02/27/1969 RM1
WORK SESSION
KODIAK ASSEMBLY & CITY COUNCIL
FEBRUARY 27th, 1969
Present
Sam Best, Borough Chairman
Roy Goodman, City Manager Absent
Don Bullock Wil o t °!bite
Jo Hajdu Emil Norton
Betty Springhill Pete Resoff
Don Arndt
Jim Barr
Dick Berg
Jerry Tilley
I. lir. Best briefly discussed the letter from Olsen & Sands the
construction of the Staff Residence and it was agreed that an attempt will
be made to get another architect for the Staff Quarters.
II Mr. Best will be making a trip to Juneau for the State Legislative meeting
concerning the Public Service Ctmr.+ission Bill.
II The purpose of this work session was to discuss the tax situation at present.
There are three methods available for taxing - real property, personal property
and sales tax, and it is possle to use either part of or all of these methods.
The members of the Assembly are not opposed to exempting the fishing boats and
gear as suggested by the City Council, however it was pointed out that there
must be an alternate source of revenue. It will not be possible to build the
new high school without an alternate source of revenue to take the place of
the revenue brought in by personal property taxes. It was suggested that the
Borough go on ballot to see if the people wish to get rid of the personal
property tax altogether and institute a sales tax or exempt a certain type.of
property and keep the personal property tax on othere. It was noted that it
probably won't be possible to pass the sales tax without eliminating the
personal property tax. Mrs. Springhill was concerned about the wording of the.
ballet - the sales tax was defeated before because there was no ceiling. Mt.
Barr felt the voting would be emotional and would depend on which group has the
best publicity. He thouc.::t the Assembly should decide this issue and Mrs.
felt that the people should decide it. Mr. Bullock was concerned about getting
the information across to the people. Mrs. Hajdu stated that if there is no
voting there should at least be a public hearing.
It was pointed out that the real preperiviowners are the main stay of the
community and must bear the burden as compensation must be made if other taxes
are released. I1r. Barr stated that the City has every right to terminate the
Pa4mer± in lieu of the personal property taxes if the City Council desires,
and felt this move was long overdue; however it is a mistake to subsidize
personal property tax with the real property tax. The fact that an ordinance
is hard to write and collect should not be the reason for backing away from a
desirable sales tax program. He stated further that about one and a half
million dollars worth of boats outside the city paid their taxes and there were--
no complaints; this compares to six and a half million dollars worth inside
the City. It was felt that the collection of the tax on boats was good because
the canneries pay these, but it was pointed out that many of the people own
their own boats and are willing to pay the tax. Nr. Tilley said that about
60% of the people do not own the boats they operate. It was mentioned it
is possible to get the records from Fish & Game to where the boats fish for
Salmon and crab and they are registered for that area, and so could be taxed
there. They must fish in the area in which they register.
The tax on inventory was discussed at this time and it was pointed out that
the merchants will be inclined to let their stock go way . down at the first Of
the year. This provides less services for the area and encourages people to
buy more from the mail order houses, thus sending money that should be here in
the community to other areas. A tax on average inventory over the year Pict
also keep the inventory low and would be a bookkeeping burden for the business.
The need here is for more small type businesses tied in with the local banks.
If consigned goods are taxed the canneries could have their building cleared
within one hour to avoid the tax. By exempting the inventory of tax the
canneries would stay open longer and thereby employ more people, as it is they
shut down about the 15th of December and do not open until the 4th or 5th of
January. It was suggested that perhaps the will ten the boats and return
sane of the revenue to local governments, but it was felt that it was better
for the taxing to be local because the State will keep too mulch.
071
WORK SESSION
ASSEMBLY & CITY COUNCIL FEBRUARY 27, 1969
The members were of the general concensus that there should be something
worked out on the taxing of boats and gear - perhaps a tax on boat tonnage
rather than the boat and gear and this would include all outside boats. Also
felt that a solution could be worked out on the inventory and consigned goods.
It was pointed out that there are contractors here with equipment that should
be taxed, the telephone company for one. It was brought out that the sales
tax is costly in man hours and bookkeeping especially if the clerks have to
figure two sales taxes, one for the Borough and one for the City. The City
does not want to penalize the people coming here from the outer areas to shop
but rather encourage them to shop here instead of the mail order houses.
Its. Hajdu stated that she had received many telephone calls and they were
running about 50/50 on taxing the fishing boats -- some said that as long as
the fish are here the fishermen will stay and they will leave when there are
no longer any fish to be caught.
It was brought out that each body should be able to have a discussion and
decide some mutually acceptable way of setting up sources of revenue. The
City and The Borough must cooperate.
It was also pointed out at this time that the Assembly would like very much
to have all available information on a subject to be discussed, particularly
the ones brought up by the City Council, at least a week before the Assembly
meeting in order to have some background information available and not go
into the meeting without any fact concerning the subject. As far as the
weighted votes goes, either Councilmen or outside Assemblymen feel threatened.
Mrs. Hajdu felt the City should have four representatives on the Assembly
instead of the weighted vote, one man - one vote.
Meeting adjourned 1:30 p.m.
ATTEST: APPROVED:
_Ze-tf_571—
Sal B. d rix, Clerk/Preasurer — G. S. Best, Borough Chairman