The Kodiak Island Borough assembly is exploring ways to raise money. Once the borough sells bonds to pay for the new high school, more revenue must be generated in order to pay off that debt. At last night’s work session, assembly members discussed different strategies.
Some of the ideas under discussion include a mill levy increase, sales tax and a tax on alcohol and tobacco. Borough Manager Rick Gifford compiled some projected figures for the various revenue sources.
— (KIB Assembly 1 "The sales tax … that you borrow.")
The thought of adding an alcohol and tobacco tax did not sit well with Kodiak CHARR director Carmen Lunde. CHARR stands for the Cabaret, Hotel, Restaurant and Retail Association. Lunde told assembly members that she was speaking on behalf of 25 Kodiak businesses.
— (KIB Assembly 2 "I’m here to …to do so.")
The raising of the mill levy to re-pay the bonds, was not a popular choice with some of the assembly members last night including Assemblywoman Judy Fulp. She said it was unfair to property owners to make them carry all of the expense. Fulp wasn’t alone in her opinion. During citizens’ comments, Teresa Williams said that an increase in the mill levy tax was not what she "signed up for."
(KIB Assembly 3 "I know as …else did either.")
One method of raising revenue that seemed to resonate with some of the assembly members was a borough-wide sales tax. If the assembly does choose to initiate a sales tax, the process will have to start soon according to Borough Mayor Jerome Selby.
— (KIB Assembly 4 "We’ll have to … a sales tax.")
Last Fall Kodiak voters approved the sale of 80 million dollars in bonds to pay for the reconstruction of Kodiak High School. The state is expected to refund between 60 and 70 percent of that amount.