Court Challenge Clouds Proposed Borough Finances

A court challenge by two Delta area residents against a financial agreement between the City of Delta Junction and the operators of the Pogo mine could restrict income for the proposed borough the Fairbanks Daily News Miner reported today. The suit challenges the constitutionality existing payment in lieu of taxes (PILT) agreement, the paper reported:

Residents Margaret Mullins and Mike Murphy have challenged the deal as unconstitutional. Last month they unsuccessfully asked a state judge to halt the ongoing by-mail election occurring in Delta.

Despite the judge’s denial, however, Mullins and Murphy’s case remains open in Alaska Superior Court.

Murphy, a former Fairbanks North Star Borough engineer, has argued through his attorney in court documents that the deal between Delta Junction and the mine illegally surrenders a future borough assembly’s power to tax the mine. That, said Fairbanks attorney Charles Cole, weakens the six-year proposed budget submitted by borough organizers to the Alaska Local Boundary Commission.

The State of Alaska has pointed out that a similar PILT arrangement exists with the Northwest Arctic Borough, and that has not been challenged.

Read the entire article in the Fairbanks Daily News Miner >>>