Borough assembly asks for public comment on new bonds for road and schools

New road and school bonds will before the Matanuska-Susitna Borough Assembly for public hearings on Aug. 6.

Two ordinances were introduced at the assembly’s July 17 meeting, one proposing $33.2 million in bonds to finance construction of three new charter school buildings by Assemblyman Rob Yundt and a second for $58.1 million in bonds to fund new road projects by Assemblyman Dimitri Fonov.

If the assembly approves the proposals after public hearings are held the measures will be on the borough’s Nov. 5 ballot for voter approval. This is required for new general obligation debt to be assumed by the borough.

The school proposal would build new facilities for Academy Charter School at an estimated cost of $16.4 million; American Charter Academy for $15.2 million and Birchtree Charter School, for $26.6 million.

The total cost of $58.1 million for the school bonds would increase property taxes in the borough by $31.40 per $100,000 cost of assessed value of property.

The road bonds, if approved, would fund 11 projects for new or improved roads. All are aimed at relieving congestion and improving safety which are both becoming serious problems in certain areas as Mat-Su continues to grow.

Congestion and traffic are of increasing concern to the public. At the July 16 meeting the North Lakes Community Council weighed in on safety, citing particular concerns for the Bogard/Seldon Road corridor that is heavily used and is in a core area of Mat-Su with 10,000 residents.

Rod Hanson, speaking for the council, asked for an update on efforts to alleviate traffic pressure.

“The valley is growing, and we can see the impacts in our areas,” Hanson said.

He expressed a sense of frustration on the council because the problem on this corridor has been known for years – it was predicted by borough planners in 2017 and reinforced in a consultant’s report in 2022. “Nothing has been done,” Hanson told the assembly.

Developers are continuing to build housing but there is little regard being given for constrictions on roads and increased traffic being generated, he said. Hanson cited three or four areas where drivers are taking short cuts through neighborhood streets to get around congestion on roads. This increases safety hazards.

Hanson also suggested the state designate Bogard Road as a designated “Safety Corridor” as was done on the Knik-Goose Bay Road. There is increased police enforcement and higher fines for violations on state-designated Safety Corridors.

There are 11 road projects on the proposed $51.8 million bond issue. Four are new to voters, including an Engstrom North Extension to Tex A1 with a $6.1 million pricetag; an upgrade of Johnsons Road, at $3.3 million; paving and restoration of Settlers Bay Drive for $2.7 million, and pavement restoration on Lakeview Road, for $920,000.

The next three projects on the list, Green Forest Drive restoration for $6.2 million; King Arthur Drive reconstruction at $2.1 million, and various school site safety improvements for $12 million, were previously approved by voters but this was contingent on the state picking up 50% of the cost. The Legislature failed to do this, so the bonds could not issue.

Voters are being asked again to okay the three projects but this time with borough taxpayers picking up 100 percent rather than 50 percent of the cost.

The last four projects, a Hemmer Road extension at $6.5 million; Fern Street reconstruction at $4 million; Lucille Street reconstruction also for $4 million, and a Tex A1 Drive extension for $4 million, were previously approved by voters with the borough paying 100%, will not need voter approval again but they must again be okayed by the assembly.

If the entire $33.3 million package is approved the annual debt service is estimated at $2.56 million. Paying that will require an increase in the property tax mill rate of 0.183 mills, although the borough can use any source of revenue pay the debt service.

Four charter school new buildings, on a proposal for separate bonds, include a new Academy Charter School building at $16.39 million; an American Charter Academy building at $15.1 million, and a Birchtree Charter School building at $26.6 million.

If voters approve all of the $58.1 million in bonds the annual debt service would be $4.4 million per year, which corresponds to .314 mils added to property tax mill rates.

However, the charter schools will contribute 12.5% of their operating budget to help pay the debt service, which would total $1.39 million per year.

It’s likely that charter school enrollment will climb when buildings and new capacity are added, since there are waiting lists for children to get into the schools. This will increase state funds supporting the schools and also increase the schools’ contributions to the bond debt service.