News from Patrick Flynn

On Friday, October 2, the administration unveiled it’s 2010 budget proposal at a City Hall work session commencing at 11:30 am.  Thus began a busy six-plus weeks of work sessions, public hearings and amendments as we attempt to balance the desire for public services with the desire to keep taxes low.  Not an easy task.

Here’s the schedule thus far:

• Friday, October 2, 11:30 am – 1:30 pm, the aforementioned work session with a broad overview.
• Friday, October 9, 10 am – noon, work session, focusing on the following agencies:
  • Fire Department
  • Health & Human Services
  • Maintenance & Operations
  • Municipal Attorney
  • Municipal Manager
  • Police Department
  • Public Transportation
• Friday, October 16, noon – 2 pm, work session, focusing on the following agencies:
  • Chief Fiscal Officer
  • Development Services
  • Community Planning & Development
  • Employee Relations
  • Equal Rights Commission
  • Finance
  • Heritage Land Bank
  • Information Technology
  • Internal Audit
  • Library
  • Management & Budget
  • Mayor
  • Parks & Recreation
  • Planning
  • Project Management & Engineering
  • Purchasing
  • Traffic
• Friday, October 23, noon – 2 pm, work session, follow-up on agencies (as necessary).
• Tuesday, October 27, around 7 pm, first Assembly public hearing.
• Friday, October 30, noon – 2 pm, work session, capital & utility budgets.
• Tuesday, November 3, around 7 pm, second Assembly public hearing.
• Friday, November 13, noon – 2 pm, work session, budget amendments.
• Tuesday, November 17, around 7 pm, scheduled final Assembly approval.

During the overview two things stood out to me.  First, the administration plans to refinance municipal debt to free up revenue in both 2010 and 2011, to the tune of $12.5 million and $10 million, respectively.  This may be a good idea but I’ll be interested in seeing how it affects future debt service costs prior to endorsing the plan.

Secondly, the administration’s plan proposes to spend the estimated $15 million in state revenue sharing on 2010 governmental operations while assessing property taxes at roughly $10.7 million under the 2010 tax cap.  I’m not sure this is a good idea for two reasons:

1. While the administration seems to think future years’ tax caps are based on allowable property taxes from previous years, several Assembly members (myself included) are under the impression that future tax caps are based on actual taxation from previous years.  It’s not that I necessarily want to increase taxes in future years, it’s that I consider it prudent to maintain some flexibility for future years.  We’ve asked for clarification on this point.
2. Anchorage’s legislative delegation works hard in Juneau on behalf of our community.  By using state revenue sharing to grant property tax relief we show our legislators how their efforts benefit Anchorage residents.  I feel they deserve that recognition.

Perhaps I’m off my rocker, but I’m acutally looking forward to this process.  On both of the above issues we’ll have a thorough discussion and, I believe, come to the right conclusion.  Here’s a few other budgetary factoids you may find interesting:

• Following a joint work session with the Anchorage School Board regarding the Assembly’s responsibility to approve the School District budget, the chair of the Budget & Finance committee, Jennifer Johnston, has asked me to work with her to develop a proposal for the appropriate property tax element of ASD’s revenues.  We’ll be working on that in the coming weeks and, following committee review, I expect will put forth a resolution with our recommendation so ASD can budget accordingly.
• The administration’s proposed budget would eliminate 192 full-time, part-time and temporary positions.  While they’re still working through the details it appears only about one-third of those are currently filled, meaning layoffs would be relatively low.
• Total proposed spend in 2010 checks in at $420.7 million, $1.7 million less than planned for 2009.
• For 2010, at least, the municipality has decided against preparing a biennial budget.  Given the turnover in the administration and continued fiscal uncertainty, this seems reasonable to me.
• Restructuring (reductions) in 2010 is expected to save $20 million, with a goal of $25 million in 2011.
• Rolling closures of fire stations is slated to end starting January 1, 2010.
• No cuts to police line officers are planned.
• Snow clearing is expected to continue to be completed within 72 hours.
• Property taxes are still expected to rise about 2.5%

Now you know most of what I know.  I have two big budget books to begin combing through in order to be ready for next week’s meeting so I’m off to work…

Regards,

Patrick