Borough assembly tackles numerous issues at meeting

PALMER — The Mat-Su Borough Assembly chaired by Deputy Mayor Matthew Beck dealt with a number of issues concerning the upcoming budget process.

Mayor Vern Halter and Manager John Moosey did not attend the meeting, as they are in Juneau for scheduled visits with the legislature. Assemblyman Jesse Sumner attended the meeting via teleconference, as did Ted Leonard, who entered nearly an hour-and-a-half after the meeting had started. Assemblyman George McKee also arrived late, and made quite the entrance once he did. McKee suggested that the assembly not schedule their preliminary budget meetings due to the uproar caused by the release of Gov. Mike Dunleavy’s budget proposal last week. McKee argued that the assembly should wait until the state funding situation is figured out and proceed with more certainty. Assemblyman Jim Sykes said that he had not ever been present for a ‘normal’ budget year and that the assembly should deal with it as quickly as possible in order to taxes filed and mailed by July 1.

“The Governor’s budget is seeking to pass down a devastating blow to all municipal governments and we need to be aware that that’s happening and lobby our legislature to hopefully not have that happen. Regardless we have a requirement to our citizens to provide a balanced budget on time and on schedule,” Assemblyman Dan Mayfield said.

McKee proposed a compromise in jest.

“We could resolve whole matter right now by a majority of Assembly agreeing to cut the borough budget by 40 percent,” McKee said.

“I’m going to wait until after the public hearings though,” Beck said. “Can we schedule those meetings and drop kick and punt if we have to?”

McKee had additional complaints for auditor Joy Merriner, who presented the Comprehensive Annual Financial Report to the assembly, highlighting the checks and balances in place to continue operating through the cyber attack and the earthquake.

“Your team really went above and beyond to make that happen,” Merriner said.

Merriner informed the assembly that she expects the Mat-Su Borough to receive a CAFR Certificate of Excellence for the second year in a row, after the MSB earned a certificate in 2017.

“That’s a big accomplishment for your management team to be able to get a CAFR certificate. It’s hard. It’s a lot of work. There’s a lot of information in here,” Merriner said.

Total Borough expenditures were $2.7 million less than budgeted, and Merriner commended the management for keeping budgets financially and fiscally responsible. The borough maintains over $1 billion in assets, mostly in buildings and has $45 million in liabilities like bonds that will be paid off over time. Total expenditures for the borough were $96 million and total revenues increased by $10 million from last year at $142 million. Merriner then discussed the borough’s proprietary funds of Port Mackenzie and the solid waste fund.

“You did receive a $2.4 million settlement from an insurance recovery, so that was recorded this year which actually brings that port fund to a much better financial position,” Merriner said.

McKee did not agree.

“One thing struck me talking about the Port, $1.4 million dollars for the insurance, that was not revenue coming in. That in fact was payment for an expense. How could that be improve our financial, it’s a zero,” McKee said.

Merriner attempted to clarify, saying that the cash came in as an insurance recovery and losses has been taken in prior years.

“My apologies for badgering you, but, you’re wrong,” McKee said.

“I appreciate where you’re coming from as well, assembly member McKee, but I think the badgering is misplaced,” Beck said.

McKee asked Beck who he should be badgering, and told Beck that he did not care if his attitude was not appreciated.

The assembly held a public hearing on ordinance 19-027, accepting $5 million in additional insurance funding for repairs from the Nov. 30, 2018, earthquake.

“I think it speaks well of the insurance company to do this in advance because we already know that we have more than 5 million dollars in claims. I strongly suspect we have more than 25 million dollars in claims but they’re still being sorted out,” Sykes said.

The Assembly passed the ordinance unanimously.

Contact Frontiersman reporter Tim Rockey at tim.rockey@frontiersman.com.