October 04, 2016 Ketchikan Borough Election SitNews Hosted Forum Questions for the Candidates, & Responses KTN Borough Assembly 3 Year Term 2 Seats Open Rodney Dial Filed 08/01/16 Statement Published 08/30/16 Keith Smith Filed 08/15/16 Statement Published 09/20/16 Susan Pickrell Filed 08/24/16 Statement Published 09/14/16 Judith L. McQuerry Filed 08/25/16 Statement Published 09/08/16 David Timmerman Filed 08/25/16 Statement Published 09/22/16 KTN Borough Mayor 3 Year Term 1 Seat Open David Landis (Unopposed) Filed 08/01/16 Statement Published 09/28/16 KTN School Board 3 Year Term 2 Seats Open Conan Matthew Steele Filed 08/25/16 Statement Published 09/21/16 Trevor Shaw Filed 08/25/16 Statement Published 09/28/16 Kim Hodne Filed 08/25/16 Statement Published 09/26/16 Kevin Johnson Write-In Statement Published 09/18/16 KTN City Council 3 Year Term 2 Seats Open   Judy Zenge Julie Isom Filed 08/04/16 Statement Published 09/12/16 Spencer S. Strassburg Filed 08/25/16 Statement Published 09/29/16

Ketchikan: Voters To Decide Two Propositions Tuesday; Raise Cigarette and Tobacco Excise Tax and Extension of the General Sales Tax by 1/2% - On Tuesday, October 4, 2016, Ketchikan Borough voters will not only have the opportunity to vote on candidates for Borough Mayor, two Assembly Members, and two School Board Members, there are also two ballot propositions to be decided: A Cigarette and Tobacco Product Excise Tax and a Five-Year Extension of the School Capital Projects Sales Tax.

PROPOSITION 1 asks the voters: "Shall the provisions of Ordinance 1789-A, which establishes an excise tax on cigarettes and other tobacco products, be ratified?" If the voters say YES, this will levy an excise tax of 100 mills ($2 per pack of 20 cigarettes) on each cigarette brought into the Ketchikan Gateway Borough beginning January 1, 2017.

Proposition 1, the Cigarette and Tobacco Product Excise Tax is on Tuesday's ballot because on April 4, 2016, the Ketchikan Gateway Borough Assembly adopted Ordinance 1789-Amended, which established an excise tax on cigarettes and other tobacco products. The excise tax is conditioned upon voter ratification.

Net proceeds of the tax, including penalties, interest, and costs recovered, would be distributed as follows:

• 15 percent may only be appropriated by the Assembly for purposes of smoking and other tobacco cessation programs, tobacco cessation education, and/or tobacco-related healthcare purposes.
• 85 percent shall be deposited in the Schools Reserve Fund.

The effects on Borough taxpayers and citizens if Proposition 1 passes, the Borough would levy an excise tax of 100 mills ($2 per pack of 20 cigarettes) on each cigarette brought into the Ketchikan Gateway Borough beginning January 1, 2017. An excise tax of 50 percent of the wholesale price would also be levied on tobacco products other than cigarettes that are brought into the Ketchikan Gateway Borough. The excise tax on cigarettes and tobacco products would be levied at the wholesale level, not at the point of sale. This excise tax is separate from the Borough sales tax of 2.5 percent paid by consumers on non-exempt retail sales of cigarettes and tobacco.

It’s estimated by the Borough the tax would generate approximately $800,000 in net revenue annually. Of that, $680,000 (85 percent) would be deposited in the Schools Reserve Fund and $120,000 (15 percent) would be restricted to appropriations for smoking or other tobacco cessation programs, tobacco cessation education, and/or tobacco- related healthcare purposes.

The Schools Reserve Fund is used to make Borough cash contributions to Ketchikan Gateway Borough School District operations. In the current year, those cash contributions will total $8,196,550.

It should be noted, the $8,196,550 would be acash contribution to be used at the discretion of the Ketchikan School Board. The figure does not include additional Borough appropriations of $3,666,414 for school-related debt service, $400,000 for major maintenance of schools, and $225,156 in Borough General Fund appropriations for contractual services to the District.

Should Proposition 1 fail to be passed by the voters on October 4th, the Ketchikan Borough would not collect an excise tax on cigarettes and other tobacco products. These products would continue to be subject to the current Borough sales tax rate of 2.5 percent.

If Proposition 1 fails, the Ketchikan's Schools Reserve Fund would also forgo an estimated annual revenue stream of $680,000.

Additionally, there would be no tobacco excise tax proceeds (estimated at $120,000 if the tax is implemented) for smoking or other tobacco cessation programs, tobacco cessation education, and/or tobacco-related healthcare purposes.

