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Viewpoints: Letters / Opinions

RE: Taxes & the Local Government

By John Harrington

 

May 30, 2013
Thursday PM


I appreciate the role Mr. Dial fulfills with his letters regarding fiscal restraint, and living within our means. He provides an excellent balance for the ‘Tax and Spend’ faction in our community. However sometimes he neglects to provide all the information. That is, of course, a strategy that is useful when trying to make a point emphatically. So even though I value his point of view, and acknowledge the need for more restraint on government, I am going to provide a little more of the information that Mr. Dial left out.

I will only address Two Ketchikan Borough issues, the ‘Tax Problem’ and the ‘White Cliff’ remodel.

1.) Borough portion of the Tax Problem

While sitting on the Assembly I commented a time or two that the community will remember tax increases, but will forget about the tax decreases.

And Mr. Dial proved my point when he provided these details in his letter to the editor:

2012 5.0 Mills
2013 5.5 Mills
2014 5.75 Mills (proposed);
But neglected to mention these:
2006 7.5 Mills
2007 7.5 Mills
2008 7.2 Mills
2009 6.8 Mills
2010 6.0 Mills
2011 5.8 Mills
2012 5.5 Mills

During the six years I served on the Assembly, we cut the Mill rate six times. I argued in 2009 and 2010 that anything below the 6.0 or 5.8 Mills was unsustainable, because we would be depleting our reserves in order to maintain programs. But the wisdom of the Assembly at that time was that it was more important to lower the Mill rate, even though we all knew that it would have to be raised once the reserves reached minimal levels.

The Borough Manager gives a little perspective on the Tax Issue in his memo of May of 2012 in it he states:

The Ketchikan Gateway Borough has one of the lowest areawide mill rates among boroughs that levy property taxes.

Not only does the Ketchikan Gateway Borough have one of the lowest ratios of taxable value to full value, it has one of the lowest areawide mill rates of any of the fourteen organized boroughs in Alaska that levy property taxes. The following compares the areawide property taxes of those fourteen boroughs (source: Alaska Taxable- 2011, pages 29 - 32):

North Slope Borough 18.500 mills
Fairbanks North Star Borough 12.999 mills
Bristol Bay Borough 12.000 mills
Kodiak Island Borough 10.750 mills
Matanuska-Susitna Borough 9.420 mills
City and Borough of Juneau 7.850 mills
Municipality of Anchorage 7.610 mills
Haines Borough 7.190 mills
City and Borough of Yakutat 7.000 mills
City and Borough of Sitka 6.000 mills
Kenai Peninsula Borough 5.900 mills
Ketchikan Gateway Borough 5.800 mills
City and Borough of Wrangell 4.000 mills
Municipality of Skagway 1.440 mills.

2.) The second issue concerns the White Cliff remodel.

Mr. Dial takes some liberties with reality when he states: “The Mayor, working with the Borough Manager constructed a carefully crafted RFP (Request For Proposal) for new borough offices. The goal was to renovate the White Cliff building without voter approval;”

I realize that it is easier to argue a point, or elicit negative sentiments if you are able to demonize someone involved. The problem with that is, the above comment is totally wrong. First the Mayor and the Manager may both have been advocates for the RFP and Renovation, but that is irrelevant. First, our system is a WEAK Mayor form of government. (Several Assembly Members in the past have commented that they would never want to be Mayor, because the Mayor rarely has a vote in deciding policy.) Second, The Manager has more integrity than any man I have ever worked with. He will do what the Assembly asks, if it is legally possible. It is the Assembly, in open meetings, that gives direction to staff and expects that direction to be completed. It was the Assembly that wanted the RFP. There was substantial discussion on the issue. There was even a ‘No’ vote or two on the final decision (mine being one of them). Mr. Dial’s demonizing of the Mayor and Manager does a major injustice to those two men; and at the same time damages his arguments.

Mr. Dial’s major point of view on Fiscal Restraint is desperately needed in all levels of government. So although I will quibble about some of his tactics, and take umbrage at some of the ‘character assassination’ verbiage, his basic message is desperately needed.

John Harrington
Ketchikan, Alaska

Received May 30, 2013 - Published May 30, 2013

Related Viewpoint:

letter Taxes & the Local Government By Rodney Dial

 

 

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