Concern over a proposed tax rate reduction for the City and Borough of Wrangell – from its current 7 percent down to 5.5 percent – led off Borough Manager Tim Rooney’s report to the Assembly this week saw testimony from two local women brought to the forefront over the issue.
The initiative, which will appear on the October ballot, seeks to reduce Wrangell’s sales tax down by 1.5 percent. Currently, Wrangellites pay a 7 percent tax on all goods and services in the Borough. The plan has drawn criticism from Rooney’s office, as well as citizens who feel the drop would affect critical services offered by the city.
According to Rooney’s report, both Cyni Waddington and Julie Decker made their concerns public during recent city budget talks.
“Decker stated that the concerns she had were that the City looked like it was in a good position with the reserve fends, however that was at a first glance look,” Rooney stated, adding that he saw Decker’s interpretation that the community was starting to see growth, as evidenced by the raise in population, and through public works and other projects around town.
According to Decker’s testimony, her main concern revolves around a “short term projection for the next five years on both the State and the Federal level” of reduced budgets. Decker added that when looking at two of our three sources of the City's funding being reduced and the potential for the initiative in the fall, the “picture for our continued growth didn't look good.”
Rooney went on to comment on another budgetary issue important to Decker – the cost of supporting public schools in Wrangell.
“Ms. Decker stated that another concern in the proposed budget cuts were the cuts to the school; the school was one of the areas that helped to bring new people to our community,” Rooney wrote. “Young families that have small children look to see if the community has good schools and a safe community for their children before making a move to a new area. She said that our school system was an area that the community could promote; could help bring people to our community; in the last two years, Wrangell had tested 2nd school in the State. She stated that was because we support our schools in the community and through funding.”
Waddington, the manager of the Wrangell Chamber of Commerce added that an annual $25,000 line item for the organization was “absolutely needed” to keep the group in the black.
Ernie Christian, one of the backers of the tax reduction plan, said in March that he did not see an adverse outcome if the voters approve the measure.
“Based on the current budget, I do not believe a reduction in sales tax from 7 percent to 5.5 percent will have an adverse affect on borough functions,” Christian said. “The sales tax funds the following departments: city hall, public safety, public works, the library, the pool, and part of the school budget. At the end of the current fiscal year, the sales tax fund will have a projected reserve of $650,000. All the other functions of the Borough are funded by taxes or user fees. These include port and harbor, electricity, water, sanitation, and sewer. I encourage everyone to participate in the budget process.”
Rooney also outlined plans for the restart of the Wrangell Medical Center replacement project by informing the Assembly that a USDA administrator involved with the rebuilding effort would not be in Wrangell as previously scheduled, but rather, he is tentatively scheduled to travel to Ketchikan to meet with the USDA and is scheduled to travel there with WMC CEO Marla Sanger.
An acknowledgement by Rooney that an American Bald Eagle was diverting work crews near 12 Mile also made this week’s report to the Assembly members.
“This week staff was prepared for clearing the danger of trees along the Pat's Creek Bridge corridor,” Rooney wrote. “The timber cutter started on the south side of the bridge and was making great headway when an eagles nest was spotted in the crown of a very large spruce at the edge of the cut line north of the bridge. It is believed that the nest may be occupied. Under the Protected Species Act, any activity in close proximity to an active nest is severely limited.
Rooney added that while a permit could be applied for to remove the nest, the tree itself is regarded as a low risk hazard and will most likely be left to stand. The presence of actual nesting activity does however limit how much work can be done in the vicinity.
“At this point, all tree trimming has been halted on the north side of the bridge and will not resume until it can be verified that the nest is clear. If there are young eagles in the nest, that could be sometime in late August,” he added.
The Assembly also approved the 2013-14 Fiscal Year budget, along with a continuance of the Borough’s 12.75-mill rate on property.
The June 11 regular meeting of the Assembly was canceled. The next regular meeting is set for June 25 at 7 p.m. at City Hall.
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