ALLIANCE OF CONCERNED TAXPAYERS (ACT)
NEWS
RELEASE
For
Immediate Release:
On
Wednesday, the Alliance of Concerned
Taxpayers (ACT) received notice from the
Kenai Peninsula Borough Clerk that
initiatives ACT XVIII and ACT XIX had been
approved. These have been renamed by the
Clerk as Initiative Ordinance 2005-13 and
2005-14. Both initiatives set a borough
wide sales tax cap at 2% and 2005-14 also
requires a 60% voter approval for future
sales tax increases.
Soldotna, Alaska (June 22, 2005)
– In a dramatic reversal of previous
positions taken by the Kenai Peninsula
Borough, the Clerk has approved two sales
tax initiatives filed on June 8th
by the Alliance of Concerned Taxpayers
(ACT). Initiative sponsors were notified by
email late in the day and talks began
immediately to determine which of the two
petitions would be circulated for
signatures. At a special ACT meeting held
Thursday evening it was determined that ACT
XIX (Initiative Ordinance 2005-14) would
better serve the public’s desire to have
more control of borough tax rates. ACT XIX
caps sales tax at 2%, but also requires that
any future increase above 2% be approved by
at least 60% of voters to pass.
“This initiative does not eliminate future
tax hikes, but will require the assembly to
ask voter permission before increasing sales
tax rates” said Fred Sturman an Initiative
Alternate Sponsor.
Within two weeks the petition booklets will
be available for co-sponsors to begin
collecting the required 1,530 signatures
from registered voters of the borough.
Anyone wishing to help collect signatures
can contact the Borough Clerk and request
booklets. Once the required 1,530
signatures have been certified, Initiative
Ordinance 2005-14 will be placed on the
ballot and the public will decide the
issue. ACT currently has nearly 200 people
from all areas of the borough that have
agreed to help gather signatures with more
signing up each day.
“Sales tax has always been a dedicated
funding source for education. All revenue
generated by sales tax is thrown in a big
pot, along with a bunch of property tax,
plus state and federal money until the
assembly dips out money requested by the
school board. The people of this borough
have been very generous with their funding
of public education and it is expected they
will continue to do so in the future. If
approved by voters this initiative will not
restrict the flow of money to public
education, only require more accountability
before tax increases are implemented,” said
Patricia Falkenberg, Initiative Prime
Sponsor.
In a related issue, approval of a referendum
to overturn Mayor Bagley’s ordinance 2005-09
was returned to its sponsors with minor
technical deficiencies. It is expected to
undergo a brief review and receive expedited
approval sometime next week.
The sales tax portion of “Mayor Bagley’s
“revenue enhancement” ordinance violated the
spirit, if not the letter of the law, by
ignoring a statutory requirement of having
citizens approve all sales tax increases. A
3% borough sales tax was approved many years
ago and failure to hold a public vote now
denies the citizens an opportunity to
approve this increase,” said James Price an
ACT member.
Price went on to say, “Many members of the
assembly have complained that there is not
enough input during public hearings.
However, when citizens opposes tax
increases, proposes public votes for new
taxes, and tax increases or suggest areas
where the borough could make cuts, such
input is rarely followed. The initiative
process is designed as a check and balance,
to be used when elected officials fail to
follow the will of voters they were elected
to represent. This referendum and the
associated initiatives are designed to bring
the public voice back into the process.”
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