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.

Can landowners who do not reside here, vote on the borough issue?

Question: When the borough comes up for a vote, are people who own land here but don't live here, going to be able to vote? Seems like they should have a say in this as well.

Answer: According to the State of Alaska Division of Elections Voter Registration Application, you must provide your residence address in order to be assigned to a voting district and precinct. Only Delta residents that are registered voters will be allowed to vote on the Deltana Borough Petition.

Will the 10% energy tax enable the city/borough to gain any revenue from the pipeline?

Question: Will the 10% energy tax enable the city/borough to gain any revenue from the pipeline?

Answer: The short answer is no. The authorty to tax pipeline properties is retained by the state. If cities or boroughs with oil and gas properties within their boundaries have a property tax, the state will in turn share a portion of the collected taxes. The Deltana Borough proposal does not include a property tax. The energy tax only covers the sell of energy (electricity) within the proposed borough region.

Define 'energy tax.'

Question: Please define 'energy tax' as used in the Deltana Borough Petition.

Answer: An energy tax is a tax on the sale of electric power. It is not a tax on self-generated electric power. If, in the assembly's judgment the rate should be reduced, the assembly members may do so by a simple majority vote. The tax can only be raised by the voters.

I worry about rising taxes and maintaining local agriculture.

Statement: I wanted to let you know what has happened in the Matanuska Borough. Over the last couple of years the property tax has elevated to the extent that people's taxes are well into the $thousands$ of dollars for their homes. I know that when I think of borough, I think of Palmer and what has happened to them. I know of several folks who have more than one piece of property and had to sell one in order to be able to pay taxes throughout their lifetime. That is what scares me. Property tax can be so unfair.

On another note, we are in an agricultural area. I hope that if and when taxation happens, the farmers/ranchers can live with the tax amounts allocated. We sell many products to Alaskans and others who travel up here and we contribute to the economy of the State & local community. I hope that the next generations will be able to do the same should the business continue. I hope the borough will take into consideration the agricultural land differences vs. private property-non/agricultural.

Response: The Deltana Borough Charter Commission heard local residents' concerns about various types of taxation. Each one has its positive and negative elements in producing the needed funds for local services. The Commission advanced a petition that included a
(1) Payment in Lieu of Taxation in which Teck-Cominco will pay a set amount (no less than $2 million annually)
(2) a 10% energy tax and
(3) a 3% tax on fuel.
The three taxes will be voted up or down as a bundle. If the local people vote against the taxes then the proposition of organizing a borough fails. If the borough is supported by voters, the borough assembly may reduce, modify or provide for exemptions for certain activities or times of the year for the two taxes. However, the assembly may not increase those taxes. Only the local residents can increase them through a public vote. Any other form of taxes requires a vote of the local residents.

What is the status of the Deltana Borough?

Question: What is the status of the borough issue in Delta Junction? The Local Boundary Commission (LBC) and Alaska Department of Commerce, Community & Economic Development (DCCED) were to hold public hearings before the borough proposition was to go to a public vote. Nothing has been said since LBC responded to the public comments last March/April.

Answer: The staff to the Local Boundary Commission is scheduled to submit their draft review of the Deltana Borough Commission Petition for public review and comments within two weeks. The public will have four weeks to review and comment on their report. The LBC staff will hold a public information meeting around this time. The LBC will hold hearings at a later date. The Deltana Borough Commission may also hold public information meetings separate or in conjunction with the state process.

After public hearings and completion of the LBC staff review and recommendations, the LBC will determine (1) to allow local residents to hold an election and (2) when such an election will be held. Presently, a date for such an election is not known.

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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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