Talkeetna Sewer and Water, Willow Log Cabin receive allocations of federal relief funds from Mat-Su Borough

Last month, the Mat-Su Borough Assembly approved spending more than five million dollars in relief funding from the federal American Rescue Plan, and some of that money will be coming to the Northern Valley.

The largest line-item specifically targeted to the Northern Susitna Valley is about three-quarters of a million dollars to make up for lost sales tax revenue in the Talkeetna Sewer and Water district in 2020 due to the COVID-19 pandemic.  The figure is based off the tax numbers from 2019, just over a million dollars, minus what was actually collected.  So far this summer, sales tax revenue has rebounded significantly, but is still lower than in 2018 and 2019.

Funds from the sales tax, which applies to Downtown and most of East Talkeetna, must be spent on the sewer and water system.  

In addition to filling in for the revenue shortfall, the assembly approved $100,000 for a well and septic system for the Willow Log Cabin, which has served multiple functions over the years. The current intended purpose for the building is as a cultural and historic preservation site for the Willow community.

One of the usual sources of income for the borough focused in the Northern Valley also got a boost from the funds.  Just over a million dollars of the federal money was spent to make up for lost bed tax revenue.  Between two large lodges and many smaller accommodations, the Talkeetna and Trapper Creek areas typically account for a large majority of borough bed tax income.

At the August meeting where the spending of federal funds was approved, Mat-Su Convention and Visitor Bureau CEO Bonnie Quill asked that future expenditures include funding for borough trails as well as public restrooms in Talkeetna.

According to documents from the August meeting, almost five-and-a-half million federal dollars remain to be allocated.