To the Editor:
It seems like doomsday if the sales tax is lowered. Let me explain how the sales tax came to be. In the late 1940s the first sales tax was to pave our front street from the bottom of the Post Office Hill to the Thunderbird Hotel. When this was paid for the sales tax went away. Then when the City needed money for another worthy project, it came back. The people didn’t seem to mind paying for what we needed. We have been paying 7% sales tax for over 20 years, the highest sales tax in the State.
So, the “Johnnies-come-lately” are saying along with our City not to vote to lower our sales tax. During our lean years in Wrangell, the City has not tried to economize. All it amounts to is raise whatever they want. All these high paying jobs are a shame when this could be going to our schools. Stop and think- you have a department head making more than our Governor. What is the matter with this picture? I was born here and have lived here all of my life. So please vote yes to lower the sales tax- our young folks need a break.
Myrna Torgramsen, Sr.
To the Editor:
I hope voters in Wrangell think carefully about how they cast their ballot on October 1st regarding Proposition #1 - the sales tax reduction from 7% to 5.5%. If Prop. #1 passes, the sales tax will go down, reducing the City’s budget by approximately $500,000. I see several problems with this proposition.
First, reducing sales taxes also reduces the revenue we collect from outsiders who visit our town, use our City services, yet don’t have to pay for them year-round (and also don’t have to pay property taxes).
Second, both State and Federal government revenues that come to the City to pay for projects, schools, sewers, etc. are going down. In the State’s case, it is due to the reduction in oil taxes. In the Fed’s case, it is due to budget shortfalls and debt. Consequently, the City is struggling to maintain its services on dwindling funding before any sales tax reduction. If you add another $500,000 cut, it will negatively impact the City’s budget, reducing local jobs and opportunities to support future economic development projects.
Third, the Wrangell schools are slated to take the bulk of the cuts - $200,000. The Assembly passed two budgets – one if the sales tax remains the same and one if the sales tax goes down. The list of items slated to be cut is on page 44A of the City’s budget (www.wrangell.com). I view Wrangell’s schools as a community asset. The Stikine Middle School just received a 5-star rating from the Alaska Dept. of Education for ranking #1 in the state. Our kids are successful, because our community supports them in many ways, and one of those is through funding.
Instead, I’d like to see the City invest wisely in development projects that will continue to grow our local economy and keep local jobs. I will be voting no on Prop. #1 on October 1st.
Julie Decker
To the Editor:
Wrangell Chamber…………..
Ahhh the Wrangell Chamber - 99 members strong and 30 individual supporters needing $25,000.00 of our tax dollars yearly.
A one-time 2010 assistance request has now turned into a very lucrative form of income for the Wrangell Chamber and they have become accustomed to these funds and receiving them yearly. About three years ago the Chamber came to the City in debt and needing financial assistance. The city “we the people” said yes we will help. Since that time the Chamber receives $25,000.00 yearly from our community. This is unearned income they receive and I would bet that any Wrangell business would like to get this unearned income to help run their business.
Sadly this money has impacted what the Chamber promotes or does not promote. The Wrangell Chamber has now become the Chamber Government being very careful in lobbying as a committee on various issues including themselves. I share with you that by simply giving taxpayer money to the Chamber, it influences what the Chamber promotes or doesn’t promote.
So instead of supporting lowering the sale tax to help and promote business and economic development in our town they chose not to support the tax decrease and support themselves and line their own pockets by receiving tax free monies from the government and by lining their own pockets they are not supporting the very businesses and individuals that support them. I would be mad as heck if I owned a business in this town and this is a perfect example why government and business should not be involved together.
In the beginning the Chamber was created to support and promote local businesses. A government substantive should not in any way be part of the yearly budget for the Chamber.
Definition of chamber of
commerce (n): cham·ber of com·merce: association of business people: an organization of local businesspeople who work together to promote and protect common interests in trade by supporting one another.
According to the newspaper and the Chamber they have made more money in the last two years than ever before with record sales and income. So I must ask why do you need our tax dollars?
The Wrangell Chamber has many ways to fundraise through raffles, membership….etc. In the past the Chamber survived without any money from the City and Borough of Wrangell and clearly they are taking away monies from other areas in our community that could use assistance. This is so wrong.
Since the Chamber Committee has taken a stance of letting their voices be heard I only felt it fair the other side be told and in my opinion the Chamber should not receive any taxpayer monies and should stand on their own feet, that alone would free up $25,000.00 that could be used elsewhere.
R. Christian
To the Editor:
The City and Borough of Wrangell has provided some inaccurate information concerning the proposed tax reduction. First and foremost, the amount of the estimated revenue reduction is wrong. The $503,000 is based on a 12 month fiscal year. If the sales tax reduction is passed at the October election, the 5.5% sales tax will not go into effect until November 1, 2013. This is already four months into the current fiscal budget and the actual number provided to you by the city will be 25% less then the borough has projected so this estimated worst case scenario would be $335,333.33. This is far less than what the borough has advertised and by the way they used your money to send this information to you.
Next we must look at the sale tax fund reserves. The sales tax fund reserves are estimated to be a total of $675,187 at the end of fiscal year 2013-2014. This means the sales tax fund will have an estimated reserves on June 30, 2014 of $676,187. So if lowering the sales tax passes that will be an estimate of $335,333.33 tax dollars that has not been used and $339,853.67 that will roll over into the tax reserves.
The bottom line is no cuts are needed. There is not even one item that has to be cut that the City and Borough of Wrangell has told you they will have to cut by lowering your sales tax from 7% to 5.5%. Not one threatened line item that the City has shared with you needs to be cut or reduced period.
I just ask people of Wrangell to have a little common sense when they go to the polls and cast your vote. Take the time and learn just what this is about and not just what people including myself are telling you. Look at the 2013-2014 Budget and make an informed decision when going to cast your vote, and make your government responsible when spending your money.
Right now Wrangell has the highest sales tax in Southeast Alaska. Do you want to continue to pay the highest rate in Southeast Alaska? I don’t think so. I know I can spend my money better than the City and Borough of Wrangell has shown me they spend my tax dollars and I bet you can spend your money better too.
When have you ever known government to have enough money?
Vote yes to lower our sales tax.
Rhonda Christian
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