Friday, February 08, 2008

First Look At Anchorage Alaska 2008 Municipal Election - Ballot Propositions

Update: Post updated on March 29th, 2008 to include some more links to media profiles and stories about the bonds.

The Anchorage 2008 Municipal Election will be held on April 1st, 2008 (and that ain't no April Fool, either). Twenty-seven candidates will be jousting for six Assembly and two School Board seats. These candidates have been introduced in a separate post. Click HERE to visit the Election Page of the Municipality of Anchorage website.

Only the propositions applicable to the entire Municipality of Anchorage or to those who live within the Anchorage Road Service Area are presented here. Propositions 9, 11, and 13-20 are applicable only to voters living in other road service areas and can be viewed HERE.

Links to media stories about the bonds:

- Alaska Star (Eagle River) story dated March 20th.

- KTUU Channel 2 fast facts about the bonds.

- Anchorage Daily News story about Proposition 8 dated March 24th.

- Anchorage Daily News Propositions Page available HERE.

The Bonds:

PROPOSITION 1 - PUBLIC FACILITY MAJOR ROOF REPAIR AND CAPITAL IMPROVEMENT BONDS

Purpose: To provide for major roof repair and maintenance of significant public assets, including Anchorage libraries, Sullivan Arena and the existing museum.

Amount: $6,900,000 in principal amount of general obligation bonds and increase the municipal tax cap by an amount not to exceed $756,000 to pay annual operations and maintenance costs, including up to $340,000 as a capital reserve for required repairs.

Annual Increase in Municipal Tax Cap: $2.43 under Charter 14.03(b)(2)

Annual Increase in Property Taxes Per $100,000 valuation: $1.78 to retire the bond.

Applicable Ordinance: AO2008-20(S)


PROPOSITION 2 - SCHOOLS ADDITION, RENEWAL AND DESIGN BONDS

Purpose: Addition to and renewal of Chester Valley and Sand Lake Elementary Schools and design plans for Girdwood K-8 School within Anchorage.

Amount: $34,300,000 through the issuance of general obligation bonds. The projects currently qualify for 60% state debt reimbursement.

Annual Increase in Property Taxes Per $100,000 Valuation:

(1). Without 60% Debt Reimbursement: $8.84 to retire the bonds.

(2). With 60% Debt Reimbursement: $3.54 to retire the bonds.

Applicable Ordinance: AO 2008-007

State debt reimbursement is subject to annual legislative appropriation. While not guaranteed, I cannot remember the last time the state legislature didn't grant reimbursement. More details on this bond can be found on the Anchorage School District's Bond Page.


PROPOSITION 3 - EDUCATIONAL CAPITAL IMPROVEMENTS DISTRICTWIDE MAJOR BUILDING SYSTEMS RENEWAL BONDS

Purpose: Pay for educational capital improvements for Districtwide major building systems renewal within Anchorage. Proceeds will be used to pay costs of planning, design, site preparation, constructing, renovating, installing and equipping educational capital improvement projects within Anchorage.

Amount: $9,410,000 through the issuance of general obligation bonds. The projects currently qualify for 70% state debt reimbursement.

Annual Increase in Property Taxes Per $100,000 Valuation:

(1). Without 70% Debt Reimbursement: $2.43 to retire the bonds.

(2). With 70% Debt Reimbursement: $0.73 to retire the bonds.

Applicable Ordinance: AO 2008-008

State debt reimbursement is subject to annual legislative appropriation. While not guaranteed, I cannot remember the last time the state legislature didn't grant reimbursement. More details on this bond can be found on the Anchorage School District's Bond Page.


PROPOSITION 4 - ANCHORAGE PARKS AND RECREATION SERVICE AREA POOL IMPROVEMENT BONDS

Purpose: To improve, renovate, replace and renew pool facilities. The proposed capital improvements would be located within the Anchorage Parks and Recreation Service Area. The debt shall be first paid from real and personal property taxes levied and collected within the Anchorage Parks and Recreation Service Area, without cost to properties in Chugiak, Eagle River, Girdwood, and other areas outside the Service Area (but all voters within the Municipality of Anchorage will vote on it).

Amount: $2,000,000, contingent upon the appropriation of funds from the State of Alaska, which would increase the municipal tax cap by an amount up to $223,000 to pay for annual operations and maintenance costs, including up to $100,000 as a reserve for required repairs

Annual Increase in Municipal Tax Cap: $0.83 under Charter 14.03(b)(2)

Annual Increase in Property Taxes Per $100,000 valuation: $0.60 to retire the bond.

Applicable Ordinance: AO 2007-148(S)


PROPOSITION 5 - ANCHORAGE ROADS AND DRAINAGE SERVICE AREA ROAD AND STORM DRAINAGE BONDS

Purpose: To provide street and road improvements, street and road safety improvements, drainage collection, drainage treatment and related capital improvements. The proposed capital improvements would be located within the Anchorage Roads and Drainage Service Area. The debt shall be paid from real and personal property taxes levied and collected within the Anchorage Roads and Drainage Service Area, without cost to residents living in LRSAs outside the ARDSA (but all voters in the Municipality of Anchorage will vote on it).

Amount: $44,800,000 in principal amount of general obligation bonds, which will increase the municipal tax cap by an annual amount not to exceed $1,899,000 to pay the associated annual operations and maintenance costs. The proposed capital improvements would be located within the Anchorage Roads and Drainage Service Area. The debt shall be paid from real and personal property taxes levied and collected within the Anchorage Roads and Drainage Service Area.

Annual Increase in Municipal Tax Cap: $7.77 under Charter 14.03(b)(2)

Annual Increase in Property Taxes Per $100,000 valuation: $14.70 to retire the bond.

