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Finance committee debates proposed utility sales-tax increase and companion waiver program
Summary
The finance committee reviewed Ordinance 25-06, which would amend the sales-tax rate for utilities and create a utility-waiver program. Members focused on ballot wording, which accounts qualify (municipal accounts vs. visitor/park users), commercial dumpster exclusions, and administrative items tied to implementation.
The Skagway Finance Committee revisited Ordinance 25-06 and its companion resolution to increase the sales-tax rate applied to utility services and to establish a utility-waiver program intended to offset costs for utility account holders.
The discussion centered on ballot-language clarity and program scope. Assembly member Potter urged a simple, voter-facing clarification, proposing that the ballot's first bullet read that additional revenue would be used "to fund water, wastewater, [and] solid-waste utility services, offsetting monthly utility bills for most users." Potter said the change would make clear to voters that the measure directly offsets monthly bills for account holders.
Treasurer Heather and Manager Deetsch explained distinctions between municipal billing practices and private RV-park billing, stressing that operator-run parks (for example, Garden City RV Park and Hanasag Park) are charged under a separate fee resolution; the proposed waiver targets municipal account users rather than third-party park customers. Heather said, "We're not charging them off of this schedule; we're charging them off of the resolution for RV park fees based on if they have water hookup," clarifying municipal billing is separate from the waiver program.
Committee members debated whether to exclude commercial dumpsters from the waiver. Some members warned that excluding commercial dumpsters, which are a major source of sales tax revenue, could reduce business support for the ballot measure; others defended exclusions because bear-proof dumpster lids and dumpster handling impose higher long-term costs and physical strain on municipal workers. Potter, as solid-waste liaison, urged the committee to balance employee safety, bear management and voter buy-in.
Members also queried administrative lines tied to the ordinance packet, including a large Office 365 subscription estimate (cited in discussion at roughly $22,946). Manager Deetsch and the treasurer explained the number was an upper-bound estimate based on assigned municipal email addresses and recommended staff clarify the true need before committing that line.
No final amendment to the ordinance text was adopted at the committee meeting; Potter initially moved to amend the ballot language at the table but the motion was rescinded for further coordination with clerks and assembly procedures. Staff indicated a practical path is to propose the clarified language at the assembly table during first reading if the committee supports it.
Next steps: staff will prepare clarified ballot wording and additional explanatory language for the assembly/clerks; the committee expects to revisit the ordinance and waiver language before final table action.
