The same day I received the CBJ “Voter Information” pamphlet in the mail, I learned of another young family pulling up and leaving town. They are heading north — their new jobs pay about as much, but rent is cheaper and there are roads to connect them to other opportunities. Might the propositions detailed in the Oct. 7 election pamphlet help keep families like them here?
Proposition 1 and Proposition 2 were put on the ballot through the initiative process, spearheaded by a group of Juneau voters known as the Affordable Juneau Coalition. Proposition 3 was added to the ballot by the CBJ Assembly.
Proposition 1 proposes a mill rate cap amendment. Yes. It would cap the property tax mill rate at 9 mills plus any additional millage required to pay general obligation indebtedness. The non-debt mill rate for this CBJ fiscal year is 9.16 mills. If Proposition 1 passes, the Mill Rate Cap Amendment would allow a safeguard for the Assembly to levy a tax exceeding the 9 mill rate cap after seeking and securing voter approval by a majority of those voting on the question at a general or special election.
Currently, there is over $16 million in the restricted budget reserve and $20.4 million in the unrestricted budget reserve. Both reserve accounts are funded by property and sales tax collections. The restricted budget reserve was created as a “rainy day” account in case of a capital or legislative move, emergency like recent glacial flooding, or a sudden loss in revenue.
Buying and remodeling a new city hall and tearing down historic buildings on Telephone Hill or spending on any number of “wants” not “needs” puts a dent in some of the unrestricted account. By the way, tearing down buildings doesn’t necessarily assure building back in a timely manner. Put in a Joni Mitchell tune and drive up to North Franklin and Second Street corner which accommodated the historic Odd Fellows Hall and businesses which were demolished. Multilevel parking was considered and later housing units were proposed for the site and rejected. It is still a one-level parking lot.
Capping the mill rate at 9 mills could help make Juneau more focused on needs and more affordable for some of those young people we want to attract and keep here. Proposition 1 deserves a Yes consideration.
Proposition 2 would extend the sales tax exemption on essential food and non-commercial utilities that Juneau senior’s population already enjoys to all residents within the Borough. Yes. Besides food, the voter information pamphlet also points out that Proposition 2 would also exclude CBJ sales tax on non-commercial utilities: electricity, heating oil, propane, wood pellets, water and sewer, garbage and recycling. Water and sewer bills from the CBJ just went up this month (ours is about $155 a month now) so dropping the CBJ sales tax on utilities for Juneau residents is timely. Extending the sales tax exemption for food and utilities to all CBJ residents definitely makes Juneau more affordable.
Proposition 2 deserves a Yes consideration.
Proposition 3 implements a seasonal sales tax. No. Proposition 3 raises the sales tax from 5% to 5.5%. The Voter Information Guide points out it does so by levying a seasonal sales tax of 3% in the winter and 7.5% in the summer. Also the proposed new rate of 5.5% sales tax is 4.5% that would be permanent and 1% temporary. Currently, we vote on the 3% temporary sales tax on one voting cycle and the 1% temporary sales tax on another voting cycle. Voting on keeping the temporary 3% and 1% is always a good time for explanations and transparency on how the sales tax money collected might be spent.
Several Juneau’s snowbirds who head south in the fall to dry out from a wet summer will be welcomed home just in time to start paying a 7.5% summer sales tax if this proposition passes. The Assembly passed the seasonal sales tax proposal unanimously. Kudos to Assembly candidate Nathaniel “Nano” Brooks who has opposed Proposition 3 in debates.
Does raising the sales tax make Juneau more affordable? It does not.
Proposition 3 is a No vote.
Move Juneau towards more affordable, yes, yes, and no.
Ken Koelsch served as mayor of the City and Borough of Juneau from 2016-2018.
