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 Veto of AR 2009-270 


Mayor's Office

11/02/2009  |  Contact:                                  Sarah Erkmann (907) 343-7103

Pursuant to the authority vested in me by Charter section 5.02(c), I hereby veto AR 2009-270, approved by the Assembly at their regular meeting of October 27, 2009.

The reasons for this veto are:

1. While the Assembly resolution purports to reduce property taxes, it increases the 2011 tax cap by nearly $11 million over what is proposed by the Administration to be collected in 2010, which increases the tax cap in perpetuity. For nearly twenty five years since its inception, the amount actually collected in property taxes was the basis for calculating the tax cap for the following year. AR 2009-270 does not comply with that long standing interpretation.

2. The Assembly resolution creates a budget deficit of over $4.2 million as compared to the Administration’s balanced budget. In a separate measure, the Assembly indicated its intention to raise the property taxes collected by the school district to make up this difference. Yet, they indicated the taxes collected from the school district would be used to offset expenditures incurred by the Municipality on behalf of the district, of which only an additional $1.2 million can be identified. Thus, a deficit of at least $3 million would still remain, resulting in significant additional cuts to city services.

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