Proposed Mat-Su budget smaller than last year's, but still comes with a tax hike

PALMER — The Matanuska-Susitna Borough may be the fastest-growing area in Alaska, but is nonetheless proposing a lower budget than last year and a property tax hike to go along with it.

Mat-Su topped 100,000 people last year. Demographers say it keeps growing, bringing associated costs for roads, schools and other services.

The borough has fewer employees per resident — 1 for every 330 — than any other Alaska municipality, officials here point out. They say they've tried to keep costs down despite state budget cuts and limited revenue sources outside of property taxes.

"We are the second largest community in Alaska," says a borough budget proposal being aired at public hearings this week. "Unfortunately, we are still behind on infrastructure to support that population."

The borough has already held public budget hearings in Wasilla and Palmer, with another scheduled for 6 p.m. Thursday at the Willow Community Center.

The Mat-Su Assembly starts budget deliberations May 3.

Officials are proposing a $392 million budget, some $9 million lower than last year's roughly $401 million budget. Requests for more information about the reduction weren't immediately answered.

The proposed budget includes a property tax hike that would cause an average increase of $33 for a $200,000 home.

It also recommends raising rates to cover the rising cost of providing services including at the landfill, where rate have already gone up several times in recent years.

There is only one new position in the proposed budget: An animal control shelter assistant.

Numerous sectors are running in the red, including the borough's struggling port on Point MacKenzie.

The borough Assembly held property taxes down for six budget cycles with a combination of grant-funded infrastructure improvements, a tobacco tax increase and cash reserve spending, according to the budget document.

It goes on to say that trend wasn't sustainable when coupled with lost revenues stemming from reduced vehicle taxes, higher senior and disabled veteran property tax exemptions, increased business inventory exemptions and reduced state revenue sharing.

The proposed comprehensive budget for fiscal year 2018 totals $392,519,858.

Nearly $246 million is for school operations. The borough is proposing to give the school district almost $56 million in local contribution, plus another $33 million for debt service reimbursement offset by $22 million from the state.

Also included is $54 million for borough operations, $11.7 million for fire service area operations, $12.4 million for road service area operations, $10.1 million for the solid waste and port enterprise operations, $14.5 million for capital projects, and $2.7 million for other service areas and 911 operations.