Borough operations in proposed 2010 budget tr

Mill rate remains same, no new hires

MAT-SU— At Tuesday night's Assembly meeting Borough Manager John Duffy gave an overview of the proposed Borough budget.

“Our goal was to have a zero increase in the areawide mill levy, and that's exactly what we did,” Duffy said.

The proposed areawide mill levy is 10.326. Last fiscal year's areawide mill levy was 10.326. The average tax bill is projected to be about $86 lower than last year's.

Government operating expenses are $855,000 less than the previous year, the second year in a row for such reductions. Last year government operations were cut by $2.6 million.

“We also want to provide additional funds for education and economic & community development,” Duffy said.

Among the highlighted grants in the budget is a $735,000 grant to promote tourism through the MAT-SU Convention & Visitors Bureau and a $315,000 grant for tourism infrastructure. Palmer and Wasilla will receive block grants, $118,453, and $144,177, respectively, under the proposal. Some $300,000 is devoted to agricultural land preservation.

A $1.4 million increase for education is proposed for a total of $46.1 million in local education funding.

About 75 percent of the Borough budget goes to education, 25 percent funds local government. Some 63 percent of local tax dollars goes to education, including operations and debt service on school construction.

The MAT-SU Borough operates with a lean staff as compared to other Alaska municipalities. 1 employee for every 310 residents works at the MAT-SU Borough. Fairbanks is the next closest with 1 employee per 242 residents. Kenai has 1 employee per 191 residents.

Duffy outlined the slower economic activity in the Borough. Residential construction is down by 449 homes from last year; platting actions are down by 221. The average home value has dropped by about five percent to $209,537.

“So we have not seen the very large declines that other parts of our nation have experienced, but indeed we have had some,” he said.

Even, so, people continue to move to the MAT-SU. The population growth rate continues at 2.5 to 3 percent, still outpacing projections. Today's population is roughly 87,000.

No new positions are included in the budget despite the increasing population and lean employee-to-resident ratio as well as the additional demands for services.

Duffy highlighted a recurring budget challenge. Once again local property owners are subsidizing unfunded state mandates: $7.5 million or little more than one mill in the areawide mill levy, or $7.08 million.

The Borough operates under a revenue cap. The proposed areawide mill rate 10.326 is less than the allowed mill rate for the cap, 11.508. In FY2011 the revenue cap will likely bring deficits in some road service areas, fire service areas, and the non-areawide fund.

The proposed budget provides funding for government operations, solid waste, libraries, animal control, fire and ambulance services, road maintenance, education operations and debt service, enhanced 911 and special services such as flood control and sewer and water operations and emergency responses.

The first public hearing on the budget is April 30, 6 p.m. at the Central Public Safety Building, 101 W. Swanson Ave., Wasilla. Another public hearing scheduled for May 7.

A power point of Manager Duffy's presentation is provided on the right.

For more information call Borough Manager John Duffy at 745-9689 or Public Affairs Director Patty Sullivan at 745-9577.