Wasilla council sends public safety tax to voters

Editor’s note: This story has been updated to reflect a correction to the proposed sales tax increase, which is a 1-cent hike.

WASILLA — After hearing from the public and debating the issue for about an hour total, the Wasilla City Council voted to let the electorate decide on a proposed 1-cent sales tax increase. The action came at Monday evening’s regular council meeting.

Ordinance 17-15 passed on a 5-1 vote. The ordinance calls for introduction of a 1-cent sales tax earmarked for a new public safety (police department) building. Ordinance language stipulates collection to begin Jan. 1, 2018, and continue for two years or until $12 million is generated. Following that, the 1-cent drops off to a half-cent with no sunset date. The ordinance, which still must be approved by the voters, drew plenty of public comment.

Public comment generally questioned the council’s actions of combining the building request, which has a built-in sunset, and the additional half-cent permanent increase. Some told the group they resented that the city was “hiding” the permanent half-cent tax increase “behind” the funding request for a new police department facility. Others expressed that rather than forward-fund the project, costs should be spread out through a bond proposal.

Following an approximate half-hour of public comment, Deputy Mayor Stu Graham moved to open discussion into a committee of the whole, which was less structured and allowed for more open dialogue between councilmembers. Each trustee took time to address their concerns and/or reasons for seeking the increase.

Graham began the discussion stating there isn’t enough time to divide the ordinance into two parts—building funding and the permanent half-cent increase. Graham said to do so at this point would prohibit the question from being placed on this October’s municipal ballot. He also noted that if funding was done through a bond, the city would still have to raise either sales taxes or property taxes. Wasilla’s property tax millage rate is zero and has been for the past decade. Graham said he felt utilizing a property tax for funding was “entirely inappropriate.”

Most of his colleagues issued similar sentiments noting that with the city’s zero property tax millage, they had little problem in putting the question out to the public to decide. Trustee Jim Harvey noted when the department moved into its current location, there were 16 employees and now that number stands at 61. Later in the meeting, Mayor Bert Cottle noted the overcrowding has become more problematic with the addition of more E-911 dispatchers. Last month, Wasilla added borough dispatching responsibilities to go with Alaska State Troopers and its own police department.

Tim Burney was the sole councilmember opposed. Burney said he lived in several Outside locations, including one where residents were taxed for many things.

“I don’t support this one bit,” Burney went on record as saying “I think it should be removed and (placed before the voters as a) separate issue… For me it’s a morality issue and a responsibility issue. “

Burney said he felt the city has areas that can be addressed and looked at incoming fiscal years to find some savings in daily operations. He said that although a bond is an accounting philosophy to pay for something, it’s not a ‘four-letter word.’ Burney said he would like council’s legacy to be that it was able to fund a new facility without further burdening taxpayers. He also felt it disingenuous to “threaten” voters with a millage increase to cover costs.

Under public comment, Eugene Carl Haberman questioned why projected estimates show the project will cost more than the requested amount. He said the city should follow a path similar to that taken with funding the library. Haberman noted it took years of work, planning, and community involvement to get it right.

During the less formal discussion, Cottle went through a list of items showing not only how the city has grown in the last decade, but the additional responsibilities the state has place on it without funding, and the fiscal prudence elected officials and administration have shown during that time.

“Put (the question) to the voters; that’s all we’re asking,” Cottle said. He said the city and its officials will abide by that decision and move forward with it.

Three amendments on the ordinance were served up prior to voting. Burney made the first one which was to separate out the remaining half-cent tax once monies were generated for the new police station.

The motion died for lack of support. Two other amendments passed. Harvey wanted language to earmark the additional half-cent for police department support costs and other funding needs across the city. Graham motioned removal of the words “public safety” as it refers to the planned building and replace them with police department facility.