Minutes of Public HearingDenail Borough Assembly

McKinley Village Community Center

September 9, 2001

CALL TO Presiding Officer Jerry Mueller called the public hearing to order at 3:03

ORDER 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 E an ordinance amending Denali Borough Code of Ordinances, Chapter 24, section 6, concerning management of Borough Real property.

David Talerico, Healy resident, said that the word “existing” was added to this ordinance. He suggested looking at this as a land use permit not a temporary land use permit.

2.) A resolution outlining the Denali Borough requests for the capital matching grant program for the Fiscal Year 2003.

There were no comments.

3.) Ordinance 01-08, Version A, an ordinance confirming that the Denali Borough is and will continue to exercise solid waste powers.

There were no comments.

4.) Ordinance 01-09, Version A, an ordinance amending Article II, section 2.02 of the Denali Borough Charter regarding redistricting.

Charlie Loeb, Healy resident stated that this is logically orientated. He stated that the voters need this on the ballot.

Steve Carwile, Healy resident, stated that any redistricting plans that split the voters from their school district is nuts!

Jenesy Jensen, Ferry resident, stated that the line should be extended north to encompass Ferry in the middle district.

5.) Ordinance 01-10, Version A, an ordinance amending the Denali Borough Charter, Article XO, section 11.01, regarding an excursion tax.

Lynn Boelsma, Cantwell resident, read her letter. She urged the Assembly to hear the business’s voice. She stated that at the last Assembly meeting she read a letter and asked the Assembly and the Mayor for a formal response. She said that the business community sees the lack of response as disrespectful to an individual or the community, a blatant refusal to honestly answer difficult questions or a total disregard to public query. She stated that she can only surmise that there are no thoughtful or legitimate answers to the questions posed. She stated that the Mayor’s Task Force openly admits that this tax was chosen for the preferred option because of all the taxes proposed, this tax has the best chance of passing. She asked if that makes it a fair and equitable tax. She stated that the business community thinks not. She stated that fair is not a legal requirement for taxation, but we believe that there might be legal concerns over who is being taxed and who is exempt from taxation. She asked that while local businesses are obviously subject, are vendors with addresses outside the Borough selling so called “excursions” inside the Borough subject to this tax. She asked by what subjective definition is gift shopping considered an excursion when dining out is not. She asked if tour buses into the National Park would be exempt, as they operate within Federal lands, although tickets are sold outside the park boundaries. She stated that other questions posed are who will implement the tax and by what means and what will be the cost? How will the funds be appropriated in the future? She stated that they realize that capital project needs have a three year outlook, but what about the reciprocal appropriations for those who are paying. She asked what the criteria is for these projects being prioritized or the Assembly’s appropriations list. She asked if the language of this initiative can be amended to specify an agenda for appropriations i.e. a certain percent to school projects, a certain percent to public safety, including EMS and Fire and a certain percent to tourism marketing. She asked if there are other sources of funding? How about the permanent fund? Does it still exist and are there moneys available there? Are contributions continuing while taxes are being considered? She stated that there is an obvious increase in revenue through bed tax with the increase of rooms, both recent and projected. Will an additional tax be necessary? Will funds be made available through proper management of recently received Borough lands? She stated that with Alaskan tourism stagnant at what point do we begin to jeopardize future growth and market shares with future taxation? She also wanted to note that there is unanimous support for Borough School systems and improvement to better the future education in the Denali Borough. That question is not an issue. Boelsma stated that the real questions are the actual need for an additional tax, a fair and equitable levy, and appropriation for funds, management and implementation costs, both legal ramifications and effect on future market shares on tourism. She stated that they strongly believe that these are difficult questions and as of yet the inadequately answered questions on the excursion tax has set forth hearsay and done so without due consideration. They urged the Assembly to vote their conscience and say no to placing the inappropriate initiative on the November ballot. She stated that this is a lot of people’s feelings not just her own.

Steve Jones, McKinley Village resident, suggested that there be a 10% cap on the tax.

David Talerico, a Healy resident, said that he thinks this may ease the burden for the near future if the tax is Borough-wide. He stated that he is not crazy about this excursion tax. He said that one of his fears is that it would go on and on. He suggested a sunset clause.

Rusty Lasell, Tri-Valley Volunteer Fire Department Chief, asked what the Borough is going to do with the money. He said that there is a lot of talk about school funding. He said that he would like to see some go to the emergency services. He said that he would like to see something in writing that says that it is not only going to be used for the schools.

Mayor Gonzales stated that if you read the findings of the task force it says that the fire departments, library and other services have been historically under funded.

Lasell said that he doesn’t think the Assembly will ever put in writing something that says the fire departments will see some of that money.

Greg LaHaie, Healy resident stated that it should not be put on the ballot in November. He recommend that the tax be Borough-wide.

Boelsma stated that she supports Rusty and it doesn’t seem to her to be real concrete that the fire departments and EMS will get funded.

LaHaie said that he operates most of the business inside the Park boundary, and asked if he would be exempt.

ADJOURNMENT MUELLER declared the public hearing adjourned at 3:27 p.m.