Anchorage Assembly Budget and Finance Committee of the Whole Meeting - May 21, 2026

The Assembly Budget and Finance Committee of the Whole met on Thursday, May 21, 2026, from 10:00 a.m. to 11:00 a.m. The meeting covered revenue and budget updates, a legislative update, an overview of a proposed ordinance (AO 2026-70) modifying MOA Trust Board residency requirements, and a preview of fund deficit positions. No formal votes were taken, but several items were scheduled for upcoming assembly meetings.

Reports and Updates

• Budget Advisory Commission (BAC) Chair Report: Chair Mills reported that the BAC held a monthly meeting with a new social media outreach subcommittee. The BAC also held a special meeting on Monday, May 18, to adopt an open letter to the Senate Finance Committee on House Bill 261.

• MOA Trust Fund Update: Investment Director Kevin Liu reported that as of April 30, 2026, the trust fund returned 5.5% for the month and 4% year-to-date. Total asset value was $503 million. The preliminary 2026 dividend estimate remains at least $17 million. The next regular board meeting is scheduled for May 29, 2026. Philippe Bryce was welcomed as a newly appointed trustee.

• Revenue Summary Highlights: Deputy Treasurer Lauren Crawford presented the revenue report. Property tax is currently negative due to prior-year adjustment exemptions. Room tax (12%) is collected, with 43% going to general government. Excise taxes (tobacco, motor fuel) are incurred when retailers take inventory, while alcohol and marijuana taxes are sales taxes. The MOA Trust Fund dividend is based on a 20-quarter trailing average multiplied by 4%, yielding $17.1 million. Auto registration tax is higher this year (biannual cycle). PILT (Payment in Lieu of Taxes) is received from exempt entities. Garnishment revenues are budgeted at $3.8 million based on a $1,000 dividend, but the actual dividend is ~$1,200, so revenues may be higher. Some items (e.g., SEMT, ambulance fees) show low realization due to accounting timing. Building safety fees are ahead of budget, expected to continue due to strong development. Motor fuel tax is not projected to underperform despite price volatility. Cash pool earnings estimates are not yet available; beginning-of-year general fund balances are typically negative, so earnings may initially be negative.

• Budget to Actuals Report: Presented by the CAO/Budget Director. As of the report, the municipality is 32.6% through the fiscal year. Total budget spent and encumbered is 34%. Labor is at 30.8% posted, non-labor at 32.6%. Maintenance & Operations (MO) shows overtime of $1.4 million against a $1.5 million budget due to record snowfall in Q1; a reappropriation of unspent prior-year funds is expected in the next month. Finance department overtime is $150,000 year-to-date against a $62,000 budget, largely due to property appraisal and assessment work. Police and fire departments have traditional high overtime accruals. Travel budgets: fire department travel is often reimbursed by the state for wildland fire support; police department made a $165,000 budget adjustment to cover training. Alcohol and marijuana tax funds are largely encumbered or spent; revised budget for 2026 is $14.1 million (down from approved $15.8 million after Q1 revisions). The alcohol tax fund appears on track.

• Legislative Update: Nolan Clouda from the Mayor’s Office reported that the state operating/capital budget passed includes $15 million for the Port of Alaska, with an additional $10 million conditional on oil prices (waterfall provision). The community assistance program received a substantial increase to $30 million for disbursements and $50 million fund capitalization, which likely means Anchorage will receive more than the historical $4–6 million. A cap on the required local contribution for school funding was enacted at 4% annual increase (down from an 8% spike that had caused an $11 million shortfall), providing stability. HB 13 (optional property tax exemptions) also passed, offering new housing-related tools for the municipality. A more complete recap will be sent to members.

Discussion Items

• AO 2026-70 (MOA Trust Board Residency and CFO Designee): Deputy City Attorney Lance Wilver presented the ordinance. It proposes two changes: 1) replacing the requirement that all MOA Trust Board members reside in Anchorage with a requirement that a majority of external members reside in Anchorage; 2) allowing an alternative designee if the CFO and Treasurer are unavailable for board meetings. The impetus was the planned out-of-state relocation of recently confirmed trustee Philippe Bryce. Chair Brawley expressed hesitation and signaled a potential amendment requiring additional public notice or a public hearing for non-resident members. This could affect the timeline, possibly postponing passage to June 9. The ordinance is scheduled for the May 26 assembly meeting.

• Municipal Fund Deficits Preview: Deputy City Attorney Wilver and budget staff provided a preview of fund deficits to be discussed in detail at a future meeting (likely June) once the FY24 ACFR is issued. Four funds are in deficit: workers’ compensation/general liability (~$16.6 million, 89% general government share), IT internal service fund (~$14.7 million, 64% general government share), building safety service area (BSSA) (~$11 million, reduced from a peak of $14.5 million), and a special revenue fund tied to the downtown improvement district. The BSSA has historically run deficits due to a 2010 fee structure that does not adjust; recent building activity has improved revenues, with 2024 showing a $2.5 million surplus. The FY26 budget did not include a BSSA levy. A plan to retire general government liabilities to the deficit funds is expected after the ACFR is finalized (anticipated June).

Key Outcomes

• The committee received reports and updates; no formal votes were taken.
• AO 2026-70 will be on the May 26 assembly agenda; Chair Brawley intends to propose an amendment to add public notice/hearing requirements; the ordinance may be postponed if a title change is needed.
• A more thorough presentation on muni fund positions (workers’ comp, IT, BSSA) is expected in June, aligned with the release of the FY24 ACFR.
• The next Budget and Finance Committee meeting will likely cover those fund deficits and may revisit the BSSA in detail.