The Mat-Su Borough preliminary budget has been released, and the total figure is slightly smaller than the budget that ends on June 30th. KTNA’s Phillip Manning has seen the budget, and has this report:
In total, the Fiscal Year 2016 budget comes in at $400,722,754, which is about $4.3 million smaller than last year. About two-thirds of that money goes toward education. The rest is divided up in various operating and capital areas for the borough.
Also included is a proposed increase in the areawide mill rate. At a presentation to the Mat-Su Borough Assembly on Thursday, Borough Manager John Moosey said he has planned for a mill rate increase since early in the budget process, and that an increase, plus a borough-wide increase in property valuation would help bring in more money for the general fund.
Even with the property tax increase, however, the anticipated revenue comes in nearly $12 million short of the proposed expenditures. For the last few years, the borough has consistently underspent the budget, however. For the next fiscal year, about $9 million will come from unspent money in the current budget. Some Assembly Members have expressed concern that a fully spent budget could result in significant draws on reserves.
Why a smaller budget this year, but a higher mill rate? John Moosey says the state’s fiscal woes are trickling down to the borough. Additionally, the borough has reduced some of its revenue streams. That includes exempting seniors and disabled veterans from property tax at a higher value than is required, increasing the minimum value required for inventory tax, and instituting permanent vehicle registration.
Despite the borough-wide cuts, some local service areas, which are funded by their own mill rates, are seeing increases in funding. Caswell and Talkeetna Fire Service Areas both have larger budgets, as well as all of the road service areas from Willow to Trapper Creek. Willow Fire Service Area, Talkeetna Sewer and Water, and the Chase Trail Service Area all have small cuts in their respective budgets.
The Mat-Su’s enterprise funds, which are designed to be covered by user fees, also have an increase for the next year. Those include the Solid Waste and Port MacKenzie funds. The M/V Susitna fund is budgeted to decrease from about $700,000 to about $525,000.
Two public meetings are currently scheduled for the borough budget. The first will be on May 4th in Wasilla, and the second is scheduled for May 7th in Willow.
KTNA will continue to provide updates as the budget process moves along.
