News-Miner Editorial
Spreading the wealth
Local growth fueled by local spending
Published Friday, November 28, 2008
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Stumble It!The total value of property in Fairbanks rose dramatically during the past decade as our economy hummed along, people built new houses and new stores arrived.
That growth brought tax revenue to our local governments, money that was in turn spent on services and amenities that have improved the quality of life here.
What comes around, goes around. Fairbanksans should keep that in mind as the busy shopping season begins today. Patronizing local businesses helps the community in many ways.
During the past decade, Fairbanks has been blessed with steady growth. The percentage increase in prosperity seems to have been reflected about equally within the city of Fairbanks and the Fairbanks North Star Borough.
Inside the city, the assessed value of property grew from $1.14 billion in 1998 to $2.26 billion this year. That’s a doubling of value in 10 years, a growth rate well above inflation.
The same doubling was reflected in the borough. In 1998, the borough’s total assessed property value, which includes the city, was $3.72 billion. This year, the borough’s total value hit $7.6 billion.
The growth in the borough’s assessed value occurred despite the stagnating value of the trans-Alaska pipeline, a trend only broken in the last few years as oil prices rose. Pipeline-related property was valued at $287 million in 1998 and $275 million in 2005, but jumped to $508 million this year.
That increase, along with local construction, added more than $1 billion to local property values from 2006 to 2008.
Such a strong growth rate probably won’t continue. Alaska may be somewhat insulated from the travails of the nation, but it would be foolish to assume we will escape all the dismal figures being reported from down south.
We can all help prevent or moderate any such reversal, though, by ensuring local businesses receive the business of locals. The property value figures provide some clues to just how important such choices can be for the quality of life in our community.
Community Discussion
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I've always tried to make a consious effort to purchase locally. However, there are some areas that are lacking in this town.
One is service. Too many shop owners, clerks, associates, etc. act like I'm interupting something important. Really, I often get better service from an impersonal online storefront than some of our local businesses.
Another area is selection. When it comes to clothing, I'm a catalog-princess. It's been my observation that every clothing store in this town carries the same style, and often the same brands. When I do happen to spy a garment that fits my style and tastes, it's the wrong size. At least from a catalog, I can get the color I want and designs that compliment my shape correctly and modestly, and that won't fall apart in the wash.
RK
I do agree that some of the stores are lacking in service. My wife and I were at Lowes on Wednesday around 4pm, the check stand at the lumber end was open and 1 checker next to customer service. There was 4 customers in front of me and 3 behind me. I saw 3 employees hanging around customer service (right next to the line) and 2 others talking off in the distance. I would have done the quick self checkout if they had one. That is why I go to Home Depot most of the time. Service is needed once the customer makes it in the door to get them back.
The reason the FNSB and city have doubled revenues in the last decade isn't mainly because more people moved in, it is because in the last decade they have doubled the value of your homes and land and in some cases tripled the value. I haven't seen that happen to my wages. We are paying double and not getting much in return, getting less than in the past. I don't call this something to be proud of. I hope now that the economy is in such bad shape that the FNSB AND CITY will bring the accessed values back down to reality and also start being responsible with the monies that they are spending now and in the future.
So true AlaskaFirst...my house appraisal increased 30K in the last few years and my tax bill increased right along with it even though there have been NO improvements to my home or property. Now, if I thought I could actually sell this house for more than its Borough appraisal then I might not fuss, but I highly doubt that. Someday we will see whether or not it has all just been another money grab by our officials using the homeowners as chumps.
AlaskaFirst has it right: "it is because in the last decade they have doubled the value of your homes and land and in some cases tripled the value."
Every other year, my assessment goes up 15-20%. Arguably, it is because sales have increased property values, yet no one in our neighborhood has sold. If people are buying over-priced properties elsewhere, yet dump them before paying off the mortgage, should I have to pay for their "bad deal" by having my assessment increased? Makes no sense -- much like non-homeowners voting in bond elections, but I digress...
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