2026-10-16 - Assembly Worksession

00:57Okay, everyone. I think we're ready to

00:59get started. Um, so, uh, it is 11:05. We

01:03are noticed, uh, this is going to be a

01:04long work session today. So we are

01:06discussing the FY2027 proposed budget.

01:10Um so we're going to be this is the

01:11first of two work sessions. We have a

01:13presentation as well as members have

01:15their budget books uh before us and so

01:18we'll be working through that and then

01:19we have I'll just say also we have our

01:21second work session. So uh what we don't

01:23cover today will be covered next Friday

01:24the 23rd. Um and then the plan I know um

01:27Miss Browse will speak to it in a little

01:28bit but generally I just want to give

01:30folks uh well actually before we do that

01:32let's do introductions. So starting in

01:33the room uh Mr. Martinez,

01:35>> George Martinez,

01:36>> Cameron Perez,

01:37>> Aaron Baldwin Day,

01:38>> Donald Handel,

01:39>> Jared Girker,

01:40>> Sydney Scout,

01:41>> Daniel Volunt,

01:42>> Anna Broly, and that's folks in the

01:44room. And I see member Johnson,

01:48>> I'm here.

01:49>> Okay. A little quiet, but we heard you.

01:51And then, uh, Miss Silvers

01:54>> here. Thank you.

01:55>> Thanks. Any other members on the phone?

02:00Okay. Uh, then we will proceed. So, uh,

02:02as I was saying just quickly for timing

02:03and then we'll we'll get into it. Um, so

02:05we have we're noticed today from 11 to

02:074. Uh, those who have been in this room

02:09for this before know that we generally

02:10do use that full-time. So, I'll also

02:12just say, uh, we will have a couple

02:14times for breaks. Um, but generally if

02:16members need to step out, um, you know,

02:18make a phone call, bio break, whatever,

02:20just please feel free to do that because

02:21we'll just be moving through. Um, I will

02:23manage the queue. In terms of timing, uh

02:26the general plan today, which I know um

02:28the admin folks will cover in more

02:29detail, is we will be starting with our

02:31broad overview. So, kind of the the big

02:33picture of what the proposed budget is,

02:35those changes. Um the six-year fiscal

02:37plan, we'll go until about 12:30 for

02:39that. I'll keep an eye on time. Uh you

02:41know, it's a little hard to manage

02:42timing sometimes, but we'll we'll get

02:44through as much as we can there. We will

02:46break for lunch. Um lunch is provided

02:47for folks who are in the room, and then

02:49we'll be coming back before 1. Uh

02:51probably a little not too long of a

02:53break for lunch. And then we'll get into

02:54enterprise and utilities budgets. Um so

02:57the directors from those uh utilities

02:59will be here from about 1 to two. And

03:00then the remainder of the time we will

03:02get into the capital budget which

03:04includes multiple departments capital

03:05requests uh but looking at it

03:07holistically and then we may start into

03:10some of the smaller departments. Um but

03:12I think a lot of the kind of department

03:13level overview we are aiming for next

03:15week. So just for timing for that. So a

03:17lot of the for example major departments

03:19like fire department we're going to be

03:20covering uh next Friday not today for

03:22anyone listening. Uh so uh with that I'm

03:26going to turn it to oh and I should have

03:27also said sorry jumped right into it. Uh

03:29also in the room we have uh clerk's

03:31office members of the administration who

03:32will be speaking uh in a moment. No

03:35members of the public right now. Uh so

03:37with that I'm going to turn uh first to

03:39Miss uh Fleet Green for some intro

03:40remarks on behalf of the mayor and then

03:43we'll uh move to the uh OM director

03:45after that. Thanks.

03:46>> Great. Good morning everyone. Um, best

03:49time of the year. Look at this. Another

03:52budget cycle. Um, the mayor is not

03:56available today. So, I'll just very

03:58briefly touch on some things that you

04:01heard in the 120day memo work session as

04:04well. But challenging times as always

04:08for our municipal budget. But um our OM

04:12director and other senior management

04:15have worked really hard over the last

04:17five months trying to get a handle on

04:20what the future holds for us. Um and we

04:24still were able to fill gaps this year

04:27so that it is less painful. that those

04:29pain points are coming and the mayor

04:31wanted to go through scenario planning

04:35to understand if we are facing a very

04:38large gap next year how we would address

04:42that. Obviously uh cuts are one route to

04:45that. Other revenue is another route and

04:48we will have many more conversations

04:50about that for but for right now um we

04:53bring to you really a continuation

04:56budget. a continuation budget that costs

04:58more though because everything costs

05:00more these days. So, you will see how

05:04that goes um department by department.

05:08But overall though, the mayor is

05:10optimistic about where our community is

05:13going. Um and we have a lot of good

05:16things coming. You saw that described in

05:18the 120day memo. Plus, we just have a

05:22different landscape coming at the state

05:24level. Um, and we don't know what that

05:27brings, but it could be opportunities

05:30with a new administration that thinks

05:32differently about community assistance

05:35uh funding and other programs that maybe

05:39could restore local jurisdictions to

05:42where we used to be um in sharing state

05:45revenues. And certainly right now there

05:47are more state revenues given the oil

05:51sustained high oil prices which is

05:54affecting our families here in Alaska

05:56but is affecting our state budget. So

05:59that is something that we will be

06:01looking to um to help address some of

06:03the challenges that we have. Um and then

06:06of course uh Jbear Fightertown

06:09recapitalization

06:11gas line. What does this mean for growth

06:15in Anchorage in the coming years? And

06:17how do we ensure that our municipal

06:19government is built in a way that we can

06:22provide the services that residents

06:25expect and also address the growth that

06:28we think is coming. So with that, I will

06:30turn it over to Director Browse. I will

06:32mention that we also have Mr. Bob Dole

06:35here who will be available to answer

06:37questions for departments under his

06:40wing.

06:42Okay, thank you. Yeah, and I'll just

06:44note um as usual uh text me or flag me

06:47down if you want to be in the queue and

06:49otherwise we'll just keep going and

06:50we'll take questions as they come up.

06:51Thanks. Go ahead, Miss Browse. Uh thank

06:53you, Madam Chair and Miss Fleet Green.

06:56Um hello everybody, Ona Browse, director

06:58of the Office of Management and Budget.

07:00Thank you for being here today for our

07:022027 proposed budget. We'll be talking

07:04about it for the next six weeks at a

07:06minimum. Uh so this uh I think uh will

07:10be slightly different than our

07:12presentations have been in the past

07:13mostly because of the structure of it

07:15and we can dive into that as we go

07:17through um some of the sort of setup

07:20decks but as the chair said we'll be

07:22going through the um general government

07:25overview which is where we go through

07:27about 20 slides of the highlevel uh

07:30financial information the changes in and

07:32out of general government what the

07:34property tax adjustments are and

07:37financing sources and uses, etc. Um,

07:40we'll also be talking through the

07:42six-year fiscal program, which I don't

07:45think is traditionally discussed during

07:47these conversations, but does exist in

07:49the budget every single year. And um

07:52we're particularly highlighting it one

07:54because it isn't talked about that

07:56frequently, but two because the key

07:59assumptions within the six-year fiscal

08:00plan I think are important to this

08:02conversation and the projections that

08:04we're making about what the deficits may

08:07be. Um so uh so that will be slightly

08:12different. Um as the chair mentioned, we

08:15are also sort of presenting differently.

08:18Normally we present the general

08:20government budget as operating in

08:22capital together but because they are

08:25different revenue sources, different

08:28mechanisms if you will, we wanted to

08:30sort of present them as discrete uh

08:34totals because they are

08:38leveraged differently if you will. We

08:40have an operating budget that is set

08:41specifically and limited by the tax cap

08:44and the revenues available. The capital

08:46budget and the bonds associated are

08:48recurring questions every year for

08:50voters to approve. The reality of those

08:53two are constrained in different ways.

08:56So we are separating the general

08:58government capital from the operating

09:00conversation which will come with the

09:02conversation around what do the cuts

09:04look like from department X Y and Z?

09:06What would the impact to the community

09:08be for those service levels etc. Um we

09:12have a lunch break between 12:30 and 1.

09:14We have the utilities and enterprises

09:16coming in. That is traditional but they

09:18are normally done on the second day of

09:20the work session. Um and then we have

09:23the capital budget with the departments

09:26they will be present and next steps for

09:29uh the next meeting. If there is uh any

09:33question at any time that I don't have

09:34the answer to or that any of our

09:36directors who will be available today

09:39don't have an answer to. Um we have uh

09:42people from my department online

09:44tracking all of the questions that are

09:46asked and if we are not able to answer

09:48it in the room we will write up a

09:50response and get it to you so that you

09:52know what the answer to those questions

09:54are. Um

09:57any questions on that

10:00Mr. B?

10:01>> I just want to really understand what

10:03what you just said. I'm I'm maybe I'm

10:05not tracking it very well. You said

10:06we're that we're separating the

10:08operating budget obviously from the

10:10capital budget. We're doing operating

10:12budget to to today. Is that correct?

10:14>> We're doing the we're doing the

10:16operating budget review. The department

10:18review is next week.

10:20>> Okay. So you're you're separating the

10:21department review from the operating

10:23budget which is traditionally done

10:25together.

10:25>> Correct.

10:26>> And so the word operating can you what

10:29do you mean? What do you mean? So what

10:31do you mean that's the difference

10:32between our operating budget and our

10:33department bud bud budget? What is the

10:36operating budget as as opposed to

10:40>> it when we get through the so the first

10:4220 slides are just the overview of the

10:45total budget not the departmental

10:47>> I see it's just not broken down.

10:48>> Correct.

10:49>> I see. Okay.

10:49>> Correct. And so all of the individual

10:51department conversations

10:53>> I see.

10:53>> Right.

10:54>> Okay. So you're not actually separating

10:56them out. You're just reviewing them in

10:57in in a different way.

10:58>> Correct. We're re we're doing the

10:59overview so that you have all of that

11:01content information of the total budget

11:03and then the department review next

11:05week.

11:05>> Got it.

11:06>> Thank you.

11:06>> Yeah. And and that would the department

11:08view is kind of the the parade of

11:09directors that we have come and answer

11:11questions. So that was we wanted to make

11:12sure those folks were available.

11:13>> Y

11:15Okay.

11:20So this year is the same as our

11:23traditional year uh with the the annual

11:27budget process. We have um both our

11:30capital and operating budgets as

11:31discussed uh that have separate

11:33development timelines and separ separate

11:36development processes. So uh when we

11:39start our capital budget process, we

11:42start the year before the active budget

11:45year with community council surveys.

11:47Then the department's going through the

11:49development of the uh capital

11:51improvement budget and what comes

11:54forward to uh the mayor for conversation

11:58and decisions for 120day memo and the

12:03proposed budget and then the present the

12:06budget is presented to the assembly for

12:08amendments and approval. We then move

12:11into the endofyear process depending on

12:15uh whether you are talking about the

12:16capital budget or the operating budget.

12:18In capital world once we have gone

12:21through the approved process we have to

12:23go through bond packaging in January

12:26before we get to the ballot in April.

12:28Once the uh election in April is held

12:31and the uh ballot questions are

12:33approved, they are then rolled into the

12:36budget for that year and any legislative

12:40action that has occurred uh with

12:42legislative state grants in the first

12:44quarter of the year. It are also rolled

12:47into our capital budget and uh

12:50appropriated if they are to be spent

12:52that year or to uh the next year. um the

12:55operating budget. Once we clear the

12:58revised process for the budget year in

13:02April, we start developing the next

13:04year's budget. So in April of 27, we

13:09will start developing the 28 budget with

13:12all of the current information rolling

13:15it forward. Uh any questions on that?

13:25Okay. Uh the 2027 budget was uh proposed

13:29with the mayor's priorities of good

13:31government, safe Anchorage, and building

13:32our future. We've talked about these

13:33before. Good government is the uh

13:36premise that our local government should

13:38be providing quality uh municipal

13:40services and safe Anchorage uh for safe

13:45streets and trails. Building our future

13:48is the economic development uh priority

13:51pillar that brings us to a lot of our uh

13:55recreation economy, our uh Jbear

13:58expansion, housing development, etc. Um,

14:03under all of those pillars, the

14:06priorities that align go with, uh,

14:08continue to build a strong local

14:10government with reliable services,

14:12robust public safety, increased housing

14:14development, and modernized

14:16infrastructure. It's a real challenge,

14:18modernized infrastructure in a lot of

14:20our uh, arenas. Um, strengthening the

14:23municipality's recreation economy,

14:25revitalizing and re-energizing

14:26neighborhoods, uh, common sense

14:28solutions for energy resilience and

14:30affordability. We'll be talking about uh

14:33energy efficiency projects and uh

14:35specifically uh some facility proposals

14:39um for the capital program that uh

14:42really lean into the demand for that

14:44energy efficiency uh that we need right

14:47now in the community and preparing for

14:49growth. uh the community changes that uh

14:53Miss Blake Green referred to are part of

14:56our priority pillars and recognition

14:59because it's a lot of work to prepare

15:02for growth when we have been having

15:04conversations that potentially are

15:07managed decline. So they're very

15:10different options.

15:12Any questions on that?

15:16the overall budget highlights. Uh oh,

15:20was there a question?

15:24>> Overall budget highlights. Uh the

15:26continued investment in street

15:28maintenance. Um we'll talk through some

15:30of that with the department uh next

15:32week, but it will be mentioned

15:33throughout the overview slides. Um some

15:36of the uh key adjustments that were made

15:39this year were the inclusion of uh seven

15:43heavy equipment operators at street

15:45maintenance and along with that a

15:47reduction of the contractual services

15:50that were added to supplement the vacant

15:54positions in street maintenance um was

15:57reduced. So there is a uh an effort

16:00towards uh investing in our in-house

16:03capacity because we can um really work

16:07it more efficiently when we are staffed

16:09to the levels that the community

16:11expects. Um supporting existing public

16:14safety efforts and infrastructure. Um

16:16that is both uh continuing to uh

16:23establish a uh a recurring position for

16:29the MIT and some of the other uh or MCT

16:33sorry and some of the other um

16:35operational changes that have already

16:37happened within uh AFD and APD but also

16:40to encourage the conversation and

16:43propose increases within the AFD in

16:48particular due to stations and service

16:51demand around emergency medical

16:52services,

16:54[clears throat]

16:56but also to continue to expand other uh

16:59public safety needs that the community

17:01is requesting. Uh tackling the housing

17:04crisis, invigorating Anchorage public

17:06spaces, and funding crisis care,

17:08outreach, and connections to housing.

17:11This does not mean only municipal

17:13dollars. When we say that the the uh

17:15funding of crisis care outreach and

17:17connections to housing it is a

17:19multi-layered effort and is general

17:21government dollars, alcohol tax dollars,

17:23federal dollars, state dollars, private

17:25dollars and uh last budget cycle we had

17:29a presentation on the safe anchorage

17:31budget that included all of those

17:32threads. So the whole picture of the

17:35work that was being done is uh visible

17:37and that will be presented at the next

17:40work session uh for the budget.

17:44>> Um question from Mr. Ven and and I'll

17:46also note we were joined in the room by

17:48um member Park at about 11:18.

17:52>> Thanks. I'm really interested in number

17:53three. Um, tackle the housing crisis and

17:56how some of our policy change or policy

18:00choices impact the budget.

18:03>> Um, for instance, we've had a lot of

18:05conversation around proposed abatements.

18:08We did the the multif family A+ units.

18:10Um, we have another item that's going to

18:11be before us soon on mixed use um tax

18:15incentives, adding residential to

18:17commercial. Um, and I guess I'm I'm

18:20wondering when we evaluate those

18:22trade-offs, you know, there there's uh I

18:24guess the thinking is well um if we do

18:27those abatements, those units are more

18:28likely to get built and therefore be

18:30added to the tax roles in future, you

18:33know, x amount of time. Maybe they

18:35wouldn't be built otherwise. I don't

18:36know. Um but then also, you know,

18:39potentially then in in those years that

18:41we're doing the incentive,

18:44how much money are we not collecting?

18:45what is that doing to our budget during

18:48those years? Um and also just interested

18:51um more broadly in in what that looks

18:53like. How do we use our budget as a tool

18:55to tackle the housing crisis? You know,

18:56maybe that is continuing the work that

18:58we've done um on vacant and abandoned

19:01deteriorated property um uh you know,

19:04funding code enforcement uh code

19:06abatement to be able to do that work. Um

19:07but yeah, just interested in in how we

19:10can really um examine the trade-offs in

19:13our budget, but also use our budget to

19:14do exactly that.

19:17>> Um

19:18>> yeah, go ahead. One, two, three.

19:20>> I can jump in and then also Nolan Cloud

19:23is here who can come speak, but I I

19:25think that's a really good point, right?

19:28that abatement or incentive is really

19:31capital. When we don't have hard cash to

19:33be able to bring to the table to try and

19:36juice housing development, what we can

19:38bring that is capital is tax incentives

19:42that all of you have adopted and we are

19:44definitely starting to see that work. Um

19:47drive around town and you see

19:49construction happening in places where

19:51it has not happened for decades. So um

19:56you know the mayor mentioned this at the

19:58lunch and applaud the assembly for

20:00working on this about how that adate

20:02abatement is helping but that is

20:04definitely a question that we get and I

20:06think just more education is needed so

20:09that people understand when we are doing

20:11abatement we are still collecting right

20:14so we're collecting on the land value of

20:17that and then yes there is when the

20:20abatement time period comes to an end

20:23there is more housing value there that

20:26will be taxed. So the the achievement

20:30the golden ring is postponed but at

20:32least it is coming which we know that

20:36for years it has been stagnant. So you

20:39see things starting to turn. So there's

20:41that benefit. So, and then to your

20:43second piece in terms of the budget, I

20:46think like last year, member Baldwin Day

20:48added some money in for relocation that

20:51we are applying so that for when

20:53properties are being redeveloped and

20:54people need to be relocated to somewhere

20:57else that we have some money over at the

21:00health department that can be used to

21:01help with that. But certainly like if we

21:04if we had more room to maneuver

21:07with under the cap like where would we

21:10invest? Yes, I think there's a lot of

21:12places we would love to invest where our

21:15municipal services do help create that

21:19housing, but

21:22we we don't have have the funds right

21:24now. But I think it's a really good

21:26question. And Nolan, [clears throat] if

21:28you want to add anything.

21:29>> Sure. Uh through the chair, Nolan Cloud,

21:31mayor's office. uh to me member Volen I

21:33I would say something really important

21:35about tax abatements when you're talking

21:36about the fiscal impacts of them is that

21:38especially when we're talking about like

21:39the the multif family tax incentive uh

21:42it is incentivizing a type of

21:44construction that we really didn't see

21:46happening for 20 years in Anchorage and

21:48and and you know in terms of market rate

21:50multifamily you know nonfederally

21:53subsidized non-litec types of projects

21:55we really did not see those getting

21:56built outside of a few edge cases um the

21:59fact that we're seeing some of them

22:00built now I think with that tax

22:01abatement is evidence that they really

22:03wouldn't have been getting built without

22:05that. And so they wouldn't have been

22:07paying taxes if they weren't built.

22:08We're only giving a tax break on

22:10something that wasn't going to be built.

22:12And so we're we're we're what we're

22:14we're not giving up any revenue that we

22:16would have otherwise collected. Uh so I

22:18think that's always an important

22:19distinction uh to make. Um and it's not

22:21it's not bringing up anyone's taxes and

22:23it's not costing the municipality any

22:25money. Um we're foregoing revenue on

22:27something that otherwise wouldn't have

22:29been built in most cases.

22:33>> [clears throat]

22:34>> Yeah. And and one thing to add to that's

22:36important that I think can get lost in

22:38the discussion is with the the tax cap

22:40basically shifts even if it's in a very

22:43nominal way like a penny to everybody

22:44else. And so it's not that if we forgo

22:46if we say this property is not paying

22:48taxes on this building. Um it's not that

22:51ours goes down a the budget doesn't go

22:53down 300,000 or whatever the I guess way

22:55less than that. But yeah um but it's it

22:58the scale is so small that it's not

22:59really anyway. Sorry. So, uh, okay. Any

23:01other questions while we're paused?

23:04Okay. I think we can continue.

23:05[clears throat]

23:07Okay.

23:09Well, I think we just talked about this

23:10one. So, uh, community development

23:12economic indicators. So, good job

23:14everybody. Uh, but, uh, you know, low

23:16unemployment rate, the new housing

23:17permits, this slide, uh, is, uh, dated.

23:20I think the new housing permits since

23:22this slide was produced have increased

23:24even more. Uh,

23:27>> 449.

23:34>> We need that on the record. I

23:36>> was going to say I was going to say

23:37director do 449 housing. [laughter]

23:44>> Hi, Bob Dole, director of community and

23:45economic development. as we sit here

23:47today that we have in the system on our

23:49housing dashboard is 449 residential

23:52units compared to 401 last year and then

23:56that includes 266

23:59multif family housing units up from 161

24:03last year and

24:06and last year was much higher than the

24:08year before. So in both of those we're

24:10headed in the right direction.

24:16Miss Baldwin Day.

24:17>> Yeah, thank you. Um, how many of those

24:19266 are um are attributable to the

24:23senior housing developments that we

24:25have?

24:29>> So the chair Bob build director

24:31community economic development. Over 200

24:33of those are the senior housing

24:34development at Touchmark that they

24:36indicated but for this the abatement

24:39option would not have gone forward.

24:41>> Excellent. Thank you.

24:48Okay.

24:50Uh the uh looming fiscal cliff, we've

24:53talked about this for a few years now.

24:55Um all of this is preparation for the

24:59conversation we're having right now. It

25:01is a sort of ongoing conversation about

25:05what are the solutions that can come

25:07forward in the current moment with the

25:09information that we know. Uh to Vice

25:11Chair Volen's point, what are the

25:13tradeoffs when we're making some of

25:15these choices? When we are talking about

25:18structural changes, either through

25:20revenue or through operational

25:22adjustments, cuts, if you will, there

25:25are tradeoffs in all government choices.

25:28There are very rarely [laughter] choices

25:30that we get to make that do not include

25:32a trade-off. And understanding what

25:34those trade-offs, what they mean to us

25:37today, very important. But it's also

25:39very important what they mean to us

25:41tomorrow, five years, 10 years, and 15

25:43years from now. Because some of the

25:45things we are grappling with today

25:48occurred because of choices that were

25:50made 10 and 15 years ago specifically to

25:53solve problems that were in the moment.

25:56But there was not a future conversation

25:59about what does this mean for next year

26:01or 5 years or 10 years because the

26:04ability to project and foresee some of

26:07that content is frankly not possible at

26:10the municipality because of our staffing

26:12capacity. We have spent so much time

26:15cutting back departments and the

26:18positions from the work that was

26:21originally designed to come from those

26:24departments because of the financial

26:26limitations and the year-over-year

26:30nature of the municipal business.

26:33Meaning we have executive management

26:35that changes, elected officials that

26:37change. That turnover creates an

26:41inefficiency. Apologies because we are

26:44constantly changing the leadership and

26:47dynamic of what this process is. And

26:51that is good because we want the

26:53community involved in this conversation,

26:55but it is slow. And so we have to be

26:59able to make really smart choices. That

27:01may mean getting better data, which

27:04means spending money on it. And that is

27:07part of this trade-off conversation

27:09across the board. If we know we need

27:11something to help us do something, then

27:14we have to put the right investment

27:16behind it. And there's going to be a

27:18trade-off because we won't be investing

27:20in something else that is also needed.

27:22We are short on revenue, not on need.

27:28Uh the $15 million gap that we've talked

27:31about for the 27 budget was uh closed by

27:35eliminating vacant funded positions uh

27:38as part of the uh position adjustments

27:41that we'll go through in the AM support.

27:43You'll see that um the chief

27:45administrative officer was deleted. Uh

27:48he is now the municipal manager, but

27:50also the entire chief administrative

27:52office uh organization was restructured

27:55into other departments. So, some of

27:57those positions moved around. The deputy

28:00treasurer position was deleted. Uh, two

28:02positions from traffic engineering were

28:05pushed onto bond funding, project

28:08funding, if you will, because they were

28:10only proportionally funded out of the

28:12operating budget, and it's appropriate

28:14for them to carry with the project work.

28:17Uh there are I think one or two other

28:19vacant uh uh funded positions that were

28:22reduced and uh an AIM uh will come to

28:27the assembly either laid on the table on

28:28Tuesday or through a different

28:30distribution with the other uh vacant

28:33unfund or vacant funded positions. Um

28:36the good news is there are only a few of

28:38them and the information behind them

28:40will help the assembly understand

28:42through their process what's possible.

28:44>> Okay. Question for Mr. Handler.

28:46>> Yeah. So, of the $15 million, how much

28:49of that was with those vacant positions?

28:51>> Uh, almost $1 million.

28:53>> Okay. $1 million million on this. And

28:55then I kind of looking out to uh I mean

28:582028 here. What is I guess the

29:00anticipated kind of budget gap? We're

29:02looking at $15 million this year. What's

29:06the next one

29:07>> through the chair member handling? Hang

29:09on. [laughter]

29:13Yeah, I think that's probably where

29:14we're starting with that.

29:15>> I could skip the next two bullets and go

29:17right to that if you want. Um, we we uh

29:19it's 15 to 30 million projected for the

29:2228 budget. And when we get to the

29:24six-year fiscal overview, we'll talk

29:26through the assumptions in that and why

29:29there is a range between 15 and 30

29:31million and how that reflects compared

29:33to the 27 gap. Um, I think that's on in

29:37a few slides.

29:38>> I'll I'll let you get to that slide and

29:39then then I might have some more

29:40questions. Yeah, of course. I mean,

29:41you're welcome.

29:42>> And Miss Park, do you have a question?

29:45>> Thank you, chair. Is it is it overly

29:48optimistic to think that there might be

29:50additional funds coming from the state?

29:52>> Uh through the chair to member Park,

29:54it's not overly optimistic. That happens

29:55every year there. I think the the

29:59reality is we don't know what will come

30:02and that is the real challenge is is

30:04that we can't budget it right now.

30:07Meaning we can't build a program on that

30:09funding. So, so we try to preserve

30:12anything that we know is a one-time

30:15problem to go with the one-time money.

30:18So, that's how we think about it.

30:20Anyway,

30:21>> and Mr. Volunte.

30:23>> Yeah, thank you. And I guess um I would

30:25also just maybe added on a little bit of

30:27response to member Park's question. I

30:29think you know this is um this is us

30:32setting the budget. This is not the end

30:34of the story though. The end of the

30:35story is first quarter budget revisions.

30:36that's when we'll know a lot more about

30:38what additional money we will receive or

30:41not. And so to me, this whole process is

30:43like setting your family's grocery

30:44budget. Um, you think you know what

30:47you're going to bring in and how much

30:48you have to spend. Um, but later down

30:50the road, if you get a promotion or a

30:51raise or there's more money in the in

30:53the couch cushions, then uh you can

30:54spend that later, but we I think we um

30:57the responsible part of this is making

30:59sure we don't overshoot or rely on

31:01something that may not um come through.

31:04My comment was, I love this graphic on

31:06the right. Clearly, graphic design is

31:07someone's passion and I just want to see

31:10this little guy. I want him to have a

31:12name and I wanted to I want to see him

31:13in more presentations.

31:15>> Yeah,

31:15>> through the chair member and so do I.

31:17[laughter]

31:18>> We did discuss whether we should animate

31:20him for this slide and decided to be

31:23more conservative.

31:25>> Thanks um Miss B. And then I'll also say

31:26in general um if if there is a question

31:29that is asked that is covered on a new a

31:32subsequent slide I think that's an

31:33acceptable answer too. But go ahead Miss

31:35Balden.

31:36>> Yeah thank you. I I think this is this

31:40is actually addressed on the next slide,

31:42but I think I I'm curious if we have a a

31:45num a number attached to it, and that is

31:48how much of the $15 million gap that we

31:50are currently experiencing is

31:51attributable to specifically the rising

31:54cost of healthcare

31:58[snorts] through the chair to member

31:59Baldwin Day. It's hard to isolate it to

32:03say that that number is responsible for

32:06the gap, right? Because it's all a

32:08cumulative total, but I can tell you

32:10what the rising cost of healthcare costs

32:12us. And uh the medical increase for uh

32:16general government, I believe, was

32:17between four and $6 million this year.

32:19And that's just the additional money

32:21that we have to pay for the medical

32:23coverage on the employer side.

32:25>> Yeah, that's exactly what I was looking

32:27for. Thank you.

32:29Uh the uh the other uh budget gap

32:33closure mechanism reducing reliance on

32:35contractual services. As I mentioned

32:36before um the assembly had taken action

32:39to approve additional heavy equipment

32:41operators. Uh in kind we reduced the

32:44contractual services that or the revenue

32:47I should the funding for the contractual

32:49services on snow removal. Uh part of

32:52this is the sort of return to a post

32:57vacancy street maintenance budget. Uh

33:00meaning the non- labor side of street

33:02maintenance's budget was enhanced and

33:04increased during the period where they

33:07were experiencing deep vacancies

33:09specifically to supplement the uh

33:12capacity or lack of capacity within the

33:14department. And now that the department

33:16is staffed and we have added positions

33:19to uh increase pl or decrease plowout

33:21times uh we felt that it was appropriate

33:24to reduce the contractual services. As

33:26we've talked about snow removal is a two

33:29budget process and one season does

33:32affects two budgets. So there's a

33:34blessing and a curse there sometimes.

33:37But to member Park's question, uh if

33:40there was a demand or need for

33:42additional revenue, uh particularly

33:44around snow removal, uh for contractual

33:47services because of the weather, uh we

33:50have the opportunity to do the same

33:52thing we did this year, which is

33:54appropriate lapse funding from the

33:56department into the next quarter or any

33:59state funding or one-time funding that

34:01is known or becomes available between

34:04the budget process and the uh revised

34:06process in April can be added if that is

34:09necessary.

