Q&A: Deltana Borough Petition

Development of a new governmental structure for the Delta area brings with it a host of important questions. These pages of questions and answers are designed to provide a way to quickly provide useful answers. We welcome your questions via email -- we'll get back to you with solid answers within a few days.
 

Why didn't the eastern boundary of the proposed borough follow the Delta forestry boundary?

Question: Why didn't the eastern boundary of the proposed borough follow the Delta forestry boundary? It would have included more of the Black Mountain gold strata for future revenues.

Answer: The Deltana Borough Commission followed the existing REAA boundaries because
1. The boundaries reflect the current school district lines. Educational services would be provided by the borough. Providing educational services with the least amount of disruptions was a high priority.
2. State law encourages it.
3. The area needs to demonstrate a compelling reason to have different boundaries from the REAA lines or the model borough boundaries. The model borough boundaries include both the Delta-Greely REAA and the Alaska Gateway REAA and is referred to as the Upper Tanana Model Borough Boundaries. The Deltana Borough Commission felt arguing for separation from the Alaska Gateway REAA portion of the Upper Tanana Model Borough Boundaries was easier if it only included the Delta-Greely REAA.
However if there is evidence to include the Black Mountain area in the proposed borough, the Deltana Borough Commission or others may recommend such changes to the Local Boundary Commission.

When is the LBC public meeting?

Question: When is the L.B.C. having their public meeting about the Borough?

Answer: The date for the LBC hearing(s) at this time has not been set. It will be advertised in the local paper and by the city.

What happens if the borough gets voted down by the local people?

Question: What happens if the borough gets voted down by the local people?

Answer: It is unclear what will happen if local voters do not support a borough. In no particular order, here are some things that could happen.

1. Nothing. The Deltana area continues to be part of the 3% of the state population that pay no taxes but receives services while 97% of all Alaskans at least pay for a portion of local services, particularly educational services. The legislature and others simply drop the matter.

2. A second vote occurs prior to December 31, 2008 in which case if it passes the Payment in Lieu of Taxes (PILT) agreement with Cominco-Teck would still be in effect. If a second vote occurs and it fails, then the PILT agreement would not be binding on either party.

3. The ability of the area to provide basic and essential services such as schools, roads, library and recreation is severely curtailed. In a growing community this not only hinders growth, but discourages people from making a long-term commitment to the area.

4. The legislature or the administration in some shape or form "force" a borough on us. This could mean annexation of Pogo Mine with or without the Deltana area by the Fairbanks North Star Borough or a borough that includes the Tok region as well. It may or may not involve property taxes.

5. Some type of payment by residents in the unorganized borough (i.e. head tax) is established by the legislature. This means matters are still decided in Juneau, Fairbanks, Anchorage or Washington D.C., but you pay a check to the state.

One can argue that a no-vote means the future of regional government formation is uncertain. One can also argue that this uncertainty puts the community at a disadvantage as to its outcome. The Deltana population (est. 5,000+/-) represents less than one percentage of the state's population (640,000+/- residents). We have very little political leverage when it comes to this issue. There are very few areas in the state with the income levels, economic activities and potentially even more economic opportunities with mining, oil and gas lines, and expansion of the military that pay nothing for local services. Put another way, many outside legislators and administration officials have repeatedly suggested that there is not a compelling argument to allow the area to continue to receive services for free when local residents can pay for at least a portion of the cost. By not taking the lead with the issue, the area is in effect allowing outside political forces, to instead, determine the outcome of the issue.

Will senior citizens on fixed incomes get any exemptions?

Question: Will senior citizens on fixed incomes get any exemptions?

Answer: Under a home rule borough, such as being proposed by the Deltana Borough Commission (DBC), an assembly may reduce in a variety of ways the energy and fuel taxes passed by the people. They may not however, increase such taxes without a vote of the people. The Deltana Borough Commission chose to defer to the new assembly on making such changes, if any to the proposed taxes. The assembly, after hearing from the public and reviewing the amount of revenues generated from such a tax, could take a number of approaches. They could include but not be limited to:

1. nothing;
2. reduce the overall tax rate by any percentage. For example, they could reduce the energy tax from 10% to 5%;
3. apply the fuel tax for only 6 months during the period when more motorists travel through the borough;
4. reduce the fuel tax to 1% in the winter and retain it at 3% for 100 days;
5. establish a floor and a ceiling on the energy tax of, for example, 1% and 5% for certain months;
6. exempt senior or disabled veterans by any or all the local taxes; and
7. establish different rates for different uses such as residential, commercial and industrial.

Just so long as the rate does not exceed what the voters approved. Some members of the DBC felt it was better to have the tax in place for awhile to get a true determination of the amount of revenues received and needed, before making any changes. Furthermore, most felt it was better for the elected officials to tinker with the details as opposed to an appointed Commission.

