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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