Is the City broke? What about the prison debt? Will there be a 14-mill property tax?
Answer: No, in fact far from it. The City has a permanent fund account of over $1 million and has hundreds of thousands of dollars more in reserve accounts. Upon formation of a borough all assets including this fund will be transferred to the borough.
Question: Will the borough be required to pay the City's so-called prison debt loan with the State of Alaska?
Answer: No, upon formation the debt is forgiven by the State. Until then the City makes an annual $50,000 payment to the State on this zero-interest loan. The City has no other debts.
Question: Will there be a 14 mill property tax on local residents?
Answer: No. There is no proposed property tax. Any new taxes require a vote of the people.