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Wrangell is on a financial winning streak these days. It has received multiple state and federal grants to pay for construction, repairs, rebuilds and improvements. But that does not help pay the operating costs of public services and local support for the schools. It’s a distinction people need to keep in mind. Money in one pocket does not automatically transfer to another pocket. The borough has received notice of a $25 million federal grant to rebuild most of the downtown harbors floats. It will receive $6.5 million from the state to go t...
A long time ago, the Sentinel called out a mayor for taking an action without city council approval (this was before Wrangell became a borough). The mayor had sent a letter to a federal agency, stating the city’s official position on an issue — but it was merely his personal opinion. There was no council discussion, no public notice. It wasn’t that controversial a position, but the point was that the mayor, no matter how well meaning, should not speak for the city without first making sure the elected council is in agreement. The mayor came...
A ballot proposition on October’s Petersburg election ballot will ask residents whether they want to increase the amount of a purchase that is subject to sales tax. Currently, Petersburg collects its 6% tax on sales of goods and services up to the first $1,200 on the invoice. Above that amount is free from the tax. The proposed municipal code amendment, approved for the ballot in a unanimous vote by the borough assembly on June 17, would raise the taxable sales limit to $5,000. If approved by voters, the maximum sales tax on a purchase would in...
The pending sale of the former hospital property to Wayne Johnson, a Georgia-based real estate developer, has been delayed due to further negotiations. Johnson still plans on purchasing the former hospital for $200,000, but now wants the additional six lots behind the building for free in exchange for demolishing the former hospital. The original purchase and sales agreement, which was set to close May 31, stated that Johnson would purchase the hospital property for $200,000 and the six lots for their appraised value of $316,800. The original...
Director Lucy Robinson has announced there will be changes to Parks and Recreation hours and services coming soon, due to a pending cut in borough funding for the department. Recreation Coordinator Devyn Johnson said last week the details were still being worked out. As proposed in the draft budget for the fiscal year starting July 1, the borough contribution to the Parks and Recreation Department would drop from $640,000 last year to $554,000. Borough funds cover more than 70% of the budget for the department’s programs and maintenance, i...
Wayne Johnson, the real estate developer planning to purchase the former Wrangell Medical Center property, won the GOP nomination for U.S. Congress in Georgia’s 2nd District on June 18. Johnson said in an interview on June 20 that his election campaign won’t affect his plans for building a condo development on the former hospital property. He is still committed to Wrangell, he said, adding that he hopes people will like the idea of having someone in Congress with a special interest in the community. With the campaign slogan “Stop the stupi...
The borough assembly has set a public hearing for June 25 on an ordinance that would require boat owners to show proof of marine insurance or pay a monthly surcharge on their moorage fees. If approved by the assembly, the insurance requirements likely would not be applied until next year, Borough Manager Mason Villarma said in an interview June 12. The port commission has recommended the assembly require marine insurance to protect the borough from damages caused by boat fires and to ensure payment of any cleanup or salvage expenses. The...
People in Wrangell, just like the rest of Alaska and the country, love earning airline miles by using their credit cards. It’s not paying bills that they love so much, it’s the benefit of adding miles to their accounts for free travel. It’s understandable, considering the cost of flying in and out of Alaska and the fun of seeing friends and family outside the state. Another incentive is the fact that Alaska Airlines offers one of the more generous mileage plans among U.S. air carriers. In 2023, Alaska Airlines Mileage Plan members redeemed mile...
The draft budget before the borough assembly includes eliminating two positions from Wrangell’s seven-member force of certified police officers. The spending plan for the fiscal year that starts July 1, Borough Manager Mason Villarma said, is constrained by flat property tax revenues, a decline in sales tax receipts, a long list of deferred maintenance projects and declining reserve funds. The layoffs, proposed for Sept. 30, would result in the department pulling back from 24-hour coverage, Villarma explained at a borough assembly budget w...
Wrangell is among the more pessimistic towns in this year’s annual business survey conducted of Southeast communities. About half of the 35 Wrangell business leaders who responded to the survey had a negative view of the town’s economic outlook, and almost one-third expected they would need to cut jobs this year. None of that surprises Kate Thomas, the borough’s economic development director. “Our downtown district is not doing as well as it has in the past,” she said in an interview Thursday, June 6. Residents are spending more money onl...
Wrangell has a lot of positives. It’s a caring community that can pull together a potluck and fill the tables to overflow. Residents support each other in times of loss without needing to be asked. People truly believe in helping their neighbors, regardless of their neighbors’ politics. Fundraisers are a way of life in Wrangell — and a necessity. School sports teams, youth groups, student activities, nonprofit organizations and others are always in need of money, frequently asking businesses to donate goods, services or cash to worthy causes. A...
In addition to focusing on big-dollar issues, assembly members at last week’s budget work session discussed a collective $50,000 question: Whether the borough should contribute money to KSTK radio, the chamber of commerce and the senior center. The issue of improving playgrounds also came up toward the end of the meeting. Unlike recent years when the borough assembly appropriated cash for the radio station, chamber and senior center, the draft budget for the fiscal year that starts July 1 does not include any such direct payments. Borough M...
