Wasilla City Council begins discussion of potential 1 percent sales tax hike

WASILLA—The possibility of an additional 1-percent sales tax on goods sold within the city of Wasilla received its first public hearing at Monday evening’s regular city council meeting. And those that spoke out had reservations.

The agenda included the first of two planned public hearings on Ordinance 17-15 which, if approved by voters on the upcoming Oct. 3 regular city election, would increase the city’s sales tax from 2 to 3 percent beginning Jan. 1, 2018, for a period of two years or until $12 million is generated—whichever comes first. Those funds would be utilized for construction of a new public safety facility.

What those commenting questioned was when the two years or $12 million cap was reached, the sales tax would not revert back to the current 2 percent, but rather stay at 2.5 percent.

Resident Anne Kilkenny was the first to speak on the topic. She suggested postponing implementation of any sales tax. Kilkenny reminded the council that when the city proceeded with a 1-percent sales tax increase to fund the new public library, it took those involved six months “to get it right” as it related to ordinance language.

“They took (getting it right) really seriously…I think this ordinance is not right,” Kilkenny said.

She said if the council didn’t want to postpone going ahead with the ballot, it should divide the question, making the building funding and permanent half-percent increase separate proposals. She suggested that the funding question benefits businesses more than the individual, while businesses do not pay taxes.

Kilkenny said she feels the ordinance will be defeated if placed before the voters with its existing language. She said city planners should consider funding the facility through a property tax and create an exemption for families with incomes less than $200,000.

Borough resident Eugene Carl Haberman questioned the idea of the public issuing a “blank check” for the facility. He said voters have the right to know the project’s costs before it is allowed to proceed.

“What is the cost before you build,” Haberman questioned. “Get that first before you take it to the voter so you don’t come back asking for more (money).”

Resident Diane Woodruff complimented the city on its ability to sustain itself with its current funding. She said like others who spoke, she supported the larger police facility, but felt its funding and the permanent half-percent increase should be placed on separate initiatives. Woodruff said she would also like to see where that half percent would be spent.

Resident Gavin Bucaria, an outspoken critic of the city’s recent purchase of the property earmarked for the building’s construction, called it a regressive action.

“At a time when Alaska’s economy is experiencing a significant recession, you folks want to punish us further. You should tighten the city’s belt,” Bucaria said. “It confounds me that you come up with the proposal at this time.”

Mayor Bert Cottle thanked those speaking on the topic and reminded everyone that this was one of two planned public hearings. The second is scheduled for the council’s next regular meeting on July 24.

One other ordinance, 17-14, amending the library’s budget to accept several donations for its summer reading program, was approved.

Before moving into the regular agenda, city deputy administrator Lyn Carden gave a recap on the Wasilla Independence Day parade. She said an estimated 9,000 people attended the parade and another estimated 1,000 participated with 86 entrants. She said there were lots of positive comments about the new route but that the city received eight complaints about a pro-life entry. Those who registered their grievances said they felt it wasn’t appropriate for a family event.

Deputy Mayor Stu Graham expressed concern over the fact that some float entrants violated the city’s request of not throwing things such as candy and toys directly from the float itself. He said each group is told about the request and asked to have individuals along the entries to pass out items to the crowd. He asked Carden to look into the possibility “putting some teeth” in the request and didn’t rule out banning or fining entrants who violate the request.

Contact reporter Chris Ford at 352-2270 or chris.ford@frontiersman.com