03/14/2001 01:30 PM Senate CRA

                                                                                                                                
           SB  75-SERVICE AREAS:VOTER APPROVAL/TAX ZONES                                                                    
                                                                                                                              
CHAIRMAN TORGERSON said  that although SB 75 is on the agenda, HB 13                                                            
deals with  the same subject  and has already  been passed  from the                                                            
House  to  the Senate  so  that  will  be  the bill  that  is  used.                                                            
Testimony on SB 75 will be heard for the record.                                                                                
                                                                                                                                
DICK TREMAINE,  Anchorage Municipal Assemblyman, testified  that the                                                            
Assembly  passed  a  resolution  supporting  HB  13.  They  strongly                                                            
believe that the  people of Anchorage would like the  protection for                                                            
limited service areas.                                                                                                          
                                                                                                                                
CHAIRMAN TORGERSON  said he thought the only difference  between the                                                            
two bills is  that the Senate bill  deals with recreational  service                                                            
areas and the  House bill does not.  He asked for an opinion  on the                                                            
differences.                                                                                                                    
                                                                                                                                
MR. TREMAINE  said that would make  the Senate bill a subsection  of                                                            
the House bill and they supported HB 13.                                                                                        
SENATOR PHILLIPS asked whether there was anything in writing.                                                                   
                                                                                                                                
MR. TREMAINE said that he would send a copy of the resolution.                                                                  
                                                                                                                                
CHAIRMAN TORGERSON  said a copy would  be in the bill packet  for HB
.                                                                                                                             
                                                                                                                                
ANNA FAIRCLOUGH, assembly  member from Anchorage, represents Eklutna                                                            
to Elmendorf Air  Force Base. She is speaking as an  assembly member                                                            
covering service areas  rather than as the legislative chair for the                                                            
Anchorage  Assembly in  support of  SB 75. Area  wide protection  of                                                            
service area concepts is  supported whether it's park and recreation                                                            
or road  service areas.  Local people  should be  protected so  that                                                            
they are the ones who abolish or change the boundaries.                                                                         
                                                                                                                                
OCIE ADAMS, representing  Road Service Area 17, testified in support                                                            
of HB 13 and SB 75. The  only reservation he has is that, "we do not                                                            
include a provision for  the road service areas, where an annexation                                                            
of six percent  or less, without the  vote of the people."  (Balance                                                            
indisc.) The  16 Road Service Area  Boards in the Matanuska  Susitna                                                            
Borough support both SB 75 and HB 13.                                                                                           
                                                                                                                                
Number 120                                                                                                                      
                                                                                                                                
JIM NARCROSS,  from RSC 20, Willow,  supports both SB 75  and HB 13.                                                            
He  is concerned  about  the six  percent  clause applying  to  road                                                            
service and  the tax differential  clause. It is important  that the                                                            
voter has  a say in  how their  tax dollars are  spent within  their                                                            
community.                                                                                                                      
                                                                                                                                
LARRY DeVILBISS, an assemblyman  from the Matanuska-Susitna Borough,                                                            
continues  to support both  bills SB  75 and HB  13 even though  the                                                            
assembly  was asked  to oppose  the bill.  Instead,  they reached  a                                                            
compromise  with the administration  and asked for an amendment  "to                                                            
get  the six  percent flexibility  ability  to adjust  service  area                                                            
boundaries." They  feel that should apply to all service  areas, not                                                            
just fire service areas.                                                                                                        
                                                                                                                                
Attorneys on and working  for the assembly didn't understand the tax                                                            
differentials  within service areas, but as long as  it doesn't mean                                                            
that a wealthy  part of the service  area may be taxed to  shift the                                                            
money to a less affluent area it's acceptable.                                                                                  
                                                                                                                                
They  thought it  was important  that the  six percent  rule  wasn't                                                            
abused.  Perhaps  limiting  the  option  to  once a  year  would  be                                                            
workable. At  any rate, "They shouldn't  be able to nibble  away and                                                            
destroy a service area piece meal."                                                                                             
                                                                                                                                
CHAIRMAN  TORGERSON  assured  Mr.  DeVilbiss   that  Mat-Su  Borough                                                            
attorney, Michael  Gatti, had contacted his office.  They had yet to                                                            
speak with one another.                                                                                                         
                                                                                                                                
KELLY  LANKFORD represents  district  seven in  the Mat-Su  Borough.                                                            
This district  encompasses  a large portion  of the area covered  by                                                            
the borough in  terms of square mileage and, because  of this, isn't                                                            
easy  to  represent.  She  stands  in  opposition   to  the  borough                                                            
resolution  and   strongly  supports  SB  75  and   HB  13.  Maximum                                                            
grassroots  participation  by voters  is  always preferable  at  any                                                            
level  of government  so she  is philosophically   aligned with  the                                                            
intent  of the  bill. There  are, however,  two areas  in which  she                                                            
would like to see change.                                                                                                       
                                                                                                                                
She  would  like  to see  road  service  areas  included  with  fire                                                            
protection  service  areas  in  the  subsection  proposing  the  six                                                            
percent differential.                                                                                                           
                                                                                                                                
She doesn't  agree with or support  section four where the  assembly                                                            
may make modifications  to differential  tax zones within  a service                                                            
area.                                                                                                                           
                                                                                                                                
CHAIRMAN TORGERSON said SB 75 would be held in committee.