Assembly waives taxes for youth center
Published Friday, January 9, 2009
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Stumble It!FAIRBANKS — A nonprofit home for troubled kids doesn’t need to pay an unexpected quarter-million-dollar property tax bill, the Fairbanks North Star Borough Assembly decided Thursday.
The 5-2 vote effectively waives a tax bill for the Iowa-based Boys and Girls Home and Family Services, which this summer finished building a 120-bed psychiatric treatment center in South Fairbanks for youths and teens.
The center will automatically be exempt from future property taxes under rules in state law. But it wound up with a surprise bill of just more than $276,000 this year because of a rule that required it to be “in use” — and not still under construction, which it was — when the tax year begins to qualify for a break.
Organizers for the nonprofit center said they were caught off-guard by the technicality and hadn’t budgeted for such a large bill. Borough officials said the group could have erased the bill with a timely appeal last spring but the center missed the chance due to a misunderstanding.
Borough Mayor Jim Whitaker, who co-sponsored the waiver, and other local officials sought Thursday to accept part of the responsibility for mistakes that led to the problem and miscommunication.
“This is not a bailout for taxes that should be due,” he said.
Borough officials noted that without Thursday’s solution, which technically issues the center a grant to use to pay the bill, local laws would have forced them to take early steps to foreclose on a brand-new, multimillion-dollar treatment center for children.
Thursday’s vote holds Fairbanks City Hall harmless for the snafu — borough officials will send close to $96,000 from their accounts to the city to cover revenue on which the City Council, Fairbanks’ other local government, had based part of its budget. The hold-harmless angle drew some debate before assembly member Guy Sattley tried unsuccessfully to carve the city’s benefit from the waiver. His move failed to draw other votes of support.
Prior to the residential treatment center, which sits in South Fairbanks, social service agencies in Alaska have traditionally sent many troubled teens outside the state for some serious mental health services.
Supporters and leaders of the nonprofit told assembly members the agency made an honest mistake, pointing out the center’s benefit to the mental health treatment industry.
“They’ve given us a gift,” former assembly member Eileen Cummings told the assembly Thursday. “They’ve given the state a gift.”
Community Discussion
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Thanks are in order to Guy Sattley for trying to prevent borough taxpayers from giving a $96,000 dollar gift to the City of Fairbanks.
It is one thing to exempt a non- profit from property taxes, but it is quite another for FNSB taxpayers to be handing cash to the City of Fairbanks.
And the other point that no one has picked up on... The tax bill, FOR ONE YEAR, is $276,000.00 dollars?! If that is not proof that our property taxes are too high, then I do not know what is.
This situation is very troubling. Notice the not-for-profit representatives said they hadn't budgeted for the money...that doesn't mean they could not have afforded it.
And 96K to the city? Maybe Styrle can hire a security team to protect "her" lawn!
Again the little guy is pay the tax bill for the big businesses, non-profits should have to prove they are really NON_PROFIT,how much money is diverted to Iowa ? how much are they making per year? How much are the directors and staff paid? But oh wait, I forgot it is for the children. I think the borough assembly menbers could use some "mental health" help.. BAD BAD BAD
I think the city should vote to forgive their 96k share of the taxes and give that money back to the borough.
I believe I would like my late fees and interest back for paying my taxes late when I was out of work and the choice was property taxes or gas and food! Why is it that I have to follow the rules or pay the penalties and they don't. It's all about the kids? Well, I had to feed my own kid which is why my already too high taxes were late!
I am NOT a happy taxpayer today!
First the Yukon Quest, now this group, who is next in line?
Are there really that many people in charge that have a hard time following instructions?
Is the paperwork that confusing?
Unfortunately a precedent has been set by these two organizations and the assembly, so we will most likely see a lot more of this in the future. I mean really why go through all that boring paperwork when you can just go to an assembly meeting and they will forgive your forgetfulness.
It is my understanding that the property was not even owned by this non profit at the time the tax bill was sent out even though they had begun construction on it. What is going on here. Who owned the property for the year the bill was due. A lot of unanswered questions. Another con by Whitaker and the some of the assembly members.
hairbrain, you need to check out the mission of this non profit and what it charges. The main reason this was built was this organization realized it could make millions by warehousing bush children who are labeled "psychistric case." if anything the State needs to investigate the use of psychiatric facilities as "foster care" when they have a problem child. This state is notorious for how it treats rural children. An investigation will never occur because the State is the one willing to lock these kids up in places like this because they do not know what else to do with them.
I could not possibly be more disgusted. Every person that was late on their property taxes should receive an exemption and their money back.
I could repeat all of the above or I can post the mayors office number; 459-1300, and e-mail address; mayor@co.fairbanks.ak.us
You want to grant $276,000 to a tax exempt group that was not budgeted and I expect your next move to decrease some area of that budget by $276,000. Failing to do so would be a bail out!
This bail out theory can be supported by the payment of $96,000 to the City of Fairbanks by my borough. The Mayor said this grant was not going to cost the borough. So who is signing the borough check for the $96,000 this group owes the city for property taxes?
Remember our borough initiated a bed tax in the borough because they wanted a level playing field with the city bed tax. Remember our borough initiated an alcohol tax in the borough because they wanted a level playing field with the city alcohol tax. Will the city now return our borough $96,000 check to maintain a level playing field?
Will the city grant $96,000 to this group to pay their property tax?
Funny how the borough mayor shows concern for the city budget by giving them their $96,000 but shows no concern for the impact on the borough budget.
I doubt you will hear any more about this from the city. This deal was cut before it came up for public review. A good news reporter would have discovered these details at the 1st reading of this bill.
Joe Citizen would not have been alert enough about the workings of our government to spot this association with the city. Only one of the assemblymen caught it and failed to get the support to correct this fluke.
Every wonderful thing about this new kiddy center may be true. What has this got to do with paying your share of the taxes required by law for all to pay?
So our borough is about schools and services. Since when do they have the power to legally walk around existing law to feel all warm and fuzzy inside? If I want feel warm and fuzzy about something I will take the money out of my wallet, not yours! Remember this come election time. Vote the bums out.
Thank you Guy for trying.
The whole thing is just ridiculous! Taking money from the Borough account to forgive this bill and fill the city coffers?
Maybe they should have asked for a vote from the people of the borough that are paying for this?
I have no problem with facilities that exist to help kids, but, these psyche homes put kids in a room and drug them up. Funny thing about that is most of those kids problems came from parents doing drugs - they counter act it by drugging up the children?
I don't know how many of you have tried to help out in the foster programs. I did and ended up with a normal kid with rough circumstances. The states answer - give him these 5 pills and bring him back in to talk to us twice weekly during school hours.
wow, what a beautiful building, too pretty to not know? before we let someone build here, they should know the consequences of actions, like in most life situations.
The Borough is giving them a grant to pay the property tax bill. I assume, then, that they will pay the bill. Will the Borough not then forward the City's portion to the City? Why then the payment to the City. Isn't the City getting paid twice??? Am I missing something here?????
FreeDarfur, what's with the comment about this facility being for warehousing bush children who are problem children??? What basis do you have for making such a statement?
I know of one young girl who spent her entire teenage years in an out-of-state facility because of mental health problems. She grew up in an institution without her family. Her family was not able to be a part of her life. That is not an acceptible fate for any child, or any family. There is definitely a need for a Fairbanks-based facility.
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