PROPOSITION 2 asks the voters "Shall the general sales tax of one half of one percent (1/2%), dedicated to bondable school capital projects and insurance on school buildings and facilities, which was approved by the Assembly by Ordinance 1303 on March 22, 2004, ratified by the voters June 8, 2004, and which expires January 1, 2022, be extended until January 1, 2027?"

Proposition 2, a Five-Year Extension of School Capital Projects Sales Tax is on the ballot because on July 5, 2016, the Ketchikan Gateway Borough Assembly adopted Ordinance 1803, extending the 1⁄2 percent sales tax for educational facilities capital projects for five additional years to January 1, 2027, and placing the question on the ballot for the October 4, 2016 Regular Election.

The 1⁄2 percent sales tax for school capital projects was enacted upon voter ratification of Ordinance 1303 through a special election on June 8, 2004. Ordinance 1303 stipulates that the tax expires on January 1, 2022.

The 1⁄2 percent sales tax is being used to pay off $23,178,000 in school bonds, to fund major maintenance of school facilities, and to pay for insurance on school buildings.

The Borough owns 498,676 square feet of school-related buildings and facilities. The Borough and School District are charged with maintaining the facilities, and the Borough is charged with funding the major maintenance needs.

The School District’s FY 2018 Six-Year CIP Plan has identified an additional $13,125,636 in major maintenance needs between FY 2018 and FY 2023. Previously, the State paid the majority of the debt service costs for school bond debt. The Alaska Legislature has suspended the State’s debt participation program for newly issued school facility debt until FY 2021. If the Borough issues debt before 2021, the entire debt burden must be paid from local sources. If debt is issued after the reinstatement of the program, it may be reimbursed at reduced rates.

Additionally, on June 29, 2016, Governor Walker’s vetoes included reduced school debt reimbursement to municipalities by 25 percent, which resulted in a loss of $672,862 in the Borough’s School Bond CIP Fund in FY 2017. If the 25 percent reduction in bond debt reimbursement continues in future years, the payments required from the School CIP fund to meet bond payment obligations will reduce the funds available to make bond payments and implement the District’s FY 2018 Six-Year CIP Plan. Should the dedicated 1⁄2% sales tax not be extended, the School Bond CIP Fund is estimated to run out of funds prior to retiring existing school bond debt. Borough voters have pledged the full faith and credit of the Borough to pay the school bonds. Thus, if the School Bond CIP Fund runs out of money, the Borough must generate funds from other sources to pay the principal and interest on the bonds. - More...
Sunday PM - October 02, 2016

Ketchikan: GCI's Ketchikan customers to enjoy faster speeds and improved coverage - One year after bringing 4G LTE coverage to Ketchikan, GCI is expanding its coverage area by adding three new cell towers to the Ward Cove, Saw Mill and Cranberry Road areas, which now completes a 10-site cellular coverage area. The additional towers are expected to bring increased wireless speeds and faster download speeds to GCI customers in Alaska’s most southeastern city.

“At GCI, we’re dedicated to providing Alaskans with the best and fastest communication services available, and that’s why we continue to invest in network upgrades in Ketchikan and across the state,” said Paul Landes, GCI’s senior vice president general manager, consumer services. “With the 4G LTE expansion, our Ketchikan customers will experience faster wireless speeds for downloading, streaming multimedia and enjoying other online activities whether they are fishing off of Clover Pass or hiking around Ward Lake.” - More...
Sunday PM - October 02, 2016

Alaska: Governor Walker Meets with Obama Administration to Discuss Offshore Drilling in Alaska - Governor Bill Walker, Lt. Governor Byron Mallott and Alaska Department of Natural Resources Commissioner Andy Mack met last week with members of the Obama administration to request that Alaska remain in the five-year outer-continental shelf plan. Governor Walker and Commissioner Mack also met with the Ambassadors of Japan and Qatar to discuss the gasline project.

“With oil prices and production down, Alaska must be focused on the long game,” Governor Walker said. “The trans-Alaska oil pipeline is three-quarters empty. When Alaska became a state, we were told to live off of our resources. We just need access to them.”

Governor Walker, Lt. Governor Mallott and Commissioner Mack met with U.S. Department of the Interior Secretary Sally Jewell, Bureau of Ocean Energy Management Director Abigail Ross Hopper, Bureau of Land Management Director Neil Kornze and other members of the Interior Department. They also met at the White House with President Barack Obama’s Senior Advisor Brian Deese and other White House staffers to request that Alaska’s interests be prioritized as the Administration transitions out. Governor Walker and Commissioner Mack, who flew into Washington, D.C., directly after their gasline meetings in Singapore and Korea, also briefed the federal officials on what they had heard from the Asia-Pacific market - which comprises 70 percent of the world’s liquefied natural gas consumer base. - More...
Sunday PM - October 02, 2016