City and Borough of Juneau
Finance Committee Meeting
May 12, 2004 at 5 p.m., Chambers

I. Call to Order

II. Roll Call

III. Approval of Minutes

May 5, 2004

IV. Summary of the Assessments Process
Wayne Haerer, Interim City Assessor, will provide an overview of the assessment process and the 2004 real and personal property assessments. The calendar year 2004 property assessments, along with general sales taxes, is the major funding source for general governmental operations. Property taxes provide approximately 33% of all general governmental funding and 48% of all local funding (excluding State and Federal support).

The 2004 property assessments are projected to increase by 5.4%, from $2.63 billion to $2.775 billion. This overall increase is due to a combination of factors:

The Proposed Biennial Budget includes no change in the mill levy for the FY05 year (11.64 mills) and a 0.41 mill levy increase in FY06 (12.05 mills). The proposed FY06 mill levy increase will pay for increases in voter approved general obligation bond debt service. A 5% increase in assessed value on a $100,000 assessment, with no mill levy change, will result in a property tax levy increase of $60.

Additional property assessment information can be found on pages 49 through 52 of the FY05 and FY06 Preliminary Biennial Budget Document.

V. The Board of Equalization Duties and Responsibilities
The full Assembly is schedule to sit as the CBJ Board of Equalization (BOE) on May 17, 2004. Steve Van Sant, State Assessor, will provide an overview of the Board of Equalization (BOE) process. His presentation will include a discussion of State Statutes and the Assembly's charge when sitting as the Board of Equalization. Mr. Van Sant has provided this presentation to the Anchorage and Mat-Su Boards of Equalizations.

VI. Information Item

A. Community Purpose Exemption
Over the past year it has come to the attention of the Assessor that conflict exists between the State Statute, City Code and Assessor policy on the granting of Community Purpose Exemptions. The CBJ Assessor’s Office is currently granting 19 properties $13.1 million in Community Purpose Exemptions. The CBJ code charges the Assessor with the responsibility of collecting the information necessary to determine the character of the organization and the nature of the uses made of the property. Any change in the code and/or policy will likely have property tax implications on the properties currently exempted. The Assessor will provide a short presentation on this exemption. The goal (this year) will be to develop a clear Community Purpose definition and resolve the differences between the Statute, Code and policy before the next assessment cycle.

B. FY05 AFC Meeting Schedule, updated