Borough proposes shoestring budget

PALMER — With the public set to comment on the Mat-Su Borough’s proposed budget, Borough Manager John Duffy said the best term to describe the document is “static.”

What movement there is in the 2008-09 budget compared to this year is to keep up with rising fuel costs, inflation and other cost increases outside the Borough’s control, he said.

“We did not add any new programs,” Duffy said.

As of press time, public comments were set to commence Thursday evening with a second comment period scheduled for April 29.

The overall proposed Mat-Su Borough budget comes in at $282 million with $188 million of that going to the schools, Finance Director Tammy Clayton said.

Duffy said the budget has decreased by about $40 million from last year due to changes with the school district. The district hadn’t applied for certain grants and didn’t have to factor in obligations under the Public Employees Retirement System.

Factoring those areas out, the budget has increased by $3 million over last year, Duffy said. The budget also recommends a hike in the tax levy from 9.644 mills to 10.326 mills. That would equal a $100 increase on a $225,000 home, which is the average assessed value of a Borough home.

“Even though it’s an increase, there’s no doubt about it, it isn’t a very large increase,” Duffy said.

Duffy said that, looking at the state’s capital budget, it seems like the Borough is due to receive some state cash through a revenue sharing program and relief for obligations under the Public Employees Retirement System.

That amounts to about $5 million, which could easily make up the difference and allow the Borough Assembly, as it did last year, to reduce the proposed property tax increase, Duffy said.

“If the Legislature hadn’t come through with revenue sharing and PERS we would be in a world of hurt,” he said.

Although the state’s budget has yet to feel the sting of the governor’s veto pen, Duffy said given Gov. Sarah Palin’s public statements in support of the funding, “We’re not concerned that she’s going to veto that.”

He said there is probably enough money to even bank some to be used to keep property taxes low in coming years.

Though the proposed 2009 budget is static, Duffy said Borough staff has asked the assembly to approve a number of new positions.

Eight of those will be at the landfill, paid for through fees at the facility. Basically, Borough staff would replace jobs previously contracted out to a private firm, something an economic study recently conducted by a consulting firm shows would be more cost-effective, Duffy said.

Two new positions in the Wasilla-Lakes Fire Service Area are also in the budget, but will be paid for through the service area’s funds, Duffy said.

The Borough is also asking for a new secretary in the Borough manager’s office, a new programmer for its report-taking system, an appraiser for the Assessment Division, three facilities maintenance specialists in the Public Works Department, an outdoor recreation technician for the Community Development Department, an EMS chief for Palmer Ambulance, a secretary for the Borough Clerk’s Office and a telecommunications technician to take care of radio equipment.

Many positions are merging a number of part-time or on-call positions into one or increasing a part-time position into a full-time one, Duffy said. The outdoor recreation technician, for example, will replace a part-time position where the employee works hours equivalent to 84 percent of a full-time job.

Even with the additions, Duffy said the Mat-Su Borough would still have the lowest employee-to-population ratio in the state.

2 new fire stations

The proposed budget also includes money for a fire station for the Greater Palmer Fire Service Area to be built outside Palmer city limits, and for a fire station at Mile 12 Knik-Goose Bay Road, Duffy said.

Dennis Brodigan, director of emergency services, said there’s also money to lease or enter a lease-purchase agreement on a new emergency services building. The department’s current office space, in Fire Station 6-5 on Seward Meridian Parkway, is cramped.

“There’s no room for us to expand without imposing on the actual function of the station,” Brodigan said. “The Wasilla Lakes Fire Service Area would like to have this as an actual fully functioning fire and rescue station.”

Duffy said that, while this year’s budget is static and the Borough has enough money to pay for what it’s already doing, he sees problems in next year’s budget.

Holding to current funding methods, the North Colony Road Service Area, the Willow Fire Service Area and the Borough’s non-areawide fund, which pays for such things as animal control, libraries and a number of other functions, will be in arrears, he said. Many road service areas will have no money to do road improvements.

“We’re struggling with how do you address that,” Duffy said.

Contact Andrew Wellner at andrew.wellner@frontiersman.com or 352-2270.