Applicable Ordinance: AO 2008-19


PROPOSITION 6 - AREA WIDE PUBLIC SAFETY AND TRANSPORTATION CAPITAL IMPROVEMENT BONDS

Purpose: Provide public safety upgrades, including acquisition of mobile intensive care units, computers for ambulances, public transportation vehicles, transportation facility improvements and related capital improvements

Amount: $1,688,000 in principal amount of general obligation bonds, which would increase the municipal tax cap by an amount not to exceed $90,000 to pay annual operations and maintenance costs

Annual Increase in Municipal Tax Cap: $0.29 under Charter 14.03(b)(2)

Annual Increase in Property Taxes Per $100,000 valuation: $0.44 to retire the bond.

Applicable Ordinance: AO 2008-022


PROPOSITION 7 - ANCHORAGE FIRE SERVICE AREA FIRE PROTECTION BONDS

Purpose: Provide fire protection capital improvements in the Anchorage Fire Service Area.

Amount: $3,622,000 in principal amount of general obligation bonds, which would increase the municipal tax cap by an annual amount not to exceed $1,015,025 to pay the associated annual operations and maintenance costs

Annual Increase in Municipal Tax Cap: $3.47 under Charter 14.03(b)(2)

Annual Increase in Property Taxes Per $100,000 valuation: $0.99 to retire the bond.

Applicable Ordinance: AO 2008-021


PROPOSITION 8 - 2002 TAXI, LIMOUSINE & VEHICLE FOR HIRE REFORMATION ACT INITIATIVE PETITION

Proposition: To amend the Charter to add the following sections to Article XVII (italicized text is the text to be added):

Section 17.14 Regulated vehicle permits

The Municipality shall issue a non-transferable general taxicab permit to any qualified applicant. The fees paid for issuance or annual renewal of taxicab, limousine, or vehicle for hire permits shall be uniform. Issuance or annual renewal fees required for any of the aforementioned permits shall be equivalent and set to cover real administrative costs of issuing and filing them only and not set so as to be a substantial barrier to entry.

The exception to this act shall be that no fees shall be levied on taxicab permits for vehicles that are fully wheelchair accessible.

Section 17.15 Regulated vehicle rates and terms of service

The Municipality is hereby prohibited from establishing rates for limousine or executive sedan service. Any vehicle dispatch service licensed by the Municipality shall be allowed to dispatch any vehicle.


Summary of Economic Effects

(1). Public sector economic effects:

Personnel: Transportation Inspection will need an additional part-time code enforcement officer position beginning mid-2008 to handle the added on-street enforcement, vehicle inspections, and complaint investigations attendant to an increase in the number of taxicabs. No need for additional office personnel is anticipated at this time.

Revenue: There will be an increase in revenue commensurate with the increase in the number of taxicab permits and the possible increase in the number of chauffeur licenses. The magnitude of the revenue increase is unknown, as the increase in the number of applications for permits and licenses cannot be accurately determined in advance. Transportation Inspection currently collects a $500 transfer fee -- about $6,000 annually -- for each transfer of a taxicab permit; the ready availability of new permits will reduce the number of purchases of existing permits and thus decrease the annual transfer fee revenue by an estimated $5,000. The net change to revenues is based on a "best-guess" estimation of 30 additional taxicab permits and assumes no change in the existing permit and license fee schedule.

(2). Private sector economic effects: The existing 158 general taxicab permits are transferable by sale or lease within the private sector for amounts agreed upon by the parties involved. A typical permit lease is about $1,100 per month, the price to purchase a taxicab permit climbed to about $125,000 before declining to $100,000 in the face of the uncertainty preceding the upcoming ballot initiative. These exchanges occur in a market external to the Municipality, Transportation Inspection neither sets nor regulates the sale and lease amounts. The availability of new permits will reduce the demand for the existing 158 transferable permits and thus reduce their market value from the current $100,000 to an estimated $1,500 - $2,000. To be voted upon by all voters residing within the Municipality of Anchorage.

Click HERE for Anchorage Daily News Compass piece in support of Proposition 8.

Click HERE for Anchorage Daily News Compass piece opposing Proposition 8.

PROPOSITION 10 - APPROVING CONSOLIDATION OF THE PARADISE VALLEY SOUTH LIMITED ROAD SERVICE AREA INTO ANCHORAGE ROADS & DRAINAGE SERVICE AREA.

Proposition: Extend the boundaries of the Paradise Valley South Limited Road Service Area (LRSA) and and change the Anchorage Roads & Drainage Service Area (ARDSA) to consolidate the LRSA into ARDSA.

Consolidating Paradise Valley South LRSA with ARDSA does not change the ARDSA mill rate and there is no tax increase for property owners in ARDSA. To be voted upon by all voters residing within the Anchorage Roads and Drainage Service Area.

Applicable Ordinance: AO 2008-027


PROPOSITION 12 - APPROVING ANNEXATION OF GOLDENVIEW DRIVE RIGHT-OF-WAY BETWEEN RABBIT CREEK ROAD AND BULGARIA DRIVE FROM THE SOUTH GOLDENVIEW RURAL ROAD SERVICE AREA (RRSA) TO ANCHORAGE ROADS AND DRAINAGE SERVICE AREA (ARDSA).

Propostion: Change the boundaries of ARDSA and the South Goldenview RRSA to remove Goldenview Drive Right-of-Way between Rabbit Creek Road and Bulgaria Drive from the RRSA and be annexed to ARDSA.

This removal and annexation does not change the mill levy or increase the taxes of property owners in either ARDSA or the RRSA. To be voted upon by all voters residing within the Anchorage Roads & Drainage Road Service Area.

Applicable Ordinance: AO 2008-029

Propositions 9, 11, and 13 through 20 can be viewed at the Municipality of Anchorage's Proposition Page.

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