Borough leans toward covering last $1.1M with savings

PALMER — In the immediate wake of Gov. Bill Walker’s visit two weeks earlier, the Mat-Su Borough Assembly got to work on the tough task of filling a $5.7 million budget hole for fiscal year 2017.

Most of that initial work fell on Borough Manager John Moosey, who, on the night of Walker’s visit, informed the public that that more than $3 million of the deficit could be remedied by putting off capital expenditures. Along with hiring freezes, wage freezes and other smaller cuts, there was still $1.1 million to be accounted for.

In a memorandum released ahead of Tuesday’s regular Assembly meeting, Moosey asked that the final amount be paid through the borough’s budgeted cash holding of $25 million. Assembly members were in general agreement with the manager’s plan to cover the last $1.1 million with, what essentially amounts to the borough’s savings account.

Assembly member Steve Colligan described the cash holding as more of a “minimum bank balance,” and Borough attorney Nicholas Spiropoulos explained that borough rules required that the savings be at least 22.2 percent of the budget, or a hard number of $25 million, never to exceed that amount.

Borough Mayor Vern Halter wanted to know more about how much was available in the reserve, a sentiment echoed by other members.

“The budget reserve is one of the last places we need to go,” Assembly member Jim Sykes said. “We need to look at cuts first, then we need to decide if we want to cut out of the budget or raise revenues.”

Assembly Member Dan Mayfield said the Moosey knew better than anyone where to cut.

“For us to weigh in, and say to not cut this or that is basically just exerting political influence on the needs list,” Mayfield said. “There are some items on this (cuts) list that are near and dear to me that I would love to see get done.”

Randall Kowalke, representing District 7, did express disappointment at the cut in city block grants that aid primarily in building infrastructure and housing.

“What we did by taking those out, we did to these communities just what the governor did to us,” he said. “If we can avoid this, I’d like to see that happen.”

Moosey said the borough is under no particular rush to finalize the budget and that he would be back with more information about the size of the $25 million budgeted cash holding, which he will provide at the next meeting, slated for Wednesday, Aug. 17, moved back a day to accommodate the Aug. 16 primaries.

“I think I heard the assembly wants more detail,” Moosey said. “We’ll pick this apart and wear everybody out with budget talk.”

Moosey’s proposed budget cuts include the following:

Capital expenditures ($3,091, 720), Dust control match ($500,000), Previous projects ($170,000), Overtime freeze ($250,000), Hiring freeze ($150,000), Travel, training and conferences cut ($300,000), Contract work ($100,000), Other ($25,000), for a total anticipated reduction of $4,586, 720.