City and Borough of Juneau
Assembly Finance Committee Meeting

May 1, 2002, 5 p.m., Chambers

[Click here to download the full Finance Packet]

  1. Call to Order
  2. Fireweed Place
  3. On April 24, 2002, Tom Dahl, President of the Board of Directors of Senior Citizen Support Services (SCSS), owner and operator of Fireweed Place, made a presentation to the Assembly Finance Committee (AFC). SCSS is requesting a grant from the CBJ in the amount of $100,000 to assist them in maintaining Fireweed Place as a privately-owned senior-housing facility over the next 15 months. At the request of the AFC this issue is on the agenda for further discussion.

  4. Boat Taxation Equity Subcommittee
  5. The Boat Taxation Equity Subcommittee has met several time to review the issues of boat taxation. The committee reviewed various options from not taxing boats to taxing all boats both commercial and private. Frankie Pillifant, Chair of the Boat Taxation Equity Subcommittee, will give a report on the Committee’s recommendations. Enclosed in your packet is a legal opinion on business personal property taxation from the Law Department and boat taxation survey information prepared for the Boat Taxation Equity Subcommittee.

  6. Mayor and Assembly's Budget

They are requesting $45,000 in the first quarter and $20,000 in the second, because most of their costs are incurred in the fall. They did include financial information with their application. There is $60,000 currently budgeted for this grant

Information Items:

V. Tobacco Excise Tax

The Alcohol and Tobacco Tax fund receipts have historically gone to the Chemical Dependency Division of the CBJ’s Health and Social Services Department. In FY02 we shifted the Juneau Recovery Hospital (JRH) services over to Bartlett Regional Hospital (BRH). The Alcohol Tax, Tobacco Excise Tax and General Fund support was also transferred to BRH with the understanding that, at least for a transitional period, JRH would continue to need those tax dollars for its operations.

Tobacco Tax revenues have grow dramatically in the past two years. Receipts for FY00 were 36% greater than the FY00 budget projection. Since we did not have actual year-end information until after the FY01 budget was prepared and the impact on consumer purchases was unknown, we ended up underestimating the increase. The projected percentage growth from the FY00 original budget to the projected FY04 budget is now 58%.

When we prepared the FY03 and FY04 Biennial Budget we decided not to unilaterally budget all of this increase to BRH for JRH operations. We held back a significant portion of the increase until the Assembly could review the issue. This additional amount was retained in the Tobacco Excise Tax fund. By the end of FY04 we are showing a projected fund balance in this fund of $299,800. We did increase the Tobacco Excise Tax support to BRH by 5% per year for FY03 and FY04. We have increased the JRH Tobacco Excise Tax support from $211,000 in FY01 to $239,500 or 13.5% for FY03. Based on the current revenue projections we could increase the amount of support from the Tobacco Excise Tax fund to JRH or to other programs by $65,000 per year. This would still leave enough in the Tobacco Excise Tax fund to support an additional one-time distribution of $150,000. The Finance Committee may wish to wait on the final decision on the use of these funds until after BRH has had the opportunity to provide a status report on the JRH operations and the SSAB has had an opportunity to report back to the Finance Committee on the results of their re-review the Block Grant applications.

Enclosed in the packet is the copy of the voter information and authorizing ordinance.

VI. Adjournment