In addition to focusing on big-dollar issues, assembly members at last week’s budget work session discussed a collective $50,000 question: Whether the borough should contribute money to KSTK radio, the chamber of commerce and the senior center.
The issue of improving playgrounds also came up toward the end of the meeting.
Unlike recent years when the borough assembly appropriated cash for the radio station, chamber and senior center, the draft budget for the fiscal year that starts July 1 does not include any such direct payments.
Borough Manager Mason Villarma’s proposal is to provide free utilities to the three nonprofits, rather than cash. “That’ll be our contribution,” he told the assembly.
The borough contribution to the senior center last year was $13,000; funding for the chamber has been around $20,000 to $25,000 a year; and KSTK requested $12,500 in the new budget.
With a tight municipal budget, weakening sales tax revenues and a sizable list of maintenance and replacement projects in need of funding, Villarma said he recommends donating free utilities instead of money to the nonprofits.
“I don’t feel we should allocate property tax and sales tax money” to community programs that taxpayers could contribute to on their own, if they want, he said.
The decision is up to the assembly, which will take up the budget and consider any amendments at its June 25 meeting.
Separate from any contribution, the borough pays KSTK $7,120 a year to broadcast assembly meetings, Borough Clerk Kim Lane pointed out.
Assembly Member David Powell said he agreed with Villarma’s recommendations. “I can’t see giving to nonprofits,” Powell said, asking why the borough would donate to some and not others.
“I understand what KSTK does for us,” providing community service announcements, particularly in emergencies, he said, and he acknowledges that the chamber works to boost spending in town, which adds to sales tax revenues. But he still opposes the borough writing checks to the nonprofits.
The borough’s role in the senior center is that it owns the building and is responsible for maintaining the structure. Catholic Community Service operates the lunches, transit bus and other programs at the center, and pays the staff.
Powell was among the more vocal assembly members in expressing his concerns about contributing public funds to nonprofits amid a weak economy, a continued population loss and limited borough finances.
The chamber, too, is trying to manage with a tight budget, and is looking to solicit more sponsorships to put on Fourth of July events since it cannot afford to do it with its own fundraising.
Assembly Member Jim DeBord advocated for more funding to improve the community’s rundown playgrounds. There is no money in the draft budget specifically for playground work.
Deteriorating playgrounds has been a longstanding issue in the community.
Rather than rely on tax dollars, Powell suggested: “They can get grants for parks.” He also suggested that park advocates talk with the Wrangell Cooperative Association to determine if tribal grants are available.
DeBord spoke about how playgrounds are an indication of a community’s effort to attract new, younger residents, particularly families.
Wrangell is losing population, and school enrollment has not recovered to pre-pandemic numbers. While senior citizens are exempt from borough sales tax, and under state law are exempt from much of the property tax on their home, the community should pay attention to what younger families need too, DeBord said.
Assembly members briefly discussed some ideas to increase revenues, such as eliminating one of the two tax-free days for goods and services bought in town.
A borough analysis in April determined that each tax-free day costs the municipal treasury $60,000 to $70,000 in lost sales tax revenue.
Changing or eliminating the tax-free days would require an ordinance and is not part of the budget.
Members also discussed the option of raising the cap at which sales tax shuts off on individual purchases. Currently, the tax stops at a $3,000 purchase. Powell said making more of each purchase subject to tax would drive away shoppers.
Changing the cap would require putting the question before voters in an election, the borough clerk pointed out.
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