Budget and Finance Committee Meeting - December 18, 2025
STREAMING COPY IN PREPARATION — RECORDING AVAILABLE FROM THE ORIGINAL SOURCE
Budget and Finance Committee Meeting - December 18, 2025
The Budget and Finance Committee of the Whole convened on December 18, 2025, to review year-end financial reports and address upcoming budgetary items. The meeting covered updates from the Budget Advisory Commission, the Municipal Operating Account (MOA) Trust Fund, revenue performance, and budget-to-actuals analysis. The committee also discussed the finalization of the 2025 budget, rollover procedures for 2026, the approval of the AMEA contract, and closeout reporting on specific funds including MLNP and tax revenues. Committee members expressed interest in future educational topics regarding service areas and municipal assets.
Consent Calendar
- No formal routine approvals or consent agenda items were listed or voted on during the transcript; all items proceeded to standard reporting or discussion.
Public Comments & Testimony
- No public comments or testimony were recorded in the transcript; the Chair noted avoiding eye contact with the audience and confirmed no items were brought forward.
Discussion Items
- Budget Advisory Commission Report: Chair Ian Mills reported a productive last week discussing the mayor's sales tax ordinance. He noted three remaining vacancies (25% of the board) and requested member input on 2026 discussion topics. Members suggested email contact via staff support (Amanda Mosier) for topic proposals.
- MOA Trust Fund Report: Chair Slivka reported a trust value of $487 million as of November 30, with year-to-date returns of +12.58% (outperforming the benchmark and 72% of comparable plans). Dividends totaled $16.577 million. Vice Chair Jeff Sins resigned but will serve until a replacement is named. Chair Slivka confirmed no other vacancies exist and clarified the municipal cash pool is separate from the MOA trust.
- Revenue Report (Deputy Treasurer Lauren Crawford): Overall revenue is running approximately 1% above estimates. Concerns were noted regarding tobacco tax (under due to amended filings) and alcohol/marijuana taxes (potentially 10% under original budget due to market saturation and price competition). Deputy Treasurer Crawford attributed alcohol downturn to national consumption decreases and marijuana saturation. She stated forecasts for next year will likely not exceed current actuals or previous years' figures.
- Budget to Actuals Report (OMB Director): As of November 30, the budget is projected to end 2-3% under budget due to vacancies and unspent non-labor items. Labor spending is at 90% of the budgeted amount, while non-labor is underspent by 10% pending final transfers. The committee reviewed that the Health Department's overtime variance ($80k actual vs. $7k budget) is largely due to grant-funded positions and emergency response, not just vacancies. Overtime analysis will continue into Q1 budget revisions.
- Tax Fund Expenditures: Alcohol and marijuana tax funds are underspent with appropriations effectively "out the door." The $9.6 million 2025 budget for the Marijuana fund reflected two years of funding (2024-2025) appropriated in 2025; the annual run rate is approximately $5.5 million. The Committee discussed the Boys & Girls Club Mountain View Club transition, clarifying that $145,000 supports municipal operations of the program, while $400,000 supports central membership fees; the OMB Director will verify reimbursement status given the club's potential closure.
- MLNP Closeout: The Alaska Land and Natural Development (MLNP) stipulation regarding the $15 million funding for substance misuse treatment (historically referred to as the "Alaska Center for Treatment") is close to completion. Expenditures include the Golden Lion project and micro-unit recovery. Remaining non-contingency funds of approximately $1.5 million are locked in the account for future capital/maintenance. The AIM report is awaiting Chugach acceptance to formally close the stipulation sale.
- FY2025 Closeout and FY2026 Planning: Funds will be rolled over after the fiscal year closes (accounting close, not necessarily Dec 31) based on final spend verification. The 2026 budget is loaded, and departments are being asked to identify internal adjustments for potential labor cost growth.
- AMEA Contract and Wage Adjustments: The AMEA contract was approved, featuring a 2.5% wage increase over four years plus step increases, totaling a 5% annual cost impact. This includes a health care transition that avoids a higher premium increase. Non-represented and executive staff adjustments will follow in Q1. The $26.6 million revenue figure discussed includes these step increases and the bulk of the health care transition costs.
- Future Agenda Items: Members suggested exploring the history and implications of the Building Safety Service Area, the impact of LERSAS cost controls, and a high-level audit of municipal assets (countering the "one billion dollar permanent fund" assertion). The Chair invited members to submit topics for fiscal education via analyst Matthew Farina.
Key Outcomes
- Status Reports: Revenue is projected 1% above estimate; Budget is projected 2-3% under estimate.
- Vacancies: Budget Advisory Commission has 3 of 12 seats (25%) vacant; MOA Trust has 0 vacancies.
- Funds Status: MOA Trust performed well (+12.58% YTD); Alcohol and Marijuana tax funds are underspent with funds remaining in the fund balance.
- Contract Approval: AMEA contract finalized with specific wage and health care terms; non-rep/exec adjustments pending Q1 review.
- Compliance: MLNP stipulation expenditures verified and awaiting final confirmation to close the sale stipulation.
- Next Steps: OMB to provide detailed overtime analysis and Q1 budget revisions; Committee to schedule future educational sessions on Building Safety Service Area and municipal assets; Adjourned for next meeting on the third Thursday in January.
Meeting Transcript
Okay, everyone, let's go ahead and call this meeting to order. Um, today is uh Thursday, December eighteenth. Uh, this is the budget and finance committee of the whole. Uh, we are noticed from ten A.M. to eleven A.M. uh. here in City Hall. Um, so we will go and do introduction member introductions, and we'll move into our agenda. And Anne Brawley in the room. And then on the phone, I see uh Member Johnson. Member Martina. I missed. Okay. We're also joining the room by Assembly Council, members of the administration, and some of our presenters today. So we'll go ahead and move into our agenda. We have a number of uh kind of year-end uh wrap-up items. So we'll move through those relatively quickly and um plenty of time for questions. So first we will turn to our uh budget advisory commission chair, Mr. Ian Mills. Go ahead, Mr. Wills, with your report. Thank you. We had a really productive meeting last week, including a presentation from Bill Falsey regarding the mayor's proposed sales tax ordinance. Um great opportunity to discuss some of the finer details of that plan. We intended to have a discussion at our meeting, sort of looking at our 2026 topics to discuss and sort of the annual schedule. We ended up running out of time, um, which means that's happening sort of between myself and our staff support, and then probably at our January meeting as well. But I would be interested to hear from any assembly members if there are topics that you think you would add value for us to discuss, put on our radar, other than the usual, you know, one queue budget revisions, that kind of general stuff. Okay, thank you. Uh questions from uh members. And if you're on the phone, um please text me or speak up if I'm not seeing it. Okay, I don't see any questions. Um I do, I guess my quick question is just I know there's been discussion about um uh membership and just wondering how many vacancies you have at this point on the board. Uh we had a new member at our most recent meeting, uh Chris Diamond. So we have three vacancies remaining. Um I know that there have been a number of people who have applied, um, but I I understand that it takes time to process all of that document and everything like that. So I'm optimistic. You know, three vacancies is 25% better than four vacancies. That's that's a noticeable improvement, but thank you. Yeah, thank you. And member Baldwin Day had a question. Uh yeah, hi, Mr. Mellis. Thank you for being with us. Uh, I'm curious how you'd like to get that feedback from members. Um, if we have uh questions or topics that we think the commission would be well positioned to discuss and uh make recommendations about. Would email be best? How would you like that communication? Through the chair, I think the best route would be to contact the budget advisory commission staff support person who is Amanda Mosier. Um if it's appropriate, I'm happy to correspond with any of the assembly members directly. Um, but I think Amanda would be a good place to start.
openpublica.com