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When: June 17, 2024 06:00 PM Alaska
Topic: June 17, 2024 Borough Assembly Meeting
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Any public testimony regarding Ordinance #2024-11 should be given during this public hearing. A copy of Ordinance #2024-11 may be found under agenda item 14B.
Elderly Housing Director Lopez and Alan Murph with Harai & Associates, Inc. recommend award of the MVM Elderly Housing Entrance Project to Steelhead Enterprises, LLC for an amount not to exceed $65,800. Funding for this project has been appropriated within the FY 2025 Borough Budget.
Persons wishing to share their views on any item on today's agenda may do so at this time.
Persons with views on subjects not on today's agenda may share those views at this time.
Piston & Rudder Service, Inc. wishes to renew their tidelands parcel T-30 B lease with the Borough through June 30, 2029 at an annual rental rate of $1,632.
There is no written report for this meeting.
If adopted, Ordinance #2024-10 will place a proposition on the 2024 Municipal Election ballot to increase the maximum taxable transaction amount from $1,200 to $5,000, resulting in an increase of the maximum collectible sales tax from $72 to $300 per single purchase of goods or services. The maximum single purchase amount to be charged sales tax was originally established in 1959 and was set at $1,000. This maximum amount has been raised only once in the last 65 years, when it was increased from $1,000 to $1,200 in 2002. Petersburg currently has the lowest maximum taxable single purchase amount in Southeast Alaska, and most other Southeast communities limit the purchase to a single item only, not to a total purchase transaction, or there is no maximum at all. If Petersburg increases its maximum taxable transaction amount to $5,000, the maximum collectible sales tax would increase to $300, and would still be one of the lowest maximums in Southeast Alaska. This proposed increase will help offset an increase to future property taxes and the loss of State funding, and to support Borough services, including the Petersburg School District. The Petersburg Chamber of Commerce supports this proposed increase to the maximum collectible sales tax (a letter of support is attached to this packet along with a spreadsheet of other communities' maximum collectible sales tax). Ordinance #2024-10 was unanimously approved in its first and second readings.
If approved by the Assembly in three readings, Ordinance #2024-11 will submit a ballot proposition to Borough voters at the October 2024 municipal election to amend Borough Charter to remove the requirement of voter approval to make changes to sales tax exemptions. This exemption requirement was put into place in 1981. The Borough is aware of no other municipality in Alaska that requires voter approval to change sales tax exemptions. This amendment will not negate the requirement of voter approval of any change in the rate of the Borough's sales tax. Ordinance #2024-11 was unanimously approved in its first reading.
Island Refrigeration, LLC is requesting an extension of the payment in full deadline for purchase of Borough Parcel #01-010-035, from July 15, 2024 to October 13, 2024. The company makes the request to allow for composition of a detailed site development and business plan to be delivered to and approved by their financial partners during the company's busiest time of year.
Public Works Director Cotta recommends approval to purchase a new International HX620 with dump body to replace the Public Works #64 dump truck. RWC Group has quoted $243,958.22 for the vehicle with shipping to Petersburg. $250,000 was budgeted in the FY 2024 Motor Pool Public Works replacement fund approved by the Assembly.