As Wrangell’s population continues to age, the total value of senior citizen-owned homes exempt from property taxes continues to grow. About 27% of Wrangell’s population was 65 years or older last year (551 of 2,039 residents), according to Alaska Department of Labor statistics. That’s up from just under 23% in 2020 (482 of 2,127) and 19% in 2015 when the town’s population was much larger at 2,442. State law requires municipalities to exempt from property taxes the first $150,000 in assessed value on homes owned by senior citizens and disable...
As part of the borough’s quest for a long-term, economic development opportunity at the 6-Mile mill property, officials met last month with officers of Huna Totem Corp., which operates a cruise port at Icy Strait Point near Hoonah and is developing three others around the state. Borough officials are also thinking that the waterfront property could be a good location for a timber value-added facility or maybe even a solar energy farm. “We are looking for solutions for the mill property,” Borough Manager Mason Villarma told the assembly May 2...
Assembly members have directed borough staff to come back with a revised ordinance setting requirements for boat owners to carry insurance on their vessels moored in Wrangell harbors. The assembly in March questioned several aspects of a proposed ordinance forwarded by the port commission which required coverage. The assembly wanted to see a minimum vessel size to require insurance, increased management rights to keep out unseaworthy boats and exemptions for transient vessels. The intent is to protect other boat owners and the borough from...
The assembly’s decision to take away any benefit to the school district of the Legislature’s one-year increase in state education funding for next year makes sense from the perspective of the borough’s own finances. However, there are more perspectives to consider. Long term, the community needs a plan to adequately fund its schools. The school board had asked the borough to contribute $1.75 million — the maximum amount allowed under state law — to the school district’s $6 million spending plan for the 2024-2025 school year. That would have...
Rep. Dan Ortiz, the Ketchikan independent who has represented southern Southeast communities since January 2015, including Wrangell, has decided to withdraw as a candidate for reelection, citing health and family considerations. Ortiz had filed in July as a candidate for reelection to House District 1, representing Ketchikan, Saxman, Metlakatla, Wrangell, Hyder, Coffman Cove and Whale Pass. However, a “more definitive” health concern caused him to reconsider, he told the Ketchikan Daily News on May 28. “It’s been within the last week that I...
If Sen. Lisa Murkowski is successful in her request for a congressional appropriation for $2 million in federal grant money to help repair Wrangell’s Public Safety Building, the borough might be able to replace the roof and damaged siding next year. Though the rot-damaged building needs a lot more work than just the roof and siding, Borough Manager Mason Villarma said the new plan is to start with a scaled-down project and add more repairs, rebuilds and equipment replacements later. “We plan to trim down the scale of the project,” he said...
The borough assembly has approved a local contribution to the school district that could cancel out a pending increase in state funding. The assembly on May 14 approved a local contribution of $1.3 million to the school district for the 2024-2025 school year, down from this year’s level, based on the assumption that the state increases its funding to Wrangell schools by $440,000. The amount of state funding is pending the governor’s decision on the budget passed by legislators last week. The school board had asked for $1.75 million from the bor...
The International Brotherhood of Electrical Workers (IBEW) Local 1547 has filed a petition with the state for Wrangell Police Department employees to vote on joining the union bargaining unit that represents other borough employees. The borough assembly met in executive session on May 14 to discuss the petition. Borough Manager Mason Villarma said the borough will object to the request to add police employees to the union. Though the borough supports employees unionizing, Villarma said he doesn’t believe the police department and IBEW have e...
Next year’s Fourth of July celebration, Wrangell’s most popular holiday, may be in jeopardy – the May 1 deadline to turn in paperwork yielded zero royalty candidates. It takes a village to put on the fireworks and countless other festivities for the Fourth every year. To offset costs, high school students or recent graduates run as royalty contestants – selling tens of thousands of $1 raffle tickets and running food booths downtown to raise money for the chamber of commerce, which organizes the celebration’s events. Royalty candidate...
The borough assembly and school board met April 23 in a joint work session to discuss local funding for the school district for the 2024-2025 school year. The school district has requested $1.75 million from the borough, which is the maximum local contribution allowed under state law and an increase from the $1.6 million that the borough contributed each of the past two years. The minimum local contribution required by the borough is $862,086. The state sets a minimum and a maximum in an effort to reduce budget and school program inequalities...
Assembly members expressed interest — but also caution — in what borough staff can come with to change the sales tax code to possibly raise more revenue without raising the actual tax rate. Raising more money from sales tax would allow the borough to continue funding the schools without raising property taxes, Borough Manager Mason Villarma said. There are options for increasing revenues other than raising the tax rate. Currently, Wrangell charges a 7% sales tax on goods and services up to $3,000 in value. There is no tax charged on pur...
The borough assembly has approved a longer-term lease with Channel Construction at the former 6-Mile mill site where the company plans to build two 3,200-square-foot shop buildings. Under terms of the agreement approved April 9, Channel would store equipment at the site. At its expense, the company will improve the access road off Zimovia Highway with crushed rock, improve the barge landing and expand the rock fill, and seek a U.S. Army Corps of Engineers permit for the fill. The construction and scrap metal recycling company will lease six acr...
The school district is requesting $1.75 million from the borough for the 2024-2025 school year budget, an increase from the $1.6 million contribution of the past two years. Even with the increase, the budget will draw down more than half of the school district’s reserves to balance revenues with expenses. The uncertainty of any increase in state funding is adding to the budget stress at Wrangell schools and districts across the state. The state funding formula has increased little more than a few dollars in the past seven years. The annual b...
