361 



Payroll 



Payroll losses total $37 million, or 29% of all income earned in the Sitka 

 economy, including seafood harvesting income which in not usually 

 included in Alaska economic analysis. The payroll estimate is done by 

 totalling the direct APC payroll loss of $17 million plus the support sector 

 private and government payroll ($12 million) associated with those 599 

 positions. Average private and goverrunent support industry salaries are 

 used. 



Average Wage 



Sitka's average monthly wage wiU drop from $2,033 to $1,885 per month 

 when the highest paying sector, forest products is removed. APC workers 

 averaged $3,600 in 1988, 77% above the community average. The standard of 

 living and the health of the business community v^ll be significantly lower 

 in Sitka for those remaining following APC closure. 



Gross Business Sales 



Declines in gross business sales are assumed to be in direct proportion to 

 losses in total income, -29%. An estimated $37 million in business sales will 

 result, $19 million of it in retail trade. Further sales decline might result 

 because those industries which maintain a stable and growing economy, such 

 as construction, will be virtually eliminated. 



Muiudpal Impacts 



Mvmidpal utility and property tax revenues from all sources will be affected 

 in two ways. One is the loss of direct APC payments such as the $1.4 million 

 in electricity, $100,000 in water and $326,000 in property tax paid by the 

 company. In addition, the population loss and related decline in the 

 commercial sector vail significantly reduce municipal receipts. 



Electrical revenues will be reduced by the $1.4 million in direct APC payments 

 plus another $1.3 million will be lost if all other electrical demand is in 

 proportion to the population being served. Water demand is also expected to 

 decline in relation to the population, costing $55,000 plus the aimual APC 

 payment. 



Property tax losses are based on the loss in value of each of four categories- 

 residential, commercial, industrial and, vacant and other. Industrial property 

 tax assumes the current assessed value of APC of $59 will be $0 upon closure 

 but that the other $17 million in industrial property will remain unaffected, 

 though an area wide real estate depression will probably have some effect on 

 the value of the holdings of other industries. 



