On the 3 percent sales tax

On October 6, Wasilla voters will be asked to vote whether to maintain the current sales tax at three percent, or, after forward funding the new library, allowing the sales tax rate to go back to two percent. In the last 15 years, $51 million dollars has been received by the City through Federal and State sources, which is an average of $3.4 million dollars per year. As we all know, with the current fiscal crisis we are facing, we can no longer rely on those funding sources. The $51 million dollars received has funded airport, water, sewer, roads, the Menard Center, parks & recreation, and public safety projects. All projects having gone through a public and City Council process, as required by City code, before being funded. Maintaining the current sales tax will generate $4 million dollars per year for capital projects that, before being spent, will go through a public process and a City Council process, as required by City code. Also, the $4 million dollars collected would be placed into a separate capital projects account to be tracked, thus allowing for full transparency. Additional money collected above the 4 million would go towards operations. Maintaining the current sales tax would allow the City residents to forward fund large capital projects. Examples of forward funding large projects include the current library, which has saved City residents $1.8 million dollars in interest and bonding costs. Forward funding of the Menard Center would have saved the City residents $3 million dollars in interest and bonding costs.

Asked to put together a list of capital projects for future funding, the administration used past legislative requests already approved by City Councils through a public process, as required per City code. That list included: 15 miles of gravel road paving; replacing aging pavement; Riley Avenue Extension; Smith Ballfields access road; East Susitna Avenue extensions; Downtown District improvements and renovations; airport apron and runway extension and Improvements; Public Safety building improvements; train station improvements; sidewalks; pathways and lighting improvements; park development; and, water and sewer extensions. Total funding needed for the projects listed is $85 million dollars at today’s prices. All projects listed, as required by City code, would go through public and City Council processes before being funded. During this time, new projects could be added, or listed projects could be modified and approved through the public and City Council processes, as required by City code.

The public process required on capital projects are as follows: 1. The public makes recommendations to the Planning Commission each year on the 5-year capital improvement plan. 2. The Planning Commission makes recommendations to City Council each year on the 5-year capital improvement plan. 3. The City Council holds public hearings on the 5-year CIP plan. 4. The City Council adopts a 2-year budget with capital projects. 5. All projects have to be reviewed by City Council again before funding is spent. This is the open process that is required by City code.

The question before Wasilla voters is: do we continue forward funding capital projects and improving the quality of life and services in Wasilla through sales tax paid by all users, and not property tax paid by only Wasilla residents? Also, who pays for those capital projects and City services that can be enjoyed by all Valley users, as in the case of the Library and Menard Center, parks, and roads?

Government, whether it is Federal, State, Borough, or City, will cost money. Who will pay for those services, and how will the money be collected is the question.

Bert Cottle is the mayor of Wasilla.