Skagway votes Tuesday on $6.5 million in bonds to prepare its RV park for housing lots

Skagway voters decide Tuesday, Oct. 6, whether to let the borough borrow up to $6.5 million for water, sewer and road work to convert the Garden City RV Park into housing lots.

The municipality's financial estimate assumes 5.1% interest over 30 years, for a total cost of about $12.83 million, or $427,666 a year. That would raise Skagway's annual general obligation debt payments from an estimated $1.50 million in 2027 to $1.93 million. Under the bond ordinance, property tax would cover any payments that sales tax and other sources do not.

Design work is already funded through $300,000 from the Land Fund. Construction depends on the bond.

In 2027, the Assembly is to decide on platting and disposing of the lots, where RV parking and the laundromat will go, and whether lot sales will recover the cost.

Proposition 2, a citizen initiative, would widen the senior sales tax exemption from local grocery purchases to all store sales and rewrite the property tax exemption for seniors, disabled veterans and qualifying surviving spouses. Borough Treasurer Heather Rodig estimated the lost revenue at under $90,000 a year.

Polls are open from 7 a.m. to 8 p.m. in the Assembly Chambers at 700 Spring St. In-person absentee voting at the clerk's office ends Monday, Oct. 5.