Legislature(2001 - 2002)
04/17/2002 01:45 PM Senate CRA
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
SB 359-MUNICIPAL ORGANIZATION GRANTS
CHAIRMAN TORGERSON announced the legislation was introduced at
the request of the City and Borough of Haines. It is actually a
finance matter on whether or not the state should help defray the
cost of mergers and consolidation. The language mirrors what is
in existing statute for boroughs to incorporate. There are
expenses associated when a municipality "merges up" and the state
should probably be a part of that.
ROBERT VENABLES testified on behalf of the Haines City Manager,
Marco Pignalberi and the community of Haines. He read the
following into the record:
I have lived in Haines since 1984 and have been
involved in numerous projects and committees on behalf
of the City of Haines, the Haines Borough and the
Haines Chamber of Commerce. But the most important
community project to date in Haines is consolidation.
For the Haines community, consolidation is the first
step toward achieving a home rule government. SB 359 is
a measure that will help us transition from two
disparate local governments into one home rule
government.
Haines has the only third-class borough in the State of
Alaska. It was designed as a compromise mechanism to
allow for school funding after the citizens of Haines
voted three times against forming a first or second
class borough. While the third class borough form of
government seemed to work for some time, it was just a
matter of time before its inadequacies caught up with
it. And now, when there is a desire to consolidate the
two governments, we find that the task before us is
quite daunting.
What has evolved in Haines is two very incompatible
systems of government. This community of 2,418 people
has two legislative bodies (Assembly & Council), two
mayors, two planning commissions (five if you count the
two service area boards and the state's responsibility
in the outlying areas of the borough) with separate
comprehensive plans, two legal systems, two financial
systems, two personnel systems and two very different
computer systems that do not integrate with each other.
At our local election, last October, the voters elected
new mayors and implemented a city-manager form of
government. This has removed many of the contentious
personalities and issues that caused consolidation to
fail in 1998 by three votes. Our two mayors and city
manager have worked hard to forge a spirit of
cooperation that better represents the community's best
interests. It is the consensus of all our political
leaders that one local government can serve Haines
better than the current two governments. This holds
great promise for the passing of consolidation.
The Local Boundary Commission approved the Haines
consolidation proposal last week and the division of
elections has scheduled the vote for consolidation to
be held on June 25, 2002. Transitional funding will be
needed in order to accomplish the consolidation effort
in a timely and professional manner. It is a
significant challenge to maintain government operations
while simultaneously changing every aspect of
operations. Our plan is to use consulting expertise to
merge our systems of accounting and finance, taxes,
legal and code revisions, comprehensive planning,
platting and zoning, computers and information
technology and personnel.
The consolidation of the Haines Borough and the City of
Haines will be in the best interests of the State of
Alaska. Having one government in Haines, instead of
two, will create efficiencies in the interactions
between the State of Alaska and Haines. It will relieve
the state government of the responsibility of providing
some of the local services while promoting the maximum
level of local self-government.
The Local Boundary Commission is on record supporting
both the creation of new borough governments and good,
sound local governmental units. Current law (AS
29.05.190) provides funding for new boroughs and
unified municipalities. A borough consolidated from a
third-class borough and a city is not eligible for
funds at this time. Many governmental experts believe
this to be an oversight.
Both the City of Haines and the Haines Borough have
endorsed the consolidation effort and are working
together to insure that it has the best chance to
succeed. We would ask the committee's assistance in
making this hope a reality.
There was no further testimony.
CHAIRMAN TORGERSON asked for the will of the committee.
SENATOR AUSTERMAN made a motion to move SB 359 and attached
fiscal notes and individual recommendations.
There being no objection, it was so ordered.
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