was stated by Mr. Norton that Kodiak puts only 1/4 village rate toward schools in
contrast with all other cities that support 50% with the exception of two other cities.
ASS 20
PUBLIC HEARINGS
3
Chairman Best said that last year, the mill was split about 50 -50 with the schools.
Mr. Powell said that to his observation of using the tax dollar, he cannot understand
why there is such a reluctance and why doesn't the City and the Borough get together.
Mr. Berg said that the City and the Borough should get together and it would save a
lot of money. It,was said by. Best that he thoughtthis would be a good idea, but
every one is awaiting the outcome of Juneau Charter Commission. The question was raised
as to what the increase in the teachers salary was this year. Er. Best stated that it
was about $300,000.00. Mr. Barr stated that the School budget for this next year was
$2,222,000 and last years was $1,969,000.00 which represents an increase of total
budget of $253,000.00. This is roughly 12 or 13% over last year and corresponds to a
10% increase in enrollment; therefore the cost per pupil has increased only about 2 %.
Mr. Barr further stated that the Borough has the lowest cost per pupil in the state
and the increase this year, counting inflatiC ..1, increase in enrollment and any mark-
up in physical plans that might be added, has only been roughly 12%. We stand a 10%
increase in enrollment this year and the inflation factor alone has taken care of the
balance of the difference in the budget for last year and the coming year. It was
stated that the proceeds from the Urban renewal funds is going mostly to add new class
rooms to the East Elementary School. Mrs. Hajdu asked Mr. Madsen as to how far in
advance a notice is to be published regarding a Public Hearing on the budgets. Mr.
Madsen said a reasonable time only. It was then suggested by Mrs. Hajdu that a Public
Hearing be set for Monday June 24, 1968 providing the advertising can be put into the
paper soon enough. It was felt by Mts. Hajdu that there would be more of the general
public present at that meeting and thereafter would be more prepared to vote on the
Sales Tax Election. It was the opinion of Senator Poland that if the sales tax was
defeated the Borough would enforce a tax on the citizens anyway. Mrs.Hajdu explained
that this was not the case, and if the sales tax was not approved, then the Borough'
would have two alternatives. One, increase real property tax or two, take another
look at the school and Borough budget. However, since all teachers contracts have
been signed and we know how many children are to be enrolled in the school, we are
faced with raising taxes whether we like it or not, Mrs. Hajdu said, and if the sales
tax is defeated then we will have to increase taxes because we have no alternative.
Mr. Deveau suggested that since the City and the Borough have the property of the
Karluk Subdivision (220 lots) why not sell this to raise money. Senator Poland agreed
that this at least would be a temporary solution. Mr. Best stated that he appreciated
the suggestion. Mr. Berg said that no one really knows the content of the proposed;
ordinance And he does not have enough information on it, to vote intelligently. In
regards to this, Mr. Best said he realized that the proposed ordinance was done a little
hurriedly, however, there were copies of the proposed ordinance for the public to
review in the Cee troom, Mr. Madsen said that from what he had heard, most people
were concerned in the limitation and the amount that would be taxed. Chairman Best
stated that in the proposed ordinance which has been presented to the Assembly that
the two items mentioned have been included which are the two basis of contention on
the sales tax. No's Hajdu said that without a use tax, she felt a maximum limit as to
what the sales would be subject to, would have to be added. A motion was made by M.
Arndt for the meeting to recess. It was seconded by Mr. Barr, and agreed upon by
all Assembly Members. Meeting was reconvened and it was suggested to widely advertise
a Public Hearing for Monday, June 24, 1968 and that the members of the School Board and
the Superintendent of Schools , as well as the Chairman of the Borough to answer any
questions. Mr. Barr then made a motion to have a Public Hearing on June 24, 1968 in the
Courtroom on the Sales Tax Election and at that meeting the Borough discuss in the
hearing, the school and Borough budget and further that the Borough do hold the elec-
tion an the sales tax as scheduled. It was seconded by Mr. Arndt. After some dis-
cussion as to how the advertising and the posting of the public hearing was going t
be handled, the question was put before the Assemblymen. The motion carried unani-
mously by roll call vote.
