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Sales tax revenues came in under projections for the first three months of the year, an indication of a weakening economy and a worrisome sign for the community, Borough Manager Mason Villarma said last week. “We’re at that point we’re going to have to trim things down,” he told the assembly at a budget work session Wednesday, June 5. Mayor Patty Gilbert called the manager’s draft spending plan “the leanest budget” she has seen. In addition to proposing laying off two of the police department’s seven-member force of certified officers, Villa...
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...
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...
Though legislators passed dozens of bills during the two-year legislative session that ended May 15, they left behind multiple big issues for future consideration. Lawmakers were not able to finalize any part of a plan intended to bring the state’s revenue in line with expenses over the long term. In 2022, a bicameral, bipartisan working group recommended changes to the Permanent Fund dividend formula, an effective state spending cap, new taxes and constitutional changes to guarantee the dividend and limit spending from the Permanent Fund. W...
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...
National news stories last week reported that a survey of almost 1,500 Amazon employees across 42 states found that one in three need government assistance, primarily food stamps or Medicaid. The news matches a Government Accountability Office analysis in 2020 that covered nine states and found that Amazon — and Walmart, too — were among the biggest employers of workers whose earnings were low enough that they qualified for food stamps. That Amazon and Walmart would be near the top is no surprise: Walmart is the largest private-sector emp...
May 15, 1924 The opening of navigation on the Stikine River this week was marked by heavy shipments of mining equipment and supplies, and a passenger list which included a number of well-known mining men. The increasing interest shown in the Dease Lake region and other sections beyond Telegraph Creek in British Columbia is an unmistakable forecast of considerable mining activity in the Cassiar the coming season. The Hazel B No. 3 and Hazel B No. 4 -- the first two boats to go up the Stikine this season -– left here Monday afternoon with a c...
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 will conduct sales tax audits periodically over the next year. Ten businesses will be selected at a time, covering various categories of business types, Borough Manager Mason Villarma said April 24. The audits are an effort to preserve equity for all businesses and consumers in the borough. “There appears to be circumstances where businesses are collecting sales taxes but not remitting to the city, and maybe having a history of not ever remitting to the city,” Villarma said. “Those will be the first folks that we make sure get c...
April 3, 1924 The regular monthly meeting of the PTA will be held in the high school building Thursday evening, April 10, at 8 o’clock. A number of interesting questions will come before the meeting for discussion. Dr. O. H. Whaley will give an address on oral hygiene for children. The address will be followed by a declamation contest for grade school pupils. The contestants will be judged on delivery, poise, voice and selection. The declamations will be interspersed by songs by grade school girls who have been taught by Miss Hinselan. April 8,...
The fishing fleet in the Southwest Alaska town of King Cove would have been harvesting Pacific cod this winter. But they didn't: Skippers had nowhere to sell their catch. The enormous plant that usually buys and processes their fish never opened for the winter season. The company that runs the plant, Peter Pan Seafoods, is facing six-figure legal claims from fishermen who say they haven't been paid for catches they delivered months ago. King Cove's city administrator says the company is behind...
April 3, 1924 Joe Mahoney and Dick Nuckols killed a huge gray wolf at Smuggler’s Cove recently just as the animal was about to attack Mahoney. They had been at the Helm Bay Mining Company’s property and while on their way to town were forced to stop at Smuggler’s Cove on account of a storm. While out on the beach after a mess of clams, Nuckols saw a gray wolf sneaking up back of Mahoney with murder in his eye. Having his gun by his side, Nuckols immediately grabbed it and fired, hitting the wolf in the foreleg. This attracted the attention of M...
A Georgia-based developer who has taken a liking to Wrangell has offered the borough $200,000 for the former hospital property, with plans to tear down the building and construct as many as 48 new housing units. Wayne Johnson’s offer on the 2-acre property is contingent on striking a deal to purchase six smaller borough-owned lots behind the hospital building, adding an additional 1.3 acres to the development site. The purchase price for the hospital property, which has been vacant since SEARHC moved into its new Wrangell Medical Center t...
Don’t think of it as selling the borough-owned former hospital building and it’s almost two acres of land for a steep discount to its appraised value. Think of it as potentially getting an immense amount of future value from an unused liability that is costing the borough about $100,000 a year to heat and insure. When you look at the math that way, a developer’s offer to pay the borough $200,000 for the hospital property looks pretty reasonable. Borough code allows the municipality to sell property at less than its appraised value if the sale w...
Borough officials are concerned that Wrangell continues to lose population, while those who stay in town grow older and leave the workforce. As a whole, the state has lost more residents than it has gained in new arrivals every year since 2013, with only the birth rate keeping Alaska from showing a population decline. However, unlike the statewide totals, Wrangell recorded more deaths than births between 2017 and 2022, adding to the community’s overall population decline. The state’s latest estimate for Wrangell’s population, as of last summe...
“At least once a week I get a call from someone who is interested” in the upcoming borough subdivision land sale of 20 lots, said Kate Thomas, Wrangell’s economic development director. To help those callers, and everyone else who might be interested in anything about buying land, building and owning a home, or buying an existing home, the borough is putting together an information fair for 9 a.m. to noon Saturday, Feb. 24, at the Nolan Center. The borough plans to offer to the public 20 residential-zoned lots at the new Alder Top Village (Keish...
Just because few to none of Alaska’s elected officials are talking about bringing back the personal income tax is no reason to ignore its anniversary. OK, maybe it’s weird to celebrate your anniversary with an ex, but it’s different with the state income tax. Whereas you’re unlikely to remarry an ex, Alaskans eventually may reunite with the tax. Not willingly, of course. More like a shotgun wedding based on financial necessity. It was 75 years ago this month that the territorial Legislature enacted Alaska’s first personal income tax. It was als...
Hoonah has submitted a petition to the Alaska Local Boundary Commission to create the state’s 20th organized borough, which would include the city and some lightly populated outlying communities. The Xunaa Borough would include Hoonah, as well as Game Creek, Elfin Cove and Funter Bay — and most of Glacier Bay. The potential borough’s name is a closer match to the Tlingit language word for the community. “Voluntary incorporation is preferable to the potential alternative of either having a different borough government imposed upon residen...
Wrangell could get off to a good start for 2024 if one of the three interested parties makes a reasonable offer to buy the borough-owned former hospital building, which has sat vacant for almost three years. Most any offer would be reasonable, considering that keeping the building dry and insured is costing the borough tens of thousands of dollars a year. And any offer would be improvement over the no offers that have come in since SEARHC vacated the property for its new medical center in 2021. “The value is getting rid of the property,” Int...
Sitkans received a $300 credit on their December utility bills after the city assembly voted to share some of the higher-than-expected sales tax revenues with the public. The assembly voted to spend just over $1 million on the program, distributing the money to every residential utility account in town. Sitka saw a record number of cruise ship visitors last summer, swelling the sales tax coffers but also inconveniencing residents. In passing the appropriation in November, assembly members said they wanted citizens to receive some compensation...
Several store owners and managers are talking about the need to form a business association of some kind to work toward drawing more locals to shop downtown. Wrangell residents are spending an increasing amount of their dollars online, ordering from Amazon and other remote merchants. About 10% of the borough’s sales tax collections last year came from online shoppers — and the number is growing. Forming a downtown business association isn’t about competing with or abandoning the chamber of commerce, the store owners said. The chamber serve...