34:12And the other answer to how we close the

34:14gap is that we relied on one-time funds

34:16that are now gone. Uh this has been part

34:19of the budget for the last many years,

34:21but this year is the last year of the

34:25MLNP uh sale fund, which is not proceeds

34:29from the sale of the MLMP. It is uh

34:31basically a parent account that the

34:33municipality has and has been paying uh

34:37PERS related debt and other debt from

34:40MLNP down through the budget over the

34:43last few years. I think maybe it was

34:46first used in 21 or 22.

34:49um this past year I think we used 5

34:51million and for proposed for 2027 is

34:55another 5.5 million plus the interest

34:58that has been born from that account

35:01while it has lived since the sale of MLP

35:03which is an additional $3.3 million. So

35:06this is more of the same sort of

35:08category of scraping the couch cushions

35:10and also trying to delete funds from our

35:14required monitoring and acer process. If

35:18we have single funds with $12 in it, we

35:22still have to spend the same amount of

35:24time uh managing it through the ACT for

35:27process that we do something that has

35:29millions of dollars in it. So if there

35:32uh that's part of our good government

35:33OMB process that we've been working

35:35through in the last few years. I think

35:36the budget two years ago had lots of

35:39that. Thanks. Um I have myself in the

35:42queue very briefly on the snow plowing

35:43point that I have Miss Park I think day.

35:46Um so on the snow plowing point I just

35:50for context because I was not here the

35:52whole time but I was here for part of

35:53that time. I remember multiple points

35:56during the winter of 2023 24 where

35:59essentially we you know in a a very

36:01short order we needed to approve a

36:02contract to keep increasing that amount

36:04because we weren't meeting the we didn't

36:07have the the people in the the positions

36:09and so we needed to increase that

36:10contractual amount. So I will say as

36:12somebody was there I I kind of lost

36:13track really of how much was put into

36:15that account and it was really trying to

36:17address that issue that we didn't have

36:19the people and so we had to contract it

36:20out. We had a lot of discussion about

36:22how we could pay for priority service

36:24when everybody else already had

36:25contracts, etc. And so, um, so just to

36:28say it really clearly, I think there was

36:29in that particular line item a fair

36:32amount of contract bloat and it was

36:34trying to address an issue which is we

36:35need to plow our roads, but I just want

36:37to be clear that I think um uh that that

36:41we we kind of knew at the time that that

36:42that account had gotten healthy to the

36:44point that it was probably too much,

36:46right? But it was trying to solve that

36:47issue. So anyway, I'm glad that we are

36:49trading out staff positions for that

36:52contract and reducing that contract

36:53bloat. Thanks.

36:54>> And to the chair, one of the reasons

36:55that did not happen earlier is because

36:57we wanted to stabilize the department,

36:59make sure that the vacancies were, you

37:01know, full and that we would be able to

37:03operate safely and not have to spend

37:05money on the contractual side. So

37:07there's a transition period where if you

37:10have uh increased one because another is

37:13having operational challenges. You can't

37:16just immediately decrease this one and

37:18increase this. You have to monitor it

37:20and balance it out. Otherwise you're

37:22going to create more stress and tension

37:23on the system and that is not something

37:25that street maintenance needed.

37:27>> Thanks uh Miss Park.

37:30Thank you chair. Excuse [clears throat]

37:32me. Um I so two-part question and I kind

37:36of don't like this question but it looks

37:37like you were able to successfully

37:39consolidate

37:41um for instance the um uh the

37:44administration uh under uh uh Mr. Falsy

37:49was that that was done without any

37:51layoffs. Correct.

37:52>> Uh through the chair to member park.

37:54Yes. The the reorg of the chief

37:57administrative officer I believe aside

37:59from the layoff of the chief

38:01administrative officer. Uh [laughter]

38:03did

38:06>> right right. Um but no I don't I don't

38:08there were no layoffs as a part of that.

38:10and and one of the slides we'll get to

38:12later is the position summary and the

38:14changes between the budget and we'll

38:16explain each one of those changes

38:18because some of them look like they are

38:21staff reductions but they are

38:22reorganization into other departments.

38:25So I want to make sure that that is

38:26clear because there are some other

38:29position reductions and changes that

38:32occurred in departmental activity that

38:35were not part of this budget closure.

38:37they were part of reorganization within

38:39the department for efficiencies

38:42themselves.

38:43>> So the second part of the question is

38:44whether we anticipate having to lay off

38:47any staff

38:48>> at this time. No.

38:50>> Thank you.

38:51>> Okay. Miss Bald.

38:53>> Yeah. Thank you. I my question is

38:55pertaining to the MLMP sale fund. Um so

39:00am am I understanding correctly that

39:03that funds remain in that fund? No,

39:06>> we have zeroed that bad boy

39:07>> through the chair. This year would be

39:09the last year the appropriate. So on AM

39:12support on uh your uh general government

39:15operating AO uh 123 2026123

39:20uh the you'll see in the um uh source

39:25the revenue sources that there there's a

39:27line item for ML&P sale and I believe

39:29it's I can pull it up.

39:32eight and change. But the intent is to

39:35remove the principal and interest from

39:38the fund to stop

39:42maintaining the fund and it would leave

39:44nothing in there

39:46to budgets awareness current. Okay,

39:51perfect. Thank you.

39:56>> Okay. Yeah. And just for reference, she

39:58was referencing there's the budget books

40:00and then there's the various ordinances

40:01and resolutions that were introduced at

40:03our meeting on October 6th. And those

40:05are the items that we actually amend

40:07with all of this stuff being the the

40:08detail attached to it. Um and then as

40:11we're looking at why don't we move to

40:12the next slide because I know some of

40:14the um kind of the intent is to dig more

40:16into some of these questions as well. So

40:17we'll get there.

40:18>> Um so challenges ahead. Uh the outlook

40:21for 2028 as mentioned the uh projected

40:24budget gap is 15 to 30 million. We'll

40:27get into the details on those numbers in

40:29the um fiscal uh plan chart. Um costs

40:34continue to increase as member Baldwin

40:35Day mentioned. Healthcare, labor, the

40:38cost of energy and fuel. We have

40:40significantly less state funding than we

40:42have had. Uh and we will show some

40:45charts on that as well. Decreasing

40:47alcohol and marijuana tax revenue

40:49overall decreasing. Uh but we do see a

40:51slight rebound on the marijuana tax for

40:54this current proposal. I believe there's

40:56an additional $2 or $300,000

40:59that uh Treasury is projecting to be

41:01available. Uh and and uh the slide says

41:05no onetime funds left. There are minimal

41:09one-time funds left. There are always

41:11one-time funds at the municipality, but

41:12the bulk large one-time funds are not

41:16known or available at this point in

41:18time. and the funding that has been used

41:21uh over the last few years as mentioned

41:24uh from the MLP account is gone.

41:29>> Mr. handling.

41:30>> So, I guess my question with this is I

41:33mean, as we're we're looking a ahead and

41:35beyond just one budget cycle with this,

41:39um I guess what is the plan for this 15

41:42to $30 million kind of looming

41:46fiscal cliff that that we're at right

41:47now? Because I guess in my view on it

41:49is, hey, if we're we're looking at that,

41:52we're we're filling the the gap with

41:53onetime funding. Is this something where

41:55we should be taking onetime funding and

41:57splitting that up over a number of years

41:59rather than sitting there saying like

42:00hey let's all let's all frontload it and

42:03that's next budget's problem. um through

42:06the chair member handling to be frank

42:09that's what we have been doing with the

42:12MLNP funding is there was a large amount

42:15of funding available at one time it

42:17could have all been taken at once but

42:19because we started talking about this

42:21fiscal reality years ago we have been

42:24planning this process knowing how much

42:26time is this going to take to get us

42:28through what conversations can we have

42:32with the added realities of how any new

42:35revenue revenues would or could come on.

42:37Some of them can be immediate. You get

42:39voter approval on uh revenue mechanism

42:42X, maybe the next day it is turned on.

42:45If you try to establish a new revenue

42:47mechanism, there's a certain amount of

42:49time that it's going to take like a

42:51sales tax to go through all of that. But

42:54there is tradeoff in all of that. We

42:57have all of these other activities

42:59happening. And so this whole

43:01conversation is where are the pinch

43:03points and how far can we make this to

43:06get the community to engage to tell us

43:09what they want to see happen. We are

43:11talking about structural changes that

43:13would probably completely delete

43:16programs that the community currently

43:18engages in and we need the time to have

43:21this conversation. This table, these

43:25meetings are where we have the decisions

43:28about are we going to spend it all now?

43:29are we going to spend it tomorrow? How

43:31are we spending this? What's available?

43:33So, it's this conversation where you

43:37make those choices. And if I can do the

43:41chair, go ahead and jump in. Suzanne

43:42Fleet Green. I think you will see in a

43:44bit here too. And the mayor talked about

43:46it when she delivered the budget. Again,

43:50she asked for some scenario planning by

43:52departments to understand what

43:55a cut would look like, what services

43:58residents lose. So, we'll be talking

44:00about that, too. But again, those are

44:02making sure that the public has

44:04transparency and daylight into the

44:06choices in front of us. And it's I mean,

44:10sure, cuts could come. Um, let's talk

44:13about what those cuts mean on the ground

44:15in terms of services delivered. and

44:19remembering that our biggest budget

44:21drivers for the municipal budget are

44:24APD, AFD, maintenance and operations,

44:29things that people firmly expect a local

44:32government to be able to deliver. So

44:36again, choices and how we make sure that

44:38the public is engaged in that

44:40conversation well before we get to this

44:44point for 2028

44:46and through the chair I will say to

44:48reiterate those pieces of information

44:51that conversation around the

44:52departmental changes operations that's

44:55what we talk about in the work session

44:56next week. So all of uh what Miss Le

45:00Green just said in terms of the scenario

45:02planning, the mayor's office as our

45:05budget guidance this year requested that

45:07the department submit a flat budget

45:09proposal, which means that they figure

45:12out how to accommodate any contractual

45:14increases that they know they are going

45:16to have to afford by adjusting or

45:19cutting their budget. We also asked them

45:22to propose a budget with a 5% cut

45:24scenario to their direct costs. This

45:28means that if you have a department that

45:30is all contractual commitments, real

45:33estate, venues, etc., you can't cut

45:36those budgets. They are set by the

45:39contract for some period of time. There

45:42are only certain kinds of cuts that we

45:44can take or make in an immediate

45:46process. And the difference between a

45:50flat budget and a 5% cut is $30 million.

45:55So the wiggle room that we need is in

45:58that space. The question then becomes

46:01what are the departments saying they can

46:03do, they can afford, they could manage

46:06without breaking. And what we will see

46:09when we talk through this next week, but

46:11what we also already know is that there

46:14is not much that can be given up without

46:16breaking.

46:17And so whole programs will need to be

46:19ended instead of breaking lots of

46:22programs.

46:23And that means that full choices will be

46:27made about ending something as opposed

46:29to just

46:31managing the decline.

46:37Any other questions? Um

46:41uh Mr. Bowen and then Mr.

46:44Um, so that that that did spark a a new

46:47question for me, too. Um, so that $30

46:49million delta, do we have an idea of how

46:53that would impact um someone's property

46:56tax bill?

46:58>> Uh, through the chair. Yes. Just you

47:00wait.

47:01>> Okay. Lovely. Um, great. Because I can't

47:04imagine it would be all that

47:07substantial, but um, shoot, what was my

47:10original question? Oh, my my question

47:12was, okay, so we have been hearing um

47:14Sydney and I from our downtown

47:16constituents. I think I mentioned this

47:17to you already. Um strong support for

47:20continuing the downtown foot patrols and

47:23that has been something that um we

47:26received funding um from elsewhere and

47:28we were able to spend it in that way.

47:30Um, I guess I'm wondering, you know,

47:33when we when we think about the

47:34limitations of our continu continuation

47:38budget in the tax cap, are we going to

47:40be looking uh at doing any sort of

47:42special levy uh in in this cycle? You

47:46know, we we had the the proposed one for

47:48to to support um the school district

47:51last year that did not pass, but we've

47:52also had levies pass um such as the one

47:56to upgrade our snow removal fleet. Um is

47:59that a tool that we are considering

48:01>> uh through the chair? There is a tool

48:04similar to that. Uh and there is always

48:07the conversation open for how would we

48:10create funding to do X Y or Z and

48:13special levies are the way that you

48:14would do that in our current universe.

48:16You know, outside of a borrowing uh

48:20process like bonding, if you want an

48:22recurring total amount coming in, the

48:24special levy is the way you do it.

48:27>> Great. I I think, you know, I've also

48:28heard in that conversation around

48:30bringing it back to the downtown foot

48:31patrols, uh other representatives from

48:34other districts say, "Hey, you know,

48:35we'd like something like that in our

48:37neighborhood that is experiencing some

48:39of these public safety issues." So, I

48:40don't know. I'm just kind of I guess

48:42throwing this out into the ether, maybe

48:43like a public safety special levy. I

48:45don't know.

48:46>> And so, through the chair to member

48:48Voland, I will say that

48:51downtown district is saying that they

48:54want this. They like this. I believe

48:57many other districts are saying the same

48:58thing and that would mean that we should

49:01increase the police service area, not a

49:04specific foot patrol area. And we can do

49:08that. The way that we would do that is

49:11by putting forward a special levy or a

49:13tax cap increase specifically to

49:16accommodate growth within the police

49:18service area of we want to add $15

49:22million to accommodate overtime andor

49:25staffing to achieve XYZ. This is how

49:29we're going to do it. And that voter

49:32approved uh action then increases the

49:35amount of money you're allowed to

49:37collect under the cap for the police

49:38service area and the work that they do

49:40within it.

49:46>> No.

49:48Okay. Yeah. And I'll remind folks too, I

49:49know we're going to have a a deep dive

49:51on each of the departments and then

49:52we'll get to the capital, but this is

49:54not the same as capital. Um but uh so

49:56next Miss Baldwin Day because I want I

49:58just want to make sure we we can get

49:59through these slides by 12. actually

50:00before. So the reason that I'm asking is

50:02because you know the bonds are a little

50:05bit as I understand it

50:06>> and I could be I'm willing to be

50:07corrected but more constrained to

50:09capital whereas a special levy can you

50:11have more flexibility with operations

50:14maintenance planning efforts that kind

50:16of stuff

50:17>> uh through the chair to memberville and

50:18uh now I will uh say yes to Mr. Falsy's

50:22question which is there is uh we'll have

50:25that conversation around the capital

50:26budget because there is this um there is

50:29I think a uh practice that the

50:32municipality has been in for the most

50:34part where our bond packages come with

50:37the capital investment for financing on

50:40the bond as well as a small on and m

50:42increment that goes for the maintenance

50:45of whatever that new asset is when it

50:48goes into service that has traditionally

50:51not carried the full loaded cost of

50:55maintaining or operating that asset or

50:57those assets depending on what they are

51:00because of the nature of the

51:02municipality. Uh that is a completely

51:06reasonable normal national thing that

51:08happens in other places. the the the

51:11fire service levy would be $250 million

51:17and you would get this this this this.

51:20That is a service level budget. You tell

51:23us what you want us to provide. We tell

51:25you how much it costs. We then do it. If

51:28you say that's good, go do it. Right

51:30now, the tax cap sits over that fund,

51:34all of those individual funds, those six

51:37that we talked about, and holds them

51:39here. If we want to change them, just

51:42ask the question, can we change this

51:46service area this way and allow it to

51:49exist under the tax cap? So, this is the

51:52police service area. Here's the tax cap.

51:54We want to go like this. Okay. Do you

51:57want more funding to go for this thing?

52:00Great. That that is a normal ballot

52:02question that has happened at the

52:05municipality in the past. We have reset

52:08tax caps in order to accommodate

52:10specific adjustments. If the ASD

52:13question had been a recurring levy, it

52:17would have permanently increased the tax

52:19cap by up to $12 million and given that

52:21additional space to flex.

52:24So, the other alternative is should we

52:27increase the tax cap by $20 million?

52:35>> Okay. Next, I have um Mr. Pres, then

52:37Miss Baldwin Dave, then this part.

52:40>> Thanks. I just want to name something

52:42that will help me as we're having these

52:44conversations that I think can be

52:45confusing and I'm not sure this is

52:47helpful or not but the terminology we're

52:49using. um you're you're talking about

52:52programs versus services versus

52:54initiatives versus projects and I I

52:57think when you said that you know we

52:59have to decide whether a program goes or

53:01stays as opposed to breaking things what

53:04what it tells me is that there is a

53:06there is a belief system that there are

53:08core services that are not programs that

53:11are not initiatives that are just what

53:13we have to do versus a project or a

53:15program that sort of thing. So as best

53:18we can define those, it would be really

53:20helpful I think for this conversation

53:22because it would tell us what you

53:23believe is a core service and what you

53:26believe is a program or a pro project so

53:29that we could have a better conversation

53:30around that. So that's I think that's

53:32one piece when when someone says my

53:34constituents like this project or

53:36program or service versus my

53:38constituents like you know police to

53:40show up when a crime is committed,

53:42right? And so um so that that may be

53:45helpful and I don't know if you have

53:46those

53:48differentiated already but um but it

53:49would help me in terms of of

53:50understanding the conversation

53:51>> and through the chair to member Perez

53:53radio the reason I'm smiling is because

53:55we want you to tell us those things too

53:58right we that's why we're talking to the

54:00community is what does the community

54:02think are the core programs and services

54:03that they want us to provide there are

54:05things that we legally have to provide

54:08and things that are expected for us to

54:10provide but those are not the same

54:12And the expectations are what get in the

54:15way of us having a practical

54:17conversation about what we can afford

54:18versus what we expect. And this is not

54:22about what we think is the core service.

54:25It's about the information that we can

54:27gather and respond to. And so we need

54:30you to engage and tell us what those

54:32core services are. We can hear a lot of

54:35the sound of some of those core

54:37services,

54:38but we know that there are other core

54:41services that when they are endangered

54:43become

54:45primary to the effort. And we need to

54:48understand what that looks like and have

54:49a long enough conversation about

54:52deleting something if we are going to

54:54have to delete something so that people

54:56understand why it's happening and that

54:58it is not just an arbitrary choice to

55:01get to a bottom line. because we want to

55:03understand how we are actually impacting

55:06the community demands while we are in a

55:08potential growth stage. It is a very

55:11sort of fluid situation.

55:14>> Yeah. Yep. No, I agree with that. And I

55:16just as a followup just I think naming

55:18the why I'm calling it this and why I'm

55:21calling it that I think is is really

55:22important because I I I think in that

55:24conversation there is an assumption at

55:26least for me that that that is that

55:29piece we're talking about right now is a

55:30pro is a project and it could come and

55:33go without taking away what I would

55:35consider to be courses or services. It's

55:37really nice to have but it it may not be

55:40essential but we may not all agree on

55:42that.

55:42I I through the chair I can't agree more

55:45and I think we'll do some shameless

55:47promotion and say that you know we're

55:49doing an event at the end of the month

55:51with uh in coordination with the

55:52assembly that is about this

55:54conversation. It's about what are those

55:57trade-offs so that the community can

55:59understand that we can't provide

56:02services in a 24-hour cycle immediately

56:06on demand because of the funding levels,

56:09but also because within reason it's not

56:11appropriate. We we're not we can't solve

56:13every problem in the structure that we

56:15are in as a municipal service area

56:19model.

56:22>> Thanks. Thanks, Miss Baldwin Day. Then

56:23Miss Park, then Mr. Handle. Yeah, I just

56:25wanted to throw a reminder on the table

56:28that as long as we have a tax cap

56:30formula that says that every cut is

56:34permanent and the budget ratchets down

56:37like year overyear,

56:39having this discussion about where we

56:41cut costs and and making deeper cuts

56:45starts to become a like

56:46self-perpetuating cycle. And so there is

56:49a structural question at play here I

56:52believe about this ratchet down

56:54mechanism when we are living in this

56:55kind of fiscal environment where we

56:57would maybe like to make some different

57:00choices. We have to understand that the

57:02the choices we make to cut now are

57:05choices that echo in perpetuity unless

57:07and until we change the tax cap formula.

57:10So reminding us that that is also

57:15a factor at play and through the chair

57:17to member Baldwin Day I would say that

57:19if you look back through the history of

57:21the municipality we are we are this

57:24cycle is repeated over and over and over

57:26again at a minimum on an every 10 to

57:2915ear cycle but in real drastic ways on

57:32a 15 to 20 year cycle and those things

57:34obviously can change based on the inputs

57:37but this conversation a $10 million gap,

57:40a $15 million gap, a $20 million gap has

57:43happened in 1993, in 2007, and all

57:48multiple times, right? And and the way

57:52it is discussed is either we know

57:54there's a solution, we figure out

57:57there's one-time funds to put in there

57:59and we don't have to do it, or the

58:01budget proposal is a huge emergency, and

58:05we have a problem. And we know that is

58:09the structure of our business. We have

58:11been planning this conversation directly

58:14and plainly while we're covering the

58:16municipality because we know this is the

58:18conversation we have to have and

58:21engaging to understand what the core

58:24services that we're required to provide

58:25versus what the community expects us to

58:27provide versus what they want us to

58:29provide and pay for are very different

58:32questions. and understanding all of that

58:34takes time and engagement.

58:39>> Thanks. Uh, next, Miss Park, then Mr.

58:41Handle.

58:42>> Thank you, Chair. I don't see anything

58:45before us regarding ASD,

58:49and I'm wondering whether there would be

58:52a likelihood there could be a levy uh,

58:56expressly as you mentioned for APD that

58:58we could do that

59:00>> uh, through the chair member park.

59:02That's possible at any time given uh the

59:05sort of nature of how we work through

59:08the questions that we have. As long as

59:10the question comes or the proposal comes

59:13before January if it were going to be on

59:15the ballot, it's possible. Um we will be

59:17talking about ASD part of the

59:19conversation that we have to have around

59:21the operating budget and the inputs to

59:24the operating budget and the timing

59:26around these cut choices and funding

59:28choices. they all dovetail together and

59:30they are all a matter of timing and what

59:34are the options for each of these

59:36solutions. The uh we've talked about

59:38this I think in the ASD joint meetings

59:40and in other uh areas the timing of the

59:46decisions around the school district

59:48budget and the municipal budget are not

59:50in complete alignment but they do allow

59:52for interplay back and forth. We're in

59:55conversations with ASD about their 28

59:58projection and we believe that they can

1:00:01revise some of their numbers and we'll

1:00:03be talking about them talking to that

1:00:05talking with them about that. Um but we

1:00:08believe that the 28 projection is

1:00:11resolvable and the 27 projection we are

1:00:15waiting to see uh how we get through the

1:00:18rest of the conversations with them and

1:00:20the state activity that is occurring

1:00:24through the next election and

1:00:28legislative session.

1:00:30>> Thank you.

1:00:31>> Thanks. Yeah. Yeah. And just to be

1:00:32clear, pretty much nothing in this book

1:00:34or the other books talks about ASD

1:00:37directly because there's a whole

1:00:38separate process, but it it does. It's

1:00:39certainly really correct. Um uh Mr.

1:00:41Hendelin,

1:00:42>> thank you. Uh so you mentioned uh

1:00:44previously about uh some like like

1:00:46contracts that we've already obligated

1:00:47and how that those are uh I guess

1:00:49difficult uh to make to make cuts to.

1:00:52Aren't those still subject to

1:00:53legislative approval

1:00:59>> through the chair? the when the

1:01:02contracts are approved originally. Yes.

1:01:04>> Do you maybe want to give an examp some

1:01:06example

1:01:10bargaining agreements or contracts like

1:01:12what what when we say contractual? What

1:01:13does that mean?

1:01:15[clears throat]

1:01:16>> I'm sorry. Say the question again.

1:01:18>> Sorry. So I'm saying that like we we are

1:01:20approving the contracts but then we go

1:01:22and we still approve a budget. And so my

1:01:24my question is, isn't this those

1:01:27contracts still have some kind of clause

1:01:29or uh provision in it that they are

1:01:31still subject to our legislative budget

1:01:34approval for them

1:01:36>> through the chair? I don't know if there

1:01:37are clauses in them, but yes, it is all

1:01:39subject to the approval of revenue by

1:01:42this body.

1:01:42>> Okay.

1:01:43>> I think Mr. Bowman wants to respond as

1:01:45well, but I think I mean just to dig in

1:01:48though, I think when you say

1:01:49contractual, there's service contracts,

1:01:51>> right? But there's also collective

1:01:53bargaining contracts which are labor

1:01:54contracts. So the question is can you

1:01:56change all of them in the same way?

1:01:58>> Yes. I think that's that's a very good

1:02:00clarification. Thank you chair. Uh the

1:02:03there when we say contractual services

1:02:05there are the professional services that

1:02:06are contracted outside of the

1:02:08municipality and then the contract the

1:02:10collective bargaining agreements that

1:02:11are contractual that we have to deal

1:02:14with in very different ways. Right? This

1:02:15is a vendor contract and this is a labor

1:02:19negotiation agreement. and how they can

1:02:21be adjusted because 60% or close to 60%

1:02:26of our cost is labor. The bulk of large

1:02:31contractual changes on the labor side

1:02:33have to come with renegotiations. The

1:02:35others are subject to appropriation and

1:02:38available funding. And if there is no

1:02:40available funding, then we have to go

1:02:42back and either negotiate or break the

1:02:44contract,

1:02:46which would come with probably a service

1:02:47reduction of some kind because the

1:02:49contracts are providing services.

1:02:51>> Thanks. And then I think Mr. Bowman

1:02:53wanted to respond as well.

1:02:56And I was going to talk not on the labor

1:02:58contracts because those are a whole

1:02:59different beast. But on our general

1:03:02municipal services contracts for a given

1:03:04service, we do include in those a

1:03:07provision that says subject to

1:03:08appropriation by the assembly. Which

1:03:10means that if the

1:03:12dollars that support that contract are

1:03:14not appropriated, that contract can be

1:03:16broken. But that doesn't mean we still

1:03:18get the services. It just means that

1:03:20contract goes away and the whole

1:03:22contract is gone.

1:03:24>> Okay. Thanks. Yeah. I just want to make

1:03:26it clear because yeah, I was making sure

1:03:27that we were not having we are approving

1:03:29contracts or something and essentially

1:03:31binding a future assembly. Um, every

1:03:34assembly still has to pass a budget and

1:03:36has the ultimate uh appropriating

1:03:38authority. Thanks.

1:03:42>> Next, Mr. Martinez.

1:03:43>> Uh, thank you, Chair. Let's go back

1:03:46for educational and clarification

1:03:48purposes to the conversation around um

1:03:52the foot patrol special levy paying for

1:03:55things. Um

1:03:58and I'm thinking of and then the the the

1:04:01nature of it was suggested like other

1:04:04areas like interested in that and how we

1:04:06would potentially pay for it. Um so that

1:04:09raised the question about the business

1:04:12improvement district for me. um downtown

1:04:15has a business improvement district and

1:04:17I wonder if we know just off the off the

1:04:20top today or if we can find that out. I

1:04:22know we can find it out but um how much

1:04:26how much is collected in the business

1:04:28improvement district. Um, and it seemed

1:04:32like that should be part of an analysis

1:04:34about

1:04:36um

1:04:37the cost, especially the difference

1:04:40between that area and other areas that

1:04:43do not have a business improvement

1:04:45district that goes for security

1:04:46potential purposes to support that and

1:04:49maintenance purposes. And I wonder about

1:04:52um the over the overlap of of those

1:04:55those dollars there and what's

1:04:57replicatable. In fact,

1:04:59>> uh, through the chair member Martinez, I

1:05:01believe that those are knowable numbers.

1:05:03The analysis could theoretically be done

1:05:05off of those numbers, but we don't have

1:05:07it available right now, but we can

1:05:08absolutely get them.

1:05:11>> Excellent. and and and it just raises

1:05:12the the it raises a question that um I

1:05:16don't think I I don't think I've raised

1:05:18it uh aggressively at all, but it it has

1:05:21kind of lingered for me, which is

1:05:26when we were talking about increasing

1:05:28for patrol downtown, who pays for what?

1:05:31Um, and you know,

1:05:35even when it comes to a special levy, a

1:05:37special levy is citywide

1:05:41for like increasing APD patrol downtown

1:05:45>> through the chair. A special levy is how

1:05:48you said it. So, if it's in within a

1:05:49specific service area, it doesn't need

1:05:51to be area. Um, but it depends.

1:05:56>> Oh, just for clarification, downtown is

1:05:57a special service area.

1:06:00I'm saying you can make a service area.

1:06:02>> Okay,

1:06:03>> that's right. You you can create you can

1:06:05create a service area for which the levy

1:06:09pays for the service to be provided

1:06:12and so a special levy can be applied in

1:06:17any service area

1:06:19>> and then that would be the the the

1:06:23success or failure of the resolution

1:06:24would be as a result of the voters in

1:06:26that particular

1:06:27>> correct

1:06:28>> service area which is newly crafted

1:06:30>> correct

1:06:31>> accord well that's interesting

1:06:33because it just does raise the question

1:06:34about who pays for what and there are

1:06:36other jurisdictions that um

1:06:42Nashville for example pays for its

1:06:44downtown police and night police

1:06:48straight from uh the the business

1:06:51improvement district and outside funding

1:06:54sources and it really covers the

1:06:55overtime and the additional stuff um

1:06:57because they're regular hired police

1:06:59officers not special

1:07:01>> that's right that's the service level

1:07:02they would like to pay for. And so that

1:07:04is a service level budget.

1:07:06>> And and just to parallel like other

1:07:09areas don't have there's only [snorts]

1:07:11one business improvement district in the

1:07:13municipality of Anchorage,

1:07:15>> correct?

1:07:16>> Right.

1:07:17>> In the whole state. Um and so that's an

1:07:20interesting it's an interesting uh place

1:07:23to think about that. Um and especially

1:07:25as you think about the not only there in

1:07:27terms of who pays for what and how to

1:07:29kind of have sustainability built in but

1:07:31also the other areas. Um and I will

1:07:34always constantly juxtapose another

1:07:37commercial corridor like Moldun and

1:07:39specifically describe the difference

1:07:41between the residential density of

1:07:43Moldun and the residential density of

1:07:46the corridor of where foot patrol is in

1:07:48fact happening and the difference

1:07:50between the populations that are being

1:07:52served. And so I think even when people

1:07:54on the east side are saying, "Hey man,

1:07:56we want foot patrol."

1:07:59It's a different relationship to quality

1:08:01of life daily than

1:08:06you know going downtown for example um

1:08:08and having that kind of downtown

1:08:10experience in a safe way. So I just

1:08:12wanted to flag that as we think about

1:08:14these questions. Thank you.

1:08:16>> And I would love that information

1:08:18>> through the chair Suzanne Fleet Green.

1:08:20Mr. Poly just told me that the annual uh

1:08:24downtown partnership is about $1.1

1:08:27million a year. I believe the assembly

1:08:29just took it up last meeting. Um and

1:08:33yes, that's the only one. There's been

1:08:35on andoff attempts to create something

1:08:38like that in Midtown has not gotten very

1:08:41far. I don't know if other parts of

1:08:43Anchorage really has have talked about

1:08:45that at all, replicating that. Um, of

1:08:48course they do not here in Anchorage do

1:08:50not um serve that kind of law

1:08:54enforcement role or supporting

1:08:56>> and I don't think our bid does either

1:08:58just to finish that.

1:08:58>> Exactly. [clears throat] Yeah.

1:08:59>> Um but safety is part of at least the

1:09:02charter of that right

1:09:03>> and it just gives us an opportunity to

1:09:05discuss it um potentially in another way

1:09:07and I would flag that the um downtown

1:09:11partnership came to the last or two C

1:09:13CDC meetings ago and presented as well.

1:09:16And so we know that there's a limited

1:09:18budget with what they do, but that

1:09:20raises the question about what that

1:09:22particular item could be. Could it be

1:09:24raised? Could be changed, and could it

1:09:25be more targeted as another mechanism to

1:09:28pay for sustainable um investments of

1:09:32this type downtown?

1:09:32>> Yeah. And I think I will just state the

1:09:35obvious um that FO patrol is a subset of

1:09:39patrol and we still struggle to fully

1:09:43fund any shift patrol across the

1:09:47municipality. And if we are able to get

1:09:50APD to the numbers where we are able to

1:09:53have full patrol numbers, then how we

1:09:58take care of a downtown foot patrol in

1:10:01that scenario would be a whole different

1:10:04conversation. But we are still very

1:10:05active. You hear about this every month.

1:10:08Um, actively trying to expand our force

1:10:11and we have been successful in the last

1:10:15two years to do that. um but probably

1:10:18the the number the goal number is larger

1:10:22than what we have been talking about

1:10:24within our current budget constraints.

1:10:27So yes, other options for how we fund

1:10:30that is

1:10:31very welcome and I think uh when we have

1:10:35APD here to talk about their budget in

1:10:38more depth which will be next Friday

1:10:40that would be a very good conversation

1:10:41to have with the chief.

1:10:44Okay, next I have Okay, that was Mr. B.

1:10:49>> Um, yeah. So, I'm gonna I'm emailing

1:10:51Molly right now to see if you can

1:10:53circulate um that item from the six that

1:10:55we did approve, which was a downtown

1:10:56improvement district. Um, $1.1 million

1:10:59is accurate. And also in the the memo is

1:11:04a list of what can be funded. Um, the

1:11:06downtown improvement district can be

1:11:08currently used to fund security, but not

1:11:11law enforcement. Um, but there's a a

1:11:13list of what that money goes toward.

1:11:17>> Okay. M.

1:11:20>> Yeah. Um, and I appreciate the opening

1:11:22up of this conversation because my

1:11:24understanding is that the um security

1:11:28that the Anchorage Downtown Partnership

1:11:30used to provide, the demands were too

1:11:34high for what they were able to hire

1:11:37people to do. And so that was sort of

1:11:39the genesis of the downtown foot patrol.

1:11:41Um, so I think this does open up an

1:11:42interesting conversation about who pays

1:11:45and where we have that style of policing

1:11:47and I look forward to having that

1:11:48conversation in the future.

1:11:51>> Thanks. Um, yeah, and then I'll just

1:11:53note for the record uh just looked it

1:11:56up. So Mr. Bone stated the the total

1:11:58assessment for the downtown improvement

1:11:59district is about 1.1 or 1.2 million.

1:12:02The total uh that was approved for the

1:12:05over the police overtime for those

1:12:06patrols was 650,000. So just for for

1:12:09scale that's a 50% increase. So so again

1:12:12we always have to talk about scale. Uh

1:12:14but with that um let's just for the

1:12:17record remind everyone that came out of

1:12:20the newly negotiated tourism improvement

1:12:24project funding. I think I have that

1:12:26acronym correct. M [snorts]

1:12:28>> yeah the bed tax or rental tax. Um,

1:12:30okay. So, let's continue with the high

1:12:32level. And then I also say too, I know a

1:12:34lot of when we're talking about this,

1:12:35it'll trigger a lot of very specific

1:12:36questions about departments, all those

1:12:38other things. So, I would say write

1:12:39those down. Um, and then we're going to

1:12:41get to them either in the capital budget

1:12:42or, um, when we get to the deep dive

1:12:44because we'll also have department

1:12:46directors who can directly answer

1:12:47questions as well. So, just a preview

1:12:48for that. So, go ahead, Miss Bars.

1:12:51>> Thank you. uh to double down on what the

1:12:53chair just said, it is 1220 and uh we

1:12:56are on slide 11 of uh of uh well the

1:13:01overview is 21 pages. So um we can book

1:13:07through some of this I think. Um the uh

1:13:10this is the operating budget summary

1:13:13information. So this is included in the

1:13:15book and has been uh is in your uh

1:13:18assembly documentation. the operating AO

1:13:21etc. Um the total appropriation for the

1:13:2427 uh proposed budget is 692.5 million.

1:13:28The property tax cap is 383 million. The

1:13:33budget is proposed at 34,000 under the

1:13:35cap. Um the uh departmental share of the

1:13:39budget is on the right hand side of the

1:13:41slide and um that is a pretty standard

1:13:45and traditional uh percentage split for

1:13:47the municipality. Um we have had some uh

1:13:51movement around the maintenance and

1:13:53operations and debt service line items.

1:13:55Um they usually go between three and

1:13:58four uh in the last couple of years. Uh

1:14:00but for the most part everything else is

1:14:03uh relatively the same in our

1:14:04continuation budget.

1:14:06Uh the key funding source changes um uh

1:14:11are

1:14:12the uh nonpropy taxes uh decreased by

1:14:17$3.3 million. Uh why is that

1:14:19significant? Uh because under the tax

1:14:23cap, if the nonproperty taxes decrease,

1:14:27property taxes increase unless cuts are

1:14:29sustained. Um the tax cap is one bucket

1:14:34of funding and the total means that the

1:14:36total is for all of them. If one of them

1:14:38decreases, the others can increase. Uh

1:14:41but the property taxes are set by the

1:14:44actual cap itself and the multiplier in

1:14:47it. The others are set by the market uh

1:14:50andor any ordinances that may be enacted

1:14:53to the totals that we take. So uh we

1:14:55lost 3.3 million in nonpropy taxes. Uh

1:14:59transfers from other funds. You see in

1:15:022026 revised we had 29 million of

1:15:05transfers from other funds and this year

1:15:06it is 37.1.

1:15:09I think it was during the 120day work

1:15:11session where a member asked

1:15:12specifically about the transfers yeah

1:15:15members count from other funds being a

1:15:17reduction. That is the nature of

1:15:20continuation budgeting. when we remove

1:15:22the one-time funds, which are transfers

1:15:25from other funds, uh depending on where

1:15:27the revenue is coming from, um they may

1:15:29or may not go back in when the budget is

1:15:32proposed. And so, uh some of the uh the

1:15:37gap onetime gap money is coming through

1:15:39the transfers from other funds. Uh fines

1:15:41and forfeitures is up by $100,000. Uh

1:15:44the property tax increase, the total

1:15:46property tax increase, not under the

1:15:48cap. This is the cap plus service areas

1:15:51and special levies. Uh the total

1:15:53property tax increase is 19.8 million.

1:15:57And to your point, member Voland, the

1:15:59next slide will tell us what uh the what

1:16:02that equates to.

1:16:05>> Uhhuh. Um uh program revenues up a

1:16:10100,000. Uh investments in other special

1:16:13assessments up 2.4. Revenues from other

1:16:16governments uh flat. And that includes

1:16:20things like uh TOAS and SEMT revenue

1:16:24reimbursements. And so these are uh

1:16:26either uh contracts that don't change or

1:16:29that we don't know how they will change

1:16:31yet. Um or revenues that we don't know

1:16:34how they would change. Uh okay. The Go

1:16:39ahead,

1:16:41>> Miss B.

1:16:43>> Thank you. So um with with SEMT

1:16:47um am I correct that what we are

1:16:51anticipating in SEMT program fees for

1:16:55fiscal year 27 is actually

1:16:59[clears throat] SEMT revenue from fiscal

1:17:01year 2024 because that is the ACER we

1:17:04just completed

1:17:06[sighs and gasps] through the chair to

1:17:07member Baldwin Day. No. [laughter]

1:17:10Okay. Explain it to me. Um the 2024 SEMt

1:17:16revenue and and I'm going to potentially

1:17:19use inaccurate years, but this is the

1:17:22structure of it. The 2024 SEMt revenue

1:17:25would have been budgeted in 2025.

1:17:27The our delayed ACER is means that that

1:17:32revenue

1:17:33didn't exist in that year. And so when

1:17:36we receive it, depending on where we are

1:17:39in our financials, it either goes back

1:17:41into be received of that year or it is

1:17:45held in current year in um the previous

1:17:49year revenues that we acrew in other

1:17:52funds like property taxes. When we get

1:17:55people who pay us property taxes that

1:17:57are, you know, due from back property

1:18:01taxes, we get that money in the year

1:18:032026, but it could be from 2022,

1:18:07but it's held in a prior year fund. So,

1:18:11it's separate, but still goes into the

1:18:13budget. SEMT is budgeted at a total

1:18:16amount that we received

1:18:20from [laughter] how how do I explain

1:18:22this? The budgeted amount for SEMT

1:18:26stands at the blended rate of the

1:18:29actuals that we have received. So we do

1:18:32not adjust the SEMt budget until the the

1:18:35funding is received and tells us that we

1:18:37are going to get more of it.

1:18:46Okay.

1:18:47So,

1:18:49[laughter]

1:18:52so

1:18:54how does that square

1:18:57because because we we have to have

1:19:00it was my understanding that we had to

1:19:03have our ACER

1:19:05completed and a bow tied on it in order

1:19:07to be able to go back and say,

1:19:10"Thank you. We would like our SEMt

1:19:12program funding now."

1:19:14>> Okay. So

1:19:18in a like theoretical situation where we

1:19:22complete two acers in a given fiscal

1:19:25year

1:19:28how does the SEMT accounting look for

1:19:31that are we

1:19:34are

1:19:35>> through the chair member answering this

1:19:38asking this question very well

1:19:39>> through the chair member Beldum day one

1:19:42we should actually ask the accounting

1:19:43department to be the respondent to this

1:19:46question. Uh and two, I think we can

1:19:48draw a graph of how this actually works

1:19:52because when we set the revenue source

1:19:54in the year, we are still banking on

1:19:57receiving it. If we know we are going to

1:19:59receive it, it is coming. It is

1:20:00projected stays there. When we think we

1:20:04are not going to get funding, we are

1:20:06going to lose the SEMt revenue from the

1:20:09state because our AFER is not done. that

1:20:12is when the emergency happens because

1:20:14$20 million that was already budgeted

1:20:16and spent doesn't come through. But that

1:20:19has not happened. We have been able to

1:20:22meet the reimbursement requirements for

1:20:24the SEMt funding as budgeted every

1:20:27single year so far. And any revenue that

1:20:30comes in from SEMt above the budgeted

1:20:34amount then gets appropriated by the

1:20:36assembly to go do fire department

1:20:38activities of X Y and Z. We just haven't

1:20:41received any SEMT funding in I think the

1:20:44last

1:20:45eight or 10 months because of the way

1:20:48the ACT first split came across. It's

1:20:51it's I I mean I if is the question are

1:20:55you worried we're not going to have

1:20:57money? No. My question is if we have

1:21:00bonus dollars I'm going to call them

1:21:02that. I mean I know it's not actually

1:21:03bonus dollars but like so we wrap the

1:21:062024 act for we say okay we would like

1:21:08our SCMT funding and also by the way we

1:21:10also did our 2025 so can we also have

1:21:12that funding back like then what happens

1:21:15when we have 20 million plus 20 million

1:21:19>> through the chair the same thing happens

1:21:20when we get any new onetime money we

1:21:23come to you and say hey we have new

1:21:24onetime money that was not budgeted

1:21:26originally because it's over and above

1:21:28the budget apologies for that terrible

1:21:30>> answer so this is What we're budgeting

1:21:32for SEMT right now is this is what we

1:21:35know is going to come through the door.

1:21:37>> Correct.

1:21:38>> And other things are a question mark

1:21:40pending completion of 25 ACER.

1:21:43>> Correct.

1:21:44>> Got it. Thank you.

1:21:47>> Okay. Where am I

1:21:50>> Mr. Handling?

1:21:52>> So on this is uh

1:21:55this not all of our funding sources

1:21:57because I just totaled up the 27 budget

1:22:00and it's 28 million. That's less than

1:22:03our total appropriation on it.

1:22:06>> No, this is the key funding source

1:22:09changes, not all of them.

1:22:10>> Okay.

1:22:12So, I guess I mean we've we've got

1:22:14almost all of them. So, I guess what

1:22:15would not be included in this?

1:22:16[clears throat]

1:22:16>> Everything on page six.

1:22:18>> If you look at AO 2026123, the AM

1:22:22support is two pages long. The AM

1:22:24support lists every change that is being

1:22:26made within the budget in a way that

1:22:29would answer those questions.

1:22:31Um, we will go through those details on

1:22:34the AM support when we get through this

1:22:37overview section.

1:22:38>> Okay. Sorry. Okay. More questions.

1:22:41>> Yeah. And I'll note there's um we

1:22:43haven't gone through and kind of marked

1:22:44in the operating budget book, but

1:22:46there's whole sections on kind of all of

1:22:48our revenue sources the list of all the

1:22:49funds and their codes. So, there is that

1:22:51kind of level of detail. We just don't

1:22:52usually present it here.

1:22:58Okay. Okay. The preliminary property tax

1:23:00impact with that uh property tax

1:23:03adjustment between 2026 and 2027

1:23:05proposed is $11 per 100,000. That is an

1:23:10average. It is blended. Obviously,

1:23:12independent service areas that have

1:23:14different layers of service may pay more

1:23:16or less depending on uh what the

1:23:19increases are in their specific service

1:23:22area, but that's the average rounded

1:23:25amount.

1:23:32I have a brief question on this. Um, so

1:23:34as I'm reading this, essentially the

1:23:36prop the projection would be the

1:23:37property tax bill goes up 1.2%. That's

1:23:39the $11. Is that right?

1:23:41>> It's correct. Um, and is is that less or

1:23:44more than what we anticipate inflation

1:23:46to be? Just CPI changes for 2026.

1:23:501.2%. Yeah. Uh, that is less. Okay.

1:23:53Thank you.

1:23:57uh the property tax comparison for uh

1:24:01Anchorage then and now. We'll see more

1:24:03of these kinds of comparisons when we go

1:24:04through the operating uh department

1:24:07specifically um in how the departments

1:24:11were structured uh in the past versus

1:24:14how they are structured now and if there

1:24:15are any changes that are uh that teach

1:24:18us anything there. um Anchorage in the

1:24:201980s uh the budget gave us about uh 275

1:24:25per capita 27005

1:24:28and in the 2020s we are at about $500

1:24:32less per capita than we were in the 80s.

1:24:36We have also received uh about $700

1:24:40million less in state funding than in

1:24:42the prior decade. Um you've seen some of

1:24:45the charts and graphs of legislative

1:24:46funding both through the uh designated

1:24:49grants and also through the uh community

1:24:52assistance uh program and municipal

1:24:54revenue sharing. But that is a uh close

1:24:58to billion dollar deficit that we have

1:25:01been uh sustaining for the last 10

1:25:04years.

1:25:08The this is the further breakdown of the

1:25:10department uh uh percent by for the

1:25:14entire budget. You see the top 60% of

1:25:17the municipal budget is spent on police,

1:25:19fire, maintenance, operations and debt

1:25:21service. Uh the rest of the departments

1:25:24are uh the bulk of the are the rest of

1:25:30that aside from the 9.3 million of

1:25:32depreciation. That 9.3 million of

1:25:34depreciation has a slightly interesting

1:25:36story when we get to the six-year

1:25:38fiscal. Um it is uh not a scary story.

1:25:42It's just an interesting one. Um any

1:25:45questions on this? Miss Bundday,

1:25:48>> I have gotten a

1:25:51lot of questions from constituents about

1:25:55debt service specifically and I'm

1:25:57wondering if there is a tidy place to

1:25:59direct people who would like to

1:26:00understand exactly what is contained in

1:26:03that 9.6% of the Manny budget.

1:26:06>> Um through the chair the the budget book

1:26:09contains all that information of what's

1:26:10in it. Uh um but I think the uh the

1:26:14appropriate place to get the real

1:26:16nitty-gritty on that is public finance.

1:26:19[snorts]

1:26:19>> Thank you. Um yeah, I not wanting to

1:26:23direct the general public to go weed

1:26:25through the budget book. I was wondering

1:26:27if there was an alternative. So thanks.

1:26:30>> And I have a brief question. Oh, go

1:26:32ahead, Mr. FY.

1:26:34>> Well, I will say it. I'm was going to

1:26:35try to pull it up to make sure I can

1:26:36reconcile it in real time, but public

1:26:38finance before each election publishes

1:26:40in the newspaper a single disclosure of

1:26:42all of our general obligation bonds that

1:26:45shows the debt service. I think it's by

1:26:48service area and certainly distinguishes

1:26:49between the school district and the

1:26:50municipality. And I bet that would let

1:26:52you see that so much of it is fire, so

1:26:54much of it is police. But let me see if

1:26:56I can push that out.

1:26:57>> Thank you.

1:26:59>> Thanks. [clears throat] And just a brief

1:27:00question for example, I know this has

1:27:02been brought up before, public

1:27:03transportation. So the the but the

1:27:04numbers that we're looking at here, we

1:27:07should not read this as property tax

1:27:08only. Is that correct? So for example,

1:27:10with transit, I know they're unusual.

1:27:12They're mostly federally funded. So the

1:27:1435 million includes federal funding in

1:27:16that instance. Is that correct?

1:27:19>> Through the chair, yes, this total

1:27:21budget is $71.8 million and the uh

1:27:24property tax collection is under 400 or

1:27:28including special service areas, it's

1:27:29413 million. So, it is not uh all of the

1:27:32revenue included here. Thanks. Um, so

1:27:36I'm looking ahead. I'm going to suggest

1:27:37we go through slide 18 because I see

1:27:39there's the organization chart. That

1:27:41seems like a natural break. So, we'll

1:27:42get through those slides. We'll still

1:27:43take a brief break for lunch. We're

1:27:45going to make it a working lunch, but

1:27:46we'll have a time to walk away for a few

1:27:47minutes and get back on the record.

1:27:52Okay. Key direct cost changes. These are

1:27:55the uh uh changes within the budget

1:27:59that we go through with our um revised

1:28:03process or for our continuation process.

1:28:05We start with the 2026 revised budget

1:28:08total at the top of the page 671.1

1:28:11million and then go through the one-time

1:28:15reversal. We take out the one-time items

1:28:17from the budget uh on board the debt

1:28:20service adjustment with the information

1:28:22we get from public finance to increase

1:28:25the voter approved debt service uh that

1:28:28goes along with the continuation budget.

1:28:32The labor continuation is $14 million.

1:28:35That is an important number because that

1:28:38is the amount of money it takes for us

1:28:40to roll the current year's operating

1:28:44positions forward into what would be the

1:28:482027 cost of doing business. So that is

1:28:53the uh labor growth on the continuation

1:28:56budget side. That is around the number

1:28:59that we have seen the last few years on

1:29:02labor continuation.

1:29:04um and what impacts that we'll talk more

1:29:07about in the six-year fiscal. Um the uh

1:29:11other adjustments were a $1.1 million uh

1:29:14change to uh revenue on

1:29:18room taxes and police fire retirement.

1:29:21Uh that takes us to the $689.8

1:29:24million total of a continuation budget.

1:29:27Uh then we go through and make the

1:29:30adjustments for the 2027 reality and we

1:29:35add in 8.4 4 million of revenue from the

1:29:39ML&P sale fund. As I mentioned, that's

1:29:415.5 million of the actual principal and

1:29:44then another interest layer that has

1:29:45accured since 2021, I believe. Uh an

1:29:50additional 700,000 of voter approved

1:29:52bond O and M was added. Uh8

1:29:56$800,000 of uh vacant position transfers

1:30:00and reductions as mentioned. Um that is

1:30:03also included on the AM support rollup.

1:30:05Uh 1.4 4 million in uh shelter costs.

1:30:09That is part of the uh conversation that

1:30:13the the assembly has been having about

1:30:16uh making sure the surge expense is

1:30:19covered in the uh operating budget

1:30:22because it is not uh accommodated in the

1:30:24alcohol tax.

1:30:27and a $.1.1 million uh reduction in the

1:30:31contractual versus uh labor uh snow

1:30:35removal for street maintenance. Um 1.9

1:30:39million in healthy spaces. This is very

1:30:41interesting. This is 1.9 million of

1:30:44healthy spaces revenue and this is also

1:30:471.9 million of healthy spaces positions.

1:30:49So this is the official budget

1:30:51transition from healthy spaces being

1:30:53included in the alcohol tax which you'll

1:30:56see a few things there. There the shifts

1:30:59from the alcohol tax into general

1:31:01government follow the pattern of other

1:31:04pilot programs that exist in the alcohol

1:31:06tax being uh sort of born and desirable

1:31:10to the community and then going into the

1:31:13operating budget. Healthy spaces was the

1:31:16conversation last year uh because the

1:31:19demand for the service was there. We

1:31:21know the alcohol tax revenue is

1:31:23declining. We know we don't have space

1:31:25in the general government to to deal

1:31:27with that. The search charge was added

1:31:30to SWS.

1:31:32This is now the general government

1:31:35receiving that search charge as the

1:31:37revenue source. So, this $1.9 million

1:31:41used to not exist in our general

1:31:42government budget, but now we have added

1:31:45$2 million of service nonpropy tax

1:31:47dollars to the operations in uh parks

1:31:51and wreck. And you'll see the um

1:31:53position change detail on the AM support

1:31:56with all of those healthy spaces

1:31:58positions that the assembly uh had

1:32:01approved to go into the operating

1:32:04budget.

1:32:07Uh, another alcohol tax uh inclusion I

1:32:11guess is the early literacy position.

1:32:14Um, the library had a uh funded position

1:32:18for early literacy operations within the

1:32:23uh uh child abuse, sexual assault,

1:32:25domestic violence prevention section of

1:32:27the alcohol tax. and the reductions to

1:32:31alcohol tax revenue meant that that

1:32:33position either needed to be reduced and

1:32:36laid off or incorporated into the

1:32:38general government budget. The library

1:32:40is very in need of that service. We made

1:32:43a way to accommodate it in the general

1:32:45government budget. Uh Gerwood service

1:32:47area has an increase that uh from their

1:32:50board and contractual adjustments for

1:32:52facility leases is about 300,000. That

1:32:55is not the end of contractual

1:32:57adjustments for facility leases. We

1:32:59traditionally make uh the bulk of those

1:33:01adjustments during the first quarter

1:33:02budget revision because we know how

1:33:05those CPI adjusts those inflators on the

1:33:08contracts actually come across during

1:33:10revised budget. So that lands us at

1:33:13701.8 million of a proposed budget with

1:33:16a $692 million appropriation level. The

1:33:21difference between that is the

1:33:22depreciation within it.

1:33:32uh 2027 proposed financing sources 60%

1:33:36property taxes

1:33:38uh

1:33:405.1% fees licenses and permits. This is

1:33:45uh this that number will vary in a

1:33:48secondear pattern. So every other year

1:33:50the permit center has different kinds of

1:33:53licenses and certifications that are

1:33:54required and so you will see a spike in

1:33:58certain uh uh fees or permit

1:34:02requirements that change in a

1:34:04year-over-year basis. It is not

1:34:07abnormal.

1:34:10Any questions on these?

1:34:17The proposed budget categories you saw

1:34:20over on the other side 60% property tax,

1:34:2260% salaries and benefits. Uh that is

1:34:25not necessarily by design. It is the

1:34:28nature of how we like to use recurring

1:34:30and solid revenue. We do not want to put

1:34:34uh labor and positions on one-time

1:34:36funding sources because they are not

1:34:39reliable in terms of hiring and

1:34:42retaining a workforce. So we try to uh

1:34:46maintain recurring funding in our

1:34:48recurring uh needs

1:34:54questions. I do have one quick quick

1:34:56this is really a followup. I'm curious.

1:34:58So other services I'm guessing a lot of

1:35:00that is really for example the contract

1:35:03for running various facilities. Um and I

1:35:05mean I could name them off but we know

1:35:06what they are. Is that

1:35:08>> through Yeah. through the chair. Okay.

1:35:09Yeah. I I would be as a followup not

1:35:12right now. I would be curious kind of

1:35:13what of that 30% that's there or the uh

1:35:16what is it 2 214 million um could I get

1:35:19a breakdown of how many of those are for

1:35:22basically managing a facility I'm

1:35:24looking at broad categories managing a

1:35:25facility so animal control center uh DAC

1:35:28you know all those all those ones versus

1:35:31um things like you know snow hauling or

1:35:33other kind of services and maybe there's

1:35:35some third category but I would I would

1:35:36just love as a follow-up kind of what

1:35:38the breakdown of that is in a broad way

1:35:40um and not a granular Okay, thanks.

1:35:45Because I think realistically a lot of

1:35:47that is actually paying for labor, but

1:35:48it's contracted labor and not staff

1:35:50labor. Other questions for members.

1:35:56Okay, I know we're we're a couple well

1:35:58almost almost two hours in. I know it's

1:36:00a long going to be a long day and it'll

1:36:01be a long day next week. So, um I think

1:36:05at this point I guess the question is we

1:36:06could just continue. We're at 12:40. We

1:36:09could power through or we could break

1:36:10for lunch. I'm saying a break for lunch.

1:36:12>> Okay,

1:36:13>> we need we need a break. Okay, so let's

1:36:15briefly break. Um we'll say well we'll

1:36:17we can leave the recording going. We'll

1:36:19just put on mute and then I'd say maybe

1:36:2010 minutes or so and then we'll come

1:36:22back at uh 1250 and then folks certainly

1:36:25can eat their lunch at the table. That

1:36:27way we'll just do kind of a working

1:36:28lunch uh and go from there. And I see we

1:36:30have some of our folks starting to show

1:36:31up. So we want to make sure that we're

1:36:32ready for our enterprise utilities

1:36:34folks. Okay. So we'll be back on the

1:36:36record at 12:50.

1:51:50Hey everyone. So, uh we are just waiting

1:51:52for our uh OMB director to return. So,

1:51:54we'll get started as soon as she comes

1:51:55back. And then for folks walking into

1:51:57the room, uh we're just a few minutes

1:51:58behind. Uh we're still going to get to

1:52:00the enterprising utilities uh shortly

1:52:02after 1. So, just uh sit tight. We'll

1:52:04get started in a minute.

1:52:07Right.

1:52:32>> That's right. That's right. [snorts]

1:52:47>> [snorts]

1:52:53[snorts]

1:53:00>> I was literally just thinking that

1:53:04>> all Vegas.

1:53:08[laughter]

1:53:18>> [laughter]

1:53:24>> It's like the jacket for some I like can

1:53:26just see you look like a poker jacket

1:53:29sunglasses.

1:53:38>> [cough and clears throat]

1:53:39[snorts]

1:53:41[laughter]

1:53:42>> It's like she looks it's like an

1:53:44undercover like

1:53:47[laughter]

1:53:51>> no one knows

1:54:00the money.

1:54:02[laughter]

1:54:16require a level of coordination.

1:54:25>> Also, we have to do it in public

1:54:26session.

1:54:38Yeah,

1:54:52I'm going to

1:56:09Okay, I think we are back assembled. Uh

1:56:10we're back on the record. Uh thanks

1:56:12folks on the phone for your patience. So

1:56:14we uh are just finishing up the last few

1:56:16slides in our overview and then we will

1:56:18be switching over directly to enterprise

1:56:20and utilities and I know we have a

1:56:22number of directors in the back. Uh so

1:56:24we will call those folks up when we're

1:56:25ready. In the meantime, I believe we are

1:56:27on slide 19 where we left off. Correct.

1:56:31Thank you, Madam Chair. Okay, so where

1:56:33we left off, slide 19 with the 2027

1:56:36organization chart. This is the uh uh

1:56:41proposed uh reorganization that includes

1:56:44um uh dissolving the chief

1:56:46administrative office and redistributing

1:56:49uh those

1:56:51um throughout the municipal managers

1:56:54column but mostly retaining them under

1:56:56the chief fiscal officer which is uh not

1:56:59a new design for the municipality. Um

1:57:03the municipal manager now has the fire

1:57:07department, health department, police

1:57:08department, human resources, IT,

1:57:10library, parks and rack, public transit

1:57:12and purchasing as well as all of the

1:57:14utilities and enterprises that we are

1:57:16about to talk about uh over the next

1:57:18hour. and economic and community

1:57:20development is now a direct report to

1:57:23the mayor and organized under director

1:57:26dle for uh development services

1:57:29planning, real estate, public works,

1:57:31maintenance and operations, project

1:57:33management and engineering and traffic

1:57:34engineering. Um the other notable change

1:57:38is that uh the risk management office um

1:57:43uh had traditionally lived or most of

1:57:46the time lived with the municipal

1:57:47manager's office. It was under the chief

1:57:49administrative officer um when under

1:57:52that design but it now is included with

1:57:55the municipal attorney's office. So risk

1:57:58management is a division of the

1:58:00municipal attorney's office so that

1:58:02there is um good coordination between

1:58:05our risk managers and our legal team.

1:58:10Any questions on the reorg?

1:58:14Okay.

1:58:17As a result of the reorg, this is the

1:58:21budgeted positions by department uh

1:58:24reconciliation summary page. This is in

1:58:27the overview of every budget book. Uh if

1:58:30if you could choose, I'd say probably

1:58:34five pages from the 2,000 pages of

1:58:37budget content that we have. This is one

1:58:39of the pages that will show you what is

1:58:42happening at the municipality within the

1:58:44municipal budget. You can look at the

1:58:47position reconciliation, the department

1:58:49direct cost reconciliation,

1:58:52and a couple other pages of information

1:58:55and really see if and what things are

1:58:58changing in a year-over-year basis.

1:59:00Because this slide shows the top chart

1:59:04of the page in the book, the second the

1:59:08lower half of the page is all of this

1:59:11detailed tiny tiny font. And this

1:59:14explains every single one of these

1:59:16current year changes and tells you what

1:59:20is happening because when you look at

1:59:22this, it looks like uh one position was

1:59:25removed from the assembly office. We can

1:59:27talk about that. We've talked with Chair

1:59:29Broly about it. That is the result of a

1:59:31non- labor item that moved around. We're

1:59:33having a meeting on Monday because it

1:59:35wasn't supposed to happen that way. We

1:59:36are trying to align the budgets and when

1:59:39we go through the labor scrub sometimes

1:59:41certain things happen and we say oh that

1:59:42wasn't supposed to happen. We go back we

1:59:44talk about it. So that won't show up in

1:59:47a revised budget or in an S version if

1:59:50we are able to uh accommodate that

1:59:52adjustment. The chief administrative

1:59:54officer shows a decrease of 14

1:59:57positions. Those 14 positions were not

2:00:00laid off or deleted from the budget

2:00:02except for the chief administrative

2:00:04officer. those positions were

2:00:06redistributed through the rest of the

2:00:08department uh or through the rest of the

2:00:11municipality. Um the chief fiscal

2:00:15officer you see has two positions being

2:00:18added to it. That is not those are not

2:00:21new positions. That is the result of

2:00:24dissolving the chief administrative

2:00:25office and recreating the chief fiscal

2:00:28officer office that used to report under

2:00:31chief administrative officer. [laughter]

2:00:33So you go down to the next line. Finance

2:00:37has three people removed from it. Those

2:00:40are the two people who were added to the

2:00:42chief fiscal officer but one person not

2:00:46person one position that was reduced

2:00:49from treasury which is the deputy

2:00:51municipal treasurer position because it

2:00:53is no longer necessary based on the way

2:00:55their office is structured. So

2:00:58each one of these tells a different

2:01:00story. You get to the health department.

2:01:02The health department has a six position

2:01:05reduction. Some of that has to do with

2:01:08the way they internally reorged based on

2:01:11their current practices as well as

2:01:15shifting some of the positions to new or

2:01:19different grant funding. So when uh

2:01:22director Rash is here with us uh she'll

2:01:24be able to go through what some of those

2:01:26changes are and that they uh should not

2:01:30result in a service level reduction but

2:01:32that they are part of a reorganization

2:01:34andor uh revenue adjustment in order to

2:01:38accommodate other contractual increases

2:01:40within the health department.

2:01:42Uh so when we roll all the way down the

2:01:45list, the net personnel change from 26

2:01:49to 27 is six positions

2:01:52and the bulk of those six positions come

2:01:55from the street maintenance uh the heavy

2:01:59equipment operators. It is uh it would

2:02:02be seven positions that were added but

2:02:04because there was one reduction it is

2:02:07six. Uh overall the position count

2:02:11between the 2026 revised budget and the

2:02:142027 proposed budget is a 6 PCN change

2:02:20and and I'll just make one

2:02:22clarification. So as as Miss Brow stated

2:02:25uh the reduction in our budget is

2:02:27actually an error. So we're working on

2:02:28that. It is not um anyway we'll have

2:02:30more on that uh next week but just to

2:02:32note. So I guess the if you take that

2:02:34into account then the net would be

2:02:37seven. Um but that is different than

2:02:38what's stated here. Um but again more on

2:02:40that next week. Um Miss Baldwin.

2:02:46>> Thank you chair. So if there is a

2:02:48difference between what is listed in the

2:02:51position summary table

2:02:53um on Roman numeral 2 page 14 and what

2:02:57is in

2:02:59the tabs

2:03:02which

2:03:04is which is

2:03:07correct.

2:03:10Show help tell explain show me the

2:03:11difference and then maybe I can tell you

2:03:13okay what this

2:03:15>> uh

2:03:16>> and maybe this is maybe this is what the

2:03:18chair was talking about. So like in the

2:03:20assembly department summary it lists 42

2:03:23proposed positions in 2027 and on the

2:03:26summary table it shows 37.

2:03:30Um

2:03:32parks and wreck in the summary table

2:03:34shows 334

2:03:36but in the

2:03:41I can I promise I can alphabetize

2:03:43things. Um but [clears throat] I believe

2:03:46in in the detail it says 335.

2:03:52So which one which

2:03:56I [clears throat] think the answer is it

2:03:57depends on which department it is which

2:03:59is why we have to be specific about it

2:04:01because there is a difference between

2:04:03PCN's and FTEES.

2:04:06>> So

2:04:07>> Oh right.

2:04:07>> Yeah.

2:04:08[laughter]

2:04:09and and and so uh I would suggest that

2:04:13the uh position summary is the easiest

2:04:16way to see what those adjustments are

2:04:18and then going into the tabs should give

2:04:20you refined information about what that

2:04:23actual adjustment on the PCN versus

2:04:26FTEES is.

2:04:30So is the position summary

2:04:33Roman numeral 2 page 14. Is this is this

2:04:36FTEES or PCNS?

2:04:41FTEES. Okay. Thank you.

2:04:48And when we get into the utility budget,

2:04:50you'll see uh there's a specific

2:04:52category on the presentation that shows

2:04:54that uh sort of interplay between uh the

2:04:58positions within the utilities and

2:04:59enterprises and you'll see that same

2:05:01detail on the general government

2:05:04departments next week.

2:05:07>> So making sure that I'm clear. So what

2:05:10so when we get into the tabs, we're

2:05:12actually looking at PCN's not FTEES.

2:05:15>> Yes. Okay.

2:05:21Okay. Uh, this is one of the other pages

2:05:25that if you look at what is happening in

2:05:28the municipal budget, this will tell you

2:05:29a lot, but it will only tell you a lot

2:05:31if you know how to read it. And the

2:05:34six-year fiscal program is in all of our

2:05:37budget books. It is uh a combination of

2:05:43the current budget plus the projected

2:05:48next year's proposed budget and the

2:05:52inputs that then trail in those

2:05:54subsequent years to get us to a six-year

2:05:56fiscal plan. This is the top of the page

2:05:59in our uh budget book. The lower half of

2:06:04the page once again looks like this.

2:06:07It's a chart and then a lot of tiny tiny

2:06:10detail underneath it. The tiny detail

2:06:13tells you how to read the chart and what

2:06:14the assumptions are in the graph. Uh we

2:06:18had had questions earlier about what the

2:06:20projection for future outyear deficits

2:06:24are and where they come from. This is

2:06:27the chart where they come from. the

2:06:29six-year fiscal program. At the bottom

2:06:30of the page, you can see in the outy

2:06:32years 28, 29, 30, 31, 32, the deficit

2:06:37going from 14.4 million to 19.1 million

2:06:42to 23.4 million, etc., etc. But those

2:06:47are only the increases associated with

2:06:50the variables and inputs on the page. So

2:06:54we have to understand what are the

2:06:55assumptions that are included because

2:06:58there are assumptions that are not

2:07:00included in this chart that do change

2:07:03the reality of what that 14 million

2:07:05might look like in 28. So when we look

2:07:09through the detail at the bottom of the

2:07:11six-year fiscal page, you can start with

2:07:14the line that says the 2026 total

2:07:16budget. That means that it includes

2:07:19everything from the 26 budget that we

2:07:21are in our current year through

2:07:24September 4th, 2026.

2:07:27That was the time when we were able to

2:07:28take the snapshot and set the

2:07:30supplemental stems through 2026. So the

2:07:34total budget for 2026 includes the

2:07:37financing sources for 2026 in the top 10

2:07:41lines and then the financing uses

2:07:44underneath that. So that's how we spend

2:07:46it. The [clears throat] proposed budget

2:07:49detail, everything we have in front of

2:07:51us is the next column. And when we get

2:07:55into the turn between 27 and 28, what

2:07:59matters is whether or not there are any

2:08:02different assumptions in any of the outy

2:08:04years. So we take overall assumptions

2:08:08for the out years in 28 and further

2:08:11because we don't know how each of those

2:08:13variables will change in every

2:08:14subsequent year. So every year we get

2:08:17further away becomes a less reliable

2:08:20prediction

2:08:22as we know. Uh so the overall

2:08:25assumptions for this six-year fiscal

2:08:27plan include

2:08:30only general government operating no

2:08:33Anchorage school district taxing and it

2:08:36does not include assumptions on

2:08:38programmatic grants or other funding

2:08:40sources like grants like AATS and HUD

2:08:43and health department. all of those

2:08:45kinds of things, those are not included

2:08:47in in in the six-year fiscal. The 2027

2:08:52proposed is the base for 2028 through

2:08:552032 position projections. So, we start

2:08:58and then continue all the way through

2:09:00the fiscal plan to the sixth year with

2:09:03the same assumptions overall unless

2:09:06they're noted at the bottom of this

2:09:07page. Uh the population is incorporated

2:09:12at the Anchorage Economic and Community

2:09:15Development uh forecast report that was

2:09:18presented I believe uh earlier this year

2:09:21and has uh been our traditional uh

2:09:24population number. Right now it is uh

2:09:28projected at 291,000 and then per year

2:09:32and then flat after that. So we don't

2:09:34have any population changes incorporated

2:09:37in this assumption table. The CPI lifter

2:09:42is 3% in 2028 and thereafter. Why is it

2:09:473%? Because that is what all of our

2:09:50previous activity and known activity

2:09:53shows us in sort of the projection.

2:09:55That's a safe projection to keep. And so

2:09:58that is how it is applied. These are all

2:10:01projections and assumptions. They can be

2:10:03made differently, modeled differently,

2:10:06but the inputs are as they are based on

2:10:10our budget and our actuals over the last

2:10:12three to five years. Uh CPI in Anchorage

2:10:16is 2.5 over the last 25 year average. So

2:10:20a 3% CPI assumption is relatively safe.

2:10:24Um it also doesn't the overall

2:10:27assumptions also do not include any

2:10:28adjustment for um funding emergency

2:10:30ordinances or any uh deficits that may

2:10:33still occur from FEMA recovery. Um so so

2:10:36it's a fixed sort of variable

2:10:40not fixed variable it is a it is a fixed

2:10:42set of uh revenue sources and uses

2:10:47across the table so that we are using an

2:10:49applesto apples comparison. It is not a

2:10:52all the apples comparison. It is the

2:10:56same apples every year. Uh

2:11:00in financing sources, we assume no uh

2:11:06additional grants or federal stimulus

2:11:09dollars coming in. No no new federal

2:11:11dollars or state revenue. The community

2:11:14assistance program is assumed at

2:11:18$500,000.

2:11:19So the state funding that comes through

2:11:22in the first quarter can be anywhere

2:11:24between $500,000 and $30 million, $10

2:11:27million, $20 million. In the last uh I

2:11:31think five years, it has this year was

2:11:34the highest it has been at 4 some odd. I

2:11:39can't remember what the actual

2:11:40appropriation was total, but the

2:11:42year-over-year projection that we see as

2:11:45the base foundational number for

2:11:47Anchorage out of the community

2:11:48assistance program is between $500 and

2:11:50$750,000.

2:11:52So that is the revenue assumption in the

2:11:54table.

2:11:58>> Okay. Um question from Miss Park. And um

2:12:01before that I'll just state too

2:12:02connecting back to our legislative

2:12:03program um that is partly why we ask

2:12:06every year for community assistance that

2:12:08benefits all local governments um but it

2:12:10is a [clears throat] direct part of our

2:12:11operating budget and so having a clear

2:12:13picture including if the legislature

2:12:15intends to not fund it anymore. Uh we

2:12:18don't know that when we're doing our

2:12:19actual budget but that is something

2:12:20that's important. Miss Park. Thank you

2:12:22chair. Um to Miss Browse,

2:12:26excuse [clears throat] me. Uh do the

2:12:27does the change from prior year include

2:12:29any estimate for a cost of living

2:12:32adjustment or uh uh anticipated

2:12:36inflation

2:12:37>> uh through the chair to member park.

2:12:38Yes, that is the 3% CPI uh assumption.

2:12:43>> Thank you.

2:12:43>> Yep.

2:12:45>> Uh the financing sources also assume the

2:12:48Anchorage Hydropower dividend stays at

2:12:50$300,000. When we get into the utility

2:12:52conversation, we'll talk a little bit

2:12:54about that. There has been some uh

2:12:56second-year activity in hydropower, but

2:12:58the baseline uh dividend is 300,000. So,

2:13:02we leave it at the baseline dividend for

2:13:04the outy years. Um it also includes all

2:13:08of the details that are in the utility

2:13:118-year projections. So, this chart looks

2:13:15like 30 lines and seven columns, but is

2:13:20actually an astonishing amount of

2:13:22spreadsheets behind it that calculate

2:13:24the tax cap, calculate all of these

2:13:27different known things for this

2:13:30projection model so that the comparisons

2:13:33are right when we are doing the

2:13:36year-over-year uh projection. The

2:13:42MOA trust transfer increases 1% annually

2:13:45after 2027. That is based on the

2:13:47assumption that the returns from the

2:13:49trust um would be higher because of the

2:13:52size of the trust. Property taxes. Uh,

2:13:56the tax cap limit assumed in the

2:14:00six-year fiscal program is all of the

2:14:04same kind of assumptions we use in our

2:14:06year-over-year basis, but it leaves

2:14:09$200,000 on the table under the cap. So,

2:14:13this six-year fiscal assumes a $200,000

2:14:16wiggle room space under the tax cap of

2:14:19that year.

2:14:21We also assume no new ON&M M uh is

2:14:25onboarded in 2028 and then thereafter.

2:14:28So those would be voterapproved uh

2:14:32funding requirements that then would be

2:14:34added to this.

2:14:37The musimusa and dividends from

2:14:39utilities and enterprises aside from

2:14:40hydro as I said are presented in their

2:14:43eight-year summary. And so those are

2:14:45pulled into this model and most of the

2:14:48other revenues are projected at a 2%

2:14:51increase in 2028 and thereafter. And

2:14:53that's based on the um assumptions we

2:14:55get from uh the Treasury Department.

2:14:58The fund balance use for the 100 funds

2:15:02is zero. We're assuming no fund balance

2:15:05use because we don't know that there

2:15:08would be fund balance in any of those

2:15:10100 funds to use. So we don't bank on it

2:15:13being available until we know that it is

2:15:16there in the given year. Any questions?

2:15:18>> Yeah, question for Miss Baldwin.

2:15:21Yeah, I I think so what what you just

2:15:25said about

2:15:27about fund balance is that why in like

2:15:302028 and following

2:15:34we're showing

2:15:3612 million?

2:15:37>> No.

2:15:39>> Cool. I I love that. [laughter]

2:15:41Okay.

2:15:42>> Through the chair through that line.

2:15:44>> That's a fantastic question because this

2:15:46is actually the thing that I flagged a

2:15:48few slides ago. that is um part of the

2:15:53depreciation inversion of it and the

2:15:57$9.3 million. Um if you look at the

2:16:01chart on financing uses about three

2:16:04lines down the depreciation and

2:16:05amortization line is 9.3 million. We

2:16:07talked about that on the other uh deck.

2:16:10The in 2028 the fund balance applied is

2:16:1612.2 2 million but that is actually

2:16:19putting 12.2 million into a fund

2:16:22balance. You see that it is a negative

2:16:24fund balance right which means that it

2:16:27is a give not a take.

2:16:30And what that is is the conversion point

2:16:33for SAP to go from the depreciation

2:16:35model into the collection model from the

2:16:37IGC's.

2:16:45I'm going to need you to say that again

2:16:48>> through the chair. This is this is part

2:16:51of you may remember uh when we were

2:16:54talking about um the fund balance

2:16:57deficits or the funds in deficit period,

2:16:59workers comp, IT, etc. This is the IT

2:17:02fund answer

2:17:05if I can maybe restate another way. So,

2:17:07it's saying that there's an obligation

2:17:09that we essentially have to pay or we

2:17:11have to account for any money that we

2:17:13have and there's that 12 million. And so

2:17:15any extra fund balance we have would to

2:17:17get that up to zero would have to be 12

2:17:19million plus another you know whatever

2:17:21amount above that is that maybe I'm

2:17:23confusing further.

2:17:25>> No and frankly this is going to take a

2:17:27while. So we may want to hold this for a

2:17:31different conversation because this is

2:17:35the general government departments

2:17:37paying the IT fund back.

2:17:40So this is $12 million of IGC's from

2:17:44departments and other uh uh municipal

2:17:48entities, utilities and enterprises

2:17:50paying back the appro the cost of SAP.

2:17:57>> So maybe I will suggest this might be a

2:17:59great topic for a future budget and

2:18:01finance committee and we could dig into

2:18:02it. And I guess the question is is there

2:18:04a policy choice we can make in this

2:18:06regard? Like would we be able to do

2:18:08something about this in the budget right

2:18:09now

2:18:09>> through the chair? It's not a problem.

2:18:11It just looks weird

2:18:14because if what you look at is the

2:18:16depreciation and amortization line in

2:18:172028,

2:18:20that is 2.0

2:18:22because it is the reflection of this

2:18:24swap. So we go from 9.3 in the proposed

2:18:28budget

2:18:30of 27 to two in 28

2:18:34and the fund balance applied is the it's

2:18:39I

2:18:41I retract my rabbit hole question and

2:18:44would love to [snorts] cover this in a

2:18:46future budget and finance committee

2:18:47meeting.

2:18:49>> Okay. Yeah, I think we can stand maybe

2:18:51for the December meeting. Um [laughter]

2:18:53but yeah, I think let's dig into it, but

2:18:54this is probably not the place to do

2:18:55that. So, um Okay. Any other questions,

2:18:58comments on this, uh the slide.

2:19:03>> Okay. Yes. And then, um Miss President,

2:19:04can you remind me? So, the the you were

2:19:06referring to a lot of numbers. So, this

2:19:07is the rollup and then there's the

2:19:09six-year fiscal program in our book is

2:19:11really the full discussion of this. Is

2:19:13that correct?

2:19:13>> The six-year fiscal program is the whole

2:19:16front section of the book. So there is

2:19:20narrative and detail on all of this.

2:19:22This is the chart that rolls all of that

2:19:25information up into the actual deficit

2:19:28total for the projection.

2:19:31And because we want to know what that

2:19:33looks like and where that comes from,

2:19:36we go through what these assumptions are

2:19:38so you know why we are assuming a $14

2:19:41million deficit in 2028 and what those

2:19:45inputs are and what they aren't. Because

2:19:48one of the things that they aren't is a

2:19:52multiplier of the deficit is we if we

2:19:56let we continue through

2:19:59uh the financing uses when we make a

2:20:03conversion between the number of hours

2:20:06worked in a year that changes on a

2:20:09year-over-year basis. One year it's

2:20:112088, the next year it's 2096. It's

2:20:13calculated on an annual basis. Every

2:20:16eight hours that we add or subtract is a

2:20:18million dollars in the budget. So the

2:20:20assumptions we go through and we have to

2:20:23calculate the hours of each projected

2:20:26year total what that means add it to the

2:20:30labor cost and that is part of this. So

2:20:33the uh financing uses include the hour

2:20:36count projections. It includes the

2:20:39current contracts, the CBAs, everything

2:20:42that is currently known going forward.

2:20:46And if there are contracts that end at

2:20:48any point in the six-year projection,

2:20:50the final year of that contract is

2:20:52carried forward as is the municipal

2:20:54process so that we aren't not

2:20:57accommodating something that would

2:20:58likely be a cost. Uh the assembly uh

2:21:02salaries and benefits are assumed flat.

2:21:05The executives and non-reps are at 1.5

2:21:08in 2028 and thereafter the mayor's uh

2:21:11salary is flat. The it this does not

2:21:16account for non-step nonrep step

2:21:20progressions of 9 through 12. This is

2:21:22where we're going to get slightly

2:21:23complicated. In the recruitment and

2:21:25retention changes that we have made over

2:21:27the last few years, part of that

2:21:29collective bargaining outcome was adding

2:21:32steps to everybody's pay schedule so

2:21:35that we had a place for them to go to

2:21:38work at the mun longer and continue to

2:21:40get a cost of living increase. And that

2:21:43means that there is an inherent cost

2:21:46inflator in those contracts that is not

2:21:50an annually negotiated year-over-year

2:21:52wage. Those 2.5 or 5% wage increases

2:22:00above steps 9 through 12 are not in this

2:22:04projection because those new steps were

2:22:08instituted at a time when they wouldn't

2:22:10make it to 10, 11, and 12 yet unless

2:22:14they have been enhanced in some way in

2:22:17hiring or uh uh merit increases etc. So,

2:22:22we don't include it as a cost in here

2:22:24because it is not a we can't apply it

2:22:27universally to all of the bargaining

2:22:29units. I'm saying that just because it

2:22:32is part of the blend of how we do this

2:22:34labor role and is part of the cost that

2:22:39we do not have and we can't predict

2:22:41right now unless we were to go through

2:22:43the full modeling of the year.

2:22:46That is one large cost item that is not

2:22:48in this modeling process. The other

2:22:51large cost item is that the step

2:22:54increases for all CBAs are not included

2:22:58in this cost model. What is included is

2:23:00the year-over-year increase. So, if we

2:23:02take the IBW tech contract and we we

2:23:08know that it is a 2% increase on 28, we

2:23:12add that 2% increase. What we don't add

2:23:16is the two and a half% increase that

2:23:18comes with that labor set getting to

2:23:21their next year of work because that's

2:23:24all part of the labor scrub that happens

2:23:26with each budget and is done by hand for

2:23:28each individual PCN in multiple layers

2:23:32of cost adding for medical costs uh the

2:23:35actual labor grade classification

2:23:38etc. Those changes are not projected or

2:23:41included in this budget or in this

2:23:44fiscal program projection, which is

2:23:46where we get the 14 million for 2028

2:23:52could become 20 to30 because that step

2:23:56progression, that cost scrub in the 27

2:24:00budget was $5 million.

2:24:03And if we project that we would get the

2:24:06same kind of a cost scrub or potentially

2:24:10more, we have to add that to the bottom

2:24:11line. And that means that we have hit a

2:24:1419 to20 million deficit. And there are

2:24:17other variables like that that we cannot

2:24:20accommodate for right now that could

2:24:23make this

2:24:25bigger.

2:24:30Okay. uh any M.

2:24:36So, I I think what I just heard you say

2:24:40is that

2:24:42what we see here in appendix C

2:24:48is going to look

2:24:51like the 2028 version of appendex C is

2:24:55unknown to us at this point. But that

2:24:58will necessarily change the projections

2:25:01that are in this table

2:25:04when we have appendix C 2028 extended

2:25:08remix.

2:25:13>> Yes and no. Right. This doesn't I think

2:25:16it depends on who you are applying to

2:25:18because these the CBA's roll deadlines

2:25:22at a different year. So, right now, the

2:25:26APDEA

2:25:28uh inclusion within this six-year fiscal

2:25:32has

2:25:34only a flat assumption from 2028 going

2:25:38forward because their contract has not

2:25:40been negotiated at all and but some

2:25:43contracts have been negotiated through

2:25:452030 and so we know what that number is

2:25:47for real or at least as it's presented

2:25:50in the current collective bargaining

2:25:51agreement. So there is right there's a

2:25:54timing to the timing of how we know what

2:25:56we don't know and it's why the six-year

2:25:58fiscal projection changes so dra d d d d

2:26:01d d d d d d d d d d d d d d d d d d d d

2:26:01d d d d d d d d d d d d d d d d d d d d

2:26:01d d d d d d d d d d d d d d d d d d d d

2:26:02d d d d d d d d d d d d d d d d d d d d

2:26:02d d d d d d d d d d d d d d d d

2:26:02drastically

2:26:04>> all the above drastically it's the new

2:26:06one uh every single year and and why we

2:26:10have to pay attention to it because it's

2:26:11$14 million this year we could come into

2:26:14a bunch of money or a contract could

2:26:16become really expensive

2:26:18and we have to pay attention to how it

2:26:19changes so we go from a safe for $14

2:26:22million to maybe 30.

2:26:26>> Um, I would just like to say for the

2:26:28record that my favorite thing is asking

2:26:30the OM director a question and her

2:26:31telling me yes and no. [laughter]

2:26:36That's actually a really interesting

2:26:38thing because the municipality

2:26:42has a lot of

2:26:44things that we see on the face of,

2:26:46right? There's a lot of visibility, a

2:26:48lot of content, a lot of information,

2:26:50but it is almost always true that the

2:26:53rest of the story matters

2:26:56and and will be the thing that stops you

2:26:59or helps you do whatever you are trying

2:27:02to do. And and I think that can feel

2:27:04really frustrating for people who who

2:27:08don't have time for what the rest of the

2:27:10story is or it's not plain enough to be

2:27:13able to contemplate how we can change

2:27:17this. It is complex

2:27:19>> context. [laughter]

2:27:20>> That's right.

2:27:21>> Welcome to my world. Our world

2:27:23>> context.

2:27:28>> Uh

2:27:30let's see. Okay. And I know we're at

2:27:31130, so I think we'll if we can wrap up

2:27:33on this slide.

2:27:34>> This one's done.

2:27:34>> Yeah. Okay. Um, one other thing I'll

2:27:36just briefly note in terms of unknowns,

2:27:38uh, is just one example for folks to

2:27:41think about population change, right? If

2:27:42we have a lot of people move here, pipe,

2:27:45gas line, all of that stuff that can

2:27:46change our budget in the longer term. If

2:27:48most of those folks uh, for example,

2:27:49moving to Jar or moving to work on JBR,

2:27:52if most of them move to the Matsu, then

2:27:54these numbers don't change, right? So

2:27:56that means 200 more people that are in

2:27:57our area working in our area uh, that

2:27:59don't live here. And so that so that's

2:28:01also just even with things that we know

2:28:03are happening, we don't know where they

2:28:04end up and if they're our residents or

2:28:06someone else's residents because all we

2:28:08count is residents. Um okay, I think

2:28:10we're good on this section. Um and then

2:28:14again we'll point folks folks to this is

2:28:16sorry I don't even know we're all having

2:28:18challenges. Um so uh this is the surface

2:28:21skimming the surface. The book is is the

2:28:24everything and probably too much but

2:28:26[laughter] but it has everything. So uh

2:28:28so next we're going to switch gears.

2:28:29Obviously, we did our lunch break

2:28:30already. Um, so we're going to move into

2:28:32our next section, which is enterprise

2:28:34and utilities. And this one is going to

2:28:36be a more, uh, I think there's probably

2:28:38an overview, but it's really more

2:28:39looking at, uh, uh, each of these

2:28:41individually. So, uh, so just heads up

2:28:43for department heads, you know the

2:28:44drill. We'll have you up when we're

2:28:46ready, but otherwise, I'll turn back to

2:28:47Miss Browse. Sorry, not department

2:28:49heads, utility heads and enterprise

2:28:50heads.

2:28:52>> Uh, thank you, Madam Chair. Uh, I think

2:28:54we can Do we just want to start the

2:28:56parade? I don't see why not. Um, we will

2:28:58run through each of these individual

2:29:00budgets. Um, we will move ACDA to the

2:29:02next work session. Uh, the the timing on

2:29:06calendars makes sense for us to put ACDA

2:29:09next week. Um if there we I think

2:29:11believe we have all of our directors

2:29:13here to go through and um we can explain

2:29:17some of this as we go but we can start

2:29:20with hydropower if we want to have uh

2:29:24Mark Stafford come on up and I will

2:29:28start walking through the uh Anchorage

2:29:32Hydropower uh changes between the 2026

2:29:35revised budget and the 27 uh proposed

2:29:38budget include clude a couple of

2:29:40interesting things. Um, for the most

2:29:42part, it would be relatively uh simple.

2:29:47We are including a 1.9 million uh

2:29:51increase on the dividend to general

2:29:53government. Uh, hydro, as I said,

2:29:55traditionally has a $300,000

2:29:58um uh dividend to general government. I

2:30:01say traditionally, it's only existed for

2:30:03three years, maybe. Um and the 1.9

2:30:07million is a one-time increase. This is

2:30:10not I it's a one-time meaning it is only

2:30:12this year. It is not a recurring

2:30:14increase. It is not the first time it

2:30:15has happened. A uh large dividend or

2:30:18larger dividend was taken from hydro

2:30:21power in 2025

2:30:23I believe. And uh this is part of the

2:30:28analysis process that we go through as

2:30:30the general government side when we are

2:30:32looking at our revenue sources and our

2:30:35potential dividends from our uh

2:30:38utilities and enterprises and uh hydro

2:30:41power has the flexibility to uh give

2:30:45this dividend to general government in

2:30:472027 and in 2028 and thereafter we are

2:30:50assuming a $300,000 dividend unless

2:30:53additional action is taken.

2:30:56Uh but otherwise it's a relatively small

2:31:00uh operating uh staff and uh budget but

2:31:04the total appropriation is 7.5 for 2027.

2:31:09And if Mr. Stafford has anything to say

2:31:12or he's here for questions

2:31:16>> questions about hydropower.

2:31:19>> Miss Baldwin.

2:31:21Uh yeah, I'm I'm just curious about the

2:31:26the dividend to general government and

2:31:29is is that on is that dividend generated

2:31:33on like a revenue basis? I mean, how

2:31:34does that how does that dividend

2:31:36materialize? I mean, I'm I'm pretty

2:31:37clear on like how other dividends are

2:31:39realized, but this one not so much.

2:31:43>> You want to do it?

2:31:46I think in general, member Valdon Day,

2:31:48the hydropower utility has at least

2:31:50three streams of incoming revenue. And

2:31:52I'll have the director nod at me if I

2:31:54get these right. When we sold ML&P, the

2:31:57rump hydropower utility ended up

2:31:59receiving power purchase agreement sales

2:32:02revenue for power that it sells to

2:32:04Chugat. It ended up receiving revenue

2:32:07for power that it sells to MEA. And then

2:32:10it also receives water diversion income.

2:32:14um which has to do with uh water

2:32:16spilling over the dam etc etc and Sper

2:32:19can speak about that more generally

2:32:26and then it is required by the fish and

2:32:29wildlife agreement to squirrel away I

2:32:31think it is $3 million sort of in a lock

2:32:33box and so it's always done that and

2:32:35then it has to participate meaningfully

2:32:37in the fish and wildlife program which

2:32:40it is doing and it actually is doing it

2:32:42a little bit more forceful full way than

2:32:44I think was originally anticipated at

2:32:45the time of sale. But it is our sense

2:32:48that putting all of that in the blender

2:32:50that this dividend can be accommodated

2:32:52this year.

2:32:55>> Thank you.

2:33:00Okay, I don't see anyone else in the

2:33:01queue.

2:33:03Okay, there you go. Hydropower. Aw.

2:33:10Oh, sorry. Before we move on from

2:33:11hydrop, I do see I'm looking at my print

2:33:13slides just there's a very brief

2:33:15>> oh the capital

2:33:16>> capital. So is that what what Bill was

2:33:18or Mr. Falsy was just describing is that

2:33:20portion of the 3 million.

2:33:21>> This is the annual fish and wildlife

2:33:23participation from hydro.

2:33:26>> Great. Thanks. Yeah, just as a reminder

2:33:28for folks uh for these in particular,

2:33:30we're going to have a slide on operating

2:33:31and a slide on capital and then we'll

2:33:32talk about the capital generally but but

2:33:34for these because they're kind of their

2:33:36own thing as well. Um just look for

2:33:37those on the slides.

2:33:42Uh, Aw, I think you want to do you want

2:33:46to take this? You do it. Yeah.

2:33:50Thank you. Uh, David Persinger, uh,

2:33:52Anchorage Water and Wastewater Utility

2:33:53General Government or, uh, general

2:33:55manager. Uh, looking at the Anchorage

2:33:57Water Utility Budget, uh, very flat

2:34:00budget going into 2027.

2:34:03You'll see there's one uh, full-time

2:34:05equivalent added to our position count.

2:34:07that is for overseeing our customer

2:34:09service uh supervisor division. We're in

2:34:12the process of uh going out for a new uh

2:34:16customer information system and that's

2:34:17going to be a heavy lift for the next

2:34:18three years getting that software um

2:34:20work through and so that's um bolstering

2:34:23our uh customer service group.

2:34:32>> Okay. Questions for members? I guess one

2:34:33real basic one. Can you describe why

2:34:35we're seeing Anchorage Water? I

2:34:37obviously your water and waste water,

2:34:38but can you describe why why those are

2:34:40different in the budget? Yes. Uh through

2:34:42the chair, the the Anchorage Water and

2:34:44Wastewater Utilities is reg regulated by

2:34:46the regulatory commission of Alaska as

2:34:48two separate utilities. There's

2:34:49Anchorage Water Utility, Anchorage Sewer

2:34:51Utility. Now, you'll notice our position

2:34:53counts share between those. Those are

2:34:54split based on the percentage they're

2:34:56used on each utility. So, you'll see a

2:34:58water utility and a sewer utility, but

2:35:00there's a a sharing of resources in

2:35:02between that.

2:35:04>> Okay. Thank you. Any other further

2:35:05questions from members? This is through

2:35:06the chair. I will say that as was just

2:35:09mentioned the the um sharing of the

2:35:11positions if you look on the slide deck

2:35:13the lower right corner of Anchorage

2:35:15Water shows the position count 249 35

2:35:18right for full-time part-time temporary

2:35:20the FTE number underneath that is a very

2:35:24strange number but that is because when

2:35:27you get to the wastewater side you see

2:35:31the position count relatively close but

2:35:34the FTE count slightly

2:35:36And that is because it all rolls up but

2:35:39they are allocated to the utilities in a

2:35:42nonlinear way right it's not one

2:35:44position one position it's not even half

2:35:46a position half a position the

2:35:47allocations are different and so they

2:35:50land in a position count versus an FTE

2:35:53count in that fashion in the lower right

2:35:56corner.

2:35:58So sorry I just skipped ahead over all

2:36:00your capital projects.

2:36:04>> And then moving on on the Anchorage

2:36:06Water Utility, uh fairly robust capital

2:36:09program, uh large mix of uh projects

2:36:11across municipality. Uh one thing I

2:36:13wanted to draw some attention to is a

2:36:15significant investment in the Gerwood

2:36:17water system and that includes a a new

2:36:19reservoir site, a new wellhouse, a new

2:36:22treatment system for the Gerwood

2:36:23community.

2:36:28Um, was there a question for Miss

2:36:29Baldwin Day?

2:36:32>> Okay.

2:36:35Um, and I have a just a brief question

2:36:37on the capital. So, not not digging in

2:36:38on these projects. I see there's two

2:36:40pages of them. Can and it says debt. Can

2:36:42you clarify because we don't vote on

2:36:44like I've never voted on an AW bond. So,

2:36:46what what does that mean when we say

2:36:47debt? Um, where is that where is the

2:36:49revenue coming from?

2:36:50>> Uh, thank you uh to the chair. The uh

2:36:52Anchorage Water and Wastewater Utility

2:36:54takes uh extensive um advantage of the

2:36:57Alaska Clean Water Loans and Alaska Safe

2:37:00Drinking Water Loans through the uh

2:37:01federal uh uh state revolving fund. And

2:37:05so we borrow a lot of money through

2:37:06that. That's uh primarily where the bulk

2:37:09of our debt comes from.

2:37:12>> Thank you. And to that point, I'm just

2:37:13going to do a very brief disclosure. um

2:37:15as a resident, not as an assembly

2:37:17member, I am engaged uh with some of my

2:37:18neighbors in a project to uh implement

2:37:21an improvement district. And so what

2:37:22I've been told is in a future year that

2:37:24may require amendment of the CIB. So I

2:37:26just want to be clear uh that project is

2:37:28not listed here. The intent is not to

2:37:30and and if if there was if we were

2:37:32further along then I would be recused

2:37:34from this discussion to be you know

2:37:35altogether but just to put that on the

2:37:37record as a disclosure. I've said this

2:37:38in a committee as well. Thanks. I think

2:37:40we can move on. I don't see other

2:37:42questions.

2:37:46And then moving moving on similarly on

2:37:48the wastewater anchorage sewer utility

2:37:50um very similar changes you you'll note

2:37:53the one uh FTE for the customer service

2:37:55and then uh very similar to the water

2:37:58budget very flat um essentially

2:38:01maintaining status quo.

2:38:13And similar to the water utility,

2:38:15although uh significantly smaller

2:38:17capital program on the sewer side,

2:38:19that's uh primarily driven by our uh

2:38:21financial condition that the sewer

2:38:22utility particularly our debt service

2:38:24coverage

2:38:26>> and question for Miss Baldick.

2:38:29>> Yeah, I think this is just a question

2:38:30more broadly. Um at the one of the

2:38:32recent IEOC committee meetings, um we

2:38:36heard a a pretty extensive report from

2:38:39from AWOU about um sort of the

2:38:44increasing severity of frozen pipes,

2:38:46those kinds of things. and uh what that

2:38:50cost not on the capital side but also on

2:38:52the labor side uh in in terms of

2:38:54addressing some really serious problems

2:38:56over the course of an unusual winter but

2:38:59a winter that may be becoming more

2:39:01usual. And so I I'm I'm wondering how

2:39:03that impacts, you know, not only this

2:39:06year's budget, but perhaps future year

2:39:08budgets to to start maybe dealing with

2:39:11severe freezing events on a more regular

2:39:13basis.

2:39:16>> Thank you. through the chair. Um, you're

2:39:18very correct. Last winter was a a very

2:39:20challenging winter, not only for us, but

2:39:22for everybody else in in Alaska with the

2:39:24the very wild and and crazy temperature

2:39:27swings. Um, back to what I said earlier,

2:39:29Anchorage Water and Wastewater Utilities

2:39:31regulated by the state of Alaska

2:39:32regulatory commission. Essentially, what

2:39:34that means is, and it's on a uh historic

2:39:37cost basis. So, um, for us to recover

2:39:39costs from 2026, those would go into a

2:39:42potential 2028 rate filing. And so, um,

2:39:45you're you're absolutely right that

2:39:46we're we saw a cost increase. Those will

2:39:49come, uh, further along once we those

2:39:51costs are are fully, uh, audited and

2:39:54that we can actually put those into

2:39:55rates. But, um, for now, we're floating

2:39:58those costs essentially.

2:40:00>> Okay. And so, so where we would the so

2:40:02the soonest that we might see an

2:40:03adjustment relative to the the uptick in

2:40:06cost would be 2028. Is that what I just

2:40:09heard?

2:40:09>> That is correct. Yes. the way that we're

2:40:11regulated, we're based on historic test

2:40:13year. So, if we file a 2028 rate

2:40:15increase, that would be based on 2026

2:40:18financials. And I'll also add on the

2:40:20capital side, we have water wastewater

2:40:22master plans and facility plans for all

2:40:24of our facilities. And those include

2:40:26looking at trends in in weather, you

2:40:28know, trends in climate and uh, you

2:40:30know, anticipating changes and building

2:40:32resiliency into the infrastructure.

2:40:34We're doing that. Uh, one of the things

2:40:35we do is, you know, looping water manes.

2:40:37We don't have deadend water manes. that

2:40:39provides a lot of resiliency at a you

2:40:41know sometimes a fairly moderate cost.

2:40:45>> Thank you. Yeah, that's helpful and I

2:40:47appreciate the attention to detail.

2:40:51>> Okay. Any other questions?

2:40:53Don't see any right now. Okay. All

2:40:56right. Well, thanks for able folks for

2:40:58being here. Thank you

2:41:03young Ford. Come on down.

2:41:08>> Uh, up next, Port of Alaska. We have our

2:41:12team members here.

2:41:14>> Come to the middle.

2:41:15>> That's right. That's shake it up.

2:41:18[laughter]

2:41:22>> Do you want to take it through?

2:41:24>> No.

2:41:24>> Okay. Uh, [laughter] so the, uh, Cheryl,

2:41:29do you want to take it through?

2:41:31>> Whatever you need. That's the right

2:41:33answer, Cheryl. Uh [laughter]

2:41:38um the the changes within the port are

2:41:40relatively limited aside from the $20

2:41:44million uh

2:41:46debt load that we have talked about for

2:41:49years. I think maybe it's now coming

2:41:51home. So, uh that is the interest on

2:41:55bonded debt associated with the uh

2:41:58tariff and financing plan. a slight

2:42:01increase in um salaries and benefits

2:42:04adjustments that include uh the rollover

2:42:08between 26 and 27, but also include the

2:42:11full cost of a couple of the positions

2:42:14that were changed in the revised budget

2:42:16this year that were only funded at

2:42:18partial year. So, this is the um full

2:42:21year for I think of maybe two or three

2:42:23of the positions that changed um in the

2:42:2626 budget. uh the $3 million change in

2:42:30depreciation and that lands us at the 27

2:42:34proposed appropriation of 52.8 million

2:42:38with 24 PCN's at the ports

2:42:44on that.

2:42:47>> I don't see any on the operating Sorry,

2:42:49Miss Bald.

2:42:53So the so the $20 million

2:42:56increase over 2026 is largely

2:42:58attributable to to debt service. Is that

2:43:02what I'm reading? Okay. Um

2:43:06will you talk us through the the net

2:43:09zero change in lease principal and

2:43:12interest expense and and how what what

2:43:14that represents?

2:43:17>> I'm gonna send that over to you Shirley

2:43:19>> through that. You were talking about the

2:43:2052,000. Yeah.

2:43:22>> Um, so

2:43:25this is uh this is an as far as I know

2:43:28and uh my bat phone over here might tell

2:43:30me if I say this wrong, but this is an

2:43:32accounting requirement to align with

2:43:34Gazby, which is the uh government

2:43:36accounting standards board requirement.

2:43:39The Gazsby rules change on a annual

2:43:43basis it seems. And when uh this

2:43:46specific Gazsby change came across, we

2:43:48have to align where we reflect the lease

2:43:52and principal payments. And this is the

2:43:54adjustment for that.

2:43:57>> Lease and principal payments. What are

2:44:00we leasing or what? What is Yes.

2:44:04>> through the chair. That's all

2:44:05operations. [laughter]

2:44:09>> I'm not sure.

2:44:13Okay.

2:44:15>> Okay. Through the chair. So the Gazsby

2:44:18leases uh were changed to provide value

2:44:22the value of the entire land leases at

2:44:24the port over their years of lease. So

2:44:27you have to record that into a future

2:44:29gain. And so there's a true up that

2:44:32happens. And it's a large worksheet that

2:44:33takes into account all of the land

2:44:35leases that the port has. And it's not

2:44:37only land leases, it's uh long-term

2:44:40leases on equipment, on software, on

2:44:43anything that, you know, might have a

2:44:45life longer than a year. So, it's a an

2:44:48an adjustment that's made by uh central

2:44:51finance that keeps the list for us and

2:44:54we true it up. It so it truly is a true

2:44:56up, but that's kind of the details that

2:44:59uh make that number up.

2:45:01>> And if I may through the chair, this is

2:45:05happening throughout the entire

2:45:06municipality. This is not specific to

2:45:07the port. This Gazsby adjustment is

2:45:09something that the controller and

2:45:10accounting division is working on

2:45:12because we are having to convert the

2:45:15entire municipality and the way we have

2:45:18traditionally reported our lease our

2:45:20lease process, our lease contracts and

2:45:23uh it's a lot of work. It is uh we can

2:45:27do a work session on that or at budget

2:45:29and finance committee if that is useful.

2:45:31But this is a specific alignment that

2:45:34you may see in other municipal

2:45:36departments because this activity has to

2:45:38occur for best practices and accounting

2:45:41purposes.

2:45:43>> Thank you. That's

2:45:50>> okay. Let's go to the capital on the

2:45:52port. Oh, you're not done yet.

2:45:55>> We were hopeful.

2:45:57>> Uh capital review. Go ahead. com like

2:45:59any of the projects you want to

2:46:01highlight specifically or any assembly

2:46:04questions on the individual projects.

2:46:10>> Um I guess I can offer a couple. I mean

2:46:13one is thank you for including the Ship

2:46:15Creek boat launch. Uh those of us who've

2:46:17been here a few years remember that's

2:46:18been a whole thing. Uh so thank you for

2:46:20continuing to take that on as a

2:46:21responsibility. And then my my biggest

2:46:23question is really what's not here. Can

2:46:25you explain obviously we've got a you

2:46:27know $2 billion port modernization

2:46:29project that is a massive capital

2:46:30project. Can you explain why that's not

2:46:33here? Because we know it still exists

2:46:35and and it's showing up in the debt

2:46:36service, I imagine, but but why it's not

2:46:38kind of included here with whereas there

2:46:40are these kind of smaller relatively

2:46:42smaller projects.

2:46:46>> Through the chair, I can uh uh provide

2:46:48some insight onto why the port

2:46:50modernization program is not listed as

2:46:52an appropriated project for 2027. So if

2:46:56you'll think back, the assembly

2:46:58appropriated all the funds to work on

2:47:00terminal one. So when the contract for

2:47:03Manson Michael joint venture was

2:47:05approved at the assembly, that was

2:47:08approved at that time. So there is no

2:47:11action of appropriation on behalf of the

2:47:14assembly and that's what this list is.

2:47:16So at such time there'll be

2:47:18appropriations for the PAMP. It'll come

2:47:20back through to the body and you'll see

2:47:22it at that time. So this particular list

2:47:25is appropriation for ongoing capital

2:47:29projects at the port. That's not PAMP.

2:47:31So I can take any questions.

2:47:34>> Thank you. Other questions, Miss Bald?

2:47:38Um, I think it would be it would be

2:47:40useful and potentially at um an

2:47:45energy enterprise and utility oversight

2:47:47committee meeting in the future uh to

2:47:49understand sort of where we are in terms

2:47:53of what we budgeted for the PAMP and

2:47:56what our actuals are at this point. Um,

2:47:59I I've gotten a lot of questions from

2:48:01interested uh constituents who are who

2:48:04are tracking, you know, paying

2:48:07remarkably close attention actually to

2:48:09things like change orders and um and and

2:48:12uh contract adjustments and things like

2:48:14that and they're sort of wondering like

2:48:16where are we landing? Like are are

2:48:18what's our burn rate um with respect to

2:48:20the PAMP project? And so I I know that I

2:48:23recognize that's not what we're talking

2:48:24about here today, but I think I would be

2:48:26remiss if I didn't say, you know, I

2:48:27think there's a lot of interest in the

2:48:28community to understand, are we on

2:48:30track? Are we on budget? Are we on

2:48:32schedule? And um if not, why not? And if

2:48:36so, great. Uh I think that would be a

2:48:38helpful presentation to have at some

2:48:40future future point. So thank you.

2:48:42>> Yeah. Through the chair, uh I would say

2:48:44at the last EEOC meeting, we started

2:48:46down that road to kind of do a hey,

2:48:48we're ending the PAMP. here's where

2:48:50we're at current state. We didn't go

2:48:52into detail uh for uh change orders and

2:48:55the impact to the project financially. I

2:48:58certainly think that we could

2:49:00incorporate that into future meetings.

2:49:02It shouldn't be an issue for us to bring

2:49:04forth uh you know a really good uh idea

2:49:07of where we're at spend-wise, what we

2:49:10are projecting, and then of course

2:49:11project status, right? That's important

2:49:13to everybody in the community. So we'd

2:49:15be willing to put all that together and

2:49:17and share it. I I would also say uh

2:49:19again just to your Ship Creek boat

2:49:21launch, there will be much more to come

2:49:23on the Ship Creek boat launch. We're

2:49:25identifying a lot of issues down there

2:49:27right now currently. Uh and I know that

2:49:29doesn't necessarily have to do with the

2:49:30budget for this this cycle. Uh but it is

2:49:35in bad shape and in disrepair and it's

2:49:37it needs a lot of work down there. So

2:49:39we're happy to take that on. We're

2:49:41excited about that project, but there is

2:49:43a lot of work to come.

2:49:45So just on that point then so the 150

2:49:47that sounds like it's in the ballpark of

2:49:49something like a study or some

2:49:50engineering or something like that

2:49:52that's assessing kind of what the scope

2:49:53of that is or can you describe what that

2:49:55is doing in addition to the actual

2:49:57dredging

2:49:58>> that is

2:50:01through the chair that's almost all

2:50:02entirely for dredging. We do have some

2:50:05um small maintenance costs associated

2:50:08with the restrooms out there. Uh

2:50:10vandalism, things like that that are

2:50:11happening that we have to spend a little

2:50:13bit of money on, but almost all of that

2:50:14is for dredging.

2:50:15>> Okay. So then I'll correct what I said.

2:50:17So it's not that we're paying for

2:50:18studies, it's that you guys are looking

2:50:19at at that in the meantime doing

2:50:21dredging and those repairs.

2:50:22>> Correct.

2:50:22>> Okay. Thanks. And through the chair, I

2:50:24will say that the this slide deck

2:50:26obviously is two or three slides about

2:50:27the port, but the utility and enterprise

2:50:30budget has uh 30 pages of port detail,

2:50:35including the write up on what those

2:50:37capital projects are and what they would

2:50:40be doing down to the uh completion of

2:50:43systems one, two, and five for stream

2:50:45storm drain enhancements. So there's

2:50:48there is um very uh useful information

2:50:51for people who may be trying to round in

2:50:54the detail to begin with and then

2:50:56additional questions I'm sure would come

2:50:58after that.

2:50:59>> Okay. Thank you. I don't see any other

2:51:01further questions at this point. So I

2:51:03think we can uh move on.

2:51:15And I'll say as folks are coming up, I I

2:51:17neglected to say thank you to the port

2:51:19folks and I will say preemptively thank

2:51:20you to all of the utilities and

2:51:22enterprise folks who are here. If I

2:51:23forget to say that as you're swapping

2:51:25out.

2:51:27>> Okay. So, uh we have Earl Mus here from

2:51:31the municipal airports otherwise known

2:51:33as Merryillfields. Um the uh changes for

2:51:38Merrill are very minimal but the uh

2:51:42story behind Merill operations is very

2:51:44good and very interesting. So um we have

2:51:47the uh revised budget appropriation of

2:51:50almost $3 million 2.999. Um some small

2:51:54changes uh you see the debt service

2:51:58change line less lease principal

2:52:00interest expense. It is part of it is

2:52:03not the Gazby change, but it is all part

2:52:05of making sure that we are where we need

2:52:06to be on our leases and expenses and how

2:52:09we are accommodating them in our

2:52:11financials. um the 124,000 for salaries

2:52:15and benefits adjustments for the 12

2:52:17positions at Merrill and the small

2:52:21increase for ground maintenance services

2:52:24um as well as security and alarm service

2:52:26upgrades take them to 3.14 million for

2:52:30the 2027 appropriation. Uh there is

2:52:34anything else that you want to add for

2:52:36color and operations?

2:52:38>> Nope. It's pretty boring. uh that we uh

2:52:41we've we are kind of uh peaked out with

2:52:44our land lease and uh tie downs for the

2:52:48time being. We're uh we are the most

2:52:50expensive airport uh in the state. So

2:52:53we're we're going through our master

2:52:55plan and letting that pencil out a lot

2:52:57of the um direction going forward.

2:53:02Be glad to answer any questions that you

2:53:03might have.

2:53:06>> Okay, Miss Pick, thank you. Um, thank

2:53:09you for being here. Uh, I I seem to

2:53:11remember that at at one point um over

2:53:14the last year we needed to reduce or we

2:53:17didn't have coverage for um air traffic

2:53:19controllers at Merill. Are we still in

2:53:22that same sort of constrained situation

2:53:24with respect to ATC's

2:53:26>> through the chair to member Balden Day?

2:53:29No, ma'am. We've it started in March.

2:53:32They the FAA had some uh manpower issues

2:53:36and they they've worked their way

2:53:38through that. It took six months ended

2:53:41in August uh September time frame.

2:53:44They've completely recovered and have

2:53:46added additional manpower as well. So

2:53:48we're fully staffed at the and again

2:53:50that's an FAA tower.

2:53:52>> That's ex excellent news. Thank you.

2:53:54Glad to hear that.

2:53:57>> Okay, any other questions? Let's go to

2:54:00the capital. Okay, let's go.

2:54:03Uh oh, you anything you want to talk

2:54:06about your capital projects?

2:54:07>> Uh yes, there's this is uh our I guess

2:54:12you would say what we're int

2:54:14anticipating and planning, but uh as I

2:54:17mentioned, we're doing our master plan,

2:54:19so there could be some adjustments based

2:54:21on what the uh research does on that.

2:54:24But there u these are the items that

2:54:27we're looking at. I there's only uh

2:54:29these two items. Again, I didn't add a

2:54:32third one for the following year because

2:54:35of the master plan. It just uh we we got

2:54:38we're putting all the stuff out there.

2:54:39There's uh ideas of like a start where

2:54:44the airport would start actually

2:54:46creating another revenue stream which

2:54:48would be selling fuel on the airport.

2:54:50Right now, currently the the only ones

2:54:53that are selling it are are tenants of

2:54:55ours. Uh but there's some a great deal

2:54:58of interest to the initial uh reports

2:55:01and the surveys that are coming in from

2:55:03tenants uh that they would like to see

2:55:05the airport have what they would call

2:55:07fixed pace operation or where we would

2:55:10be selling fuel and that would be a a

2:55:13big benefit for a revenue stream.

2:55:17Any questions on those?

2:55:18>> M. Yeah, thank you. So um so are these

2:55:24projects that the FAA has already

2:55:27greenlighted and said yes these are a go

2:55:29or is this what what's being presented

2:55:31to the FAA with a request to fund

2:55:35>> uh through the chair to B member Baldman

2:55:38that the electric city property is a

2:55:41property that's currently for sale it's

2:55:43like an opportunistic

2:55:45uh chance of of getting some property

2:55:47that would extend or give us additional

2:55:50revenue

2:55:51that's been tenatively approved by the

2:55:53FAA that would be purchased using FAA

2:55:56funds, AIP funds. So, requires a 5%

2:56:00match. They've tenatively approved it um

2:56:04based on the master plan. They want to

2:56:07make sure that the consultant did that.

2:56:10We've also previously brought it up to

2:56:12the assembly and had tent of approval

2:56:16based on some of the issues that we're

2:56:18we're looking at as far as

2:56:19environmental. It's known as the the

2:56:22former city electric property and

2:56:24there's contaminations and uh

2:56:26environmental issues. Mel Fields worked

2:56:29through some of the virtually all of

2:56:31those environmental issues uh with our

2:56:33consultant and the Alaska DEC. I think

2:56:37we're pretty in pretty good shape with

2:56:38that. We've also received um encou we've

2:56:43talked with the controller and office of

2:56:45budget management as well. A lot of

2:56:47things on that depend on our audited

2:56:51fund balance. We've got an idea as much

2:56:54of an idea as you can get from uh budget

2:56:58person as to what our our uh fund

2:57:01balance is. So we that that addresses

2:57:04the electric city property the the tax

2:57:07away and rehab. Again, we have the FAA

2:57:09approval on that. Our PCI, the pavement

2:57:12condition index, uh indicates that they

2:57:15are due uh a rehab, but again, the FA

2:57:19wanted to hold off and let the

2:57:21consultants

2:57:23uh pencil out everything. And there's

2:57:25some questions as to

2:57:28standardization of taxiways crossing the

2:57:32runways and they want to get that they

2:57:34want the engineers to look at that. the

2:57:36sand store wall. They've also looked at

2:57:39it's on our air capital improvement

2:57:42plan. It's

2:57:45wall concrete wall dividing the sand

2:57:48storage portion and the airfield

2:57:50maintenance equipment. It's starting to

2:57:52bulge and they're we're looking at that

2:57:56and getting up uh going to be designing

2:57:59that in the future. The FAA is aware of

2:58:01that. They've done a site visit. And

2:58:03lastly, the the aviation fuel. The FAA

2:58:08has uh looked at that. There's a good

2:58:11possibility for granting uh grants on

2:58:13that as well. Merfield, as a side note,

2:58:16um let's back up a little bit more. The

2:58:19FAA has mandated transitioning from 100

2:58:23lowled, which is a heavy leaded fuel for

2:58:26piston power aircraft. They're

2:58:28transitioning from that 100 lowled to an

2:58:31unled fuel. The date that's uh tenative

2:58:36date is 2030 for the lower 48 uh 2032

2:58:40for uh Alaska.

2:58:43We have we are the first in the the

2:58:46state to have um one of the three main

2:58:50parties have fuel tanks as well as I'm

2:58:53told we have this unled fuel on site as

2:58:57we speak. Uh so so if we if once the

2:59:02[snorts] FAA has agreed and the

2:59:04consultants agree there's a they will

2:59:08there's a set aside in the AIP grants

2:59:11that will allow us to have the FA fund

2:59:15unled fuel tank like a fuel farm and

2:59:19fuel trucks. So that's again a segue

2:59:21into another revenue stream revenue

2:59:23stream for Merfield. Uh that set aside

2:59:27is unique because usually the AIP funds

2:59:30are for infrastructure only not revenue

2:59:33generating opportunities but they

2:59:35recognize and the FAA is trying to

2:59:38incentivize a transition from the 100

2:59:41lowled to the unled aviation fuel.

2:59:45>> Thank you. Uh so so these so the federal

2:59:48dollars that we see here are are FAA

2:59:51funds that will be coming in and then

2:59:54the equity funds are the match for the

2:59:55FAA.

2:59:56>> That's correct.

2:59:57>> Excellent. Okay. Thank you and thanks

2:59:59for the work you do.

3:00:00>> And to the chair I will clarify that the

3:00:02city electric property does not mean

3:00:03MLMP.

3:00:05[laughter]

3:00:05>> Okay. So some other entity called city.

3:00:08Um I have myself in the queue and then

3:00:09Miss Park. Um just briefly and I should

3:00:11have asked this to an earlier one. So

3:00:13the equity, can you at least from the

3:00:15airport's perspective, can you describe

3:00:17because I know you're you're essentially

3:00:18a closed system as a budget. You're

3:00:20you're collecting fees. There's not

3:00:21generally general government that goes

3:00:23in there. And that's true for these

3:00:24other enterprises um and utilities. So

3:00:26the equity is that essentially I'm going

3:00:29to use an HOA analogy. You know, I pay

3:00:31my dues. We build a budget as the board

3:00:34and that includes some kind of reserve

3:00:35fund for our capital improvements. So,

3:00:36so is that essentially when you're

3:00:38building your your own budget, you're

3:00:40looking at how to build into to have the

3:00:42equity to build these projects. Is that

3:00:44correct,

3:00:45>> the chair? Correct. Yes.

3:00:46>> Yeah. And I know there's probably a

3:00:47version of that with the other utilities

3:00:49as well. It that's true. And and that is

3:00:51that is uh why Earl said as much as you

3:00:55can get from an OMB director or a budget

3:00:57director because it has to do with the

3:01:00actual fund balance within the operating

3:01:02accounts at Mel have to do with the act

3:01:04for totals and when we know when those

3:01:06are actually audited and come back and

3:01:08that equity is available for them to

3:01:09then spend on this project. So, um, it's

3:01:12all part of that cycle, right? Our the

3:01:15municipal, we have municipal debt. Our

3:01:18municipal equity is, you know, tax

3:01:21abatement and all the other things that

3:01:22we can provide in a non-cash way. We

3:01:25don't have the same kind of cash equity

3:01:27unless it's budgeted specifically.

3:01:31>> Thanks. Yeah, I know the water and waste

3:01:32water and other utilities, they build

3:01:33that into the rates to the extent that

3:01:35they can because they're regulated. So,

3:01:37okay. Any other questions on airport?

3:01:39Oh, hey, sorry. Um, Miss Park, go ahead.

3:01:42>> Thank you, chair. Um, I just had a

3:01:45question regarding uh there's a there's

3:01:46a property between um on Fifth Avenue

3:01:49between the old Peggy's restaurant and

3:01:52the welcome to Anchorage sign. Wondering

3:01:54does that still belong to the

3:01:55municipality and are there any plans to

3:01:57that?

3:01:58>> Uh through the chair to the member. We

3:02:00do have uh that property. It's just

3:02:02north of the or it's on the approach end

3:02:04to runway 16 and it's it's what they

3:02:08call runway protection zone RPZ and it's

3:02:11there the FA restricts any kind of um

3:02:15structures being put into that location

3:02:18so that there's uh no issues with

3:02:20reflections of uh or protruding into the

3:02:25the glide slope of the aircraft coming

3:02:27in.

3:02:29>> So that will just remain as is. Yes,

3:02:31ma'am. It's required by the FAA to uh

3:02:34remain as is.

3:02:38>> Okay. Don't see anyone else. Um and then

3:02:39I will again put in a plug for our

3:02:40enterprise and utilities committee,

3:02:42energy, enterprise and utilities

3:02:43committee. I think if if folks do want

3:02:45to deep dive on these projects, we can

3:02:46do that at a future meeting. So, um

3:02:48okay, next uh let's move on to I believe

3:02:51solid waste services. And then I will

3:02:53note this is a similar twoin- one

3:02:55utility. So, you'll see we have disposal

3:02:57and then I believe collection is the

3:02:58other one. So uh or sorry refu

3:03:01so we're calling up miss uh miss toth

3:03:03and then uh

3:03:05>> and then just for a check we're on slide

3:03:0735 and then this is our last uh as we

3:03:10said we're not going to cover ACDA today

3:03:12so this will be our last in this section

3:03:14we'll take another brief break and then

3:03:15we will transition over to the capital

3:03:17budget as I know we have another set of

3:03:18folks here for that

3:03:20>> okay so solid waste services um we can

3:03:26run through these uh relatively simple

3:03:29changes and um then get through to any

3:03:32questions. The disposal uh 2026 revised

3:03:36appropriation is 36.2

3:03:39and the 2027 appropriation is less.

3:03:43Hey, um we are uh dropping off some of

3:03:47the one-time costs uh for uh the capital

3:03:52projects. uh director to talk to us

3:03:54about that and charges by other

3:03:57departments. That's uh various

3:04:01adjustments. Let me pull up the detail

3:04:03and we can go through that when

3:04:05questions are asked. And then salaries

3:04:07and benefits adjustments for uh 538,000

3:04:12take us to the continuation level of

3:04:1435.7

3:04:16with waste to energy grant and contract

3:04:18services being added as well as a new

3:04:21environmental specialist. And that lands

3:04:25us at 36.1

3:04:27with uh 57 positions and 57 FTEES.

3:04:33Any questions or color?

3:04:37Don't see it right now. Let's keep

3:04:38going.

3:04:39>> Okay. Uh disposal, uh capital projects,

3:04:43uh best relocation, CTS, electrical

3:04:47improvements. That's a lot of acronyms.

3:04:48I bet you we can say what they all are

3:04:50though if you have questions.

3:04:59>> Question.

3:05:00>> I guess I think people are digesting. I

3:05:02have one general one and that is um

3:05:04thinking about so disposal I imagine is

3:05:06the landfill. So really almost all of

3:05:09the capital projects we could probably

3:05:10contemplate are within the disposal side

3:05:13the landfill. Is that right?

3:05:15>> Uh Chair Broly, yes that is true. Um in

3:05:19fact though part of the disposal cost

3:05:21does include like the transfer drivers

3:05:24for example from the central transfer

3:05:26station or CTS and then that also

3:05:29includes Gerwood as a transfer station

3:05:31as well as the MURF. So um a lot of the

3:05:33shared services are shared 6040 between

3:05:36the two utilities between collections

3:05:38and disposal. So is that helpful?

3:05:42>> Yeah and and I I did skip ahead. I saw

3:05:44that there are some capital things on

3:05:45the refu side. But we'll get there too.

3:05:46But that is helpful to think about. Most

3:05:48of it is the actual sites.

3:05:51>> Okay. Other questions.

3:05:54>> Okay. Let's keep going.

3:05:56>> Okay.

3:05:59>> Yeah. Go ahead. Sorry, Miss Scott.

3:06:00>> I actually don't know what BESS or CTS

3:06:03stands for.

3:06:04>> Okay. The BESS, sorry, through the

3:06:07chair.

3:06:07>> Uh the best is actually the battery

3:06:10storage for the EV um collection

3:06:13vehicles. So that's the battery storage

3:06:15system that uh is being relocated. And

3:06:19then CTS is the central transfer station

3:06:22electrical improvements. So we're

3:06:24putting in a bull rail to plug in

3:06:26vehicles uh for wintertime and also

3:06:29improve lighting in the area if that

3:06:31helps with acronyms.

3:06:33>> Thank you. I should have known CTS. It's

3:06:362 p.m.

3:06:39>> Okay, let's keep going. Okay. So, uh the

3:06:42refu side of S SWS uh you see uh small

3:06:45changes between revised and continuation

3:06:48level and uh refugees collections

3:06:51tipping fee tipping fees going in the

3:06:53proposed budget changes. That lands us

3:06:56at 8.06

3:06:58million appropriation for 2027. 8.4

3:07:02million change from uh 2026. Um any

3:07:06questions there?

3:07:10Yeah. And these are the capital projects

3:07:14on the refuge side. So you see the other

3:07:17side of the vest there.

3:07:24>> Okay. Any questions for members here?

3:07:25Miss Baldick?

3:07:28>> Yeah. So So the so the totals for the

3:07:32the best and the CTS are splities

3:07:36between disposal. I don't know if you

3:07:37Okay.

3:07:38>> Yes. Cool. Um and is that proportional

3:07:41to the number of vehicles that are

3:07:44utilizing

3:07:45those systems?

3:07:48>> Uh through the chair tech typically

3:07:50these projects are split 6040. So it's

3:07:54just because of the way the utilities

3:07:56are and how it's mixed. So when they do

3:07:58share it's usually a 60% disposal, 40%

3:08:01refuge collection.

3:08:04>> Cool. Um and and then just one one

3:08:08question on the disposal side on the

3:08:10operating budget side. Um so we've I see

3:08:13we have um waste to energy grant and

3:08:15contract services. Yay. Um as part of

3:08:18the proposed budget changes is the new

3:08:20environmental specialist connected to

3:08:21the waste to energy project or is that a

3:08:23a different position?

3:08:24>> So through the chair no it's it's

3:08:26actually separate. It's having someone

3:08:29out at the at um particularly out at the

3:08:32landfill for all of the regulatory um

3:08:36changes that are happening and also just

3:08:38following with the uh permitting process

3:08:41that we have out there is pretty robust.

3:08:44So having someone that's wellversed in

3:08:46federal and state regulations is

3:08:49tremendously helpful.

3:08:51>> Thank you.

3:08:54>> Um I have myself in the queue. I have a

3:08:56and this is probably a question we have

3:08:58to take offline but I think it's a

3:08:59budget one. So in the refuge collection

3:09:01that is a smaller area. I don't live in

3:09:03it for example. Um just the folks who

3:09:05get SWS service in that regard. Um I

3:09:08know there's been a lot of discussion

3:09:09about uh bears and trash and and bear

3:09:11resistant trash cans. So not getting

3:09:13into all of that but I'm wondering for

3:09:15example within the folks in the SWS

3:09:18service area knowing again that's not

3:09:19Hillside that's not a lot of places

3:09:20where this is happening. Um, I guess is

3:09:23is there room in your mind to for

3:09:26example have some kind of appropriation

3:09:29where we have funding to buy more of

3:09:31those or is I guess I'm wondering like

3:09:33is this a place where that could happen

3:09:35or is it something that needs to be a

3:09:36grant or is it something that needs to

3:09:38be from third parties that do that

3:09:39collection? Just wondering because I

3:09:41know that question is going to come up.

3:09:42So I think the question is can we do

3:09:43something here um and then should we do

3:09:46it is another question but um just

3:09:48wondering if if that's in the scope of

3:09:49that utility or not. So, um, Chair

3:09:53Broly, what we have done is part of the

3:09:55cart, it's it's a line item in our in

3:09:58the refugees budget is the cart the

3:10:00carts themselves. And so, whether

3:10:02they're bear carts or regular carts is

3:10:04all part of the purview of the working

3:10:06foreman and how they want to appropriate

3:10:08it. But that's also within just within

3:10:11the SWS service area. That's that's part

3:10:14of our budget. Now, when you're talking

3:10:16about outside of the service area, which

3:10:18some of the areas of concern that we've

3:10:20been talking about are not necessarily

3:10:22SWS, then that's going to be a larger

3:10:24conversation with the commercial haulers

3:10:27within within the MOA.

3:10:29>> Okay. Thanks. Yeah. So, I think anybody

3:10:31interested in that conversation sounds

3:10:32like talk to the director offline and

3:10:35it's probably not just as simple as

3:10:36adding money here. So, thank you. Uh,

3:10:38any other questions?

3:10:41>> Okay. Thank you for being here.

3:10:43>> Thank you.

3:10:44>> Okay. And we are moving ACDA to next

3:10:47week for availability. And that takes us

3:10:50to a short break. Only 15 minutes

3:10:52behind.

3:10:54>> Okay. So, we will honor our 15-minute

3:10:55break. So, we'll say um we will be back

3:10:57here right at 2:30. I'll keep an eye on

3:10:59the time and uh folks are welcome to

3:11:02step away or if you need to call back on

3:11:04the phone, then aim for that time. Thank

3:11:06you.

3:11:12>> I'm so tired.

3:11:14I need

3:11:24>> Yeah, I watch

3:11:49We all take

3:12:07that against the state.

3:12:22Did you see the

3:12:31>> Yeah, they have

3:12:35and you probably saw that they want us

3:12:37to have a regulatory I'm Sorry, we don't

3:12:41>> we just

3:12:44>> No, I mean that's not our job.

3:12:48>> But also

3:12:50>> so just it's easier to just

3:12:55break

3:12:56>> even when it hurts.

3:12:58>> Yeah.

3:13:20standing up.

3:13:54What's

3:14:02your favorite

3:14:05the containers that we had previously.

3:14:12So

3:14:15it

3:14:16kind of

3:14:38>> [laughter]

3:14:41>> There's another video

3:14:55lights.

3:15:01They're so cute. They're cute. They're

3:15:03in your drive.

3:15:25husband

3:15:31[laughter]

3:15:45attorneys.

3:15:47I guess

3:15:53I still

3:16:02like

3:16:12our backyard.

3:16:17How's that forever?

3:16:49The thing with this

3:17:00project. I think those

3:17:04steps between

3:17:40The amount of

3:17:43relatively small

3:17:58we would not be legitimate.

3:18:07I would say

3:18:12yeah.

3:18:55It's so embarrassing.

3:19:20light.

3:19:21>> Yeah.

3:19:34That's right.

3:19:56trans [clears throat]

3:20:04[laughter]

3:20:07going for broke, man. I don't know.

3:20:14>> All right.

3:20:20All three of those are

3:20:22>> much.

3:20:39Yes.

3:21:11That's a problem.

3:21:42I saw him

3:21:53first.

3:21:58questions.

3:22:43Are you

3:22:54Yeah, I just didn't know if it was like

3:23:09making this

3:23:38stuff look

3:23:40really

3:23:59something to think

3:24:17I mean, I will say

3:24:32Same thing

3:25:06>> [laughter]

3:25:14>> Thank you.

3:25:17He was

3:25:30supposed

3:25:33Yeah,

3:25:35[snorts]

3:25:51we were all

3:26:21>> [laughter]

3:26:22>> Yeah.

3:26:24Control it.

3:26:29>> [laughter]

3:26:36>> I really like

3:26:43[laughter]

3:26:54>> Yeah.

3:27:08Tiger, [clears throat]

3:27:08>> huh?

3:27:10>> Give up.

3:27:32I'm just going to open

3:27:50>> [clears throat]

3:27:57[snorts]

3:28:01>> algorithm algorithm.

3:28:09That's right.

3:28:13I think

3:28:20[laughter]

3:28:26>> you can say

3:28:38[laughter]

3:28:40goodbye.

3:28:48>> [laughter]

3:29:03>> her wish list

3:29:05by all her birthday's

3:29:24Yeah.

3:29:25>> Okay.

3:29:31>> Okay, everyone. Uh let's call us back to

3:29:33order. So, we are in the last chunk of

3:29:35our work session for today. Uh we are

3:29:37moving on to our uh discussion about

3:29:39capital budget and facilities. CRC

3:29:41capital improvement budget. Um, so I'll

3:29:43note we are still on the slides. I

3:29:45believe we would be at slide 43 or right

3:29:47now 42 is on the screen. Um, and then

3:29:49I'll also just note again uh that we uh

3:29:53are not

3:29:55Oh, sorry, never mind. Uh, okay. So, we

3:29:57will get through this uh we will have

3:30:00staff deal with the TV not turning off

3:30:02and then um I'll also note that we do

3:30:04have a number of department directors

3:30:06here. So, I'm going to remind folks we

3:30:07do we will have a discussion about

3:30:09operations of those departments. I'm

3:30:11going to ask folks to hold questions on

3:30:12that partly because we have an hour and

3:30:14a half. Uh but also uh because I think

3:30:16that's a we don't have the information

3:30:18before us for that. And then I will also

3:30:20say um I imagine there's going to be

3:30:22more discussion for example about roads

3:30:25than there will be about the library

3:30:26facility. So to the extent that we can

3:30:28get folks questions answered from

3:30:30department directors, we may release

3:30:32some of those department directors if we

3:30:33are um not anticipating that discussion.

3:30:36But I know we want to have a bigger

3:30:37picture discussion about our bonds,

3:30:39about our capital projects. So we are

3:30:40making space for that as well. So with

3:30:42that, um I will turn to Director Browse

3:30:44and we'll go through an overview.

3:30:47Thank you, Madam Chair. Uh let's start

3:30:51with the 2027 proposed capital budget

3:30:54goals. Um the uh 27 budget includes uh

3:31:00critical road maintenance and drainage

3:31:02work including life safety access, a

3:31:04replacement of fire apparatus and

3:31:07investing in additional ambulances for

3:31:09better service and firehouse replacement

3:31:11expansion work. Uh that will be a very

3:31:15good conversation in terms of um service

3:31:18level staffing and uh the services that

3:31:21the community uh has available to them.

3:31:23uh energy efficiency upgrades in our uh

3:31:27municipal facilities and venues and uh

3:31:30specifically uh some of our larger

3:31:33community buildings. Um that is directed

3:31:37at both uh facility maintenance and uh

3:31:40energy consumption and cost. Uh the

3:31:45older our buildings get, the less

3:31:47efficient they are and then they cost

3:31:49more money. So we're trying to control

3:31:51all of it. uh traffic calming and

3:31:53pedestrian safety and repairs and

3:31:55enhancements to neighborhood parks,

3:31:57playgrounds, and trails, including uh

3:32:00access to Chudach State Park.

3:32:03The capital summary, this is a uh rollup

3:32:07of the information that is presented in

3:32:09the overview portion of the capital

3:32:11budget. Uh you see this breakdown by

3:32:15municipal department. uh the revenue

3:32:18sources are where we would propose the

3:32:22money to come from. So for uh the fire

3:32:25department 7.2 two million in bonds. Uh

3:32:30information technology 750,000 other

3:32:34that is as we get into the project

3:32:36detail that's the annual life cycle IT

3:32:40uh amount that we put towards our uh

3:32:43computer infrastructure and it's part of

3:32:46the IT fund. Um, so that's why it is in

3:32:48the quote other column because it is not

3:32:50a bond, it is not from the state, it is

3:32:52not federal, it is from the uh general

3:32:55government budget, uh, the library with

3:32:59a $2 million project, etc., etc., etc.

3:33:01We're going to go through this list and

3:33:03all of the individual projects as we go

3:33:05through the departments. Um, but overall

3:33:08it is an $87.95

3:33:11million bond request

3:33:14uh with 21 million in state funding as

3:33:18either part of a request or a match that

3:33:21would be expected or is uh already

3:33:25promised and 16.5 in federal funding. Um

3:33:29the other column is a combination of uh

3:33:33sources depending on what it is. As I

3:33:35said, it is the 750 maintenance and

3:33:37operations is a combination of both the

3:33:40fleet levy and intergovernmental charges

3:33:42um for fleet services and uh parks and

3:33:46recreation and project management and

3:33:48engineering can tell us what their uh

3:33:50specific other funding is. But uh that's

3:33:54how this chart breaks down. Any

3:33:55questions?

3:33:57>> Questions?

3:33:59Not right now. Thanks. Okay. the capital

3:34:03improvement budget by source. Again,

3:34:05this is where the bond state federal

3:34:07breakdown and the bonds being retired in

3:34:092026 and 2027. Um, those are the uh

3:34:14amounts from public finance and any

3:34:18questions on that?

3:34:23Okay. The capital improvement budget by

3:34:25category of project. This breaks down

3:34:28what kinds of projects they are as

3:34:30opposed to the department that is doing

3:34:32them. Um there is uh $13 million being

3:34:36proposed towards energy efficiency

3:34:38projects. 31.5 on facility improvements.

3:34:41That is significantly more than facility

3:34:43improvements has seen in a very long

3:34:45time. And that's made up of a

3:34:47combination of uh municipal municipal

3:34:51facilities, the performing arts center.

3:34:53Uh we'll go through that list as well.

3:34:56Um but overall it is a 10% investment in

3:35:00energy efficiency, 23% in facility

3:35:02improvements and 45% in roads and

3:35:04transportation etc for the total $136

3:35:08million capital budget

3:35:12any questions

3:35:16uh Miss Bald

3:35:18>> I see a question formulating

3:35:21>> okay let's continue

3:35:23Mr. you're handling. Go ahead.

3:35:25>> Uh so

3:35:29for for this so the the school district

3:35:31for all their stuff, all their bonds and

3:35:32stuff that's completely separate. We

3:35:34don't deal deal any with that. Correct.

3:35:37>> Through the chair. Yes.

3:35:38>> Okay.

3:35:42>> Yeah. And I know that is something we'll

3:35:43actually get as a as a package from them

3:35:45at some point. So So we definitely deal

3:35:46with it in the sense that we I think

3:35:48approve it to go on the ballot, but it's

3:35:50not part of this list.

3:35:55So, I guess my question kind of is like

3:35:58because we're starting to get into the

3:35:59thing of like returning the things like

3:36:01technically we the municipality owns it

3:36:06and so I guess maybe just a little bit I

3:36:08don't want to dive too much down a

3:36:10rabbit hole but

3:36:11>> through [snorts] the chair the right I

3:36:14think what you're asking about is the

3:36:15fact that the MUN is the like parent

3:36:17unit of ASD and so the ownership of the

3:36:20buildings going back and forth and the

3:36:21costs associated with that what does

3:36:23that mean and how does all of this tie

3:36:25together in the timing that we have and

3:36:28I I think that's one of the challenges

3:36:30that we are dealing with across the

3:36:32board is that there is a lot of

3:36:34landscape that is changing and that it

3:36:37is changing in a way that we have not

3:36:39necessarily experienced in the past and

3:36:41so coming up with what that looks like

3:36:43and what's a reasonable response uh is a

3:36:46process uh the ASD bond package is

3:36:50something that we contemplate When we

3:36:52are pulling these together, we are fully

3:36:54aware of the history of the bond

3:36:55packages, the success and failure rate,

3:36:57the importance of what they do in uh

3:37:00actually establishing capital

3:37:02improvements within the school district

3:37:04which are buildings we are responsible

3:37:06for. So it is a cost item for us in the

3:37:09long long run. And part of that is the

3:37:13communication with the school district.

3:37:14What are they proposing for the bonds?

3:37:16It's why we have those joint meetings

3:37:17for the school district and the assembly

3:37:20because while the they are discrete

3:37:23decision-making processes, they all

3:37:25overlap onto property taxes and and and

3:37:28ultimately that means that any decisions

3:37:31we make and any decisions they make

3:37:32impact each other and we have to be sort

3:37:36of alert to that more than ever in the

3:37:39past because of these challenges that

3:37:42are happening all at the same time.

3:37:44Okay. Just and then just one final

3:37:45question. So if um voters approve a

3:37:48bond, is that tied to the individual

3:37:51building or because like I guess what if

3:37:53it was, hey, we need to replace the

3:37:55roof. All of a sudden ASD says, hey, we

3:37:56don't need this anymore, but that still

3:37:59needs improvement and stuff. Does that

3:38:02follow along and all of a sudden shift

3:38:04onto our books or would we then have to

3:38:06essentially rebond for that?

3:38:13If

3:38:15>> so, say there there yeah a school

3:38:17building it needs a brand new roof

3:38:20>> and voter voters go and approved before

3:38:22that actually gets any kind of

3:38:24construction or that that project goes

3:38:26through. ASD says, "Hey, just kidding.

3:38:28We actually don't need this building

3:38:29anymore. It gets turned over to us. We

3:38:32don't want it to become dilapitated and

3:38:34have water damage and so we still need

3:38:37to have that project go through." How

3:38:39does that then work? Does that bond fall

3:38:41with the building or because they've now

3:38:43turned it over to us, do we have to now

3:38:44then do a brand new bond for them? I

3:38:47believe through the chair I I believe

3:38:50the answer is it depends on the language

3:38:52that authorized the bond and and that

3:38:54would mean that if there wasn't language

3:38:56that says or other projects as assigned

3:39:00meaning if it if the if the bond is

3:39:02proposed with it assigned to a specific

3:39:05school and it is not a bucket of funding

3:39:07for roof replacement then it has to go

3:39:11to that school unless there is other

3:39:14language within the bond question that

3:39:16says we're going to do do it like this.

3:39:18If we don't need to do it like this, we

3:39:20also can do it like this or like this or

3:39:21like this. And so it depends on the bond

3:39:24and what the language was for the

3:39:26specific bond question.

3:39:29>> So ASD could sit there and say, "Okay,

3:39:31we're going to use this for another

3:39:32project. Hand us a building." And then

3:39:34we now have to figure out how to

3:39:36basically repair that.

3:39:39>> I I I don't know that we would have to

3:39:41figure out how to repair that, but it

3:39:44would depend on the specific

3:39:45circumstance. Any

3:39:51other questions?

3:39:54>> I don't see any right now. Yeah, I'll

3:39:55note um we will see it's later in their

3:39:57process, but we will see that as an

3:39:58ordinance. So, I think that's something

3:39:59we can talk about at that time as well.

3:40:02>> Uh the so this is the uh funding by

3:40:06source, by category, and by source. And

3:40:09this is the um historical state capital

3:40:12grant uh uh spend or uh receipt if you

3:40:18will over the last 30 years. So the

3:40:22reason this is important to look at is

3:40:24because a very significant part of our

3:40:26capital budget and capital activity

3:40:29historically has come from the state

3:40:31funding and um this is broken down into

3:40:35uh municipal departments and obviously

3:40:37has over a billion dollars worth of

3:40:41projects and funding assigned to it over

3:40:43those 30 years. But you can see in the

3:40:45last 15 years the columns have gone

3:40:47blank which means that that 200 that

3:40:51$300 million that we have received in

3:40:54the last 15 years does not cover the

3:40:58same square mileage or square footage as

3:41:00the 700 to $800 million that we

3:41:03received. That you can see a very

3:41:07significant portion of that funding in

3:41:10the project management and engineering

3:41:12column. That means it's roads and the

3:41:17situation with our roads is impacted by

3:41:19the fact that we do not have that $500

3:41:21million going into this map. And this is

3:41:26our 2027 capital improvement budget map

3:41:29that outlines the projects by specific

3:41:32project and by sort of category of

3:41:34project. Um because some of them are

3:41:36areawide and don't have specific

3:41:38locations. But I think that if we were

3:41:40to envision a universe where we had an

3:41:42extra$500 million dollars of projects on

3:41:44this map, it would be a different story.

3:41:47And that doesn't mean that we can't do

3:41:50that. It just means we have to figure

3:41:52out how. And what does that look like

3:41:54and what does that mean for the

3:41:56community? Um,

3:42:00and I will note again another plug for

3:42:02the legislative program uh with with our

3:42:04optimistic hopes that we can get some

3:42:06money from the state. I also want to

3:42:07note I was just looking up um ACES the

3:42:09prior prior uh oil tax scheme was

3:42:13approved in 2007 ended in 2013 and then

3:42:17I was just noting an interesting massive

3:42:18drop off in 2014 of state uh revenue to

3:42:21the city. Thanks.

3:42:24Okay, [laughter] sorry. Side note.

3:42:27Well, I think we can move into the um

3:42:29department review and we'll talk through

3:42:31the specific projects included in the

3:42:34capital budget. Um,

3:42:38as the chair said, I think we can

3:42:40probably get through quite a few of

3:42:41these um relatively quickly because they

3:42:44are single or simple projects and then

3:42:46get into a larger conversation with um

3:42:49some of the uh larger departments like

3:42:52parks and wreck and PME. Um the uh

3:42:57information technology uh project as I

3:43:00said is the $750,000 for the annual life

3:43:04cycle program within the municipality.

3:43:06It replaces our uh computer

3:43:09infrastructure and is part of the IT

3:43:11fund.

3:43:13Any questions on that?

3:43:15I mean I know we have a lot of questions

3:43:17on that fund. [snorts]

3:43:18Sorry about that. Member Baldwin Day.

3:43:21[laughter]

3:43:25>> [gasps]

3:43:25>> Okay, the library project. Uh, why don't

3:43:28Is Director Harrison here? Hey, all the

3:43:31way in the back middle. That's perfect.

3:43:36Uh, Director Harrison will come up and

3:43:38uh we can talk through the LUAC Library

3:43:41project. Um this is part of the uh

3:43:46facilities energy efficiency all of the

3:43:49above category of deferred maintenance

3:43:51if you will. Uh the uh the

3:43:56project has lived in the capital budget

3:43:57for quite some time. I believe about a

3:43:59$10 million increment. Um and that is a

3:44:03placeholder number because the design

3:44:05work and uh actual detail of the

3:44:09construction has not been done yet. So

3:44:11it was reasonable for us to envision a

3:44:14universe where we go through that design

3:44:16process while we are making some of the

3:44:18desperately needed improvements to their

3:44:21HVAC system. Um there is uh specific

3:44:25project detail in the library section of

3:44:28the capital budget on uh what that kind

3:44:32of a project would entail. But director

3:44:34Harrison is also here if uh there are

3:44:37questions specifically for the library

3:44:39and this project

3:44:45>> I think uh I think a couple

3:44:47>> yeah I think I think

3:44:50>> I I think if you can just give maybe the

3:44:52couple minutes version of what happened

3:44:54uh recently because I don't know if

3:44:55everybody's aware and I think that's

3:44:56what people are wondering

3:44:59>> uh happened recently regarding um HVAC

3:45:03within in the library. Yes. Um has the

3:45:08HVAC system in the library is

3:45:14>> broken.

3:45:15>> Yes, [laughter]

3:45:16it is broken.

3:45:17>> It's okay.

3:45:19>> It can be very very hot. Like it was 94

3:45:22degrees in my office a few weeks ago and

3:45:24on the fourth floor it was in the 90s.

3:45:27Um, anywhere you went on the fourth

3:45:29floor was in the 90s. And then on the

3:45:31third floor, it was averaging about 85.

3:45:35And as you went down, the second floor

3:45:37was a little was still in the 80s, but

3:45:39the low 80s. And you continued on down

3:45:42and it was a little, um, cooler. Um, but

3:45:46it was not fixable. And so uh

3:45:51and often times when it's some rooms can

3:45:54be very cold at times and then the fix

3:45:58sometimes makes it then extra hot and so

3:46:02it it makes it rather difficult because

3:46:04we have to move people around and we we

3:46:06have um groups that reserve our spaces

3:46:09and so the learning commons was one of

3:46:11them that was in the 90s and so I don't

3:46:14know if we lost that reservation but

3:46:16they couldn't be in the room and you In

3:46:18one case, we ended up moving a group to

3:46:20the World of Mars Theater because it was

3:46:22open and available and and it fit their

3:46:24needs. Um, but those are some of the

3:46:26challenges that we're working through.

3:46:31>> And I think I might jump in to say that

3:46:32I think the library is going to be one

3:46:34of the leading new instantiations of a

3:46:37new thread of conversation that we are

3:46:38starting in this budget season. And it's

3:46:41the culmination of a lot of different

3:46:42threads. One is in any given time it

3:46:46would just be good to have a good handle

3:46:48on our energy costs and how to keep them

3:46:51efficient. In this particular time where

3:46:54NSTAR is saying we are concerned that we

3:46:56are in a acute gas crunch this winter.

3:46:59the com the the vector sum of having

3:47:03Margie's office be 94 degrees in an era

3:47:06where we are trying to conserve gas is

3:47:09just absolutely intolerable and a waste

3:47:11of money and generally putting the

3:47:12community at some risk. The third is

3:47:14just our general deferred maintenance

3:47:15story that we've always been telling.

3:47:17These con these HVAC systems are all

3:47:19very old and they don't have the kind of

3:47:21controls that we would like to have.

3:47:23Even if they were operable, if we could

3:47:25manually adjust all the louvers so that

3:47:27the heat zones were all correct, we

3:47:29don't have the kind of control systems

3:47:31that we would really like to be able to

3:47:33manage the buildings efficiently. And I

3:47:35will also say that we are trying to do a

3:47:37better job of benchmarking our

3:47:39facilities against like facilities.

3:47:41We've had some sales pitches and we

3:47:43kicked the tires with some different

3:47:44control entities. But just by way of

3:47:47example, we had one company who was part

3:47:49of a sales pitch said, "I've taken a

3:47:51look at your energy costs at various

3:47:52facilities, benchmarked them against

3:47:54them to national standards. The Lusac

3:47:56library was in the 98.3 percentile of

3:47:59energy usage against similar facilities.

3:48:01That's not right. Right. We should be

3:48:02able to do better than that." So part of

3:48:04the pitch for this bond package is to

3:48:06take care of that old legacy business to

3:48:09save us money in the long run to help

3:48:11with our gas prices and so that we

3:48:12aren't funding people who reserve the

3:48:14community room on the third floor of the

3:48:16library because we can't keep it from

3:48:18being a sauna today.

3:48:21>> Okay, any further questions? Miss Scott,

3:48:25>> I think just a comment. I'm very excited

3:48:29to see this and to see us um focusing on

3:48:32energy efficiency work across the MUN

3:48:34and at the library specifically. I'd

3:48:36love at some point um to learn more

3:48:38about the projected cost savings with

3:48:40these energy improvements as well so we

3:48:42can balance out um the capital cost.

3:48:46Thanks.

3:48:49>> Okay, any further questions? Checking

3:48:51online, too.

3:48:53Okay, I think I think we're good for the

3:48:55library. Thank you.

3:49:34Okay. Questions for members?

3:49:37I have one just to start as folks are

3:49:39looking through. Can you point us to I

3:49:42see I'm looking in the actual budget

3:49:43book and I see a list of projects. Um

3:49:45can you point us to which ones are uh

3:49:47potential CASA projects. Um if if any of

3:49:50these on this list are that

3:49:58I was going to say through the chair um

3:50:00none of them are as far as I know

3:50:01because CASA is a separate service area

3:50:03than the parks and recck service area.

3:50:04Okay, thanks. Yeah, I wasn't sure if

3:50:06this was department or service area.

3:50:07Okay, so this is service area. That's

3:50:08helpful. Okay, other questions? Um I

3:50:11guess I do have one question then. So

3:50:12given if it is a service area, uh we

3:50:14have 500,000 for the Anchorage Memorial

3:50:16Cemetery. We all love the cemetery. We

3:50:18want it to be great. At least I'll speak

3:50:20for myself. Um that is also an areawide

3:50:22service. So uh can you speak to that

3:50:24just a tiny bit?

3:50:25>> Correct. So uh cemetery is an areawide

3:50:28service but it is maintained and

3:50:30operated in the parks and recreation

3:50:32department. So cemetery would be on the

3:50:34areawide bond but uh performed by parks

3:50:37and recreation. So parks and wreck does

3:50:39both uh their service area work and

3:50:42areawide work as appropriate um and as

3:50:45funded appropriately ideally. Uh so uh

3:50:48that's the that's the difference there

3:50:50between cemetery and why it is in parks

3:50:53and recreations list. They're all bond

3:50:56requests but they are from different

3:50:58fund sources if you will.

3:51:01>> Okay. Thank you. U Mr. Presia and then

3:51:04Miss B.

3:51:05>> Sure. Can you just speak briefly to the

3:51:06Concaid Park project

3:51:11>> through the chair? So conc just kicked

3:51:14off um the master plan. So this is

3:51:16building up to address any of the

3:51:19identified needs from the master plan.

3:51:21Most likely um I think our first

3:51:23approach will be circulation around the

3:51:25chalet.

3:51:27>> Thank you.

3:51:29>> Okay. Other questions?

3:51:32>> Miss Baldwin Day. That's right.

3:51:34>> Yeah. So um

3:51:37first I would like to put everybody on

3:51:39notice that this is the last time there

3:51:41will be no parks and rack projects in

3:51:43Midtown. um on a bond. Um that is going

3:51:48to change. Um and then I think I I I

3:51:50have a question about a project that's

3:51:52on the edge of Midtown um on the edge of

3:51:54District 4, which is the Goose Lake Park

3:51:55improvements. Um and looking at the sort

3:51:58of the funding stack, it looks like

3:52:00we're anticipating bond funding over the

3:52:02course of the next three years. Um I'm

3:52:06I'm wondering where where are we

3:52:08starting with that project? Do we

3:52:10already have do we already have a master

3:52:11plan? Are we doing a master plan first?

3:52:13What's the arc for Goose Lake?

3:52:16>> The chair. Can I confirm you said

3:52:17Hillrand or

3:52:19>> Goose Lake?

3:52:20>> Oh, Goose Lake.

3:52:28>> Mike, [laughter]

3:52:29um through the chair, uh we are

3:52:32currently finishing up our public

3:52:34outreach portion of the master plan and

3:52:36we're working on a draft of the Goose

3:52:38Lake uh park master plan. We have um if

3:52:42you can check the project website, I do

3:52:44believe that there's some site concepts

3:52:45and drafts of what the community has

3:52:47decided. Uh we hope to go to planning

3:52:51and zoning uh in the spring um for final

3:52:54approval and we're really excited. It's

3:52:57um I want to celebrate that the planning

3:53:00team threw a beach party um this this

3:53:03summer and it was a great success and

3:53:05we're really excited to see that park

3:53:07invested in

3:53:13That is really exciting news. Goose

3:53:14Lakeake is near and dear to my heart um

3:53:16from like childhood. So, this makes me

3:53:18happy. Um do we ant do we have an idea?

3:53:21It looks like construction is scheduled

3:53:23for 2031. Is that what we're

3:53:25anticipating based on sort of the way

3:53:27that this funding looks?

3:53:29Um, typically for our master plans, we

3:53:32identify, it's a 20-year plan, and we

3:53:34would identify priorities and then the

3:53:36priorities are phased as we can fund

3:53:38them. Um, because we have needs across

3:53:40the city and we want to balance the

3:53:42investment across our city reasonably.

3:53:44So, so you'll see that the many of our

3:53:46master plans have investment projected

3:53:49out throughout the six-year um outlook.

3:53:53Uh but with Goose Lake, there is ideas

3:53:56to um improve the facility pretty

3:53:59significantly. So that's why we're

3:54:00planning out uh projecting into 2031.

3:54:06>> Apologies to folks on the phone. We're

3:54:08having some echo or not, but just weird

3:54:10feedback issues. So we're trying to work

3:54:12through that. Um other questions?

3:54:14>> Oh yeah, that's right. Mr. Mullen, go

3:54:16ahead.

3:54:18>> Thank you. Um well, I have comment

3:54:21first, but

3:54:22Perhaps this doesn't need to be a year

3:54:26where there's no Midtown projects.

3:54:28[laughter]

3:54:29Might suggest that members could look

3:54:31through binder and see because we have

3:54:34the CI,

3:54:36right? So, you can shift things forward

3:54:39in years. We've done that in the past

3:54:41with um I've supported and and so did

3:54:44former members Zolotel and Rivera to

3:54:48move forward funding um for the Cuddy

3:54:50Park Chalet for instance.

3:54:55[laughter]

3:54:56Um

3:54:57also I'm looking through the binder and

3:55:00in the descriptions of the project. So,

3:55:02for instance, Mountain View Community

3:55:03Center on page uh parks and rack page 39

3:55:08and it says district assembly

3:55:12section five east seats H and I is that

3:55:17can you explain

3:55:19is that how that should read or

3:55:23how is that meant to say the assembly

3:55:26district

3:55:28>> and the assembly seats?

3:55:31because I think that might need

3:55:32updating. I'm wondering if this is a

3:55:34carryover um from before reortionment.

3:55:40>> Through the chair, we can check on it

3:55:42and correct it if it is wrong. Yes.

3:55:44>> Okay. Because that's um yeah, Mountain

3:55:46View Community Center of course is in

3:55:48district one. My seat is I believe L. I

3:55:51don't know.

3:55:52>> B and B is Sydney. Um okay. I think

3:55:56that's probably Well, let me let me ask

3:56:01not to stir up. We have both the the

3:56:04North Anchorage reps and the Midtown

3:56:06reps. I've heard a lot of um support for

3:56:09the Cuddy Park Chalet. And I've talked

3:56:11with some of the parks and wreck folks

3:56:13um in the past about that project. And I

3:56:15I kind of just want to get your take on

3:56:17where that is and also um

3:56:22essentially how how much do we know how

3:56:24much um money is remaining that would

3:56:26need to be raised for that project? And

3:56:29maybe just uh also a general update on

3:56:31Cuddy Park.

3:56:33through the chair. So, we are currently

3:56:36working on drafting an RFP to do a

3:56:38master plan for Cuddy. So, that is why

3:56:40you don't see Cuddy on um the CIP right

3:56:43now. We have money on hand, quite a bit

3:56:46of money on hand. And so, until the

3:56:48community actually identifies their

3:56:50priorities um that then we'll add more

3:56:54money on if we need it.

3:56:57>> Great. I appreciate that. Um, it's

3:56:59interesting to think about how this the

3:57:02sequencing of a master plan project

3:57:05because I think you guys are also going

3:57:06to be doing one for the Westchester

3:57:08Lagoon area. Um, I think you already

3:57:11said Goose Lake. Um, how that intersects

3:57:14with projects that the community has

3:57:16already supported. You know, voters have

3:57:19approved a bond that included a project.

3:57:22Um, how do we, I guess, make sure the

3:57:25will of voters is honored when those

3:57:28projects are funded? Um, and and

3:57:34you know, I I I think what I what I

3:57:38would not want to see happen is that we

3:57:40do a new plan and we say, "Oh, never

3:57:43mind. This plan went in a different

3:57:45direction and we're so we're not going

3:57:47to do this project anymore even though

3:57:48voters have already supported it.

3:57:52Um, I would say that I'm very proud in

3:57:55our department's ability to go through a

3:57:58very transparent, drawn out and public

3:58:02involvement process at times. Um, I'll

3:58:04say at times drawn out, but uh, you

3:58:06know, Maldun is one example where we

3:58:08fasttracked that and got a great thing

3:58:10for the community, Chanty Moldun Park.

3:58:12Um so when we go through the planning

3:58:14process and we're able to engage uh

3:58:17multiple groups over time and space I

3:58:19feel confident that that's what is the

3:58:22will of the folks um will of the people

3:58:24will of the community and I think that

3:58:27one component of that is the voter

3:58:29approved bond and the thing that was

3:58:31identified there but that's like two

3:58:32sentences

3:58:34whereas the master plan is um oftentimes

3:58:38a long document and identifies a long

3:58:4020-year plan. So I would say that what

3:58:43you were describing is one part of that

3:58:45process and the master plan really helps

3:58:48illustrate that over time and space.

3:58:51>> Can I follow up? Um is I also think you

3:58:56guys do great public process. Let me

3:58:57just say that for the record. Um

3:58:59probably more than you need to do

3:59:00sometimes.

3:59:01Um,

3:59:02is there a world where voters could

3:59:05approve a project now multiple times and

3:59:08then a master planning process could

3:59:10come along and then we say actually no,

3:59:13we're not going to do that project

3:59:14anymore

3:59:16and like what would be used as the

3:59:17justification for that? Because one

3:59:18thing I worry about is this conversation

3:59:21came up when we were considering um a

3:59:24sales tax proposal. It was the not the

3:59:27more recent one, but the the previous

3:59:29the project Anchorage or Choose

3:59:31Anchorage or whatever it was called um

3:59:34where there was a list of capital

3:59:35projects that that were put forward and

3:59:38we said, you know, we're going to use

3:59:39this percentage of the sales tax to do

3:59:41this list of 10 community nominated

3:59:44projects and there was a survey that

3:59:45went out. Um,

3:59:49one of my concerns at the time while we

3:59:52were considering that was like, well,

3:59:54you're talking about a something at

3:59:56Westchester Lagoon. Have you talked to

3:59:59South Edition? Because they're going to

4:00:00have some thoughts and feels about that.

4:00:02Um, and I think that there there is a

4:00:05dynamic where in some of the planning

4:00:07processes, it's more like the community

4:00:09council stakeholders, folks who live

4:00:11proximal to those projects and maybe not

4:00:14um a wider geographic representation.

4:00:17Um, and so

4:00:21sometimes I think those names can kind

4:00:22of rub up against each other where we

4:00:24say areawide voters support this

4:00:27project. Um but in a in a planning

4:00:31process, those who may be more likely to

4:00:33participate

4:00:34um who are the folks more proximal, they

4:00:37might have a different take on that or a

4:00:38different opinion on that. Um and so

4:00:41what would what would the department I

4:00:44guess how would you um be looking at

4:00:47that as you start this this new planning

4:00:49process? Um but knowing that that Cuddy

4:00:52Park Chalet has been on multiple bonds

4:00:55and has had broader community support

4:01:01>> through the chair I own director of

4:01:04office of man management and budget. I I

4:01:06will say the thing that that you are

4:01:08explaining is the tension between

4:01:11funding and public process, right? And

4:01:13and in terms of if voters approve a bond

4:01:17for a master plan and then the master

4:01:19plan is changed through the process that

4:01:22the original master plan was established

4:01:24to create the need for that bond to go

4:01:27forward.

4:01:29Where is the line where you say this

4:01:31one's okay, that one's not? If the

4:01:34public has voted and the process has

4:01:37stayed the same the whole time then then

4:01:39you have followed the process the public

4:01:41engagement has occurred the feedback

4:01:42loop has completed it's it's if we are

4:01:46putting our hands into the middle of the

4:01:48process to say nope not this way

4:01:51>> I I think there's a different sequencing

4:01:52on on on this example the example um the

4:01:57the the the funding and and I I'm

4:01:59looking at all this through the lens of

4:02:01um you as an assembly member amending

4:02:04projects. Yeah. I don't want to be

4:02:06promising something to voters, you know,

4:02:08because we're going out to all of our

4:02:09community councils and say, "Give us

4:02:10your priorities." You know, we want to

4:02:11make sure that that we elevate those.

4:02:13>> Um, but knowing then that they might not

4:02:15come to fruition. And so, in this

4:02:18example, that project was supported

4:02:20before

4:02:21>> folks knew that there was going to be

4:02:23this new master planning process for

4:02:24Cuddy. And so, it's actually then kind

4:02:27of a reversal of what folks were

4:02:29supported potenti if it ends up that I

4:02:32mean, maybe you do the the planning

4:02:33process and people like, "Yeah, Cuddy

4:02:34Park, great." But, um, that's what I

4:02:36worry about.

4:02:37>> And I think my question would be, how

4:02:38did the project show up if it wasn't

4:02:40part of a master plan?

4:02:43>> Assembly amendment. So, so that is an

4:02:47assembly action that took the normal

4:02:51process and treated it differently

4:02:54because if we had been going through the

4:02:56master planning process, that project

4:02:59would have been included in the master

4:03:01plan and then gone into and then it

4:03:04wouldn't have created the need to make

4:03:06the master plan.

4:03:06>> I mean, do we know that there was going

4:03:07to be a master plan update? I I think

4:03:09that's that's all part of communication

4:03:11and understanding of what the actual

4:03:13process is and where we are in the time.

4:03:14I I understand what you're saying. You

4:03:16do not want

4:03:17>> because maybe what we need as assembly

4:03:18members is to say, okay, in the next

4:03:20five years, which parks are going to

4:03:22have a master plan update and we maybe

4:03:25ought not to amend to support certain

4:03:28projects knowing that this is coming.

4:03:31Um,

4:03:33>> and I will I will defer to parks and

4:03:34wreck on that, but I will say I believe

4:03:36that's one of the reasons they do it in

4:03:38a slow distributed fashion because if

4:03:42you can do it cheap, fast, good, right?

4:03:45And and any of these three things push

4:03:47on the other one. And if we want to do

4:03:49something fast, it's probably going to

4:03:51be kind of expensive. And we hope it's

4:03:53good. But but in planning the way this

4:03:57is distributed in a world where we don't

4:03:59have enough to do any of the projects

4:04:02all the way across the line in any one

4:04:04go it is a slow process which means that

4:04:07those plans will change in that time

4:04:11frame. So if we don't want them to

4:04:13change speed up the process it's going

4:04:15to cost more money but you can make it

4:04:17go faster. And so it's all a tradeoff on

4:04:20dollars and time and where can we

4:04:24actually make sure that we are using

4:04:26both of those the most efficiently

4:04:29because they are what we don't have

4:04:31enough of.

4:04:32>> Um no I appreciate that. I yeah I think

4:04:35that the other interesting thing about

4:04:36this one is there's been um private

4:04:38dollars raised for this too. Um, and so

4:04:41the impetus, you know, of myself and and

4:04:44former members was to catalyze that. Um,

4:04:48and so, [clears throat]

4:04:49yep, just kind of want to have that

4:04:51conversation and and I I I guess will on

4:04:54the record vote that I still have strong

4:04:56support for that project and um, you may

4:04:58see an amendment coming.

4:05:00>> I believe there are other members who

4:05:01feel the same.

4:05:03>> Okay. Miss Bald and I myself in the

4:05:05queue.

4:05:05>> Yeah. Thanks. Um along along similar

4:05:08lines, although um while I while I share

4:05:12member's enthusiasm for the Cuddy Park

4:05:14Chalet, um I actually think that one of

4:05:16the benefits of the sequencing we're

4:05:18contemplating now is to avoid a scenario

4:05:21in which we build something that isn't

4:05:24actually

4:05:26uh ambitious enough.

4:05:29Um and I and my concern at least

4:05:32individually um with the the plans that

4:05:35I have seen for the Cuddy Park Chalet is

4:05:37that relative to the utilization of

4:05:39Cuddy Park, I think it is a project that

4:05:41is too small. I do not think it goes far

4:05:43enough to serve the community and the

4:05:45future use of Cuddy Park. Now, I would

4:05:47personally like to see more community

4:05:50input from beyond the circle of folks

4:05:53that have been really excited about the

4:05:55chalet, which to be clear is very, very

4:05:57narrowly focused on skating and winter

4:06:00utilization. And for us to have

4:06:02something that actually serves the

4:06:03broader community in a year-round

4:06:05fashion and that could support larger

4:06:08events, larger user groups than just

4:06:10what has been proposed to date. And I

4:06:13think that that's the genesis for my

4:06:15enthusiasm for the master planning

4:06:16process because I really think

4:06:19>> we'd be making a big mistake if we

4:06:21funded a teeny tiny little chalet with

4:06:23like two bathrooms in it when we had the

4:06:25opportunity to do something much more

4:06:28robust for a park that is like literally

4:06:30in the heart of Anchorage. And so um I

4:06:35hope to see a Cuddy Park chalet come

4:06:37forward. I hope that it is actually

4:06:39bigger and more expansive than what's

4:06:42been proposed by um folks in the

4:06:45community. So I and I feel quite

4:06:48confident that if we were to consult

4:06:49folks in Midtown, they would probably

4:06:51have similar feedback. And so I'm I'm

4:06:53I'm excited for the master planning

4:06:55project precisely because I think it

4:06:58prevents us from investing funds that we

4:07:00might later regret and say, "Oh, I wish

4:07:02we had spent a couple more million

4:07:04dollars and gotten a few more bathrooms

4:07:06out of the deal." as opposed to um you

4:07:08know doing something small because it

4:07:11felt expedient.

4:07:15>> Okay. Thanks. Um I have a question on a

4:07:18different project. Um I will also note

4:07:20though the lack of a master plan for the

4:07:23port um from a few years ago is why it

4:07:26took an extra three years for us to get

4:07:27an actual plan of finance and figure out

4:07:29a lot of things. So I will also say

4:07:30there's other context that lack of a

4:07:32master plan has gotten us in some hot

4:07:34water. Anyway, uh totally different

4:07:36subject because that's not related to

4:07:37the parks is um uh the coastal trail. I

4:07:39was wondering if you could speak to

4:07:41that. And then I also want to preview I

4:07:42think um uh I know that's an issue. I

4:07:45know this is definitely not enough money

4:07:46to do any much about that, but I'm

4:07:48curious like what is it doing? And then

4:07:50I also want to just preview that I

4:07:51intend to bring some kind of amendment.

4:07:54I'll talk to the folks offline about it

4:07:56um to make this a state request as well.

4:07:59So probably not instead of this, but I

4:08:00think it is, you know, the state airport

4:08:01is there if this is about point Warren's

4:08:03off. Um, and I know that that is a whole

4:08:05long conversation that's happened in the

4:08:07community for at least a decade and it's

4:08:09a billion-dollar project at the end of

4:08:10the day that the FAA uh has costed us 10

4:08:13years ago. So anyway, just curious

4:08:14though specifically what is this about

4:08:16and how does it fit into the big

4:08:17picture.

4:08:19>> Uh you are correct uh that it is about

4:08:21point Warrenoff and um the the bluff is

4:08:25now encroaching on the area where the

4:08:26trail is. So this funding um is going to

4:08:30go towards realigning that. We had a

4:08:32meeting with the rail um the airport.

4:08:35I've been working a lot with the

4:08:36railroad on a different project

4:08:37[laughter] um excuse me with the airport

4:08:39and do uh DOT essentially on uh the

4:08:42process for that. So um I I anticipate

4:08:47we will need more funding but it is

4:08:49unclear at this time and this is a safe

4:08:51amount of what what we'll be forecasting

4:08:53out. Thanks. Yeah. And again just to

4:08:55preview that I intend to bring an

4:08:57amendment. So, I will speak with staff

4:08:58offline as well as speaking with uh

4:09:00state representatives and just kind of

4:09:02figuring out what that should look like

4:09:03at the state level. Thank you. Any other

4:09:06questions?

4:09:07I don't see any online as well, so I

4:09:09think we can keep going. I would like to

4:09:11add that the the the sort of diversity

4:09:13and depth of the park bond proposal is

4:09:17more than uh a traditional bond package,

4:09:20but that is part of the investment in

4:09:22sort of the recreation economy. Uh parks

4:09:25and recreation is not an areawide uh

4:09:28service. There are pockets of uh the

4:09:31municipality that do not pay into um

4:09:34parks and recreation even though the

4:09:37access to the parks is open. And uh you

4:09:40know Chooiak uh Eagle River have a

4:09:43separate uh parks and wreck uh division

4:09:46that does it but is operated as part of

4:09:49the MOA parks and wreck. And one of the

4:09:53questions is should this be a different

4:09:56kind of service area? That doesn't mean

4:09:58that Shuyak changes theirs, but do we

4:10:00change ours? Should we be talking about

4:10:03is that service in the service area or

4:10:07in the residents that are paying into it

4:10:09the appropriate way to levy parks and

4:10:12recreation access? And then that can

4:10:15feed into how much funding is available

4:10:17and what the projects are, etc., etc.

4:10:21Right.

4:10:23Okay. Thanks, Parker R.

4:10:27Oh, I guess as as folks are moving on,

4:10:28can you clarify what the 2026 bond

4:10:31amount was? And then this one is 11

4:10:33million, but I'm seeing 8.4 is the total

4:10:35for the bond proposed right now for part

4:10:38>> the 11 million is the total capital

4:10:41budget. Uh 8.4 is the bond fund source

4:10:45proposal.

4:10:48>> Okay. Uh next Trump sorry public

4:10:51transportation public transportation uh

4:10:54director Rudolph is here with us from uh

4:10:56public transportation and he can give us

4:10:59uh updates on what these specific

4:11:02capital uh programs are. They uh

4:11:06obviously the top one is an annual

4:11:07program is the second one an annual

4:11:10program as well. That's the recurring uh

4:11:12capital project for fleet uh within

4:11:15transit's house. So, uh, transit has a

4:11:20$17.5 million capital budget, but the

4:11:25large, uh, majority of that comes from

4:11:27federal dollars, um, through the FDA and

4:11:312.5 is their total bond request for

4:11:342027.

4:11:39>> Any questions on transit

4:11:41>> questions?

4:11:42>> Are those matching funds?

4:11:45>> Yeah, through the chair. Yes.

4:11:47They are the best matching funds.

4:11:48Depending on how you use them, they are

4:11:50an 8020 match. So, if you use them in a

4:11:53different way, they are a 50-50 match.

4:11:55So, we use them in the 8020 way.

4:11:58Okay. Other questions? I guess I have

4:12:00one I'm not seeing named here, but maybe

4:12:03it's in here. The uh transit center

4:12:05improvements or is that kind of in that

4:12:07first one? Because I know that is an

4:12:08annual program. Uh but just wondering

4:12:11where the I guess downtown transit

4:12:13center project is generally

4:12:16>> uh through the chair. The downtown

4:12:18transit center project the uh the new

4:12:20transit center project is not included

4:12:22in this bond. It'll be in a future year

4:12:24bond.

4:12:25>> Okay. So it's essentially funded right

4:12:27now up to the point that we need it

4:12:28funded and then it would come back in a

4:12:30future year.

4:12:30>> Yes, it's funded through design and

4:12:32engineering. The construction bond would

4:12:34come back later.

4:12:35>> Okay. Thank you. And with apologies,

4:12:37this is one of the late on the table

4:12:39items for Tuesday is the design contract

4:12:41for the downtown transit center.

4:12:44>> Okay, thank you. So, preview for folks,

4:12:46you'll see them in your inbox at some

4:12:47point. Other questions for members on

4:12:49the budget,

4:12:52>> Baldwin Day,

4:12:55>> um [clears throat] I'm I'm actually

4:12:56curious how the how the transit

4:12:58facilities

4:13:00um centers [clears throat] and bus stop

4:13:01improvements, how are those prioritized?

4:13:04How do you how do you decide um which

4:13:06which ones need attention or which bus

4:13:09stops need a bench or like how does how

4:13:13does that look? What's the peak behind

4:13:15the curtain?

4:13:15>> Yeah, through the chair. That's a good

4:13:17question. So, we have a bus stop

4:13:19distribution amenity guidelines that say

4:13:22what are the thresholds where a bus stop

4:13:24gets a bench or a trash can or a shelter

4:13:26and it's largely based on writership at

4:13:29that stop. Um, and then we go to

4:13:32available rightaway and then we go to

4:13:34space available on the existing

4:13:36sidewalk. So, it's kind of a three-layer

4:13:37approach on how we determine that. But,

4:13:39we try to knock out the highest

4:13:41writerships stops first, which is what

4:13:44we're doing. We're filling gaps where

4:13:46the highest ridership stops don't have

4:13:48those amenities and then we go back and

4:13:50then we replace amenities that are past

4:13:53their useful life at the stops that

4:13:55exist now.

4:13:58And this

4:14:01might be an So is is the is placing

4:14:06trash cans at bus stops part of this pot

4:14:09of funding?

4:14:10>> Yeah, the purchase of the trash can

4:14:12itself is Yes. The maintenance is

4:14:16operations.

4:14:18>> Transit operations.

4:14:19>> Yeah.

4:14:19>> Okay. Fascinating.

4:14:20>> The staff that empties the trash cans.

4:14:22Yes.

4:14:22>> Got it. Um,

4:14:26how how flexible is that list? I mean,

4:14:28if there is, let's say, for example, a

4:14:32bus stop in Midtown with no trash bin

4:14:34that has

4:14:36>> hypothetically [laughter] that always

4:14:38has a pile of trash at it. Um, is, you

4:14:42know, I think this this format is useful

4:14:44for bucketing projects together, but it

4:14:46also makes it difficult to know how we

4:14:48can intersect with that sort of rubric

4:14:51that you've got going. um what would you

4:14:53suggest that we do?

4:14:54>> So, we have a list on our website that

4:14:56shows where we plan to add amenities in

4:14:58the next two years at stops and then we

4:15:01also have a form that people can fill

4:15:03out if they want an amenity at a certain

4:15:05stop. So, they can fill out that form

4:15:06and it gets routed through our

4:15:07department and then we address them.

4:15:09Those are the ones that are kind of the

4:15:11one-offs.

4:15:14>> I did not know either of those things.

4:15:16So, thank you.

4:15:16>> Yes.

4:15:21>> Okay. Okay, I think that's all the

4:15:22questions for now. So, thanks for being

4:15:24here.

4:15:24>> Thank you.

4:15:32>> Let's see. Do we have a Okay, we uh we

4:15:36have an a chief acting chief uh time

4:15:39limit

4:15:41>> vacancy.

4:15:47We don't know if they're timing. Yeah, I

4:15:49think maybe we could swap. possible

4:15:50because I know we have our our fire

4:15:52chief here. So, let's do fire and then

4:15:54we can come back to police. But I'll

4:15:55also just note we're getting into the

4:15:56big ones. So, well, not all of them are

4:15:58big. Police is not very big. Fire's a

4:15:59little bit bigger. And then we've got

4:16:00maintenance and operations, which is

4:16:02substantial. And then, of course, the

4:16:03biggest one, project management,

4:16:04engineering, that I know we're all

4:16:06waiting for.

4:16:19We'll figure it out. Uh okay. Uh the uh

4:16:24fire uh department proposed capital

4:16:26budget. Um this is um uh going this this

4:16:31includes uh part of what we talked about

4:16:34at the very beginning of this day. Um

4:16:36the uh bond request and associated O

4:16:40andM and how those services are packaged

4:16:43together and requested of the community

4:16:45etc etc. Um, this also includes our

4:16:48traditional bond uh packaging for annual

4:16:52ambulance replacement programs, the uh

4:16:55fire apparatus replacement for water

4:16:57tenders, and uh new requests for uh

4:17:02replacements for fire stations that are

4:17:05uh in the design process. and uh Chief

4:17:08Shraghi is here and can give us lots of

4:17:11information about all of the demand for

4:17:14these projects and what it means. But

4:17:17the additional ambulance uh unit for

4:17:20$380,000 at the top of the list is

4:17:24proposed as an asset purchase for a bond

4:17:28of 380,000

4:17:30as well as a $1.6 $6 million O andM

4:17:35increment to operate the ambulance

4:17:37because this is not replacing the

4:17:40ambulances we currently have in service

4:17:42which is the next line item $800,000 on

4:17:45an annual or recurring basis as

4:17:47appropriated. This is an expansion of

4:17:51medical service to provide more coverage

4:17:54for the demand and we do not have the

4:17:57revenue to fund the expansion of that

4:18:00service. So creating the option for the

4:18:03fire service area to vote on or sorry

4:18:06not the fire service area the emergency

4:18:08areawide area to vote on expanding

4:18:11services and having an additional

4:18:13ambulance available is this question. Do

4:18:17you want to have more service uh and

4:18:20faster response available and it's

4:18:24packaged differently but it is the same

4:18:27operational outcome.

