Assembly Budget and Finance Committee Meeting - August 21, 2025

This meeting of the Assembly Budget and Finance Committee of the whole was held on Thursday, August 21, 2025, from 10:00 AM to 11:00 AM in City Hall 155. The committee reviewed standing reports from the Budget Advisory Commission (BAC) and the MOA Trust Fund, received a detailed budget-to-actuals report from the Office of Management and Budget (OMB), and discussed a draft resolution for FY26 budget priorities. No public testimony was offered.

Budget Advisory Commission (BAC) Report

• The BAC elected a new vice chair, Mike Edgington, at its previous meeting.
• The commission aims to stay more involved in the FY26 budget process and received presentations on the ACE fund and alcohol tax revenues.
• No questions from committee members.

MOA Trust Fund Update

• Chair Alex Slivka reported performance: as of June 30, the trust was up 6.81% ($455 million) for the year; as of August 15, it was valued at $465 million (9% return).
• Since the trust board was impaneled in October 2023, returns have exceeded inflation plus 4%, though over a longer period it is slightly below that benchmark.
• A Director of Investment Operations position has been approved and will be posted next week; expected hire by end of October.
• An RFP to update the investment consultant is complete; a request for approval will appear on the September 9th agenda.
• Disbursements occur twice a year: approximately June 15 and December 15. The June payment of ~$8 million was made; $7 million of the December payment is already rebalanced.

OMB Budget-to-Actuals Report (July)

• OMB Director Browse presented the July budget-to-actuals. Approximately 57.8% through the fiscal year, with 51% of the budget spent overall. Labor is at 54% spent, non-labor at 48%.
• The Chief Administrative Officer (CAO) department is running higher due to venue contracts (museum, Dena'ina) issued early in the year.
• Overtime spending in 2025 is lower than in 2024, attributed to filling vacancies and reduced demand. Discussion about how overtime budgets are calculated, particularly for fire and police.
• Travel budget is on track; only $275,000 remains for the municipality.
• Alcohol tax report: many line items are grants or pass-throughs, thus showing 100% spent. Concerns raised about several items showing zero spending: "Best Beginnings" (Imagination Library program), "In Our Backyard" (reappropriated from 2024), and "ACEHA Next Step." Director Browse will follow up with the health department.
• Healthy Spaces homeless camp abatement: funding is operational, not a grant; temporary contract labor used while permanent staff are hired.
• Discussion about a proposed solid waste services fee (tipping fee) to free up alcohol tax money for other priorities.
• Mobile Crisis Team (MCT) line item is only 11% spent; may be used to backfill shelter funding if needed. Underspent funds will be available for reappropriation in FY26.
• Housing fund: Member Voland noted a $500,000 appropriation for a municipal housing fund was never implemented under the prior administration and lapsed into fund balance. The current administration expressed willingness to operationalize such a fund and recommended including implementation deadlines in future appropriations.

FY26 Budget Priorities Resolution

• A draft resolution for FY26 budget priorities was presented, building on a 2023 resolution and input from a July 25 work session. Key areas include the SAFER grant for fire, housing, and tax exemption impacts.
• The resolution is scheduled for the September 9th meeting. A placeholder exists for the 120-day revenue memo (expected by August 29th).
• Members offered initial comments: Member Gerker questioned committing to a continuation budget while acknowledging an affordability crisis; Member Voland noted that tax caps make cuts permanent. All members are invited to propose amendments.

ACFR Update

• Mike Falsey reported that the 2023 Annual Comprehensive Financial Report (ACFR) was completed and published last Friday. It took about 320 days (down from 554 days for the previous one). The goal is to return to publishing within the correct calendar year by end of 2026.
• The detailed statements and single audit (CIFA) are expected within a month. These are needed for bond ratings and for a Medicaid amendment for emergency medical transport reimbursements.

Key Outcomes

• No formal votes were taken.
• The FY26 budget priorities resolution will be placed on the September 9th meeting agenda. Members may submit amendments.
• OMB director will provide the 120-day revenue memo by August 29th.
• The next regular meeting of the committee is scheduled for October; work sessions for the budget process are set for October and November.
• The committee adjourned at approximately 11:05 AM.