Nenana Wellness Coalition
Minutes
October 5, 2004
Meeting began at 12:20 AM
Meeting officiated by Traci Wiggins
Prayer was led by Sam Verhagen
Pledge of Allegiance recited
No modifications to the agenda
Minutes of September 21st, 2004 approved without modifications
Introduction of Guests:
Dan Bockhorst, Staff to the State local Boundary Commission
Updates/Announcements
Put off to next week
Guest Speaker:
Dan Bockhorst - Boroughs
Some time ago Bud Krause and others suggested that it might be good for us to discuss boroughs at one of our wellness meetings. It was agreed that rather than just discuss it amongst ourselves that it would be good to have someone speak to us who had the ability to answer the questions that would inevitably arise over a subject that has been so hotly debated over the last 40 plus years. “Bear” Ketzler had been in contact with Dan for some time prior and agreed to invite him to speak to us. He did so and today’s meeting was arranged.
Our usual approach to subjects like this is to allow the speaker to finish their presentation before we go to questions and answers. Dan commented afterwards that it is rare for him to be able to make his entire presentation (which lasted about an hour and a half) because he is usually interrupted with too many questions somewhere between 25 and 45 minutes into it and usually isn’t able to get back and finish his presentation.
The question-and-answer session afterwards was not at all controversial which may have been due to the fact that many of the questions that people might have asked, pro or con, were answered in the presentation.
It was proposed that between now and our next (or later) meeting we consider dedicating one meeting a month to various topics pertaining to boroughs, that we get the word out as much as possible, that we hold meetings in different locations, and at different times so that views from all sides of the issue are able to be presented and discussed.
One important point that was made is that no decisions on the matter should be made out of fear. Dan pointed out that he is not aware of any efforts by anyone to force a borough upon us in the near future. He pointed out that one reason that some legislators use to push for the formation of boroughs in certain areas is whether or not the area is contributing their share to pay for schools. Last year Senator Wilken introduced a bill that would require the formation of 4 new boroughs based on this issue but, because it is perceived that Nenana is fairly contributing, Nenana was not included in the bill. Dan’s point, again, was that he is unaware of any current efforts to force Nenana into a borough.
However, he did point out that it is the intent of the Constitution that all areas of the state with the administrative and fiscal capacity to operate a borough become part of an organized borough and that the legislature has the authority to force all areas of the state into boroughs and that they have used that authority in the past to the extent that the vast majority of the population that is included in boroughs did not vote to be in boroughs but was forced into boroughs.
He also pointed out that the Constitution promotes the extension of borough government (either through incorporation or annexation) so that all areas be included in organized boroughs and that the boundary commission, to which he is staff, has a duty to uphold the Constitution and thus work to facilitate the transition.
Twenty years ago, he thought that the process would be complete long before now so he is hesitant to predict how much longer it will be - another ten, or another 40 years - before the process is complete but, in any event, it would be wise for people to discuss and consider the matter at a measured pace rather than try to respond in short order if someone decides to push our area into becoming a borough or tries to force us into an existing borough.
His presentation included an outline encompassing five subject areas.
The Nature of Boroughs
Article X of the State Constitution sets out the framework. All areas of the state must be included in a borough - either organized or unorganized. An organized borough is a municipal government. An unorganized borough is subdivision of the state and the state legislature serves as its governing body. One of the reasons for choosing a system of borough governments was to decentralize state services. Boroughs should encompass “common interests”. Among other things “common interests” include such considerations as: Regional Educational Attendance Areas, Social, Economic, Cultural, Size, Natural Geography, Transportation, Natural Resources, and Capacity to Administer. Boroughs and cities are similar and different. Similarities include that they are both municipal governments, although boroughs are sometimes at a regional level. Size is one of the big differences. The average size of the 146 Alaskan cities is 27 square miles. The average size of the 16 organized boroughs is more than 17,000 square miles. The number and types of boroughs are:
· 3 Unified Home-rule Boroughs
· 6 Non-unified Home-rule Boroughs
· 0 First Class Boroughs
· 7 Second Class Boroughs
Prescribed Duties
Except for the 18 home-rule, and one first-class, cities in the state, cities have few fundamental duties; however, ALL boroughs have fundamental duties. Three of the area-wide duties required of a borough are education, planning and zoning, and taxation.
Pros and Cons
There are three main issues of concern when the subject of boroughs is discussed. The first comes from school administrators, the second is the concern is people not wanting more government, and the third is taxes. At present four of the boroughs in the state levy no property taxes and one borough levies NO taxes at all.
