Assembly Budget and Finance Committee of the Whole Meeting - August 20, 2026

The meeting convened at 10:05 a.m. on Thursday, August 20, 2026, and adjourned at 11:05 a.m. The agenda included standing reports, a budget calendar overview, and a detailed presentation on service areas. No public testimony was received, and no votes were taken. The committee discussed financial updates from the Budget Advisory Commission, MOA Trust Fund, Treasury, and OMB, as well as the structure and governance of the municipality's numerous service areas.

Standing Reports

• Budget Advisory Commission (BAC): Chair Mills reported on the BAC's recent meeting, highlighting a presentation on the foundation formula from ASD's OMB director and a new resolution on 2027 budget priorities. He noted the resolution had not yet appeared on the assembly agenda. Member Baldwin Day asked about recommendations that had not materialized, and Mills clarified that the resolution was just adopted the previous week, so none had been sidelined yet. Baldwin Day expressed gratitude for the commission's proactive stance.
• MOA Trust Fund: Investment Director Kevin Liu reported that as of July 31, the fund had a market value of $507 million, with a month-to-date return of -0.4% and a year-to-date return of +6.5%. July saw a rotation from tech to energy sectors, driven by a 20% spike in crude oil prices hovering around $100 per barrel. The next board meeting is scheduled for August 21.
• Revenue Report (Treasury): Acting Municipal Treasurer Lauren Crawford presented revenue highlights as of August 18. The municipality has realized 75.8% of its budgeted revenue ($463.9M of $611.8M). Property taxes are tracking as expected, but personal property tax is running slightly high. Building safety fees are running hot, projected to reach about $7 million for the year. Alcohol and marijuana taxes are on track with no seasonality concerns. APD counterfines are low due to a tracking issue, not a revenue problem.
• Budget to Actuals & Fund Positions (OMB): Director Ona Brows reported that the municipality is 58% through the fiscal year and 51% spent. Key outliers include the Maintenance & Operations line at 33% spend (due to recent budget reappropriation), the Equal Rights Commission underspent (especially non-labor), and Real Estate at 37% spent (contract timing). The Convention Center and Reserves is at 28% spent, which is expected to remain until year-end. FEMA reimbursements are now under $10 million remaining. The labor/non-labor report showed overall labor at 55% spent and non-labor at 46%. Overtime in M&O has improved to 80% spent after additional funding. Police and fire overtime still exceed allocations due to unfilled seats and salary increases, but year-over-year trends are improving. Public transit overtime remains high due to driver shortages, but current levels are lower than post-pandemic peaks. Travel budget is $586,000 with $275,000 spent. Alcohol tax is at 107% spent due to encumbrances and accounting corrections needed for $1 million in sheltering costs. Marijuana tax is at 66% spent with ACE fund performing well.
• Alcohol & Marijuana Tax: Detailed review of overspending resulted from encumbrances not yet cleared. Program operations lines show 0% spent due to payroll not yet billed to the fund. Clerk staff confirmed that regular reconciliation is needed to align encumbrances with expenditures.

Budget Calendar Overview

OMB Director Brows presented the major milestones for the 2027 budget process:

• September 2: Preliminary budget information (120-day memo) transmitted to the assembly.
• September 18: Assembly work session on the 120-day memo.
• October 2: Mayor's proposed budget transmitted to the clerk.
• October 6: Official introduction on the assembly agenda.
• October 16: Work session for general government operating and capital budgets.
• October 20: Public hearing.
• November 6: Assembly work session for amendments.
• November 17: Final passage (noting that this meeting is critical for member attendance).

Chair Brawley encouraged members to plan accordingly for the busy November period.

Service Areas Presentation and Discussion

Director Brows provided an extensive overview of service areas—geographically defined districts that fund and govern local services through property taxes or special assessments, authorized under Title 27 of the Municipal Code. There are over 60 service areas in Anchorage, but only six are within the tax cap (the "major funds"): ARTSA (roads), police, fire, parks and rec, area-wide, and building safety (currently fee-supported but recently re-taxed to address deficits). Other service areas include 21 limited road service areas (LERSAs), rural road service areas (Savrsa, South Golden View, Mountain Park Robin Hill), and special purpose districts for street lighting and drainage.

Key distinctions discussed:

• Fire and police service areas have local boards of supervisors; parks and rec has an advisory commission; street lighting and some small road areas are governed by the municipal department (e.g., M&O).
• Eagle River's Chugiak/Eagle River Rural Road Service Area and Parks and Rec are separate boards, while Girdwood Valley Service Area (GVSA) has a single board that also functions as the Girdwood community council, creating unique governance situations.
• LERSAs contract private contractors for road maintenance; municipal support is billed through intergovernmental charges (IGCs).
• The challenge for service areas like Girdwood and Eagle River is that any tax or bond increase requires approval from the full assembly since the municipality pledges full faith and credit.

Member Handelin asked about street lighting governance—no board exists, so municipal departments handle it, but mill rate caps require voter approval for increases. Baldwin Day questioned whether the municipality is compensated for administrative support; Brows confirmed that IGCs are used.

Chair Brawley noted that the assembly's governance of ARTSA means all 12 members vote on its budget, even though parts of ARTSA fall outside some districts. She also highlighted the historical complexity: service areas were created at different times, resulting in inconsistent tax structures—for example, some areas opted out of the building safety service area, creating interesting stories.

Key Outcomes

• No formal votes were taken; the meeting was informational.
• The discussion on service areas will continue at the next committee meeting.
• Members were reminded to prioritize the November 17 budget meeting.
• Budget analyst Molly Rocher was introduced and will support the budget process.
• The committee structure may be reorganized to allow more time between meetings.

Other Business

• A brief mention of the reappropriation action from the previous meeting affecting M&O overtime was noted.
• The next meeting will pick up the service area slideshow and address remaining items.