HOUSE COMMUNITY AND REGIONAL AFFAIRS STANDING COMMITTEE March 22, 2000 5:10 p.m. COMMITTEE CALENDAR Impacts of proposed 10-mil tax cap initiative TAPES 00-18, SIDES A & B 00-19, SIDE A CALL TO ORDER REPRESENTATIVE JOHN HARRIS, Co-chair, convened the House Community and Regional Affairs Standing Committee meeting at 5:10 p.m. PRESENT Committee members present were Representatives Harris, Morgan, Halcro, Murkowski and Joule. SUMMARY OF INFORMATION STEVE VAN SANT, State Assessor, Anchorage, gave an overview of the possible impacts if the initiative passes in November. LEO RASMUSSEN, Mayor of Nome, discussed possible impacts to the Nome area. MICHAEL LAMB, Chief Finance Officer, North Slope Borough, testified as to the impacts on the North Slope Borough. ED ZEINE, Mayor of Cordova, discussed impacts in Cordova and Prince William Sound. DAVE COBB, Mayor of Valdez, discussed impacts in Valdez and on Prince William Sound Community College. JOHN WILLIAMS, Mayor of Kenai, testified that he did not believe the initiative was legal, in that it would allow one community to dictate what other communities could do. HENRY GUINOTTE, Mayor of Palmer, testified that Palmer would not be directly impacted because its revenue sources include a 3-mil tax and a 3 percent sales tax. However, the Matanuska-Susitna Borough would be impacted and thus Palmer would indirectly be impacted because of that. MIKE SCOTT, Manager, Matanuska-Susitna Borough, testified as to the impacts on the borough and discussed the "fatal flaw" of putting bonded indebtedness under the cap. He said the initiative petition has already affected the borough's bond rating. DOYLE HOLMES, Assemblyman, Matanuska-Susitna Borough, spoke in favor of the initiative, saying the impacts won't be as serious as presumed. He cautioned against overreacting negatively. CINDY BENNER, Fairbanks citizen, testified that she will be working to obtain a resolution from her local PTAs [parent- teacher associations] in opposition to the initiative. KATHY WASSERMAN, Mayor of Pelican, said her town would not be directly impacted because it taxes at less than 10 mils, but small towns would not get the help they need from the state if the state is having to save the bigger cities. DARIO NOTTI, Vice Mayor of Bethel, spoke in opposition to the tax cap and echoed the same reasoning as Ms. Wasserman, Mayor of Pelican. JOHN MIELKE, Mayor of Skagway, spoke in opposition to the tax cap. DARCIE SALMON, Mayor of the Matanuska-Susitna Borough, testified in favor of reform and change, but believes the initiative is flawed. PAT ABNEY, Anchorage Assembly member, testified against the tax cap, saying the cities have enough trouble attracting businesses and keeping young people from moving "Outside." CAROLYN FLOYD, Mayor of Kodiak, testified against the tax cap. DAN KELLY, Matanuska-Susitna Borough Assemblyman from Wasilla, discussed development and infrastructure, services, and so forth. COMMITTEE ACTION The committee took no action. ADJOURNMENT CHAIRMAN HARRIS adjourned the meeting at 7:02 p.m. NOTE: The meeting was recorded and handwritten log notes were taken. A copy of the tape(s) and log notes may be obtained by contacting the House Records Office at 129 6th Street, Suite 229, Juneau, Alaska 99801-2197, (907) 465-2214, and after adjournment of the second session of the Twenty-first Alaska State Legislature this information may be obtained by contacting the Legislative Reference Library at 129 6th Street, Suite 102, Juneau, Alaska 99801, (907) 465-3808.