Wasilla approves budget

EOWYN LeMAY IVEY-Frontiersman reporter

WASILLA -- Mayor Dianne Keller got a stamp of approval on her budget, and a raise to go along with it.

The Wasilla City Council unanimously passed Keller's $11.8 million city operating budget Monday night, with the only significant change being a $7,500 increase to the mayor's salary and benefits.

Councilwoman Diana Straub, who introduced the amendment, pointed out that the mayor's salary was reduced a number of years ago and since 1997 had remained unchanged at around $68,000.

"All of our city employees have had increases in that time," Straub said.

At the same time, council members said, since her election the mayor has never filled the deputy administrator position in the city and has instead distributed those responsibilities among other department heads and herself.

The council unanimously agreed the mayor was due for a raise.

"I think you've earned it … I really do," Councilman Ron Cox told the mayor.

The council's only concern as it prepared to vote on the mayor's raise seemed to be figuring out where the $7,500 would come from. At the beginning of the budget process, Finance Director Ted Leonard warned the budget was currently balanced and any money added would have to be taken away from another area. But Leonard advised the council that an unrelated $30,000 grant had inadvertently been left out of the revenue side of the budget.

"We're actually still ahead of the game," he said.

The raise will mean Keller's salary will be increased by around $5,000 to more than $73,000, with the remaining $2,500 going toward respective increases in retirement and other benefits.

The city clerk advised the council that according to city ordinance, once a raise is given it cannot be taken away -- during the rest of Keller's term she can only make that amount per year or more.

Other than this boost to the mayor's salary, which Keller told the Frontiersman she hadn't expected, the council's only changes came in the form of housekeeping amendments to make the budget document more accurate.

The final budget, which goes into effect July 1, brings no new taxes to the city. The property tax rate remains .5 mill, which Keller points out is the same mill rate as this year and since 1997 represents a 67-percent cut in property taxes. At the same time, Wasilla's sale tax will remain 2 percent on all retail sales, rentals and services, but the city is expecting the sale tax will bring in more than $7.1 million next year -- 5 percent more than this year.

Other budget highlights include the addition of another police officer, a road technician and an economic development director. The police officer will be dedicated to neighborhood patrols. The economic development director will head up a new department, one Keller said will be dedicated to retaining, attracting and expanding businesses that provide jobs and expands the city's tax base.

In addition, the budget includes an average merit salary increase of 3 percent for all eligible employees and additional training for city employees, as well as a 7.5-percent increase in health insurance costs and a 30 percent jump in Workers Compensation costs.

Several contentious items remain unresolved in this budget, however. The plan sets aside $140,000 for animal control, but the city has yet to reach a settlement with the Mat-Su Borough on an animal control contract. The current agreement expires July 1.

At the same time, the council is in the process of revamping water and sewer rates, with the item expected to come up at the next regular meeting.

Finally, Gov. Frank Murkowski has yet to wrap up the state budget. The city is preparing itself for the possibility of $140,000 in cuts in state support. However, Leonard said this could be covered by the $100,000 in contingency funds included in the city budget, as well as money from the animal control budget if a lower contract price is settled on.

During meetings the past several weeks the city council has spent hours pouring over each line item in the budget. While council members had numerous questions throughout the process, they left the budget relatively untouched in the end.

"Which is the part that's supposed to be really hard?" Councilwoman Straub said after the council unanimously approved the final budget.

"That part," Keller said.

The mayor and council then commended the finance department's efforts and budget presentation, saying it had made the process much less painful.

Councilman Noel Lowe was not present.