Minutes of Work Session

Denali Borough Assembly

Cantwell School

October 14, 2001

CALL TO Presiding Officer Jerry Mueller called the work session to order at

ORDER 2:00 p.m.

ROLL CALL Assembly members present were: Sid Michaels, Jim Caswell, Teresa Hall, Carol Shields, Jerry Mueller, Teresa Usibelli, Jim Payne, Scott Stowell, Gerald Pollock and Mayor Gonzales.

1.) Ordinance 01-06, version F, an ordinance amending Denali Borough Code of Ordinances, Chapter 24, Section 6, concerning management of Borough Real property.

Gail Pieknik, Land Use Technician, suggested taking the word “existing” out of the ordinance to clarify that the ordinance pertains to temporary use permits.

MICHAELS agreed with Pieknik.

Discussion followed.

STOWELL suggested changing the verbiage in Section 6.) A to “Easements will be considered on a case by case basis”.

Pieknik stated that the Assembly would have to look at what kind of easements would be going across our lands.

MICHAELS stated that we are adding Section 6 to Chapter 24 of the Denali Borough Code of Ordinances. He suggested modifying the title of this ordinance to read “amending Denali Borough Code of Ordinances, Chapter 24 to add section 6".

2.) Ordinance 01-09, Version B, an ordinance amending Article II, Section 2.02 of the Denali Borough Charter regarding redistricting.

POLLOCK stated that there was a typo in the ordinance under section 2). C. He stated that there should be three seats not two.

MUELLER stated that this ordinance needs to be put in correct Borough Ordinance format.

3.) Ordinance 01-10, Version B, an ordinance amending the Denali Borough Charter, Article XI, Section 11.01, regarding an excursion tax.

MICHAELS said the title of this ordinance on the agenda should state a sales tax not an excursion tax. He cautioned the Assembly regarding the proposed sunset clause. He thinks that it will cause the Assembly more problems.

CASWELL reminded the Assembly that this ordinance proposes the tax be in effect for three years.

4.) Ordinance 01-11, Version A, an ordinance amending Article II, Section 2.02 of the Denali Borough Charter concerning redistricting. (Introduced by Assembly member Sid MICHAELS.)

MICHAELS said he is going to propose during the regular meeting that this ordinance be amended to move one seat from District 3 and add it to District 2, and have the boundaries be the same as they are right now.

CASWELL asked what the differences were between Ordinance 01-09 and this ordinance. MICHAELS said the ordinances are becoming closer to being the same ordinance.

POLLOCK stated that Ordinance 01-09 mirrors the school district/fire department boundaries.

MUELLER stated that it is his understanding that there are no set school boundaries.

5.) Ordinance 01-12, Version A, an ordinance amending Article II, Section 2.02 of the Denali Borough Charter concerning redistricting. (Introduced by Assembly member Jim Caswell.)

CASWELL stated that in the regular meeting he will move to amend the names of the district as follows: District 1 would be the Southern District, District 2 East would be East Central, District 2 West would be West Central, and District 3 would be the Northern District.

6.) Ordinance 01-13, Version A, an ordinance establishing a 2% general sales tax within the Denali Borough. (Introduced by Assembly member Teresa Hall.)

HALL said this ordinance, if adopted will give the voters a choice as to which type of tax they prefer. She said this tax generates less revenue than the other proposed tax.

MICHAELS said he would rather see the items that are going to be taxed listed out in the ordinance instead of the items that are exempted. He said the way this is written the exemptions are limitless.

CASWELL stated that he will try to remove item 12, utilities, such as electricity and telephone during the regular meeting.

HALL stated that those items being taxed is what makes this ordinance different from the others.

STOWELL said he has spoken with business owners in Wasilla, where they have a sales tax, and they told him it’s not that difficult to administer.

MICHAELS stated that if you wanted to add more things to be taxed, it would have to go to a vote of the people but if there was another exemption added, then that could possibly be done by Assembly ordinance.

MUELLER stated that this ordinance would be a more acceptable ordinance if it would be in effect until we reach the amount that we need for the capital improvement projects (CIP), plus a little cushion.

CASWELL stated that the CIP’s will not go away, and there will be new ones every year.

HALL said in Section 3, the ordinance states that this tax will be reviewed at the January 2008 Assembly meeting.

CASWELL stated that no one likes tax, but it makes more sense to him to say what is taxed, than what is exempt.

7.) An ordinance adding Title III, Chapter 22A, titled Excursion Tax to the Denali Borough Code of Ordinances. (Introduced by Assembly member Scott Stowell.)

STOWELL had several verbiage changes, and will try to implement these changes during the regular meeting.

MICHAELS stated this ordinance defines how we would implement the tax, and asked STOWELL how this would be presented to the voters as a ballot proposition.

STOWELL stated that this document is no more complex then the bed tax ordinance when it was proposed as a ballot proposition.

MICHAELS said he is concerned about the people that are going to be taxed. He stated that if you name in the Charter the type of businesses that are going to be taxed, then it would have to be brought to the voting public to change that.

STOWELL stated that under section 8, it allows the Mayor to determine if it is an exemption or not.

MICHAELS stated this ordinance is a little fuzzy on who is exempt.

STOWELL stated that there is an appeal process in the ordinance.

MUELLER said that if you are going to change what is exempt or taxed you have to change the Charter and it should go to a vote of the people.

Lynn Boelsma, Cantwell citizen, asked why food was exempt.

STOWELL said it was the only way he could think of to separate food items from tourist items purchased in a food mart.

ADJOURNMENT MUELLER declared the Work Session adjourned at 2:45 p.m.

Attest: Approved:

Date Approved: