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OPENPUBLICA · PUBLIC MEETING RECORD

Record of Proceedings

Anchorage Assembly Work Session on 2027 Budget and 120-Day Memo - September 18, 2026

Assembly & Committee Meetings — Friday, September 18, 2026

BodyAnchorage, Alaska

SessionAssembly & Committee Meetings

DateFriday, September 18, 2026

StatusFILED

Video Record

0:00 / 1:38:10

Transcript — VerbatimClick a timed line to jump · ⧉ to share it

0:00

And we're also joined in the room by uh Mayor LaFrance, our OMB director, members of uh clerk's office, uh, members of the administration and assembly council on the phone.

0:09

So uh I'm going to turn it over to our OMB director.

0:14

Actually, first I'll turn it to the mayor uh to give some remarks and uh just a reminder this is one of our first official uh parts of our budget process.

0:22

So we will be talking about the memo today.

0:24

I imagine we will also be raising questions and things that are not yet known but may be uh brought up in the budget.

0:31

So I would also encourage members to think about um as the administration is actively building the budget.

0:37

If you have additional thoughts, recommendations, uh things that are sparked by this conversation, this would be the time to bring them up.

0:43

Um and with that, I will, and I'll also note we have a presentation that's up on the screen, and then uh we don't have a print copy before us right now, but we have the memo itself, which was published on September 2nd.

0:53

Um, and so members can refer to that.

0:55

It's also in our email.

0:56

So with that, I will turn to uh the mayor.

1:00

Thank you, Chair Brawley, and good afternoon, members of the assembly.

1:05

Thanks for the opportunity to start this conversation about the 2027 budget.

1:10

And as you all know, the 120-day memo marks the beginning of our annual budget process.

1:16

It gives us an early look at the financial environment that we're entering.

1:21

And this year, that environment may require some difficult choices.

1:25

Our revenues are expected to remain relatively flat, while many of the costs of providing municipal services continue to rise.

1:33

We are seeing significant pressure from insurance costs, energy costs, and the broader cost of living that affects both our employees and the services that the municipality purchases every day.

1:46

That means we can't simply carry forward everything we're doing and assume that the numbers will work.

1:52

We will need to look carefully at our priorities, make trade-offs, and be disciplined about where we put public resources.

1:59

At the same time, fiscal constraint can't mean standing still.

2:04

We still need to make investments that position our community for the future.

2:08

That includes revitalizing our neighborhoods and commercial areas, improving the quality of life that helps our community attract and retain families and workers in continuing to strengthen public safety.

2:22

We also have major economic and infrastructure opportunities ahead of us with the expansion at JBER and the fighter town recapitalization.

2:32

That growth will bring new investment and new families here, but it will also place additional demands on housing, transportation, utilities, public safety, and other community infrastructure.

2:44

We need to be and are preparing for that growth now.

2:49

And throughout this budget process, we should continue asking a fundamental question.

2:54

Are municipal taxpayers getting good value for the dollars they provide?

2:58

That means producing better results with the resources we have to the extent possible.

3:04

Over the course of this administration, we have increased the number of sworn police officers by 91.

3:11

We have increased prosecutions by 70%.

3:14

And we have reduced unsheltered homelessness by 28%.

3:18

And I thank the assembly for their partnership in achieving these goals.

3:23

Those are examples of what we should be looking for across municipal government, measurable outcomes and clear value for the public.

3:31

So as we begin this process, I think that we have three responsibilities.

3:36

One, to acknowledge the fiscal constraints in front of us, two, to protect the services municipal residents rely on, and lastly, to continue making targeted investments that will strengthen our community and our economy over the long term.

3:52

There'll be difficult choices between now and when the final budget is adopted.

3:56

The 120-day memo in today's work session is the beginning of that conversation.

4:02

I look forward to working with all of you over the coming months to build a budget that is responsible, focused on results, and prepared for Anchorage's future.

4:13

Thank you.

4:16

All right, thank you.

4:18

Any questions, comments for members at this point.

4:22

And for folks on the phone, of course, as usual, um, I'll keep an eye on my phone.

4:26

Um okay, I don't see any in the queue right now.

4:29

Uh so we will then turn, I think, to our OMB director, Ms.

4:32

Brouse, and I'll again point to the presentation available.

4:35

Uh thank you, Madam Chair, and thank you, Madam Mayor, for uh kicking this off.

4:40

I think um we have a lot to talk about.

4:42

So uh we can get started.

4:44

Uh Ownabrass director of the Office of Management and Budget.

4:48

Um today we are talking about the 120 day memo.

4:52

Um that is, I think we'll have printouts soon, uh just in case uh they are helpful.

5:00

The presentation itself is essentially a summary with highlights of the 70 plus page document that is the 120 day memo.

5:07

So um there are full copies of the 120 memo on the front uh table if they're if they're useful for people.

5:13

Um but for the most part of the presentation contains the information that we'll be talking about at least uh in summary.

5:21

So uh the 120-day memo is required to be presented 120 days before the fiscal year end.

5:29

It is not a clever name.

5:31

Uh it uh it was recently changed to require um semi-annual reporting of settlements over 200,000.

5:40

But aside from that new uh addition, there are other items that are required within the 120-day memo, and those include the list here.

5:50

So the preliminary revenue estimate that we get from Treasury, the uh preliminary tax limit calculation, uh, you'll see the tax cap formula uh uh inside the 120-day memo, um, the uh proposal of any reorganization or departmental consolidations that may require a code change, uh, the reorg that was discussed previously this year is um part of the proposed budget, and so that will come with an AO to change code.

Discussion Breakdown — Share of Meeting

Budget Equity Analysis████████████████████████████28%

Education Funding███████████████15%

Capital Improvement Planning██████████████14%

Affordable Housing██████████████14%

Economic Development█████████████13%

Fiscal Sustainability████████8%

Procedural███3%

Public Safety██2%

Stormwater Management██2%

Summary of Proceedings

Anchorage Assembly Work Session on 2027 Budget and 120-Day Memo - September 18, 2026

The Anchorage Assembly held a work session on September 18, 2026, to discuss the 120-day memo, which marks the beginning of the 2027 budget process. Mayor LaFrance and OMB Director Brouse presented an overview of the fiscal outlook, revenue estimates, tax cap limits, administration priorities, and capital budget. Assembly members engaged in detailed discussions on school district funding, the JBER Fighter Town recapitalization, and other topics, with no formal votes taken.

Discussion Items

Mayor's Opening Remarks

Mayor LaFrance stated that revenues are expected to remain relatively flat while costs rise due to insurance, energy, and cost of living pressures. He outlined three responsibilities: acknowledge fiscal constraints, protect essential services, and make targeted investments for the future. He highlighted achievements including 91 additional sworn police officers, a 70% increase in prosecutions, and a 28% reduction in unsheltered homelessness. The mayor emphasized the need to ask whether taxpayers are getting good value for their dollars.

Revenue Overview (OMB Director Brouse)

Total non-property tax revenue is down $7.8 million from the 2026 budget, largely due to a loss of transfer revenue from other municipal businesses.
Traffic and trial court fines are up $3 million; the community assistance program is up $1 million (to expected normal levels); ambulance fees up $300,000; alcohol tax up $500,000–$600,000; marijuana tax down $300,000.
Discussion on SEMT (Supplemental Emergency Medical Services Transport) revenues: budgeting is challenging due to delays in state reimbursements. SEMT revenues above budget are currently directed to fire department expenses.
Multiple assembly members asked about revenue assumptions, including reductions in automobile tax ($1.3M), tobacco tax ($500,000), motor vehicle rental tax ($1M), and MUSA ($200,000). These are based on recent trends.

Tax Cap Calculation

Preliminary tax cap calculation: limit on all taxes collectible is $464 million; limit on property taxes collectible is $381.7 million.
Last year, the room under the property tax cap was $325 million. The population multiplier is blank because the change between 2026 and 2027 is zero.

Administration Priorities

Continued increase in prosecutors and sworn officers at APD, additional community service officers, investment in snow removal drivers and equipment (about $6 million through levy and operating changes), completing delayed comprehensive financial audits, and restoring the Munis bond rating reserve.
Future focus areas: revitalizing neighborhoods, energy resiliency and affordability, boosting recreation and tourism, and preparing for JBER growth.
Assembly members asked for specifics on neighborhood revitalization and energy audits. Chief of Staff Suzanne Fleek-Green noted that energy audits for municipal assets are underway and that the administration is exploring ways to help residents future-proof their homes.

Reorganization

The proposed reorganization consolidates the CAO position into the municipal manager role. The community development director will report directly to the mayor, alongside the municipal manager and CFO. Risk management moves into the municipal attorney’s office. No immediate cost savings have been quantified.

School District Funding Gap

Originally a $12 million gap was projected; after state legislative action capping the voluntary contribution at 4%, the gap is now about $6 million.
Discussion on the mechanics of required vs. allowable local contribution, the interplay with the tax cap, and the challenge of differing fiscal years (municipal calendar year vs. school district fiscal year).
Assembly members requested a flow chart or timeline of decision points to better understand how to manage the gap. The administration indicated contingency proposals will be developed.
Example from the previous year: AO 2025-29S allowed pre-approval of school district budget revisions if the legislature increased the base student allocation, which saved procedural steps.

JBER Fighter Town Recapitalization

$7 billion in military construction over five years, starting summer 2027. An estimated 2,500 additional military personnel and their families will require off-base housing.
Housing pressure: the military expects the private market to provide housing, but high costs and limited supply pose challenges. The administration is exploring federal programs like the Defense Community Infrastructure Program (DCIP) and working with developers.
Assembly members requested a work session with JBER leadership to learn more. Chief of Staff Fleek-Green confirmed efforts to schedule such a session.
Discussion on housing allowances: the administration will share breakdowns of expected allowances by rank and family size.
Assembly member Baldwin-Day noted that subsidized demand could put upward pressure on housing prices and urged intentional matchmaking.

Gas Line and Other Developments

The Alaska gas line project could bring a large influx of workers, compounding housing demand alongside JBER growth.
Other notable developments: South Central Foundation crisis stabilization center, FedEx sorting facility at the airport, and Touchmark senior living project (first units expected 2028).

Capital Budget Overview

Total capital projects requested for 2027–2032 amount to $867 million. For 2027, most funding sources are bonds (property taxes), with $120 million in bondable projects on the list.
Assembly members discussed bond packaging, the potential shift to a stormwater utility for drainage maintenance (noted $114 million in drainage projects in the last CIP), and state requests. OMB Director Brouse indicated the administration is taking a new approach to state requests, only listing those actually being requested each year rather than carrying forward all potential projects.
The bond rating improvement may reduce borrowing costs but is not expected to produce immediate savings.

Key Outcomes

No formal votes were taken; the work session was informational.
The budget process timeline was reviewed: the 120-day memo was published September 2; the full budget will be introduced to the assembly on October 2 and introduced at the October 6 meeting; deliberation through October and November; mill rates set in April 2027.
Additional work sessions were announced, including on the parks CIP with the Anchorage Park Foundation (October 2) and with the ACE Fund board.
The administration committed to providing further information on school district funding scenarios, a breakdown of JBER housing allowances, and scheduling a work session with JBER leadership.

Meeting Transcript

And we're also joined in the room by uh Mayor LaFrance, our OMB director, members of uh clerk's office, uh, members of the administration and assembly council on the phone. So uh I'm going to turn it over to our OMB director. Actually, first I'll turn it to the mayor uh to give some remarks and uh just a reminder this is one of our first official uh parts of our budget process. So we will be talking about the memo today. I imagine we will also be raising questions and things that are not yet known but may be uh brought up in the budget. So I would also encourage members to think about um as the administration is actively building the budget. If you have additional thoughts, recommendations, uh things that are sparked by this conversation, this would be the time to bring them up. Um and with that, I will, and I'll also note we have a presentation that's up on the screen, and then uh we don't have a print copy before us right now, but we have the memo itself, which was published on September 2nd. Um, and so members can refer to that. It's also in our email. So with that, I will turn to uh the mayor. Thank you, Chair Brawley, and good afternoon, members of the assembly. Thanks for the opportunity to start this conversation about the 2027 budget. And as you all know, the 120-day memo marks the beginning of our annual budget process. It gives us an early look at the financial environment that we're entering. And this year, that environment may require some difficult choices. Our revenues are expected to remain relatively flat, while many of the costs of providing municipal services continue to rise. We are seeing significant pressure from insurance costs, energy costs, and the broader cost of living that affects both our employees and the services that the municipality purchases every day. That means we can't simply carry forward everything we're doing and assume that the numbers will work. We will need to look carefully at our priorities, make trade-offs, and be disciplined about where we put public resources. At the same time, fiscal constraint can't mean standing still. We still need to make investments that position our community for the future. That includes revitalizing our neighborhoods and commercial areas, improving the quality of life that helps our community attract and retain families and workers in continuing to strengthen public safety. We also have major economic and infrastructure opportunities ahead of us with the expansion at JBER and the fighter town recapitalization. That growth will bring new investment and new families here, but it will also place additional demands on housing, transportation, utilities, public safety, and other community infrastructure. We need to be and are preparing for that growth now. And throughout this budget process, we should continue asking a fundamental question. Are municipal taxpayers getting good value for the dollars they provide? That means producing better results with the resources we have to the extent possible. Over the course of this administration, we have increased the number of sworn police officers by 91. We have increased prosecutions by 70%. And we have reduced unsheltered homelessness by 28%. And I thank the assembly for their partnership in achieving these goals. Those are examples of what we should be looking for across municipal government, measurable outcomes and clear value for the public. So as we begin this process, I think that we have three responsibilities. One, to acknowledge the fiscal constraints in front of us, two, to protect the services municipal residents rely on, and lastly, to continue making targeted investments that will strengthen our community and our economy over the long term. There'll be difficult choices between now and when the final budget is adopted. The 120-day memo in today's work session is the beginning of that conversation. I look forward to working with all of you over the coming months to build a budget that is responsible, focused on results, and prepared for Anchorage's future. Thank you. All right, thank you. Any questions, comments for members at this point. And for folks on the phone, of course, as usual, um, I'll keep an eye on my phone. Um okay, I don't see any in the queue right now. Uh so we will then turn, I think, to our OMB director, Ms. Brouse, and I'll again point to the presentation available. Uh thank you, Madam Chair, and thank you, Madam Mayor, for uh kicking this off. I think um we have a lot to talk about. So uh we can get started. Uh Ownabrass director of the Office of Management and Budget.

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