Assembly enacts cap on new Talkeetna Sewer and Water tax

PALMER — The Mat-Su Borough Assembly had a relatively light public agenda for its Feb. 6 meeting in Palmer.

The assembly did however unanimously adopted a cap on the newly instituted sales tax within the Talkeetna Sewer and Water District.

In early drafts of the ordinance to create the new tax, the amount of a transaction subject to taxation was capped at $1,000. Members of the Talkeetna Sewer and Water Advisory Board were concerned that a cap would allow large companies like Princess to purchase flightseeing, boat, and other tours in bulk and avoid paying what could be a significant portion of the sales tax’s revenue. At the time, no businesses were identified that would suffer from the lack of a cap. As a result, the cap was taken out of the version of the ordinance that went before voters last October.

On Tuesday, Mat-Su Borough Assembly Member Randall Kowalke said removing the cap was a mistake. After the tax passed, it became clear that multiple local businesses would suffer as a result of there being no cap on the sales tax. Roger Anderson, the owner of Air Service Alaska in Talkeetna, said the profit margin for general aviation maintenance is already small, and the bills can be large. Anderson said putting a cap in place would allow his business to remain competitive. In the past, Colby Combs, owner of Alaska Mountaineering School, also expressed concern, since the cost for a climber to take a guided trip on Denali exceeds $8,000.

Assembly Member Kowalke also added an amendment, which would explicitly prevent the bundling concern that led to the cap’s removal in the first place. The ordinance passed without objection.

The only other public hearing before the assembly was Assembly Member Barbara Doty’s ordinance to impose term limits on borough boards and commissions.

Doty said the reason for the proposal was to open up public service to more people. Doty said, “I think that we have matured to a point where there’s a lot of new blood out there who might be able to give us new insight.” Sam Hanson, the only person to testify on the ordinance, said she believed term limits across the board would be a net benefit.

Assembly Member Doty’s colleagues expressed concerns over what term limits might mean for participation in the borough’s boards and commissions. Randall Kowalke said there is already difficulty finding enough people to fill the available positions. When asked, Mayor Vern Halter said it can be difficult to fill some positions in road and fire service area boards.

Assembly Member Dan Mayfield said term limits could mean losing people with a great deal of knowledge and experience. Mayfield said, “The [road service area] folks know almost every road. They know their budget; they know the issues. Same with the [fire service area].” Mayfield added that new members could develop the needed expertise to serve on boards, but that it takes time. He called the process of finding replacements for board and commission members “very, very difficult” in some circumstances.

Assembly Member Jim Sykes attempted to delay a decision on the ordinance in order to more fully examine information from borough staff on boards and commissions. Sykes said he was initially enthusiastic about the concept of term limits, but that he had concerns and wanted more time to consider the issue. Sykes also unsuccessfully attempted to amend the ordinance to exempt the borough’s fish and wildlife advisory board.

Assembly Member Doty pushed back on the notion of lost knowledge with the enactment of term limits. She pointed out that borough assembly members also have to take on a great deal of new information, and that it does not stop the assembly from functioning after someone new is elected. Doty said, “I believe in term limits at the state level, at the federal level, [and] at the local level.”

Assembly Member Doty was ultimately the only one to vote in favor of her proposal. Despite that, Mayor Halter said it could be possible to change the way the borough advertises positions on boards and commissions. Currently, if a board or commission member intends to stay on at the end of a term, that position is not included in the borough’s monthly advertisement, according to Borough Clerk Lonnie McKechnie.

After the relatively light agenda, the assembly went into executive session to discuss potential litigation regarding the Alaska LNG pipeline. Borough Manager John Moosey believes the Mat-Su was not given a fair chance to have Port Mackenzie compete as a candidate for the pipeline’s terminus in the event it is ever built. Since executive sessions are exempt from open meetings laws, the content of the closed-door discussion is unknown.

The Mat-Su Borough Assembly’s next meeting will be on Tuesday, Feb. 20