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Finding projects for Juneau voters to consider when they're asked to maintain the city's 5 percent sales tax this fall won't be a problem.
City focuses on projects for 1 percent tax renewal 050905 local 2 JuneauEmpire Finding projects for Juneau voters to consider when they're asked to maintain the city's 5 percent sales tax this fall won't be a problem.

City focuses on projects for 1 percent tax renewal

Prospects range from airport expansion to sewer work to state capitol complex

Finding projects for Juneau voters to consider when they're asked to maintain the city's 5 percent sales tax this fall won't be a problem.

"Certainly the harbors are something we could look at," Juneau Chamber of Commerce President David Summers said Friday after the organization's weekly luncheon at the Aspen Hotel. "And there's the North Douglas Crossing. We need that second crossing."

The list could go on, he added. At this Friday's Chamber luncheon, people supporting projects in need of the sales tax support are scheduled to address membership.

Friday, city Finance Director Craig Duncan explained that a temporary 1 percent sales tax expires at the end of the year. That tax is part of an overall 5 percent city sales tax. The city will ask voters to approve a new 1 percent tax this fall.

City Manager Rod Swope, who answered questions at the luncheon, said the Assembly will have to determine by early August priorities for what the next proposed temporary 1 percent sales tax would pay for.

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The current tax was approved to raise money for repair, rehabilitation and improvements to schools, expansion and improvement of Bartlett Regional Hospital and a portion of the cost of a covered ice rink and recreational facility.

A survey conducted of chamber members in March showed the top four priorities for the next temporary tax as parking, airport terminal expansion, a state capitol complex and sewer work. The survey had a return rate of 23 percent.

Swope said interest in the capitol complex has cooled, but he is seeing interest in a community recreation center in the Mendenhall Valley.

After the next chamber luncheon, another survey of interests is planned to go out to members.

Taking questions Friday, Assembly member Randy Wanamaker said city leaders listen to priorities from people in the community before deciding what the temporary tax should cover.

"Some of it's based on popularity," he said. "Some of it's based on cold, hard reality."

The city is looking at options of proposing terms of five, six or seven years for a new temporary 1 percent sales tax to begin on Jan. 1. Projections estimate a five-year tax would raise about $34.5 million and a seven-year tax would raise about $49 million, he added.

He explained that in addition to the 1 percent temporary tax due to expire this year, the city levies a permanent 1 percent sales tax and a temporary 3 percent sales tax. Part of the revenue goes to paying for city operations.

While the temporary 1 percent sales tax pays for things the city couldn't otherwise afford, Swope termed the temporary 3 percent tax as "critical." He said it is due to expire next year.

"If we were to lose it, we would fund fire protection. We would fund police." He said the city also would pay for some road maintenance.

"Most of the other stuff would disappear," Swope said, singling out bus service as an example. "Government would continue, but parks and recreation would be gone. We would probably have to cut back on the police force."

• Tony Carroll can be reached at tony.carroll@juneauempire.com.



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