A. 2nd Reading and Hearing of Ordinance 68 -9 -0. Chairman Best read the Ordinance.
Mr. Arndt made motion for the adoption of Ordinance 68 -9 -0 and although he is opposed
Mr. Barr seconded it so that the Ordinance could get to the Public Hearing. Howard
Keiser explained that in order to enforce outside the City limits, he has to act as
p
his awn attorney.S_ poland feels that the Borough is biting off mere than it
can chew. He thoughtittiight be well for the Borough to consider a health district.
for the Kodiak Community. Mr. Madsen advised the Assembly that under law and pro-
cedures sections 07.20.070 there could be no- action taken because(cf the
two members, and according to Mr. Madsen, who were entitled to a weighted vote on
t' the natter. It was suggested by Mr. Barr for the Chairman to get a formal written
study of this matter and vote later on the subject. W. Barr then gave his views
as to why he is opposed to the Ordinance. He feels that the Borough ruling,
rather than serving the e
public, and that since we already have two agencies serving ;.
the same subject, he feels that the Borough does not need to enforce this. However,
Nor. Barr stated that if the Ordinance was broken down to certaia' aspects.:that are
g a1BLY t�IEE1'ING - Jude 20, 1 2966 1 I
needed to preserve public safety and this was scaled down to simplicity, then he could
possibly go for it. It was suggested that the Borough to get :he Attorney General's
opinion on this matter. Public Hearing was then closed and the meeting reconvened.
Ur. Barr moved that the Borough place this matter on the table until the continuation
meeting of June 28, 1968. It was seconded by Mr. Arndt. lotion carried unanimously
lI roll call vote.
VII
mar= & ZCt�ING
NCO
Vizi OW BUSINESS
A. Letter from Claude Hoffman r - , A letter
from Mr. Ho fman was by Chairman Best. A letter was also giving the State
authorization of the additional survey work. This will include the survey of 3,000'
lineal feet, plus the setting of three P.DL primary monuments in the referred sub-
division. Since this work is not covered under the original contract, a fee of
$700.00 is required for the entire payment. After sane discussion it was moved by
Mr. Arndt to give Mrs. Hajdu the authority to sign the necessary papers to complete
this action. It was seconded by Mr. Barr. Motion carried unanimously by roll call
vote.
IX NEW BUSINESS
X CHAIPMANS REPOPT
XII ADJOURNILENT
ardin
Russian Creek Additional
-
4
Judges for Tax Election. Chairman Best read the list of judges Irca each precinct
for the Sales Tax Election of June 25, 1968. Mr. Barr made a motion to accept the
Borough Clerk's reoorm endation for the judges for the Tax Election of June 25, 1968.
It was seconded by Mr. Arndt. Motion carried unanimously by voice vote.
A. Action taken by Chairman Best re: T. T. Jackson. Mr. Best said that he had denied
Mr. Jackson's request for a special inspector because he felt that there could be no
personality conflict involved. He felt that the Engineer, the Building Inspector and
the Sanitarian could not get into a personality conflict and has instructed each one
that if they find themselves near this situation, he will be willing to be there for
the inspection himself and treat the situation on an impartial basis, of whidi has
been done in the past. He does not feel that the Borough should get into this position
of hiring special people for special items. It was suggested that since the original
nation was made by Mrs. Springhill to give the Borough the authorization to hire a
special inspector, this matter be tabled until the continuance of this meeting on
June 28, 1968. It was stated by Mrs. Hajdu that she felt the Borough Chariman was
right in the decision he had taken. With reference to getting an Attorney General's
opinion on Item VI above, Mr. Best stated that an opinion at this time might be
premature since Juneau and Juneau Borough were in the process of Court action con-
cerning the constituticnability of the weighted vote. He felt that the Borough hold
off on any discussion of this until the courts give Juneau a decision. Members of
the Assembly all agreed.
The meeting will be continued from the June 20, 1968 session until June 28, 1968
APPICTVF.D:
3oroug
Chairman; G. S. Best