Legislature(2005 - 2006)BELTZ 211
03/10/2006 01:30 PM Senate COMMUNITY & REGIONAL AFFAIRS
| Audio | Topic |
|---|---|
| Start | |
| SB291 | |
| SB246 | |
| SB247 | |
| SB193 | |
| SB248 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 193 | TELECONFERENCED | |
| += | SB 291 | TELECONFERENCED | |
| += | SB 247 | TELECONFERENCED | |
| += | SB 246 | TELECONFERENCED | |
| += | SB 248 | TELECONFERENCED | |
SB 248-ADMINISTRATIVE BOROUGHS/BOROUGH GRANTS/
2:51:40 PM
CHAIR BERT STEDMAN announced SB 248 to be up for consideration.
2:52:03 PM
SENATOR GARY STEVENS explained that since the first borough was
formed in 1962, 15 additional boroughs have been established so
that 43 percent of the land and 87 percent of the population in
Alaska falls within the 16 boroughs. Meanwhile, he said, 57
percent of the land and 83,000 people live outside of organized
boroughs.
An advisory commission on local government was appointed last
session and SB 248 is the result of that commission's
recommendations. It creates a new class of borough government
called administrative boroughs and it encourages borough
formation.
Administrative boroughs would provide an elected assembly that
would have powers for planning, platting, and land use
regulation. They would also have the power to levy sales taxes,
use taxes and fees, but they wouldn't have the power to levy
property tax or to provide education. Any other powers the
assembly might adopt would have to be in accordance with Title
29. To cover organizational expenses, SB 248 would provide
grants of $250,000 for the first three years. The money would be
used to elect an assembly, establish ordinances and organize an
administrative office.
The advisory commission recognizes that a lack of available
land, which helps to sustain borough government, is a major
hindrance to new borough formation. Therefore, SB 248 would
allow boroughs that are unable to select a minimum of 15,000
acres the ability to receive a $15 million grant and boroughs
that do have the ability to select 15,000 acres or more could
receive a $12.5 million grant. Grant funds would only be
available to new boroughs that are formed within four years of
the effective date. Furthermore, only the interest could be used
to run the government; none of the principle could be spent.
Forming an administrative borough is completely voluntary, but
doing so would offer the opportunity for sustainability into the
future.
2:56:24 PM
MIKE BLACK, Director of the Division of Community Advocacy,
Department of Commerce, Community & Economic Development, stated
support for the concept embodied in SB 248 because it's in the
state's interest to have regional governments. He advised that
borough formation is a voluntary process and in recognition of
that, SB 248 provides incentives.
The responsibilities associated with this new form of government
are minimal, but the department believes that administrative
boroughs will provide a first step or bridge to a higher level
of responsibility embodied in 2nd class, 1st class or home rule
boroughs. The department further believes that the benefits to
the state will far outweigh the costs of the financial
incentives offered in SB 248. He noted that administrative
boroughs would be prohibited from providing education, but they
would have limited powers to tax.
The department believes that SB 248 will remove much of the
consistent objection to borough formation that has been seen in
the past and will promote formation of regional governments, he
concluded.
3:00:30 PM
SENATOR GARY STEVENS asked Mr. Black if he knows of any region
that is considering this transitional phase.
MR. BLACK replied more areas have expressed interest in borough
formation since the advisory commission began meeting, but he
isn't sure what class of borough the various areas are
considering.
SENATOR GARY STEVENS remarked movement toward forming any class
of borough would be a step in the right direction.
3:02:53 PM
ALAN LeMASTER, Gakona, testified that he lives in the
unorganized borough and is happy to have the Legislature sit as
the assembly. He suggested that SB 248 offers a brighter light
than has been seen in the past, but residents of the Copper
Valley will probably continue to oppose borough formation at
this time.
3:04:45 PM
SENATOR GARY STEVENS reiterated this is voluntary. SB 248 offers
an opportunity and no one will be forced to take advantage of
it.
MR. LeMASTER responded there is some apprehension that at the
end of the four-year period areas would be forced to form a
borough. A major problem in this area, he said, is how to
support a borough even with the grant money that's offered. He
said the idea that the school board would act as the borough
commission is a little scary.
SENATOR GARY STEVENS said he certainly couldn't promise that the
area wouldn't be forced into becoming a borough at some time.
Many areas were forced into boroughs under the Mandatory Borough
Act, but SB 248 doesn't deal with that. With regard to the
school board he clarified that the responsibilities of the REAAs
wouldn't change under SB 248.
3:07:26 PM
JOHN HOZEY, City Manager for the City of Valdez, testified as a
representative of the Alaska Municipal League (AML) task force
on borough formation. He explained that the idea for the task
force stemmed from community frustration at not gaining headway
in efforts to incorporate. He listed the following communities
that have been unsuccessful in their various attempts to
incorporate: City of Toksook Bay, City of Hoonah, City of
Valdez, City of Wrangell, City of Petersburg, City of Thorne
Bay, City of Cordova, Municipality of Anchorage, Denali Borough,
City of Coffman Cove, City of Emmonak, City of Skagway, and City
of Klawock.
On behalf of the task force he asked that the committee consider
an amendment to SB 248 to address the "stranglehold on the
process called the model borough boundaries." The amendment
would require that each petition to incorporate be reviewed on
merit. It would also expand the authority of the Local Boundary
Commission (LBC) to modify petitions to act in the state's best
interest.
He asked the committee to keep the amendment language in mind
for incorporation in other appropriate legislation in the event
that SB 248 doesn't move forward.
3:11:18 PM
SENATOR GARY STEVENS advised that the commission carefully
considered the comments and recommendations that came from the
task force and as a result there will be an amendment to SB 248.
3:12:13 PM
DAVE TRANTHAM, Council Member for the City of Bethel, stated
that there is little support for SB 248 in his area. Model
borough boundaries don't meet the needs of the people in the
area and offer no flexibility, he said. As currently proposed 25
small communities in the Bethel area fall within the model
borough boundary and the closest state land is off the road
system and about 50 miles away. In this area, he said, it's
unlikely that there will ever be a tax base to support an
additional tier of government.
3:15:39 PM
SENATOR GARY STEVENS responded one bill can't solve every
problem. SB 248 is optional and it will solve problems for some
areas and therefore move the state forward. Perhaps, he said,
the discussion of the LBC and model boroughs should take place
in another bill.
3:16:45 PM
KEVIN RITCHIE, Executive Director for the Alaska Municipal
League (AML), thanked the legislative members of the advisory
commission for the important work that was done.
He stated that AML believes that government that is closest to
the people is best because it empowers people at the local level
to solve problems and provide self-regulation. As the
representative of the task force mentioned, there have been a
number of changes to the economy and patterns in Alaska since
the model borough boundaries were formed in 1989 so it makes
sense to take another look at those boundaries. He said his
final point is that the provision for the $12.5 million and $15
million grants is truly sustainable revenue sharing. If the
money is managed to allow a 4-5 percent annual withdrawal it
will naturally adjust for inflation. 5 percent of $15 million
would provide $750,000 per year and that would be a significant
base for providing adequate public services for an area.
CHAIR STEDMAN announced he would hold SB 248 in committee.
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