LUTHERAN QUILTERS – Members of the Quilts for Comfort Group stand between pews draped with some of the 205 quilts they made, in the Sitka Lutheran Church Tuesday. The group made the quilts for five local non-profits and one in Anchorage. The remaining quilts are sent to Lutheran World Relief which distributes them to places around the world in need, such as Ukraine, as part of Personal Care Kits. Pictured are, from left, Helen Cunningham, Kathleen Brandt,Vicki Swanson, Paulla Hardy, Kim Hunter, Linda Swanson and Sue Fleming. (Sentinel Photo by James Poulson)
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Daily Sitka Sentinel
Plan to Update Value Of Tax Base Approved
By SHANNON HAUGLAND
Sentinel Staff Writer
The Assembly said yes to more funding to complete the comprehensive plan; no to chipping in on the Community Ride bus service; and yes to a lower-than-proposed harbor rate hike – three budget items on a long list up for consideration Monday night.
The three and a half hour meeting at the Sealing Cove Business Center was a continuation of the budget session that ended Thursday with many items yet to be addressed.
“I think the Assembly has worked very hard on the 2017 budget, and I’m optimistic where we are in the budget process,” City Administrator Mark Gorman commented today. “It’s been arduous and comprehensive.”
He said he was pleased that the School Board is accepting $100,000 less than last year, which will help the general fund bottom line.
“I credit the School Board with stepping up and showing leadership at a time of extreme financial stress at this time of our city,” Gorman said. “I’m impressed with the action from last Friday, and grateful.”
The School Board request actually is double the amount of city funding suggested by the Citizens’ Task Force, which recommended a $200,000 cut.
Assessing Department
The Assembly approved $65,000 in temporary wages for the assessing department to bring property tax assessments more in line with the actual value of the properties.
City Assessor Wendy Lawrence told the Assembly that half of the houses in Sitka have not been reassessed within the past four years, leaving those properties on the assessment rolls at an average of 85 percent of their actual value.
“We’re missing 15 percent of the revenue that should be revenue,” Lawrence said. She estimated the loss at $1 million a year.
The Citizens’ Task Force recommended that the city buy an updated software package, but Lawrence said the cost would be much higher than expected and unaffordable at this time. Instead, she proposed hiring temporary employees to bring the assessments up to date.
“The task force recognized that we need to put more emphasis on property tax – it’s been historically stable but we’re missing out on revenue because half of our tax base is undervalued,” Lawrence said.
The Assembly voted 7-0 to approve the $65,000 request.
“This will make our system fair by assessing all properties in a reasonable timeframe,” Matthew Hunter said.
“This is an investment that gets us more revenues in the long term,” Tristan Guevin said.
In decisions related to the general fund, the Assembly:
– set aside $40,000 in matching funds for a community playground. The vote was 6-1 with Steve Eisenbeisz opposed. Responding to the suggestion that cruise ship passenger excise tax funds be used, Gorman said it would not be a good idea, since the cruise industry is challenging the use of these funds for projects that don’t benefit visitors. An industry organization is suing Juneau over this issue.
– agreed to spend $40,000 to hire a consultant to help out with the comprehensive plan, including a land use inventory, land use plan and comprehensive plan. Maegan Bosak, city planning and community development coordinator, said a “robust public process” has begun, with 50 attending the first meeting. Eisenbeisz said he would prefer to allocate the money when it’s needed. The motion passed 5-2 with Eisenbeisz and Aaron Swanson opposed.
– failed to approve $15,000 in funds for the Community Ride, the bus service operated by the Sitka Tribe of Alaska. Connie Sipe, executive director of Center for Community and coordinating manager of transportation, said the van and bus service provide about 70,000 rides a year, and brings in about $1 million in outside funding. The original request was for $25,000, but Sipe said even $15,000 would help.
“I know of the huge economic impact of the ride,” said Matthew Hunter. With four votes required for passage, the item failed on a 3-2 vote, with Hunter, Mayor Mim McConnell, and Bob Potrzuski in favor and Swanson and Eisenbeisz against.
Guevin and Ben Miyasato did not vote, Guevin because he works for the Sitka Tribe of Alaska, and Miyasato because he is treasurer of the STA tribal council.
Harbors/Enterprise Funds
The Assembly approved capital and operating outlays and rate increases for some city services.
One of the major changes was approval of a 5 percent increase in harbor fees instead of the recommended 6.2 percent.
From the public, Matt Donohoe testified against the 6.2 percent increase, leading off by thanking the Assembly members for their service.
“This is excruciating,” he commented.
He said Sitka’s rates are already among the highest in the state, and are causing the city to lose business.
“The city is getting to a tipping point, in boats coming in,” he said. “I already know a lot of people who used to come and fish who don’t (anymore).”
At a previous meeting the Assembly voted to put all raw fish tax into the harbor fund, instead of holding out $100,000 for the general fund.
Citing this extra income for the harbor fund, Assembly members voted Monday night in favor of a 5 percent rate increase.
There was some discussion about the extreme pressure on the harbor fund in view of upcoming major upgrades, and the state’s stopping the 50-50 matching fund program that is the basis of the long-term harbor plan.
The rate increases will come back to the Assembly in the form of an ordinance. Other user fees that are planned are a 5 percent electric rate hike, and one percent increases in both the water and the wastewater fees.
Spending Cuts
The Assembly voted 7-0 to leave the assistant fire chief position vacant upon the retirement of assistant chief Al Stevens.
“This brings to the forefront where we are as a community,” Gorman said. “The public wants less out of city hall. This is hard, this is not easy work to achieve these kinds of reductions.”
Hunter, who is a volunteer firefighter, said he knows this will increase the workload – with less time off – on the current staff.
“I don’t like doing this, but we can’t afford having all the positions we’ve had,” he said.
In another vote, the Assembly changed its worksheet to reflect that Friday’s School Board vote will bring the city $100,000 closer to balancing its budget. Potrzuski, a retired teacher who occasionally subs in the school district, recused himself, and the vote was 6-0.
The next budget meeting is 6 p.m. Tuesday, May 3. On the agenda are internal service funds, special revenue funds and the Sitka Permanent Fund. A final meeting, to discuss the Sitka Community Hospital budget, is set for 6 p.m. Monday, May 16. All budget meetings are at the Sealing Cove Business Center.
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20 YEARS AGO
March 2004
Advertisement: Tea-Licious Tea House & Bakery 315 Lincoln Street Grand Opening! Freshly Baked Scones, Cakes & Pastries Innovative Salads, Soups & Sandwiches Harney & Sons Tea. Lunch * Afternoon Tea * Supper.
50 YEARS AGO
March 1974
Photo caption: National Republican Chairman George Bush takes a drink of water offered by Jan Craddick, Sitka delegate, during the Republican convention held here. Mrs. Craddick explained to Bush that the water was from Indian River, which means, according to local legend, that he will return.