According to this article and this article on politifact.com, the over $20,000,000.00 in debt was long-term debt, to be retired by a 0.5% increase in the sales tax rate which, incidentally, was approved by a voter referendum. The debt was taken on to finance a multi-use sports complex as well as street and water projects. Isn't this standard for large-scale municipal improvements? Also, the second article mentions that due to the healthy economic growth in Alaska, the debt is going to be retired two years earlier than originally forecast.
You are correct. The healthy economic growth Alaska enjoys is another benefit of redistributing wealth from the wealthy businesses to the middle class. This "socialist" scheme has allowed more Alaskans the ability to purchase more goods and services. Small businesses are able to provide more jobs to meet the increased demand for their goods and services. Resultant increases in sales tax revenue will allow Wasilla to retire their long term debt early.
If only there was a Presidential candidate who advocated a similar economic plan for all 50 states. Oh wait, there is!
Thanks for making the economic plan superiority argument of Sen. Obama for me.