Daily Sitka Sentinel

Budgets, Tax Relief on Assembly Agenda

By SHANNON HAUGLAND
Sentinel Staff Writer

The Assembly at tonight’s meeting will take up enterprise fund budgets for next year and the distribution of federal Secure Rural Schools funding, among other business.

The meeting starts at 6 p.m. at Harrigan Centennial Hall, with only a handful of city employees expected to be in the building and Assembly members attending remotely.

The agenda has 18 items, including ordinances on final reading related to a hospital liability settlement and the Alaska Remote Seller Sales Tax. Both items passed on first reading.

The meeting is public, but options are available for testifying by phone or in writing, with the city clerk reading the testimony. 

The city provided links for watching the meeting on cityofsitka.com (lower right corner) and submitting testimony.

“We want to encourage people to give phone comments by calling 747-1826,” City Clerk Sara Peterson said today.

She’s trying to offer options for public testimony while following precautions for preventing and slowing the spread of COVID-19. That includes maintaining the rules now in force on public gatherings.

“I would like to thank the public for their patience with each meeting we learn and we’re continuing to improve our method for public comment that are offered,” Peterson said. “I realize this isn’t an ideal situation for anyone. We’re trying to adhere to our hunker down order in effect until May 12. So while the building is open during the Assembly meetings and citizens can attend, we have to limit it to 10 in the Assembly chambers. We’re trying to encourage individuals to participate by phone if they have comment.”

One item is intended to provide relief to residents who may be experiencing financial hardships due to restrictions by local advisories and state mandates, in response to the pandemic.

Emergency Ordinance 20-24 would abate penalties and interest for first quarter sales tax period until June 30.

Co-sponsored by Thor Christianson and Valorie Nelson, the emergency ordinance requires one reading, and at least five votes to pass.

Nelson is concerned about businesses that are currently closed, and kept from opening due to COVID mandates, the city resolution to “hunker down,” and the ordinance for workers arriving from out of state to quarantine for 14 days.

“Here we have businesses here - they’re told by resolution they can’t open,” she said today. “People probably could’ve survived one month or two. If they can’t survive, ... we rely on small businesses (here).”

Her intent, she said, is to provide some relief.

A similar emergency ordinance, proposing abatement of sales tax payments as a relief measure, did not receive the required five votes for passage when it was proposed at the April 14 meeting.

The Assembly will also take up an ordinance on final reading related to internet sales tax collection.

A budget ordinance also up for final reading would advance $4.1 million from the general fund into the Sitka Community Hospital dedicated fund, to settle the Office of Inspector General Stark Anti Kickback liability stemming from SCH operations, the ordinance says.

“In conjunction with the Asset Purchase Agreement entered into between the City and Borough Assembly and SEARHC relative to the sale, the City and Borough of Sitka agreed to place funds into a City Funded Escrow Account with the General Fund to be used to settle future liabilities, including the OIG Stark Anti-kickback liability,” the ordinance says. “The OIG has now proposed settlement terms to the Municipality.”

The money advanced from the general fund will be paid back using any funds remaining after the “wind-down of former SCH business activities, tobacco tax proceeds and ones released from escrow proceeds from the sale of Sitka Community Hospital.”

Near the top of the agenda is a motion to rescind a vote at the April 14 Assembly meeting, when members voted against the reappointment of Anne Pollnow to the Sitka Historic Preservation Commission.

The motion to rescind that vote was placed on the agenda by Richard Wein and Kevin Mosher. Rescinding requires five votes. If that motion passes, a motion may be made to appoint Pollnow.

If the motion to rescind fails, the Assembly may not revisit the item, Peterson explained in the Assembly packet.

The Assembly will consider on first reading budgets for the general fund, enterprise funds and internal service funds.

Those include funds supported by general taxes and fees (e.g. police, fire, library), funds supported by customers (electricity, water, harbors), and funds supported by city departments (IT, central garage).

Work sessions on all of the budgets have been held over the past several months.

There is a separate resolution up for consideration to set harbor rates for transient and permanent moorage. A 5 percent hike is proposed for most moorage categories, as recommended by the Port and Harbors Commission.

“Per code, their rates are passed by resolution not by ordinance,” said City Controller Melissa Haley.

There is also a discussion/direction item on the distribution of more than $458,000 in Secure Rural Schools funding, federal funds dedicated to schools and roads.

The Assembly makes the decision on how the money is shared between the city and the school district.

Neither the city nor the school district had expected SRS funding this year and did not include any revenue from that source in their 2021 budgets.

However, Haley said, the money did come in – $458,071.35 that arrived today.