Borough passes budget

PALMER — The Mat-Su Borough Assembly passed a budget on Thursday night after two meetings worth of deliberation, lowering both the area wide and non area wide mill rates. The Assembly went through 19 amendments and made $651,000 in reductions to the presented budget and passed Ordinance 21-021 without objection. The areawide mill rate was reduced from 10.322 to 9.942. The non area wide mill rate dropped from .511 to .432. The amended budget provides a 1.2 percent decrease in budgeted expenses from last year with a four percent drop in the area wide mill rate and a 15 percent reduction in non area wide.

Budget amendment seven from Assemblyman Jesse Sumner moved to reduce area wide funds by $722,000 in order to move to Phase 3 of the lease termination agreement with NPI for Port Mackenzie. Port Operations Manager Therese Dolan said that the port has $173,000 in leases per year and Borough Attorney Nick Spiropolous clarified the terms of the lease termination that the Assembly pad passed. The borough will receive $722,000 of port profits, after which NPI will receive $722,000. Following that period, both the borough and NPI would receive half of the profits until both had received $722,000 and for another ten year period the borough would receive 80 percent of profits while NPI would get 20 percent. The borough also has two buyout options at $3.95 million under 24 months and $6.495 million after the first two years.

“In prev conversations with the borough manager I’ve explained any discussions about whether to accelerate the buyout or anything like that probably are premature right now because if August rolls round and we have to hire a contractor, that 722 number is going to drop by double the amount of whatever the contractor is but it’s in the budget now because of course, you approve the budget now in case you want to have the discussion later,” said Spiropolous.

NPI has until August to remove all other personal or real property from their previously leased lands at Port Mackenzie.

“I think it’s really difficult to speculate what the port income is going to look like for the next 10 years and by approving the 722,000 we’re not deciding to spend that right now, it’s giving us the option in the next 12 months if it looks like that would be in our best interest, the money is there. If it’s not we don’t spend it, so I think we have spent enough time on this I would like the option going forward to start the clock,” said Deputy Mayor Tam Boeve.

The amendment passed 6-1 with only Boeve voting in opposition.

Assemblyman Rob Yundt sponsored Amendment 11 which would grant MyHouse $100,000.

“I can tell you they’ve impacted a lot of lives. The statistics are just numbing what they’ve been able to do for our worst off children in our community. I know they have plans to try to build that next building,” said Yundt. “I can’t say enough good things about what they’ve done. I know there’s other good organizations out there too but none that I know of that are really just what they’re doing is simply just for kids who their situation in life cannot be any worse.”

Yundt had hoped to direct the funds toward construction of a new facility, but determined it to be unlawful to attach guidelines to grant funds through guidance from Spiropolous.

“I don’t mind giving MyHOuse a $100,000 blank check,” said Assemblyman Tim Hale.

Amendment 11 passed 6-1 with only Deputy Mayor Boeve voting in opposition. Amendment 12 sponsored by Assemblyman Mokie Tew moved to remove the new Utility Worker II position from the Solid Waste Enterprise Fund. Public Works Director Terry Dolan said that the $29,000 increase by hiring a full-time employee rather than having to rely on temporary on-call employees would be increased due to benefits.

“I think solid waste in the borough is almost double the national average of cost and I think that we need to work on that. I think we need to get it back or at least get it somewhat around what the national average is to get rid of the garbage. So by growing the landfill that’s definitely going in the wrong direction,” said Tew.

Tew’s amendment originally failed 4-3 but Sumner moved for immediate reconsideration. Ultimately, Amendment 12 passed 4-3 with Assemblymen George McKee, Sumner, Tew and Yundt voting in support.

McKee moved amendment 13 which would reduce the Central Mat-Su Fire Service Area by $1,002,211 with a reduction of three fire service captains and six firefighter positions.

“We are not a municipal firefighting borough, we are a backwater county borough that originally started out with the firefighters as volunteers okay. There was no intent ever to turn this into something that rivaled the fire department of New York City and that’s what this thing is kind of looking like so at this point I say no and I might change my mind if I were to get specific data downstream but given right now with a minimum amount of statistical data we have there’s absolutely no justification for putting in one million dollars worth of new jobs,” said McKee.

Department of Emergency Services Director Ken Barkley noted that the increase of nine personnel were to fully man one fire truck for one full shift for the Central FSA and has been planned by the FSA board for decades in advance.

“When I started our calls were about 400, maybe 500 a year, now we’re hitting that much in three to four months. The on call system can’t sustain that, It just cannot continue,” said Barkley.

Barkley said that only 18 full-time firefighter positions are staffed in the borough and Assemblyman Sumner noted that nearly 70 percent of the borough population lives within the Central FSA.

“I think some of what you’re saying is incorrect and I cannot support this something at the last minute just because you say that you think it’s wrong and you had one response at your house. That’s not going to sway me to do this so if you want it bring it back and give some time to think about it and give the fire service boards to input on it the public to input on it, but I’m mystified why this is coming at the last minute and ask us with statistics that we’re getting right here five minutes before and we’re supposed to vote for this, I can’t support that process,” said Assemblywoman Stephanie Nowers.

McKee’s amendment failed 5-2 with only McKee and Tew voting in support.