Borough’s rural areas use less, get less

WASILLA — A study by Mat-Su Borough officials shows rural areas receive less money for services than the borough’s core areas. But, the study’s author said, those areas also need fewer services.

The study makes the case that opening undeveloped land for residential development outside of the cities is likely to incur additional expenses as the borough’s population increases.

The study divides borough land into three different categories: the most highly developed land in the borough’s three cities; developed but unincorporated areas outside the cities; and largely undeveloped land outside the borough’s main area.

In the borough’s most-developed regions, areas receive about $1.17 worth of services for every dollar of revenue they provide for borough coffers from fire service areas, road service areas and all other funds. In the community council areas outside of the cities, residents receive $0.97 in services for every dollar of revenue they bring in. In the least-developed areas, residents receive $0.87 in services for every dollar they bring in.

The results aren’t surprising, said the study’s author, James Wilson. He used Skwentna — typically only accessible only by boat, plane, ATV or snowmachine — as one example.

“We know in the Skwentna area, there a certain amount of revenue coming in from property taxes, and we also know we provide services to the Mat-Su Borough as a whole,” he said.

Some of those revenues are directed to things the residents of Skwentna use, like the waste transfer site. However, the borough also spends money on things like road maintenance in Meadow Lakes, or upkeep on the Brett Memorial Ice Arena in Wasilla, which the residents of Skwentna likely won’t use, Wilson said.

“The summary would be, the more remote you are, the less services that are probably utilized or needed,” he said.

New residential development doesn’t increase the tax base enough to account for the services it requires, Wilson wrote in the survey’s conclusion.

“This is not an argument against growth, but recognition that other areas of the Borough that have revenues in excess of providing services in those areas would be used to offset any revenue shortages in the more developed areas,” he wrote.

The findings should factor in to decisions about incorporation as well as annexation, Wilson said. City councils considering annexation should focus on the math, and evaluate what services they will provide against what revenues they’ll get out.

“If you want to annex, you really want to look at it closely,” he said. “Many times, the needs of providing additional services in those areas — parks and recreation, road service, libraries — many times it may cost you more than the revenue it will bring in.”

Contact reporter Brian O’Connor at 352-2270, brian.oconnor@frontiersman.com, or on Twitter @reporterbriano.