Legislature(2003 - 2004)
05/08/2003 03:35 PM Senate STA
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SB 183-MUNICIPAL ECON. DEVELOPMENT/TAXATION
SENATOR RALPH SEEKINS, bill sponsor, paraphrased from the sponsor
statement.
Current state law places a limitation on second-class
boroughs with respect to expending funds designated for
economic development purposes.
Presently, second-class boroughs may only use these
funds on a non-areawide basis. This means the Fairbanks
North Star Borough can only deploy these funds on
projects located outside the city limits of Fairbanks
and North Pole.
It is desirable for the borough to have the ability to
utilize economic development funds on an areawide
basis. In this way, worthy projects can be funded
irrespective of their location-within, or without,
municipal boundaries-so long as the project remains
within the greater borough boundary. Such projects will
benefit the entire borough community while physical
location, whether within city boundaries or not, is
considered immaterial to this greater good.
This legislation is proposed at the request of the
Fairbanks North Star Borough as well as the Cities of
Fairbanks and North Pole. In summary, it will
facilitate the development of economically attractive
projects throughout the entire Fairbanks North Star
Borough without regard to internal municipal
boundaries.
SENATOR JOHN COWDERY asked why there is a prohibition.
SENATOR SEEKINS didn't know, but the borough is trying to work
around the current statute and work with the two cities.
SENATOR COWDERY asked if other states prohibit this.
SENATOR SEEKINS wasn't aware of any, but most states have
counties.
CHAIR GARY STEVENS explained the foundation of the idea is to
avoid duplication of powers.
SENATOR COWDERY asked if the borough had particular projects in
mind.
SENATOR SEEKINS said no; the borough has had trouble developing a
comprehensive economic development plan because of the
impediments imposed by the boundaries.
CHAIR GARY STEVENS stated he has letters of support from both the
city council and mayor of the City of Fairbanks and the mayor of
the City of North Pole. This addresses his initial concern
regarding whether the two cities were in agreement on the issue.
He asked for a motion to adopt the committee substitute (CS).
SENATOR COWDERY made a motion to adopt CSSB 183 \Q version for
discussion purposes. There was no objection.
CHAIR GARY STEVENS asked if reference to population was still in
the bill.
SENATOR SEEKINS replied it was not and he wasn't sure what the
difficulty had been.
CHAIR GARY STEVENS noted the current version would affect every
borough and every city in the state, not just Fairbanks.
SENATOR SEEKINS said their intent was to give the three
communities in the Fairbanks North Star Borough the ability to
work together.
CHAIR GARY STEVENS asked Mr. Bockhorst whether he read the
current CS to include all the boroughs in the state or to apply
to Fairbanks alone.
DAN BOCKHORST, Local Boundary Commission, advised he didn't have
a copy of the version the committee was considering. The version
he was reading considered the 80,000-population limit that would
affect only the Fairbanks North Star Borough.
SENATOR SEEKINS explained the \Q version applies only to a
borough that has entered into an agreement with a city located
within the borough. It doesn't impede others; it simply allows
those cities and boroughs that have an agreement to cooperate to
do so. This makes it unnecessary to put a population base on to
protect smaller boroughs or cities.
CHAIR GARY STEVENS said that means other boroughs could make use
of this if they made a cooperative agreement with cities within
the borough boundaries.
SENATOR SEEKINS agreed.
SENATOR GRETCHEN GUESS asked whether the Kenai Borough could
enter into an agreement with Soldotna and use the funds in
Soldotna without other cities within the borough having any input
with regard to the use of the funds.
SENATOR SEEKINS said he thought they could.
DAVID LEONE, special assistant to the North Star Borough mayor,
testified via teleconference in support of the CS \Q version.
SENATOR FRED DYSON made a motion to move CSSB 183(STA) and
attached fiscal note from committee with individual
recommendations. There being no objection, it was so ordered.
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