Proposition 1 - Temporary 1% Sales Tax

Q: What is the purpose Proposition 1 and how would it affect the sales tax that I pay?
A: The current 5% sales tax consists of the following three pieces:
• a 1% permanent tax;
• a 3% temporary tax (expiring 7-1-2012); and
• a 1% temporary tax (expiring 9-30-2008).
Voters approved the now-expiring 1% temporary sales tax in October of 2005 with the intent to fund an Eaglecrest mid-mountan lift, Statter Harbor expansion, a downtown parking garage and transit facility, and areawide sewer expansion. This year, the question before voters is whether to approve an extension of the temporary 1% sales tax with the intent to fund six different projects. If Proposition 1 is approved, the overall sales tax rate paid by consumers would remain at 5%. If voters do not approve the extension, the sales tax rate would be reduced to 4% on October 1, 2008.

Q: If Proposition 1 is approved, how would the sales tax money be spent?
A: It is the intent of the Assembly to spend these sales tax revenues on consolidating public works facilities, areawide sewer infrastructure, airport renovations, improvements to Statter Harbor, deferred maintenance on CBJ buildings, and school renovations. An explanation of each project is listed on the following three pages of this pamphlet. The pages explain how much sales tax revenue is expected to be allocated to each project, the expected total cost of each project, and how additional costs will be covered.

Q: If approved, how long would the temporary sales tax be in effect and how much money will it
generate?
A: The tax would be in effect until September 30, 2013. CBJ sales tax administrators estimate that the tax would generate an average $8.6 million in each of those 5 years, or approximately $43 million total.

Public Works Consolidated Shop
($10 million)
(approximately $2 million/year for 5 years)
A new Public Works facility, planned to be located on Glacier Highway immediately east of Sunny Point, would consolidate three operations (the Downtown and Valley Street Maintenance facilities and the Fleet Maintenance facility) into one central location, and would facilitate more efficient operations. A consolidated shop would also allow removal of an industrial use (including fuel tanks) from the downtown waterfront and would enable redevelopment of that parcel. The cost to complete the project is estimated at $15 million. Public works planners intend that this $10 million would fund the highest priority items, including site development for and construction of a combined fleet and street maintenance shop, wash facilities for vehicles and equipment, equipment fueling facilities, a sweepings receiving and treatment facility, and sufficient yard space for operations, material, and equipment storage. Future plans call for covered storage building for vehicles, equipment, and materials, and an expanded yard area for operations and materials storage.

Areawide Sewer Infrastructure
($10 million)
(approximately $2 million/year for 5 years)
It has long been a goal of the CBJ to extend municipal sewer to all areas within the Urban Service Boundary, as well as to improve sewer and water infrastructure thoughout the Borough. This project would provide sewer and other infrastructure for new development, and would also allow for greater densities within developed areas. The CBJ plans to continue sewer extensions to Pederson Hill, Mendenhall Peninsula, portions of North Douglas Highway, and Auke Bay, as well as to fund other infrastructure improvements needed to accommodate denser development. The total cost of extending sewer to all areas within the Urban Service Boundary is estimated at more than $20 million. Supplemental funding sources include Local Improvement Districts (estimated at $4 million) and State matching grants (estimated at $4 million). In the event that matching grants or LID funds are not obtained as expected, the limits of the sewer extension would be shortened.

Airport Renovation
($10 million total)
(approximately $2 million/year for 5 years)
The 2005 Master Plan for the Juneau Airport identified a list of improvements needed for the
existing terminal. The “new” part of the terminal is nearly 25 years old, and the “old” part is 50 to 60 years old. Passenger loads have doubled in the past 20 years and continue to increase, yet, since 2001, nearly 8,000 sq. ft. of terminal space has been taken to provide mandatory security features.

After a $20 million general obligation bond to help fund some Master Plan improvements failed to receive voter approval in 2005, airport tenants and community members recommended to the Airport Board that the large project be broken into smaller phases that could be implemented over time.

Toward that end, the Board has already secured $10 million in state and federal funding. These funds, along with this $10 million in sales tax funding, would allow parts of the project to proceed and would begin to address some of the most pressing needs at the airport, including expanding the baggage claim area, improving passenger screening, offering space for new retail concessions, and providing spaces for group travelers. Sales tax funding could also be used to replace deteriorated mechanical and electrical systems, modernize equipment, reduce energy costs, provide traveler amenities such as laptop charging stations, and construct community desired spaces such as a meeting room. The Airport Board will continue to seek funding for full development of the Airport Terminal Master Plan—estimated to cost over $76 million in 2005—and expects to complete parts of the project as funding becomes available.
For more detailed information, visit
www.juneau.org/airport/projects/ATR-overview.php.

New Recreational Boat Launch Ramp and Trailer Parking at Statter Harbor in Auke Bay
($5 million total)
(approximately $1 million/year for 5 years)
In 2005, the Docks and Harbors Board adopted a master plan for Statter Harbor— the CBJ’s most popular harbor—that calls for additional recreational and fishing boat moorage, a new double-lane boat launch ramp, expanded parking, designated floats for whale watch boats, a new haul-out facility, and a waterfront park and seawalk. Sales tax funds would be used to build the launch ramp portion of the project. The Board is also working with the Alaska Department of Fish and Game to obtain matching funding. This project would not require an increase in harbor fees or the use of CBJ general funds, and all operation and maintenance costs
associated with this project would be paid with harbor fees.

Deferred Maintenance on CBJ Buildings
($4 million total)
(approximately $.8 million/year for 5 years)
The CBJ’s many buildings—including Centennial Hall, City Hall, the Downtown Library and Parking Garage, Douglas Library/Fire Hall, Treadwell Arena, Augustus Brown Swimming Pool, Zach Gordon Youth Center, Hagevig Fire Training Center, Juneau Police Station, seven park restrooms, five fire stations, and numerous maintenance shops and other facilities—need regular maintenance. Such maintenance is necessary to protect these public facilities from Juneau’s climate and to repair normal wear and tear. Sales tax funds would be used to design and construct building maintenance projects necessary to keep these facilities functional and acceptable to the public. This could include activities such as exterior and interior painting, new carpeting, roof repairs, heating and ventilation upgrades, electrical upgrades, new windows and doors, and other similar improvements.

Local Portion of Debt for Elementary School Renovations
($4 million total)
(approximately $.8 million/year for 5 years)
CBJ Voter Information — October 2, 2007 Municipal Election For the first five years of ten years of debt payments, sales tax funds would be used to pay the 30% local requirement for the school bonds that are the subject of Proposition 5. It is anticipated that the State of Alaska will pay for 70% of the school projects, and 30% must come from local sources. Most often, Juneau funds the local portion with property taxes but in this case, the Assembly decided to ask voters to approve sales taxes for that purpose. See page 10 of this booklet for an explanation of Proposition 5 and the renovations planned for Harborview and Glacier Valley Elementary Schools.