Borough manager highlights accomplishments, goals in proposed FY 2026 budget

Editor’s note: The Matanuska-Borough Assembly made final decisions on the borough’s Fiscal Year 2026 budget last Thursday, May 1. Borough manager Mike Brown detailed major items in the budget in his letter to Mayor Edna DeVries and the assembly. The budget goes into effect July 1, 2025. Here is Brown’s letter:

The total (borough) budget is $484,706,550 a 6.56% increase as compared to the prior fiscal year’s amended budget. The Proposed Budget includes an Areawide mill rate of 8.612, a decrease from the current mill rate of 8.748.

The proposed budget resources Assembly priorities: developing transportation and recreation infrastructure; sustaining Borough operations, including schools; developing efficiencies that improve services and ensure sustainability, and adjusting for increased costs for staff, goods, and services. The Local Education Contribution for schools has increased by 4% over the current fiscal year, yielding $78,033,127. This amount aligns with the School Board’s request in Resolution 25-001.

Additionally, $2,450,000 for school capital needs is included, primarily related to boiler replacements in five facilities. For recreation infrastructure, an appropriation is proposed to increase the project funding for the Jonesville Public Use Area by $500,000, supporting the development of a public shooting range and associated amenities.

The Proposed Budget includes the following new recurring expenditures: 1) annual debt service for the recent sale of education and transportation bonds approved by voters in November 2024; 2) the acquisition of the Big Lake Lion’s Center; and 3) an appropriation for the non-federal match for transit services. For other key services, fire service area revenues were limited to a 3% increase, and road service areas were set at a 5% increase to adjust to the increased maintenance costs and continue to allow for capital improvements over current levels.

Over the past couple of years, the Borough completed paying off all debt service for Port MacKenzie as well as completing a $10 million project to protect the deep draft dock and extend its useful life by approximately 25 years by using a U.S. Economic Development Administration grant. Simultaneously, the Borough has been advancing a design for a new barge ramp at the Port aided by federal funding. Currently, the Port’s infrastructure limits its capacity and ability to handle larger vessels and cargo volumes, thus limiting its potential for economic growth.

A barge ramp would significantly diversify the Port’s ability to haul barges and other vessels out of the water for inspections, storage, maintenance, and repairs, which would be a significant attraction and create job opportunities. The Borough utilized $4,750,000 in federal funding to facilitate the design and prepare for construction. The design is complete, and a permit has been submitted to the U.S. Army Corps of Engineers. The cost estimate suggests an additional $2,500,000 appropriation is warranted to support the project’s construction, which is included in the Proposed Budget. The additional appropriation and federal funding will make $6,700,000 available for construction, nearly two-thirds of the funding being federal source and no new debt.

The Borough Administration is sensitive to the recent push at the national level for government efficiencies. The Administration has and will continue to review annual budgets for opportunities to create efficiencies, reduce costs, and adjust operations based on priorities, needs, and technological improvements that warrant changes in business processes and resourcing.

We will highlight a few efficiencies in the Proposed Budget for this coming fiscal year.

• The Borough proposes outsourcing ambulance billing to a third party. This action will save approximately $370,000 annually while enhancing efficiency, reducing administrative overhead, and improving compliance management. It will lead to permanently reducing one full-time employee and repurposing two other full-time employees to support budget and risk management.

• Community clean-up efforts for Borough lands and private clean-up will be consolidated under one department. Employee healthcare continues to be an area of emphasis. The healthcare committee and concierge continue to evaluate plan changes that improve services while leveraging cost-containment strategies.

• Planning has retained three part-time (on-call) employees to support digitizing files for many years. However, this year, resourcing will be reduced, and the positions will be phased out entirely in the following fiscal year.

• With the acquisition of the Big Lake Lion’s Center and the recent changes to the pools and ice rink reservations platform, Parks and Recreation is consolidating oversight of pools, the Brett ice rink, the Big Lake Lion’s Center, and Willow and Talkeetna ice rinks under one manager. This will improve the administration and create opportunities for future efficiencies.

• Our Human Resources Department has begun digitizing personnel files and will utilize digital workflows for standard

functions to improve efficiencies and reduce costs.

• Our Information Technology Department continues modernizing and improving public service delivery. From

permitting and tax reporting to park and pool reservations and our website redesign, we are investing in digital tools that make services more accessible, efficient, and transparent for our citizens. In early April, the Assembly received a more detailed report on these efforts.

• This summer construction season will see the development of several Landfill projects that will improve services for residents and ultimately reduce costs. The new Landfill entrance, tipping floor, and scale house will significantly improve operations and diversion.

Additionally, efforts continue to evaporate leachate on-site and provide composting and recycling services. A detailed report was provided to the Assembly on December 3, 2024.

In this Proposed Budget, the average homeowner in the Matanuska-Susitna Borough will pay an average of $3,342 in areawide property taxes, based on an average assessed value of $388,087. When considering the entire budget, 58% (of this) funds education operations, 16% funds borough operations, and 26% funds debt service, capital projects, and operations of Fire Service Areas, Road Service Areas, enterprise funds, and other service areas.

The Proposed Budget allows the Matanuska-Susitna Borough to continue adapting to our community’s growing needs while remaining fiscally conservative. We want to credit the Borough employees who participated in preparing and developing this Proposed Budget. The department heads and their staff worked hard to create responsible department budgets.