Road bond discussion continued

PALMER — The Mat-Su Borough Assembly’s proposed 1.5 % sales tax for 22 infrastructure projects was continued for a second public hearing on August 17. The motion to continue the public hearing came almost immediately after a slew of public testimony in opposition to Ordinances 21-076 and 21-077, which would levy the $1.5 % areawide sales tax until a sum of $73,685,000 was collected or for five years.

Borough Manager Mike Brown said that the impetus for the pair of ordinances came from special meetings in February and June to discuss finances and potential revenue options with the Assembly.

“What’s packaged here tonight is the list of projects and a potential funding mechanism that would allow for us to pay for these projects, probably likely over about a five year period so then you could get into some mechanism should the voters elect potentially to continue that type of a model moving forward,” said Brown. “We’ve gotten lots of feedback about the need for the projects. We’ve received very little negative feedback in terms of whether or not we should go out and build more roads or improve pathways or do some of those other things, so I think it’s pretty indicative of what we all already know which is we have a need for transportation infrastructure in the borough and this is one way to have that conversation in a public forum and allow us to determine what’s the best way to move forward.”

Borough Attorney Nick Spiropolous noted that Anchorage funded the Dena’ina Center with a similar bond and that the bond package borrowed heavily from the 2017 bond package passed by the city of Wasilla. Spiropolous said that the draft was then further refined to analyze Houston, Palmer and Wasilla in an attempt to mirror existing city codes.

“It was our sense as staff that the consensus was we’ll bring it forward for consideration to at least have it on the table for discussion. That’s one of the reasons the clerk put the public hearings for these two together. We can debate both ordinances at the same time,” said Spiropolous. “Also in drafting this we took at Wasilla’s ordinance. Wasilla was successful twice in raising sales tax for a period of time and then lowering it back down after a total sum was collected. This would kind of model after that. The difference would be it would expire after the amount of bonds is collected, so if the Assembly decides to go forward with both of these there are two separate ballot questions.”

If passed, the proposed ordinances would be on the November ballot before Mat-Su Borough Voters. Borough Clerk Lonnie McKechnie clarified that the latest that the ordinances could pass and still be included on the ballot is August 27, and a meeting could be called on August 24th if necessary.

“My council voted unanimously against the sales tax. You have our resolution and you can read that but it would be very detrimental to the city of Wasilla and why would you want to punish us because we’ve been good stewards of our money,” said Wasilla Mayor Glenda Ledford. “Local control always gets the job done so we are adamantly against this sales tax.”

Ledford was joined by former Wasilla Mayor Bert Cottle in testifying against the proposed road bond. A resolution was passed in opposition to the bond package by Houston, Palmer and Wasilla city councils.

“Based on the three cities’ resolutions, the Assembly should have the message. No areawide sales tax, irregardless of its use. The city of Houston is opposed to this ballot measure. This would cause economic loss for the city under the ordinance introduced by the Mat-Su Borough. There is no defining the administrative intent for collection, also the city would be required to make code changes. These changes would cost the city, not help,” said Houston Mayor Virgie Thompson.

Hale’s motion to continue the public hearing until August 17 passed without opposition.

“Our city council said we very emphatically do not want you to pass that tax, even to allow it to go to the voters,” said Palmer Mayor Edna DeVries. “Our businesses are hurting and the last thing we need to do is to draw more businesses online to even crumble more of our small businesses in Palmer.”