Public input sought

May 3, 2005

DARRELL L. BREESE/Frontiersman reporter

MAT-SU - The Mat-Su Borough is set to host a pair of public hearings for the 2006 operating budget in the next 10 days, meaning it's time to take a close look at where its proposed budget of $232,444,283 will be spent.

"Some difficult decisions had to be made," Borough Manager John Duffy said. "Cuts had to be made to every department's budget request to reach the proposed budget. In the process, we strived to balance the overall needs of the entire borough."

The proposed budget is a $27,134,275 increase over 2005's and reflects the stress continued growth is placing on borough services.

"It means more wear on roads, more students in school and increased pressure on the borough," Duffy said. "The 2006 budget reflects an effort to address the points of greatest stress while maintaining a balance for all borough services."

Despite across-the-board cuts to the requested budgets from departments, increases in funding over last year were made in every department.

Mat-Su Borough School District landed the largest bite of the 2006 budget in spite of claimed budget shortfalls. The proposed school budget represents an 11.7-percent increase over the 2005 budget and the $162.1 million allocated for schools represents an increase of $13.2 million over last year's budget - the largest single budgetary increase proposed.

Borough operations account for $28.1 million of the 2006 budget, money used for the day-to-day operations, to pay employees, maintain buildings and conduct business.

There is a proposed net increase in permanent employees included. The increase is necessary to keep pace with additional demand for services as related to the borough's average population growth. Current estimates allow for one new employee for every 295 residents. By comparison, the city of Anchorage allows for one new employee for every 130 residents.

Among the 10 new positions are a public affairs manager, a Medic One for the Central Ambulance service, a records technician in the clerk's office and two full-time workers in the planning and land use office.

This is another area where some cuts were made to the budgets requested by departments. "Originally the departments requested 25 new positions, but we had to reduce that down to the positions that would best serve the community," Duffy said.

The budget also includes increases in the areawide fund for growing needs in Information technology and increases for personnel to address the needs in administration, finance, planning and land use, emergency services, community development and the port.

Appropriations for capital projects account for another large portion of the 2006 budget. About $12.5 million includes projects for indoor/outdoor recreation, repair and maintenance of borough facilities, infrastructure, emergency service and road projects. Additionally, there are grants to the Mat-Su Convention and Visitors Bureau and other entities.

"We have funding for several road projects in the budget," Duffy said. "The extension of Seldon Road to Church and several local road service area projects are part of the budget plans. There is even $1 million available in a matching funds program for the road service areas."

Duffy continued to highlight several capital projects, including new road signs in the northern part of the borough, further development of the Hatcher Pass trail system and a planning study for a possible water and sewer system.

"The challenge with capital projects is that we have to anticipate the needs that accompany the current rate of growth the borough is experiencing," Duffy said. "The sewer and water study is an example of how we have to start anticipating ways to get a better handle on things. With all the growth, we will eventually have to make a transition to a sewer and water system in key areas."

Other items included in the capital funds portion of the budget include the purchase of safety-related equipment. Among the expenditures are two ambulances ($250,000), rescue equipment ($146,500) and new vehicles ($150,000). A million dollars is also included for a new building to house Trapper Creek Ambulance.

Continued payment toward debt reduction will account for $14.6 million of next year's budget. Funds will be used for bonds for school facilities, the Central Mat-Su Public Safety Building and the parks and recreation.

Duffy hinted at some future capital expenses, saying that because of the new Mat-Su Regional Medical Center, the fire department will require a new ladder truck. And, increased population will mean new roads and the possibility of expansion sewer and water services.

Additionally, the proposed budget figures in a certain level of emergency funding and reserve.

Duffy said in his budget letter to the mayor that "In keeping with the Borough's sound fiscal management policies approved in previous years, this year's budget includes funding of the emergency response reserve, capital reserve and reserve for major repair and renovation."

That reserve will total approximately $13 million at the end of the fiscal year, June 30, 2006.

Where does all the money come from?

Expected revenues for the year total $229,442,178, approximately $3 million short of the 2006 budget expenditures. To make up the difference, the borough will tap into the $22 million in remaining fund balances. Despite the expenditures being over the expected revenues and spending some of the reserve, the proposed budget is expected to have nearly $20 million left over at the end of the fiscal year.

The largest source of funding in the 2006 budget comes from the state of Alaska, $111.4 million, which is primarily used to fund education. Taxes are projected to ring in $78 million and federal funds account for $24.4 million in revenue.

The first of two public hearings will be held 7 p.m. Thursday in a special session of the Assembly. One week from today, the final opportunity for public comments will be May 12.

Both meetings will be held at the Central Mat-Su Public Safety Building, 101 W. Swanson Ave., Wasilla. The Assembly has then scheduled two special meetings on May 24 and 26 to approve any amendments and adopt the budget in Assembly Chambers.