City classifications: 1st class vs. 2nd class cities

Not all cities are created equal. There are important differences between first-class and second-class cities that affect how they operate and what powers they have. This is especially relevant for residents of the Matanuska-Susitna Borough, where we have examples of both types of cities. Let's break down what these classifications mean and why they matter.

First, it's important to understand that Alaska has a unique system of local government compared to most other states. We have just two types of municipal governments: cities and organized boroughs. The Mat-Su Borough is an organized borough, and within it, we have both first-class and second-class cities. Other states have multiple overlapping local government entities, like counties, townships, and special districts, that can duplicate services and decrease efficiency.

Often asked is, what's the difference? First-class cities are larger and have more responsibilities than second-class cities. To become a first-class city, a community must have at least 400 permanent residents. The voters also have to approve this incorporation. This higher population threshold means first-class cities are typically more developed and have a greater capacity to provide services. A city can change from one class to another by vote.

One of the biggest differences is in property taxing authority. First-class cities can levy up to 30 mills in property taxes without voter approval. Second-class cities are limited to 20 mills and must get voter approval for any property tax increase. This gives first-class cities more financial flexibility and the ability to raise funds for services and projects more easily. It also gives residents of second-class cities more of a supervisory role over their public funds.

Another key distinction is in planning and land use powers. First-class cities are required to exercise planning, platting, and land use regulation powers if they're in the unorganized borough. In an organized borough like the Mat-Su, the borough may permit them to exercise these powers. Second-class cities have the option to take on these responsibilities, although it is never required. Houston has planning authority after Borough approved their adoption in the 2000s. Houston has zoning authority but does not have platting and subdivision authority, which remains under the Borough.

Education is another area where we see differences. If a first-class city is outside of an organized borough, it must provide public education. Second-class cities are never allowed to run their own school districts. However, the Mat-Su manages education at the borough level, so this distinction doesn't come into play for our local cities.

The structure of city government also varies between the two classes. First-class cities have a six-member city council elected at-large, while second-class cities have seven council members. In first-class cities, the voters elect the mayor separately for a three-year term. In second-class cities, the council members choose the mayor for a one-year term unless an ordinance provides a longer term.

Mayoral powers also differ. In a first-class city, the mayor can vote to break a tie on the city council. In a second-class city, the mayor votes on all matters just like other council members. Mayors of first-class cities generally have veto power over council actions, while second-class city mayors do not.

In the Mat-Su Borough, we can see these differences in action. Palmer and Wasilla, for example, are first-class cities, while Houston is a second-class city. This means Palmer and Wasilla have more autonomy in areas like planning and community development, greater taxing authority, and a different governmental structure compared to Houston. But Houston voters have a more direct say in how the city taxes them and what services they provide.

Why does this matter to residents? The classification of your city affects what services it can provide, how much local control it has, and how it raises and spends money. It influences everything from property taxes to land use decisions to the structure of your local government. Understanding these distinctions can help you be a more informed and engaged citizen.

As communities in the Mat-Su continue to change, classifications evolve too. In 1966, Houston incorporated into a third-class city. In 1969, the voters reclassified it as a second-class city by vote. Alaska no longer recognizes third-class cities.

Residents in many communities in the Mat-Su have considered incorporating their communities. Talkeetna, Sunshine, Willow, Big Lake, and Knik have held discussions over the years. It went all the way to the ballot box for Talkeetna and Big Lake residents, both of whom voted it down.

Knowing the powers and limitations of your city can help you participate more effectively and in local decision-making. Remember that your City Clerk can answer any questions you have about your city’s structure and governance.

Christian M. Hartley is a 40-year Alaskan resident with over 25 years of public safety experience and public service. He runs a freelance business, Big Lake Writer, from home in Big Lake that he shares with his wife of 19 years and their three teenage sons.