By SHANNON HAUGLAND
Sentinel Staff Writer
The Assembly will vote tonight on final approval of the city’s fiscal year 2023 general fund budget as well as the enterprise fund budgets, which have increases in user fees for utilities and harbor moorage.
The meeting starts at 6 p.m. in Harrigan Centennial Hall.
Other items on tonight’s agenda are approval of the FY2023 property tax rate, rules for remote participation in Assembly meetings, and liquor license renewals and applications.
Later in the meeting the Assembly will vote on approving the goals of the Health Needs and Human Services Commission, and a resolution to “decarbonize” city facilities and modes of transportation by 2030. A proposed resolution to seek a grant for a project researching the history of Alaska Native boarding schools and orphanages also is on the agenda.
The sponsors of an ordinance to place a marijuana tax question on the Oct. 4 election ballot have said they will ask for postponement of the final reading of that ordinance.
The Assembly also plans to discuss options for raising funds to build a community boat haulout. (See Monday’s Sentinel.)
City Budget Items
The first budget item tonight is a resolution adopting and levying the FY 2023 property tax rate, which will be unchanged from the present rate of six mills. Two mills are for the city general fund, and 4 mills go to school support.
The assessor completed the final assessment records and said the total assessed value of all taxable real and personal property as of Jan. 1, 2022, is $1,185,104,740.
In his memo, City Assessor Larry Reeder said there is an overall increase of 1.008 percent in tax valuation, mostly due to new construction and reappraisal of real property accounts. The value of real property went up 1.0095 percent, and personal property valuation decreased by 1.027 percent mostly due to depreciation.
The revenue side of the general fund budget reflects a general agreement of the Assembly and the Administration on an “optimistic but cautious approach” in predicting income. Expectations are that sales tax revenue will rebound from the effects of the pandemic but not grow significantly.
The expenditure side of the general fund shows an increase of 15 percent.
“Both inflation, increased tourism and maintaining momentum on improvements in municipal operations have impacted the expenditure side of the budget resulting in an increase of 15 percent from spending anticipated through the end of the year,” said Finance Director Melissa Haley, in a budget memo to the Assembly.
The general fund is expected to end the fiscal year on June 30, 2023, with a surplus of $380,000.
Budgets for the enterprise funds will be approved with passage of a separate ordinance. Most of these budgets are funded by user fees for water, sewer, electricity and solid waste services and boat moorage in the harbors.
The staff memo says enterprise funds are also affected by inflationary pressures, particularly related to capital project costs.
“With a year-to-year CPI increase over 7 percent at the time of budget development the rate increases in many cases are higher than prior year inflationary increases,” the memo said.
The Assembly has provided direction to city staff on various elements of the budget, including rate increases, at budget meetings over the past several months.
The rate increases are 4 percent for electric, 5 percent for water, 8 percent for wastewater, 7.5 percent for solid waste and 8.3 percent for harbor.
One of the stated goals for the budget is “ensuring future spiked increases are mitigated,” which means preventing the need for rate “spikes” in future years.
In other business tonight the Assembly will consider a new ordinance on utility subsidies for needy households. On April 7 the Assembly increased the amount in the subsidy fund to $356,400, and to increase the monthly subsidy available to $100. This year the fund the maximum grant has been $65.
Those wanting to apply for assistance can qualify through their participation in Supplemental Nutrition Assistance Program, Baranof Island Housing Authority, Medicaid or national school lunch programs.
One item up for final reading tonight is an ordinance on remote participation by Assembly members at Assembly meetings, in line with changing technologies. The code in the past allowed for telephonic participation, up to four regular meetings in a year.
The proposed ordinance allows for videoconference participation only, and the video on the remote end must be left on except during breaks.
The proposed ordinance says members of the public who wish to offer testimony by telephone must notify city staff by 5 p.m. the day before date of the regular meeting.
