Wasilla tax measure in limbo

WASILLA — A city administration proposal to put a 1 percent sales tax increase on the October general election ballot is essentially dead.

A long, contentious Wasilla City Council work session last week to discuss the measure, which would have allotted half of the sales tax increase to capital projects and the other half to the general fund, resulted in the council putting the debate into a perennial holding pattern.

The 4-1 vote to indefinitely postpone three other sales tax work sessions means it’s unlikely city voters will be asked to weigh in on any type of tax hike during the October election. With deputy mayor Doug Holler absent, councilwoman Taffina Katkus was the only dissenting vote, arguing that if the council couldn’t come to an agreement on the administration’s proposal, the body should continue to explore other alternatives.

Because the first capital project slated to benefit from a sales tax increase was a new Wasilla Public Library, the vote was enough to elicit several angry responses from library supporters, including a tearful plea from 80-year-old Julia Ede.

“I’ve lived in this community for 50 years,” said an emotional Ede, who also serves as vice president for Friends of Wasilla Public Library. “In 1992, the library was too small. We care so much and we have spent hours and hours and hours of our time working on this project. … I don’t know what’s missing.”

Former councilwoman Dianna Straub also angrily chided the council, saying members were shirking their duties by canceling the rest of the sales tax work sessions.

“I’m absolutely appalled,” she said. “The question before you is will you ask the voters if they’re interested in paying for it? I hope the vote tonight to postpone indefinitely, … that that happened because everybody’s tired and it’s been a long day.”

Straub said Friends of the Library has worked for more than 20 years to bring a new library to the city, and with that goals finally within reach, the city is scuttling the ship.

“These ladies have worked hard for you, these ladies have worked 25 years on this project. How much time (does) each one of you have invested in this while you’re paid at that council table?” she said. “Your behavior tonight is deplorable, your decision is poor.”

Although sympathetic to library supporters, councilwoman Colleen Sullivan-Leonard said the sales tax proposal had too many unknown variables to move forward to this year’s ballot. She and others on the council cited lack of information about what capital projects would be in line for that money after the library. Whether more money is needed to bolster the general fund also needs more study, she said.

“I find this to be very premature, and for that I would like to say (the ordinance) should be postponed indefinitely until we have other plans in place, until a secure financial plan is in place — not a permanent sales tax,” Sullivan-Leonard said in her motion to table the issue. “I feel like it’s being pushed on us too fast, too quick, not with enough information. I’m not going to have something that’s just pushed down my throat and pushed forward to the voters without real clear consideration of how this is planned out. I think we need to take this off completely.”

While last week’s vote is a snag for the library effort, it’s not dead, Sullivan-Leonard said. She suggested a special election or working out a detailed plan for the 2013 general election.

“Then I could present that to the voters,” she said. “We have the time. Let’s wait to next year, let’s do it right.”

Attending the meeting by phone, councilwoman Dianne Woodruff also expressed concern with the 1 percent increase as proposed.

“I simply didn’t like the ordinance put forth,” she said, adding that she would be more open to a measure that deals specifically with funding a new library. “I could see putting forth an alternate ordinance at next Monday’s meeting with the indulgence of the rest of the council.”

Councilman Brandon Wall said he shared some of the hesitation his colleagues did, and wanted to know what the goals for the half percent designated for the general fund were. That represents a one-sixth increase of the city’s overall revenue.

“We’re just not at a point to pass it, it was really rushed,” Wall said after the meeting. “We didn’t have a good plan with how we’re going to approach the citizens with this proposition.”

He also said the council will need to act eventually, as the city’s sales tax revenues are growing at about 1.8 percent while the budget is increasing by about 3.5 percent annually. That increase is mostly through union-negotiated employee contracts, he said.

“I think everybody wants a new library,” Wall said. “We’re just not ready for it now.”

After 20 years of work, how longer does the city need, Ede asked.

“I’ve been on the board for 10 years or more and we have worked so long and so hard, and this year we did everything the council asked us to do,” Ede said. “And then, there’s a new person on the council who said we haven’t worked on it long enough? How about 20 years? It’s our turn.”

By not putting the library on the ballot or approving other funding for the project this year, the library could lose other financial resources, Ede said. Granting organizations that contribute to building libraries like to see cities buy into those efforts.

“Here’s the problem,” she said. “The ducks were all lined up because we were getting help from other organizations to help us get grants. The Rasmuson Foundation is interested, but they want to see the city behind it.”

Other options

Prior to discussing a potential ballot proposal to raise the city sales tax from 2 percent to 3 percent, mayor Verne Rupright and city attorney Richard Payne explored other legal options the council has to raise funds.

Although the city’s sales tax rate is set at 2 percent, both the mayor and Payne said that under state law, the council could pass an ordinance to raise the rate to 3 percent without going to voters. The council also has the authority to collect up to 2 mills property tax on real property within the city’s boundaries without going to a vote.

Wasilla does not currently collect a property tax.

Neither Rupright nor Payne recommended taking either action.

Contact reporter Greg Johnson at greg.johnson@frontiersman.com or 352-2269.