Palmer, Wasilla grow 15 percent

EOWYN LeMAY IVEY-Frontiersman reporter

More cars on the roads, longer lines at grocery stores and post offices - Palmer and Wasilla residents can see for themselves that their towns are growing. And now there are hard numbers to back them up.

Based on statistics recently released by the Alaska Department of Community and Business Development, Palmer and Wasilla have both grown about 15 percent in population during the past two years -- an annual growth rate of more than 7 percent.

This kind of increase, according to state labor economist Neal Fried, is unique to the Mat-Su Valley.

"You are definitely in your own league … I know people there realize the Valley is growing fast, but I don't know if they realize they're the only ones," he said.

Fried said this is a change from the 1970s and 1980s when the Valley grew rapidly along with other areas of the state.

"This last decade and in recent years no one is growing fast but you," he said. Fried said last year was a first for Alaska -- significantly more people moved here than left.

"And I suspect the Valley … captured a disproportionate number of that increase," he said.

Many of Palmer and Wasilla's newest residents may be among those who commute to work, not just to Anchorage but also to remote places for fishing, mining and other industries.

"Alaska has lots of remote work sites where people work but don't live," Fried said. "These people have to decide, 'Where am I going to live?" and obviously a disproportionate number are saying 'I want to live in the Valley.'"

Fried said there are several factors that could be influencing these decisions -- affordable housing with the possibility of having more land or lakefront property, a large airport nearby for commuting and the accessibility of healthcare and other basic services.

Like those who live in the towns, Wasilla city officials knew the population was on the rise as they watched more senior and other housing projects being built during the past two years.

But the final numbers were even more impressive than they expected.

"We were taken aback," said Ted Leonard, Wasilla's finance director. From the 2000 census population estimate of less than 5,500, Wasilla grew to more than 6,300 in 2002.

"There are 874 new people," Leonard said.

Palmer observed a similar trend, with the population increasing from around 4,500 to nearly 5,200 since 2000, the last year population estimates were available for the two cities. This translates into a 14-percent increase during two years.

"Which is an astounding rate of growth," said Palmer City Manger Tom Healy.

He also pointed out that this number only reflects the population within the relatively small city boundaries and does not include the areas preparing to be annexed, which could add another 260 people.

With more people come more demands, and city officials from both Palmer and Wasilla say transportation, water and sewer, police and other basic needs have to keep pace.

At the same time, sale tax revenues for both Palmer and Wasilla have also steadily increased.

"Ideally you'd like to see a close correlation as population increases and demands for services increase, the revenues from those services and taxes keep pace with the demands," Healy said. "I think generally that's the case here. We have not had to look at any tax increases."

Palmer has been able to take on an aggressive program to pave more streets in town, with the city picking up as much as 75 percent of the bill. Healy says this is feasible because of the dollars coming in through taxes and grants.

Leonard said Wasilla's tax revenues have also steadily increased, although not at the expected rate. Last year, for example, tax receipts increased about 4.8 percent, less than the hoped-for 6.9 percent. Leonard attributes this in part to some of the economic uncertainty across the nation.

"We are finally seeing that effect trickle down," he said.

But Fried said relative to other areas of the country, the Mat-Su Valley's appeal as a place to live may allow it to fair better economically.

"More people are looking north for opportunities," Fried said.

So regardless of whether Palmer and Wasilla residents see a rising population as presenting more challenges or more opportunities, growth appears to be the theme of the Valley's past and near future.

"We see more on the horizon," Healy said. "Some of these agriculture lands are getting developed now. The trend around town, and in town, is that more properties are being developed. And more people are coming."