Assembly Report for May 2, 2006

SUNDAY BRUNCH IN THE SOUTH ADDITION: A young moose enjoys a Sunday brunch in a South Addition yard one block away from the Park Strip.

ASSEMBLY TWEAKS ‘06 BUDGET; SETS MILL LEVIES: With little commotion, Assembly members on Tuesday made minor corrections to the city’s 2006 general government operating budget and set mill levies to support a budget of $366,401,960. First quarter revisions account for about 1% of that amount, or $3,356,150. Property taxes will provide $202,665,990; the balance comes from a variety of state and federal grants, fees, and revenues, including earnings from the city’s trust funds.

Hard budget numbers contradict election year critics of Mayor Begich who argued he has “broken” the city’s Tax Cap and allowed property taxes to “skyrocket”. The FY 2006 budget, as revised, comes in $6,350,640 under the Tax Cap and shows a relatively modest overall increase of 5.2% in actual taxes collected from residential properties. Average mill rates are down, way down, from a high of 10.43 in 1997 to a ten year low of 7.84 in 2006. Property tax revenues needed to support the FY 2006 budget will increase 8.1% over last year; more than one half of that increase is attributable to revenues the city will receive from new construction and from voter approved ballot measures such as school bonds. Upward pressure on property taxes is also noted in road service areas in Eagle River and South Anchorage where local residents have urged higher mill levies to support road maintenance and repair in those areas.

SULLIVAN SIGN ORDINANCE: “Rollbacks” proposed by Assembly member Dan Sullivan to the City’s 2003 sign ordinance were delayed at Sullivan’s request on Tuesday and are now scheduled to return on May 16th. At least 3 versions of the ordinance are currently before the Assembly.

SEPARATION OF BARS, SCHOOLS UNDER STUDY: A proposal by Assembly members Dick Traini and Allan Tesche to expand the minimum separation between bars and package stores and neighboring schools and churches surfaced briefly on Tuesday and will return on June 6th for continued hearing. Current law requires a 200 ft. separation; the proposed ordinance (AO 2006-63) would expand that minimum distance to 500 ft. A local beverage retailers trade group, CHARR, is expected to oppose the measure and to argue its passage would turn downtown Anchorage into a desert. Strong objections to the proposed ordinance have already been voiced by Anna Fairclough and Dan Coffey.

BIRCH, SULLIVAN TINKER WITH BOE APPEAL FEES: Dan Sullivan and Chris Birch would refund appeal fees charged to property owners who appeal property assessments to the city’s Board of Equalization by refunding fees if appellants show up at their hearing. Introduced on Tuesday and set for public hearing on May 23, 2006, AO 2006-72 would refund appeal fees (typically $100 for a parcel worth between $100-500,000) provided the owner appears at the hearing scheduled before the BOE. The fee would be refunded to the appellant appearing before the board, regardless of the outcome of the appeal. Several years ago, the appeal fee was instituted at the recommendation of the Municipal Assessor who noted that over 80% of the appeals to the BOE were “no shows” costing the city hundreds of thousands of dollars in staff time preparing appeal cases. The new fees largely eliminated “no shows” but drew criticism from some who argued the fees unduly burdened the rights of property owners to challenge assessments.

ANCHORAGE SPORTS DOME LOCATION, FUNDING ENDORSED: Assembly members endorsed a $12,000,00 funding package proposed by the Alaska Industrial Development and Export Authority to build a new indoor sports dome on 12 acres near the corner of Raspberry Road and Minnesota Drive. The 177,000 square foot dome will house an indoor track and exercise area immediately adjacent to the old Alaska Seafood plant which was purchased by a church. Passage of the Assembly’s resolution Tuesday enables the developers of the dome to finance the project through state backed revenue bonds issued by AIDEA