In 1963 the state legislature promised to not penalize areas for organizing into boroughs - as often happens with such promises - the promise was broken.
Incorporation
The state gives a $600,000 grant to each new borough in order to help get started. The process of becoming a borough includes 12 steps:
1. Petition
2. Review
3. Public Notice
4. Service of Notice to Required Parties
5. Public Comment
6. Reply from Petitioners
7. Information Meetings
8. Dept. of Community and Economic Development Reports
9. Local Boundary Commission (LBC) hearings
10. LBC decision
11. Reconsideration
12. Election or Legislative mandate
It usually takes from one to two years to complete the process.
Formation
Boroughs are given two years to take over education duties. The current maximum local school tax is 4 mils and is phased in over four years (but can come from other sources within the borough such as the borough that levies no taxes). The LBC has formulated and proposed 18 model boroughs for the areas that are now included in the unorganized borough. Under the current proposal they recommend that Nenana be included in an existing borough but the option exists for Nenana to propose a new borough of which it would become a part.
Contact information:
Local Boundary Commission
Dan Bockhorst
550 West 7th Ave, Suite 1770
Anchorage, Alaska 99501
907-269-4559
Questions and Answers:
Tim Horn asked if it were proposed that Nenana be included in another borough and it were to go to an election how would it compete? The answer was that it couldn’t if it just went to an election wherein everyone’s vote counts. However, more options exist. Nenana could propose the creation of new borough of which it would be a part. Voting could to be limited to the Nenana area residents, or a combination of voters in the borough and the Nenana area could be held, etc. Before any such actions were taken the LBC would hear suggestions and make recommendations.
Paul Verhagen asked for a confirmation that it is not a matter of who beats who in filing a petition. The answer was that the decision is not made on which proposal is filed first or that one filing would preclude another.
Henry Cole mentioned that a recent study in an economics magazine described countries that either develop their natural resources – if they have any – or their personal resources through education and training. Canada, Argentina, Brazil are some of the former and Taiwan, Singapore, Japan and Hong Kong are some of the latter. To adequately develop one’s natural resource base you need your personal resource base and there must be a balance between these two. As an example, we can look at Fairbanks: lack of local skill in management, marketing, and finance in regards to tourism led to ‘outsiders’ (referring to Princess Tours, WestTours, etc.), ’swooping in’ and gaining control of the tourism industry there. In Nenana this issue was brought up on the context of the formation of a borough from outside, essentially annexing Nenana. A way to explore this situation and its solution could be through a discussion: where people propose a hypothetical discovery of resources – gold north of town or natural gas to the west – determining the extent of the resource, the value, and the technological skills necessary to develop it; then they ask the question: “What kinds of people, education and skill sets should we have in Nenana to take advantage of this opportunity so as not to have Nenana developed by outsiders.” This kind of scenario discussion could start to raise the awareness of Nenana to new developments and possibly also sketch out a defense against takeover by an outside borough.
Ken Eggleston suggested that anyone who is interested should consider getting a copy of the School Consolidation CD because it has a lot of valuable information pertaining to boroughs and their effects. The School Consolidation CD is available from Dan Bockhorst. The study is available online at http://www.dced.state.ak.us/dca/lbc/school_study/school_study_report_final2.htm
Old Business
The time did not allow the rest of the agenda items to be addresses and it was agreed to put them off until the next meeting except for announcements of immediate concern.
New Business
See above
Open Floor for Comments/Questions/Discussion
See above
Updates and Announcements
Margaret Sanders announced that the renovation at the senior’s center is progressing nicely but that they still need help from volunteers.
Next Wellness Meeting Date/Time/Chairperson/Guest Speakers/Subjects
The next regularly scheduled wellness meeting will be held on October 14th 2004 at the Nenana Senior’s Center at 6:00 PM (just prior to the regularly scheduled city council meeting). Bud Krause will chair the meeting.
Meeting Adjourned at 1:58 PM
There were 25 people in attendance:
Margaret Sanders, Dan Bockhorst, Kat McElroy, Karen Harvey, Floyd Terry, Bud Krause, Henry Cole, Sam Verhagen, Paul Verhagen, Merrily Verhagen, Ken Eggleston, Traci Wiggins, Tim Horn, Virginia Young, Miles Martin, Al Stevens, Bonnie Reed, Blaine Reed, Ned Griffith, Ralph Lindquist, Diane Carson, Mike Anderson, Dwight Hale, Carl Horn, Pia Jensen