What will we get for our tax dollars if we live 20 miles from town?

Question: For those of us that live 20 miles from town, with no kids... We don't use your library, schools, sidewalks. We are too far from town for fire or police protection....what will WE get for our tax dollars?

Answer: In the direct or immediate sense perhaps not much, unless you use the City of Delta Junction roads (29 miles), landfill, Community Center, recreational services, cemetery or have an emergency that requires EMT service. Such services would be assumed by a borough. (Note: The City will go away if a borough is created. All City assets and liabilities will be transferred to the borough.)

However, in the broader sense, you still are part of the community and you benefit-directly and indirectly-from living in a well educated community, with residents having access to a library, recreational facilities, community halls and fire/ambulance services and even the cemetery.

What benefit will people get from a borough?

Question: What benefit will people get from a borough, besides higher fees?

Answer: The short answer is increased local control and quality of services including education. A quick background would be:

Currently 97% of Alaskans pay-principally by local taxes-for a portion of local government services such as roads, libraries, recreational services, EMS/ambulance/fire, community halls and education services. Of the remaining three percent, most either can not afford to pay or receive few if any such services. A number of state leaders have repeatedly mentioned that those areas that can afford to pay for such services should pay some portion of their cost.

The Deltana region is always mentioned as an area that has received such services free and like the other 97% of Alaskans, can and should pay something toward those needed and used services. Secondly, the state has strongly suggested that a new borough in the region should not only include Delta but the Tok area with it. Thirdly, the Fairbanks North Star Borough has expressed interest in annexing the Pogo mining site, thus depriving a future local government of a local revenue source.

So, what benefits will people get from the borough?

(1) Less number of governments. There are three governments that provide services (a) the City of Delta Junction that only roughly 1,000 of the 5,000 regional residents have a say in (b) Delta-Greely REAA (Regional Educational Attendance Area) School District that relies solely on the state for funds and (c) the state of Alaska that has platting authority in the area outside of the City of Delta Junction. Currently, when someone wants to subdivide land, the state officials in Fairbanks or Anchorage often take over six months prior to approval. The proposed borough would collapse the function of the three government layers into one local government. The City of Delta Junction would go away as well as the REAA. Platting authority would be a local power, not a state one. Furthermore, no new local governments (i.e. cities) could be created within the borough.

(2) Better local services including education. A borough would be able to assist the school district in meeting its growing needs as well as increase the quality of educational services in a timely fashion without depending solely on the state's good will. Additionally, it will result in a predictable and quality level of other services such as roads, libraries, recreational services, EMS/ambulance/fire and the community hall.

(3) Local Control. A borough will mean a local government of the Deltana area only; not one that includes Fairbanks North Star Borough or the communities to the east of us. This is critical since in the 47 years since statehood there never has been a situation in which a borough is created and then divided into two or more boroughs. Once you're in, you're in for good.

Can we nix the fuel tax?

Question: So now we know the four things we will vote on. Can we vote for the establishment of the borough and nix the fuel tax?

Answer: The Deltana Borough Commission petition is asking the Local Boundary Commission to allow local residents to decide whether they wish to establish a local borough. For an area to organize as a borough, local voters must vote for (1) incorporation of the proposed Deltana Borough and (2) a proposed revenues plan (taxes) to pay for a portion of education, library, roads and fire, EMS /ambulance and other services. The Deltana Borough Commission petition includes a provision that the vote on taxes will be one vote on (1) Payment in Lieu of Taxes with Teck Cominco (Pogo) Mining, (2) an energy tax of 10% and (3) a fuel tax of 3%. Put another way, voters need to vote for or against the entire package.

Who will hire the school superintendent?

Question: Who will hire the school superintendent?
Answer: The borough school board will hire the school superintendent.

Will the mayor be an employee of the borough?

Question: Will the mayor be an employee of the borough?
Answer: No, the mayor will not be an employee of the borough.

How will the mayor be elected?

Question: How will the mayor be elected, by the assembly or by the people?
Answer: The mayor will be elected directly by voters for a three-year term.

Will there be a property tax?

Question: Will there be a property tax?
Answer: No. The people will vote on 1) whether they support the establishment of a borough, 2) a Payment in Lieu of Taxes (PILT) with Teck Pogo for 10 years as a source of revenue, 3) a fuel tax and 4) an energy tax.

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City of Delta Junction
PO Box 229
Delta Junction, Alaska 99737-0229

Telephone: 907.895.4656
Fax: 907.895.4375
Email: city@ci.delta-junction.ak.us

Location: 2288 Deborah Street
Office hours:
8:00 AM - 5:00 PM, Monday-Friday


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