Wasilla taxes remain same

WASILLA -- No new property taxes, another patrol officer and a new economic development department -- this is what Wasilla Mayor Dianne Keller is proposing for next year's budget.

At a special meeting Monday Keller outlined her administration's operating budget plan for the next fiscal year, which begins July 1. The $11.8-million budget includes an estimated 5-percent increase in sales-tax revenue and a continued .5 mill rate for property taxes. Keller pointed out this is the same mill rate as this year, and since 1997 represents a 67-percent reduction in property taxes.

"We are proud of this budget," Keller told the council in her budget message. "We 'held the line' and are able to present a general fund operating budget that is 1 percent lower than last year's."

While she has not yet presented the details of her capital budget proposal, Keller said the cuts to the operating budget enabled the city to transfer more than $1 million to infrastructure projects and nearly $300,000 to a special revenue fund for the library.

"The mayor was brutal to the department heads," joked Finance Director Ted Leonard. He said Keller mandated a 1-percent cut across the board while still requiring departments to meet all of the council's goals. The only area that was exempt from this cut was the library.

"They are bare bones as it is," Keller said.

Also in her budget proposal, the mayor is adding an additional police officer, a road technician and an economic development director. The police officer will be dedicated to neighborhood patrols. While campaigning for mayor, Keller said, this was something she heard the community requesting again and again -- more neighborhood patrol.

With the added position of economic development director comes an entirely new department for Keller's administration, one the mayor said will be dedicated to retaining, attracting and expanding quality businesses that provide jobs and expands the city's tax base. Some of the department's tasks would include establishing partnerships with economic development organizations, improving the community's image, promoting the city as a place for new businesses to locate, completing a community profile targeted at businesses and completing a strategic economic growth plan.

While the economic development director is a new position, in a budgetary sense it takes the place of the deputy administrator position that has remained unfilled since Keller was elected. Keller said the duties of that position have been dispersed among the department heads and herself.

While these are some of the more significant changes for next year, the 450-page budget document also outlines other details, including the following:

Average merit salary increase of 3 percent for all eligible employees.

Health insurance costs increasing by 7.5 percent.

Worker's Compensation costs increasing by 30 percent.

Additional training for employees.

Planning Department transferred to Public Works and the position of economic planner eliminated in exchange for the separate economic development department.

Increased library funding from the Mat-Su Borough, which will be used to purchase a book security system and update book collection.

Maintained funding for Mat-Su Youth Court.

Several factors remain unknown in the budget, however. The council has yet to settle on a new rate for sewer and water service for the city, and the city and borough have not come to terms on an animal control contract. In addition, the finance director said, if the state cuts its municipal revenue sharing, the city could be forced to further reduce its budget.

As council members peruse the administration's proposal, Leonard reminded them that the budget is currently balanced. Any additions in one area, therefore, would have to result in a reduction somewhere else.

The council will continue to review the budget during its next regular meeting, scheduled for Wednesday, May 28, because of Memorial Day. If necessary, the council could have an additional special budget meeting on June 2. The council is expected to adopt a final budget at its June 9 meeting.

A copy of the budget proposal is available for public review at Wasilla city hall.