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In advance of the April 6 Anchorage municipal election, the Anchorage Daily News asked candidates running for Anchorage mayor a series of issue questions. These include questions suggested by readers. Read all the mayor and school board candidates’ responses here.
Q: Do you have ideas for alternative sources of city revenue? Explain.
No. I think workers should be able to keep their money.
We are not considering any new taxes, but believe that a prosperous economy will invariably increase city revenue without increasing taxes. We will develop a comprehensive tax incentive program to attract new businesses. We will launch a supply chain and a new business recruitment effort with the private sector to capitalize on shifts in the Alaskan economy. We will divest unused city lands and properties that are not planned for future government activities to create a broader private sector tax base.
Property taxes are too high for residential property owners who bear the brunt of municipal government. Other than taxes on tourism, gas and vices, Anchorage doesn’t have any significant taxes. It’s not a realistic approach to good government to have such a sparse tax base and burden property taxpayers so dramatically. Anchorage needs to start looking at alternative revenue sources. So, given that taxes, other than property taxes, are comparatively very low, we need to look at taxes in completely new areas like online sales, goods transported through our city infrastructure, and utilization of our airports duty-free status to gain revenue.
I supported the motor fuel tax and generating interest revenues by depositing the revenues from the ML&P sale. The people of Anchorage also voted in 2020 to pass an alcohol tax that goes to fund child abuse and domestic violence prevention, drug and alcohol treatment, first responders, homelessness services and more. There have been additional, small changes that have raised more revenues, like removing the tobacco tax exemption for vaping products, but the largest upcoming discussion around alternative revenues will be the proposed stormwater utility. I supported research funding for the stormwater utility, but whether it is an acceptable alternative to bonding for drainage projects will come down to the details of the proposal and in-depth community conversations.
I have long believed that Anchorage should have a sales tax. When I was on the Assembly, I introduced a sales tax that would have been a dollar-for-dollar offset to property taxes. It would, therefore, diversify our tax base without increasing the overall tax burden. Given our declining economic situation, it may be advisable to use more of a hybrid approach that offsets a certain percentage of the property tax while also allowing the municipality to levy a percentage of the sales tax proceeds for needed infrastructure projects. Such an approach would allow the municipality to avoid interest charges on such projects which would save the city millions of dollars over the long run.
Because of COVID, it will be another year before bed taxes fully recover, but it looks likely that Congress will provide targeted relief to ensure that cities across the nation do not have to make further cuts to essential services. (Of note, approximately 75 cents of every local tax dollar collected goes to police, fire, parks, roads or schools). Meanwhile, reductions in traditional city revenues may be partly offset by growth in the sustainable dividend that the municipality receives from the MOA Trust Fund (the local “permanent fund” into which the proceeds of the municipality’s sale of the Anchorage Telephone Utility and, more recently, ML&P were deposited); additional payments from Chugach Electric will be put into the fund each year for the next several decades, increasing the dividend.
Yes. Private equity joint-venture, perhaps some as a carve-out from publicly traded companies. There’s more we can do other than taxes and debt.
The traditional levers are new taxes (gas tax), increased fees and economic growth, bringing new industries and commercial property taxes to the city. Strategic entrepreneurial investments can also yield a higher rate of return, like licensing deals and intellectual property agreements.
Yes. The sale of Anchorage Water & Wastewater Utility.
First, the costs of this city government must be reduced. I have explained some of what can enable the city to recover economically, and then for the city to grow with regards to an economic base that can support the government body. I will not hinder the economics of this city to achieve alternative sources of city revenue. Similar actions have been done historically way too long to support and expand the city government by one of the prior mayors and Assemblies.
Read more questions:
Why are you running for mayor?
What’s the biggest challenge facing city government and how would you address it?
Describe how your administration would approach the coronavirus pandemic
Would you make changes to the Anchorage Police Department and policing policies? Why?
Is the Anchorage Police Department adequately staffed?
Describe, with specifics, how you would expand and diversify Anchorage’s economy.
What’s your vision for Anchorage’s economy in the future?
Is taxation in Anchorage too high/about right/too low?
Do you have ideas for alternative sources of city revenue? Explain.
Are there city programs or services you would cut? Explain.
Are there city programs or services you would expand? Explain.
What’s your view of current Anchorage land-use plans? Would you push for changes?
Name a program dealing with homelessness in Anchorage that you believe is working
Are there specific transportation projects you would initiate in the municipality if elected?