Anchorage to vote on new tax levies to improve aging vehicle fleet

In April, Anchorage voters will decide whether to add two small annual taxes dedicated to replacing some of the municipality’s most critical equipment.

During its Tuesday night meeting, the Anchorage Assembly unanimously approved two measures that will add ballot proposals to this April’s municipal elections.

The first ballot proposition would create a new property tax levy specifically dedicated to replacing roughly 40 police vehicles a year.

“The Anchorage Police Department’s fleet of police vehicles is aging and in need of repair and replacement,” according to a memorandum from the measure’s sponsors, Mayor Suzanne LaFrance and Assembly Chair Christopher Constant.

If approved by voters, the special levy would add up to $3 million more in property taxes to the rolls for residents living in most of the municipality, except for the region around Girdwood and Turnagain Arm, which are part of a separate service area. APD’s fleet consists of more than 500 vehicles. According to the measure, the money would allow the department to retire cruisers after about 12 1/2 years, which is still outside industry best practices to not push police fleet vehicles beyond a decade of service.

For more than a year, municipal departments handling core services and public safety have sounded alarm bells that the deteriorating condition of their utility vehicles is hindering their work and putting residents at risk.

“Investing in new vehicles and equipment will address the needs of the community by improving public safety and enhancing the Municipality’s operational efficiency. Vehicles and equipment used beyond their useful life can experience frequent down time and high maintenance costs if not replaced in a timely manner,” stated an Assembly memorandum in support of the new levy.

The second ballot proposition, if approved by voters, would add $3.5 million in taxes for the municipality’s heavy vehicle fleet, which consists of “approximately 100 pieces of equipment including graders, dump trucks, sanders, loaders, blowers, and trackless machines, many of which are involved in front-line snow response,” according to Assembly documents.

Unlike police cruisers, big specialty road equipment prices span a broader gamut. A new snow grader sells for about $330,000 while a dump truck can cost up to $600,000. By the administration’s estimates, the dedicated tax will pay for replacing about seven heavy vehicles in the fleet each year.

As a budgeting tool, relying on dedicated tax levies is not new for the Anchorage Assembly or mayor’s office. But it marks a move away from how the city has paid for its vehicle fleet in recent years, which was largely through voter-approved bonds. According to Constant, using borrowing money for depreciating public assets like vehicles ends up costing residents more during the bond’s 20-year life cycle.

“When you finance an expenditure, you pay interest … and it’s substantial, it’s not a small amount of money,” Constant said during the Assembly’s discussion of the measures.

He and others who spoke in support of putting the propositions on the April ballot said annual tax levies would not only shore up the fleet’s status, but ultimately save the municipality money.

“This will cut our costs,” said Assembly member Randy Sulte, who represents South Anchorage. “The older the fleet gets, the higher your maintenance costs become.”

No one from the public testified against the two proposals.

Combined, the $6.5 million in new taxes would translate to an additional $1.55 for every $100,000 of assessed value on a property, or around $7 more on the property tax bill for the owner of an average Anchorage home.

To pass, both would need support from a majority of voters by the time ballots are due back to election officials on April 1.