Flat Mill Rate Won't Pay Bills

Matanuska-Susitna Borough Manager John Moosey told the Assembly that a seventh year of a nearly flat mill rate was not going to be enough to offset new and increased costs and revenue reductions for a growing borough. Calling his proposed budget pivotal for future risks, Moosey told the Assembly that new operations and utility costs for six new buildings and $10.8 million in property tax exemptions for senior citizens and disabled veterans in 2016 are part of the challenges. He asked to raise the mill rate slightly from 9.662 to 9.815.

The Mat-Su School District is also asking for a three percent funding increase. Next year, less fees for permanent car registration will reduce revenue by more than a million dollars, a year after that, by more than $2 million.

Moosey pointed to future risks in State funding for reimbursement for school bond construction projects and road bond construction projects. He pointed to reductions in State revenue sharing and grants and the possible end to Federal funding for what's called PILT.

Moosey told the Assembly some $11.9 million will be covered by the reserve fund balance in this budget. He said recent budgets have drawn from this fund balance. The Assembly can continue drawing it down, he said, or raise the mill rate. He asked for zero new employees despite new facilities, increasing demands for services from new residents, and an unprecedented capital projects construction program. Assembly Member Vern Halter, however, asked to see what positions directors are seeking.

The Manager and Finance Director Tammy Clayton answered questions on the budget. Department directors were called on to give detail on parts of the budget for much of the afternoon.

Listen to Manager Moosey give an overview on the proposed budget for fiscal year 2016.

 View the Manager's budget presentation on the budget webpage. Find it on the front of the Borough webpage under Economy Spotlight.

The first public hearing on the proposed budget is next Monday, May 4, in Wasilla at the Central Mat-Su Public Safety Building at 101 W. Swanson Avenue at 6 pm.

For more information, contact Public Affairs Director Patty Sullivan at This email address is being protected from spambots. You need JavaScript enabled to view it.