Is it coincidental that CBJ increased assessed values on private property when intending to sell bonds against property taxes – and without bringing the mill rate down appropriately? Is it transparent and honest to exclude debt service when measuring spending against the mill rate cap? Are voters and property owners really fooled when the Assembly uses cash for nonessential projects, but asks voters to place long-term general obligation liens on all private real property to pay for practical outlays like additional emergency radios and a new wastewater building?
I intend to vote “no” on the two debt authorizations, Ballot Measures 1 and 3. Nothing in our future recommends to me paying later for what we buy today. I see nothing to assure taxpayers that the current mayor and Assembly be trusted to use our property to secure their spending. CBJ government is awash in cash because of persistently rising property assessments, and cruise ship head taxes and sales taxes. Moreover, approving new debt without knowing the outcome of the cruise ship ballot measure would be doubly stupid. (I will vote “no” on Ballot Measure 2.)
Municipal debt is a loser in Alaska, and CBJ using cash is by far the wiser fiscal choice for property owners, voters and taxpayers. The state has turned down general obligation authorization proposals twice in the last three years, and for the same reasons cited here. IRS code strictly caps what CBJ can earn on the money before, during and after construction. The cost of bringing the bonds to market takes 2% of the entire sale, and that 2% must then be repaid, plus interest, to bondholders by taxpayers along with the rest of the debt service. For this debt that is $455,000, plus interest.
This Assembly makes frequent high-dollar bets and expenditures without asking what voters think. Only when they want to secure bonded indebtedness with our full faith and credit, pledging the assessed value of our property, do they ask our permission. When we disapprove they ask us again, spending our money to re-educate us. Please vote no on these ballot measures, and please vote very carefully on the mayor and Assembly races.
• Tom Boutin moved to Juneau from Haines in 1983. He is retired, and has a background in public finance and forestry.