4:18:33No, through the chair every uh uh our

4:18:37bond questions come with the bond

4:18:39question which is capital and the

4:18:42associated O andM increment which is not

4:18:44capital and so there is a challenging uh

4:18:48sort of

4:18:50uh separation here that we have to

4:18:53bridge because of our traditional

4:18:56language. We use bond as a term to mean

4:19:01things that it doesn't actually mean. It

4:19:04is a kind of financing mechanism that

4:19:06allows for a specific kind of funding to

4:19:10be used, but it's not the only funding

4:19:14in our bond questions.

4:19:16And so when we have the O andM increment

4:19:19that's added to parks and wreck for 37

4:19:21cents on the bond question, that is an

4:19:24operating budget addition that is not

4:19:26financed on a 20-year basis. It is an

4:19:29annual levy every single year. ODM is an

4:19:33annual levy every single year. The bond

4:19:36is the capital financed package. That is

4:19:39exactly what this proposal is. It just

4:19:42involves the humans that operate the

4:19:45ambulance. This is not any different

4:19:48than how we do our capital projects

4:19:50right now. We pay for project managers

4:19:52and engineers and people to design the

4:19:55capital asset which is the same kind of

4:19:59cost of operating the capital asset if

4:20:02the asset has an operational component.

4:20:06So the question becomes, do you want a

4:20:08bond to pay for this ambulance and do

4:20:11you want to levy to pay for the service

4:20:14to drive the ambulance and respond?

4:20:18Because if we ask the asset question, we

4:20:20do not have the staff or the funding to

4:20:23make it work.

4:20:29Miss Bund. So if if I'm if I'm reading

4:20:34this correctly on FD4,

4:20:38um

4:20:42we're saying,

4:20:44hey, $380,000

4:20:49for

4:20:51an ambulance,

4:20:54which is the one time. And then we're

4:20:56saying alongside this we're going to

4:21:00fund via a levy essentially on an annual

4:21:04basis

4:21:061.35ish

4:21:08million to staff the thing we just asked

4:21:12you if you wanted to buy. Cool.

4:21:18And I think for clarification I think

4:21:19we've maybe not not any of us up here

4:21:22but we've done this before I believe

4:21:23with at least one of the fire trucks. Is

4:21:25that right? So, so within this

4:21:26department in the past, I think there

4:21:27was staffing attached to or some kind of

4:21:29staffing attached to at least one of the

4:21:31engines that was purchased. [laughter]

4:21:34>> Yeah, I would say is and I think that we

4:21:37have thought carefully about this

4:21:38history and I think we want to be real

4:21:40transparent that this is going to be a

4:21:43service level area question. Here is a

4:21:45new business that we think we should get

4:21:47in because circumstances have changed.

4:21:49the call volumes in this area now

4:21:51warrant the fielding of a new crew that

4:21:54is not there now. Do you want to buy

4:21:56that? Um so there are certainly analoges

4:21:59but I think we'll be doing it in a

4:22:01slightly different form this year.

4:22:02>> Okay. Thanks for the clarification Mr.

4:22:04Handle.

4:22:05>> So for [clears throat and cough] the

4:22:06bonds we have those where those are set

4:22:09for a set amount of time there for that.

4:22:11Is that also with the the levy where

4:22:13once the ambulance of service the that

4:22:16that levy would drop off or is that

4:22:19forever

4:22:20>> through the chair? It would depend on

4:22:21the language that's used in the

4:22:22question. But I would assume and the

4:22:25chief can answer this I think

4:22:26operationally um what would happen is we

4:22:29would ask the question about expanding

4:22:31the service available within uh medical

4:22:33services. They say yes, we add the

4:22:36ambulance to the asset list. It goes

4:22:38into the replacement program with all

4:22:40the others, but the increment to add the

4:22:44staffing is applied to the areawide

4:22:47service area as long as the question

4:22:50allowed. So you could put a time limit

4:22:53on it. You could say this question has

4:22:55to come back five years or it will be

4:22:57retired if and when this ambulance

4:23:00expansion goes out of service, right? So

4:23:02you can tie it to the asset, but it

4:23:05depends on how the question is asked.

4:23:09>> And then the other question I have, how

4:23:10does this impact the Chooak Volunteer

4:23:13Fire Department? Because they are in

4:23:15area EMS, but so how how would this

4:23:19impact them? [snorts]

4:23:23>> Uh thank you for the question, member

4:23:24handle and through the chair. Uh Doug

4:23:26Shrogy for the record, fire chief. I'm

4:23:28joined today by uh Da Lopez who's our

4:23:30principal financial officer at the fire

4:23:32department. Thank you for the question.

4:23:35Uh so every day we have 18 ambulances on

4:23:40the road throughout the municipality

4:23:41from uh Portage all the way to Aluda.

4:23:44That includes 13 operated by the

4:23:46Anchorage Fire Department and five uh

4:23:49operated by Chukiak and Gerwood. Uh but

4:23:52we aren't confined to just responding

4:23:54within our areas. So it's we all of the

4:23:56ambulances are considered areawide

4:23:58assets. If there's a a major vehicle

4:24:01wreck or a cardiac arrest or whatever it

4:24:03is anywhere in the municipality, any

4:24:05unit could go to those calls. If a um

4:24:10shoe gak ambulance is transporting a

4:24:12patient to Providence Hospital and upon

4:24:15leaving the hospital they happen to be

4:24:17the closest one to a medical emergency,

4:24:21they would be dispatched to that. So

4:24:23it's it's an area wide system. What

4:24:25we're proposing to do uh in in

4:24:28recognition of the fact that uh the

4:24:31entire system is under strain uh

4:24:33including Chukiaak

4:24:35uh is to put an additional ambulance an

4:24:38additional staffed ambulance into the

4:24:40system which would provide le relief

4:24:43effectively to the entire system. Does

4:24:46that does that answer your question?

4:24:50>> Yeah. through the chair. It helps it it

4:24:53helps it provides additional areawide

4:24:56revenue to the specific service that

4:24:59Chooiak is providing and and right now

4:25:02you're limited in a separate way because

4:25:04of the fire service area and the funding

4:25:06available under that because medical

4:25:08service is an area cost that is spread

4:25:12across differently. It benefits Chuak in

4:25:15a way that

4:25:18if we added even more could and would

4:25:22end up uh supporting Cheuyak response

4:25:25more.

4:25:26>> Yeah, and I understand that aspect, but

4:25:29I mean

4:25:32>> I'm assuming for the vast majority of

4:25:33calls that are going through that the

4:25:36Chooak Volunteer Fire Department is

4:25:38going to be the the closest one for for

4:25:40the people that are residing in in that

4:25:42area. And so with I guess bonding and

4:25:46stuff for this where it's like okay how

4:25:48are they I guess being being benefited

4:25:51from from this because I I don't imagine

4:25:53there's a whole bunch of ambulances from

4:25:55Anchorage that are coming north to um

4:25:59service people out there just because

4:26:01the the distance on that and so I mean

4:26:04may maybe I'm wrong on that

4:26:06>> through the through the chair I will say

4:26:07one of the things that's happening in

4:26:09this budget proposal is that Chugek and

4:26:11Gerwood are getting additional areawide

4:26:14funding increases because AFD is

4:26:17decreasing their areawide funding. And

4:26:20if uh that funding goes up, then the

4:26:24available areawide opportunities for

4:26:26Chooiak and Girdwood because they are

4:26:28part of that increase. So it gives more

4:26:31opportunity for funding to go to the

4:26:33places that are constrained just like

4:26:35us. And it

4:26:41I don't know what

4:26:46it helps balance the system more

4:26:49from where we currently are.

4:26:52>> I think

4:26:53>> I can offer an example.

4:26:54>> Go ahead.

4:26:54>> Uh to the chair. Thank you. Uh member

4:26:58Handelan. Uh so this kind of thing, not

4:27:01the specific example, but this kind of

4:27:03thing happens almost every day where

4:27:05maybe the Chukiak Fire Department staffs

4:27:07their ambulance and they are going out

4:27:09to the Eclutin somewhere in the vicinity

4:27:12of ELUNA on a patient. Another ambulance

4:27:15call occurs in the Chooak Fire Service

4:27:17Area within the area EMS service area,

4:27:21but uh beyond the boundaries of the

4:27:23Anchorage Fire Service area. Medic 11

4:27:25from the Eagle River station will

4:27:27respond into Chukuak's area. Station six

4:27:30uh in Maldun will send an ambulance out

4:27:32to Eagle River. So So

4:27:36increasing the total capacity of the

4:27:38system benefits everybody from in every

4:27:41corner of the municipality.

4:27:44>> Yeah. And I get that I'm uh yeah, fully

4:27:46fully supportive of of that. I just with

4:27:48some of the geographic uh constraints

4:27:51here and stuff on that like when you're

4:27:53looking at midtime town adding another

4:27:55ambulance oh hey someone be able to do

4:27:57it maybe they would normally be a minute

4:27:58further away to to to be able to respond

4:28:02to that but when it's out in two gagil

4:28:03river I mean anything that's coming from

4:28:05kind of the anchorage boulder unless

4:28:07you're putting another unit either at

4:28:09fire station 12 or uh 11 out in eagle

4:28:14river or in chooak

4:28:18they're not getting as much of that that

4:28:20benefit there is just kind of kind of my

4:28:22concern and we we can move on.

4:28:24>> Sure. Quick quick follow up.

4:28:26>> Quick followup. Thank you. Um yeah,

4:28:28that's a good observation. One of the

4:28:30reasons that we've identified Midtown

4:28:32generally for this ambulance is not

4:28:34necessarily because uh uh there there's

4:28:38a there's a greater number of calls in

4:28:40that area. the Midtown ambulances go to

4:28:43more calls because they are second in.

4:28:45They support every area that surrounds

4:28:47them. They're literally surrounded by

4:28:49station six and five and 11 and 12 and

4:28:5214 and so forth. And so, uh,

4:28:57plus that's where the hospitals are. And

4:28:59so, um,

4:29:02we we haven't been specific about where

4:29:04this ambulance will be located, but we

4:29:06recognize that it needs to benefit the

4:29:08system in it in the whole

4:29:12Thank you.

4:29:13>> Thanks. I just have a quick follow up on

4:29:14that and then Mr. Villain, um, is it

4:29:16also the case that, um, if we have

4:29:18another ambulance on the road responding

4:29:20to calls, it's possible that we would

4:29:22have a marginal increase in SEMT uh,

4:29:25revenue, essentially reimbursement. So,

4:29:26it's not that it would pay for itself,

4:29:28but I think to the extent that that is a

4:29:30revenue generating or reimbursement

4:29:32generating service, it is possible that

4:29:34with some of that would get offset. Is

4:29:35that is that an accurate read?

4:29:37>> Thank you for the question, Chair Broly.

4:29:39Uh I generally no uh because the call

4:29:43the calls are going up but if we take a

4:29:45snapshot in time um we're going to go on

4:29:48the same number of calls today as we go

4:29:49on tomorrow. Tomorrow we have one extra

4:29:52ambulance distributing um the same

4:29:55number of calls among more units. What

4:29:57we're going to do is we're going to

4:29:58increase the availability of every other

4:30:00unit in the city because there are many

4:30:03times throughout the year when every

4:30:04single ambulance is on a call. [snorts]

4:30:06And um

4:30:09when they're on one call, they're

4:30:10unavailable to res respond to another.

4:30:13And so um the short answer is no. That's

4:30:17not going to increase revenue.

4:30:19>> Yeah. Thanks. That's a good distinction.

4:30:20Um and I stand corrected. Um we were

4:30:23joined in the room by um Member Park

4:30:25again a few minutes ago. Mr.

4:30:29Thank you. Um I might be jumping ahead a

4:30:31little bit here, but yeah, I'm really

4:30:33interested in this approach.

4:30:37Um and it makes me think of

4:30:43um the

4:30:46you know the uh National Fire Protection

4:30:48Association recommendation to have four

4:30:50to a rig.

4:30:52Um I'm wondering looking ahead in in the

4:30:55binder at the fire engine replacement.

4:30:59Um

4:31:01you know there's uh programmed here for

4:31:042028

4:31:06uh I think some bond funding.

4:31:09Um I guess how are we doing on

4:31:14getting for a rig? And then is this

4:31:19similar sort of annual replacement

4:31:22approach that comes along with staffing

4:31:24a way that potentially we could move in

4:31:26that direction?

4:31:28>> Uh through the chair I can answer that

4:31:29from the budget uh perspective. And the

4:31:32answer is yes. And and I was actually

4:31:35going to say that while the chief was

4:31:36answering that last question. This is

4:31:38because we do not have the capacity to

4:31:41add staff under the operating budget

4:31:44under the tax cap as it is right now and

4:31:47we are experiencing you know burnout OT

4:31:51through the fire department etc. All of

4:31:55those uh realities are part of why this

4:32:00question is this way. It also has to do

4:32:03with the service level budget sort of

4:32:05connection to the community

4:32:07understanding what they're paying for

4:32:09and are you getting what you're paying

4:32:10for and what you want the community to

4:32:12be doing. So to uh member Preser Diaz's

4:32:15question earlier like what are the

4:32:17benchmarks what are the core services

4:32:20that service level conversation is part

4:32:22of understanding what all of that is

4:32:25because to the municipality as an

4:32:28organization core service of uh you know

4:32:31emergency medical response could mean

4:32:33something very different than what the

4:32:35community wants and if they are willing

4:32:38to pay for a concierge service then we

4:32:41can provide it But you would want to

4:32:44understand what that funding is

4:32:45required, what the uh sort of

4:32:48operational components of it are and

4:32:50what the outcomes are, which everybody

4:32:53say it with me are what PVRs are about

4:32:57because they are the metric to measure

4:33:00whether or not you are meeting the goal

4:33:02that you are setting with your budget.

4:33:04The challenge is if that PBR metric is

4:33:08not established based on the funding

4:33:10level and the funding outcomes, then it

4:33:14doesn't connect. And we can't

4:33:17necessarily say that our PBRs are tied

4:33:21to a funding benchmark. They are tied to

4:33:24a current budget required benchmark

4:33:26because that was what we said we were

4:33:28doing last year. and we have not done

4:33:31the analysis or really have the

4:33:34longevity of uh history in front of us

4:33:37to say oh actually we used to pay for

4:33:40all of these positions in the operating

4:33:42budget. The the engineers who do our

4:33:45project management and engineering those

4:33:47used to be in the operating budget.

4:33:49Fleet maintenance the maintenance and

4:33:51operations staff used to be in the

4:33:54operating budget and the capital budget

4:33:56was a supplement to the actual asset. We

4:33:59pushed them all into bond funding and

4:34:01capital funding and projectbased funding

4:34:04because we can't afford them in the

4:34:06operating budget. And when we make these

4:34:09choices and and and do that 10 years

4:34:13ago, it changes the conversation today

4:34:17because now we don't even know that we

4:34:19used to have them in our budget. But

4:34:21that's where they were and that's where

4:34:22they should be because those are the

4:34:24operating requirements of a municipality

4:34:26of this size with the demands coming

4:34:29from the community.

4:34:31>> And maybe we could hear from Chief um on

4:34:34the 40 to a rig best practice

4:34:36recommendation. Are we making progress

4:34:38on that? How how is that going? What's

4:34:39the current status?

4:34:42>> Well, there's been no meaningful change

4:34:44in our staffing in the past few months

4:34:47since we've last talked about this. I

4:34:49think we all uh recognize that uh the

4:34:53the desired end state is to have

4:34:55fourperson staffing on all of our fire

4:34:58apparatus. Um you know there's that's

4:35:01it's a a distant bridge for us to cross,

4:35:04but something that I think we're all

4:35:06interested in working towards.

4:35:09>> Thanks. Yeah, I guess I would just say

4:35:10I'm I'm curious if if this mechanism can

4:35:13be a little more ambitious and and

4:35:15broader as we bring potentially this

4:35:17before voters um to include um not just

4:35:21ambulances

4:35:23and what is the administration's plan

4:35:27for having that conversation that you're

4:35:29talking about, Miss Browse? What are

4:35:31voters willing to pay for? Um is is is

4:35:34the plan to gauge that via this upcoming

4:35:38ballot or is there some type of survey

4:35:40going to go out in advance? Some type of

4:35:42um communication coalition building.

4:35:45What's that going to look like?

4:35:46>> Through the chair to vice chair. Yes.

4:35:49All of those things, right? And that

4:35:51that is so there this process this

4:35:55conversation this input is going to take

4:35:58us the next six to 12 months at a

4:36:00minimum because there are other things

4:36:03that happen in a cyclical in in a

4:36:06cyclical cycle. Yikes.

4:36:11>> In a in a cyclical system we have to go

4:36:16through the entire cycle to actually

4:36:18onboard those changes. Right? Our budget

4:36:21office operates in a cycle. You can't

4:36:23put your hand in the middle of it and

4:36:25expect to know what you're doing here

4:36:26here because you don't know it yet. And

4:36:29so we offer this proposed budget. This

4:36:31is the idea generator, the thing that we

4:36:35can discuss to say, how does this sound?

4:36:37Do you like this idea? This is an

4:36:39interesting new proposal in response to

4:36:42the community demands. And the reality

4:36:46of having a responsive government means

4:36:48that we are responding to something and

4:36:51it is either an emergency, a demand, a

4:36:54sort of need outcry and we are talking

4:36:57about an operational demand for the

4:37:00entire community and the services we

4:37:02provide. So understanding and knowing

4:37:05how to respond. This is this is what

4:37:08this whole thing is is is do you like

4:37:10this idea? Does this make sense to you?

4:37:12Would the transparency associated with

4:37:15service level budgeting that gives you

4:37:17an idea that you're going to pay X

4:37:19amount of dollars and you're going to

4:37:21get this level of service and when you

4:37:22don't get this level of service, you

4:37:24come tell us. They already tell us now,

4:37:28but there is no baseline for the

4:37:30expected level of service. And and and

4:37:33it gets very challenging when you and we

4:37:35are faced with those questions of what

4:37:37do you mean you can't do that? Well, we

4:37:39can't. And and this is specifically

4:37:44designed to have the conversation about

4:37:47providing the services the community is

4:37:49asking for and not staying the way that

4:37:53we have traditionally done our process,

4:37:55our financing, our opportunities.

4:37:59This happens in

4:38:02the world. This is a normal funding

4:38:04process. It is just not what we have

4:38:07done here because of our funding

4:38:09constraints and the way the tax cap has

4:38:11historically worked.

4:38:17uh Suzanne Fleet Green through the chair

4:38:20mostly director browse answered your

4:38:22question but I think this is one that we

4:38:25talk about too and I guess I'll just

4:38:28remind everyone that development of a

4:38:30capital program and specifically bond

4:38:33packages is not a science. We obviously

4:38:38want them to pass. We don't know where

4:38:40the capacity is or when you're going to

4:38:42hit a threshold when voters are like

4:38:44nope too much in a year. Um, but like

4:38:47Director Browse said, we have been

4:38:50hearing and certainly understand that we

4:38:53are at a critical point with the fire

4:38:55department and their ability to respond.

4:38:59Um, don't forget we are a very large

4:39:01municipality. We have a lot of space to

4:39:04cover. So, this is, like you said, sort

4:39:07of a testing

4:39:09before we think, oh, we're going to grow

4:39:12this bigger. And I think again it's

4:39:15transparency with voters.

4:39:18You are asking for things that we

4:39:20currently cannot provide with our

4:39:22regular system. How else do we address

4:39:25your concerns and your wants? This is an

4:39:29avenue. If this moves forward and voters

4:39:32say, "Yep, we are investing." Then I

4:39:35think in future cycles we would think

4:39:37about

4:39:39building on top of this.

4:39:42And through the chair, I will also say

4:39:44that I have now realized why we don't do

4:39:47capital before operating because uh many

4:39:49of these things feed into the operating

4:39:51conversation. But the fire department is

4:39:53a very good example of something we are

4:39:55doing with our very large municipal

4:39:57departments that cost us the most money

4:39:59and frankly have the most demand put on

4:40:02them from the community. We are working

4:40:04through uh the the org chart, making

4:40:07sure that everybody is assigned in the

4:40:09right place. We are working through the

4:40:10overtime demands and doing analysis on

4:40:12what all of that means and whether or

4:40:14not positions can make a difference or

4:40:16if management lines make a difference.

4:40:18How do these

4:40:20we are talking about the way these

4:40:21capital projects come forward. We are

4:40:23talking about whether or not new

4:40:25stations need to be developed because

4:40:27the robust nature of this conversation,

4:40:31the demands on the fire department for

4:40:33fire and medical response have not

4:40:35happened in years because we have a life

4:40:38cycle planning problem.

4:40:40We only look three to five years in

4:40:43front of us. We do not look longer than

4:40:45that. And our turnover, as we talked

4:40:47about in the beginning, of the people

4:40:49doing the work creates this restart. And

4:40:54that is not a problem. It is a reality.

4:40:57And so we have to figure out how to deal

4:40:59with that. And and there is a lot of

4:41:02work that is happening within the fire

4:41:04department, the police department,

4:41:06maintenance and operations. Many of our

4:41:08large departments as I said that will

4:41:10come through in the next six months

4:41:12either through reorgs or OT uh decreases

4:41:17or increases essentially true ups to

4:41:20funding levels and actual overtime

4:41:23demands. uh transit in particular has a

4:41:27very sticky case right in terms of how

4:41:30their OT is consumed and whether or not

4:41:34additional positions funded or not

4:41:36funded would help them in that

4:41:39efficiency. So we are getting down into

4:41:41the nitty-gritty of what do we look like

4:41:43when we are providing modern services in

4:41:46a modern way.

4:41:50>> Okay, thanks. Yeah, and I'll note uh the

4:41:52safer grant that is another relevant

4:41:53part of this conversation. Um I remember

4:41:55getting briefed on that as a candidate

4:41:56in December 2022. So definitely a

4:41:58multi-year uh conversation and we do

4:42:00know that grant runs out. Um so we are

4:42:02at 3:46. Um I am attempting to manage uh

4:42:06the fact that I know we have multiple

4:42:07department heads in the back who have

4:42:08been sitting waiting patiently. Uh we

4:42:10have definitely more content that we can

4:42:12cover uh today and and I am going to

4:42:15strongly suggest that we cannot push any

4:42:17of this to the next week because we will

4:42:19run out of time. Um, and so I'm going to

4:42:21suggest I guess the following. Um, I

4:42:23know it's been a long day already. If we

4:42:24can go to 4:15. I know it's already a

4:42:26little painful, but we can use our time

4:42:28that way. And then I guess I'll look to

4:42:29Miss Browse. I'm going to suggest we

4:42:31actually skip the police um one because

4:42:33I know that's going to generate probably

4:42:35a whole world of questions that are

4:42:36operating questions and not capital. And

4:42:38then I'm going to suggest um I guess

4:42:40I'll turn to Miss Browse and see we have

4:42:41basically maintenance and operations,

4:42:43which is all of our facilities. All of

4:42:45that could generate operating questions,

4:42:47but that's not the time for that here.

4:42:49um uh project management and engineering

4:42:51courses, all of our road projects, at

4:42:52least in arts and others, and then

4:42:54traffic engineering. So, uh what what

4:42:56should we prioritize? We can do all

4:42:59three, but it would really just be a

4:43:00real quick through all three. Miss

4:43:02Baldwin Day.

4:43:05Okay. Okay. Yeah. I just before we do

4:43:07that, we need to figure out what we're

4:43:08doing for the rest of the day because I

4:43:09also have a question for fire.

4:43:14So because I want to give expectation

4:43:15for folks sitting in the back, some of

4:43:17which I know will be back next week

4:43:18probably.

4:43:40>> Yeah, I guess I know I know we're kind

4:43:42of talking offline. Uh, I know the roads

4:43:44are a big part of our capital budget, so

4:43:46it does seem like we should cover that.

4:43:49Um,

4:43:52I don't know. I guess do folks have a

4:43:53preference on what you'd like to cover?

4:43:55>> I have to leave I [clears throat] have

4:43:56to leave at 4 and but I would prefer if

4:43:58we Yeah. push the roads.

4:44:01>> Okay. Yeah. So, maybe we'll that's what

4:44:02we'll do. And again, knowing that we're

4:44:04gonna it's going to be competing with

4:44:05all the time for every other department,

4:44:07but let's do that. So, maybe we'll cover

4:44:09maintenance and then traffic.

4:44:10>> I would do traffic first.

4:44:12Okay. Yeah. And then again, we'll we'll

4:44:14uh save police for next week and then

4:44:16we'll finish up in the meantime on fire

4:44:17and then we will end at 4:15 for sure.

4:44:19So, uh

4:44:22>> Yeah. All right. Thank you. And so, Miss

4:44:24Baldwin Day, a question for fire.

4:44:26>> Um yeah, I I think my my questions are

4:44:29sort of dubtail with what's been asked

4:44:31just a moment ago about bonds. Um and

4:44:33it's particularly about the language

4:44:34that we're using on these on the bond

4:44:37proposition specifically for fire

4:44:38station replacements and for new

4:44:40stations. And so I'm curious, you know,

4:44:43this this 2027 funding um for station

4:44:4711, station 12, and station 16 new um is

4:44:51is it going to be obvious to voters that

4:44:54this is for this is for planning, this

4:44:56is for land acquisition, this is not

4:44:58actually for replacement of a fire

4:45:00station yet? Like is that clear or

4:45:04unclear when it comes time to write?

4:45:06certainly should be and you can help us

4:45:08make us make that happen because all of

4:45:10this budgetary process will turn into

4:45:12the ballot proposition ordinances that

4:45:14you will see in late December or

4:45:15January. Okay.

4:45:16>> So we can workshop that ballot language

4:45:18together.

4:45:18>> Excellent. Because I I I I could see

4:45:20there being a real tipping point where

4:45:21people go, "Wait a minute. I thought we

4:45:23bonded last year for new station 16. Why

4:45:27are we doing it again?" Um, also noting

4:45:30that it looks like there it's going to

4:45:31be a huge bond in 2028 if we're actually

4:45:34going to build three fire stations in

4:45:362028. Just throwing that out there. Um,

4:45:38fire station number 10, water well. Uh,

4:45:40that looks like a relatively small

4:45:42project. Why are we pushing that out to

4:45:442030?

4:45:55>> I I can respond to that.

4:45:57>> Go ahead, Chief. Yeah. Uh thank you

4:45:59through uh me Paul day through the

4:46:00chair. Uh yeah, in the totality of all

4:46:04of the things that of our many needs, we

4:46:07just felt like that one could wait. Uh

4:46:08the well at station 10 has been

4:46:11underperforming for a decade or more.

4:46:14And um we've made do with bottled water.

4:46:18We deliver bottled water there every

4:46:19week and that's what they drink. and um

4:46:24just the the other things that are

4:46:25before you between now and then we felt

4:46:27were higher, more urgent projects.

4:46:30>> How much do we spend on bottled water

4:46:32for station 10?

4:46:34>> I think it's about $5,000 a month.

4:46:40>> So,

4:46:42call me crazy, but it feels like we

4:46:44could spend $100,000 sooner and not

4:46:47spend 60 every year.

4:46:50There's chatter.

4:46:53>> Oh, that's for the whole year. Okay. I

4:46:55think I'm being corrected. [laughter]

4:46:57>> $5,000 for a year.

4:46:58>> Okay. Well, that changes my calculus.

4:46:59Thank you.

4:47:01>> Okay.

4:47:03Yeah, that seems like a lot. Um, I'm not

4:47:05going to question it. Um, okay. Uh, I

4:47:09Yeah, I think I think those were those

4:47:11were the two things I wanted clarified.

4:47:13So, thank you.

4:47:14>> Thanks. And then I have myself in the

4:47:16queue. Just a brief question. Um, where

4:47:19generally I know you you have told me

4:47:20this at a prior event. Um, where

4:47:22generally would station 16 go? Like what

4:47:25gap is it filling on the map?

4:47:27>> If you can train your eyes on the little

4:47:29tiny map that's this second picture down

4:47:32on the slide, you can see the lavender

4:47:37colored areas are areas where we are not

4:47:40meeting our response time targets. Uh,

4:47:44the ones up north are Jar property. So,

4:47:46we don't respond there. Anyway,

4:47:48um there's a little bit area where the

4:47:50the international airport is. The two

4:47:53biggest areas are the ones that are to

4:47:56the left and right of the Seward Highway

4:47:58on either side of Station 12. Uh I think

4:48:02and so what has happened is we we've

4:48:05we've only added a net of one new fire

4:48:09station in the entire history of the

4:48:11municipality. Since 1975, we've added

4:48:14two stations but taken one away uh for

4:48:17an increase of an of one. And what

4:48:20happens is when those stations were

4:48:21built, station 12 was the old water

4:48:24utility building. We bought it in 1980.

4:48:26Um those areas to the left and right of

4:48:29the Sew Highway were not not filled in

4:48:31as they are today. And so now those

4:48:33areas are full of businesses and

4:48:35residences and we need to to better

4:48:38serve them. So the that's the long

4:48:40answer. The short answer is station 16

4:48:42would be to the west of the Seward

4:48:45Highway along the Sea Street corridor

4:48:47somewhere between Fox Ridge condos and

4:48:49roughly Potter Drive. The design study

4:48:52would help us identify the precise

4:48:54location. Um and then part of the

4:48:57calculus is that station 12 would need

4:48:59to locate to the east to serve the

4:49:02residents around Elmore Lore Road and

4:49:06Abaloop or Abbert Road. Okay. So,

4:49:09essentially where we've built additional

4:49:11subdivisions over time, uh because I'm

4:49:14hearing Clatt Road, Southport, that kind

4:49:16of area seems to have been built or

4:49:18maybe not quite that far west, but down

4:49:20that way. Okay.

4:49:21>> Okay. Thank you. Um Mr. Bond,

4:49:25>> sorry, I came in I think when we were

4:49:27describing that. Um so, a million and a

4:49:31half

4:49:33in bond revenue for a design study for

4:49:36the new fire station.

4:49:39Is that what is being proposed?

4:49:42>> Yes. Okay.

4:49:43>> It' be the design uh usually it's to a

4:49:4635% design. It'd be a response area

4:49:49study which would you know they would

4:49:51calculate all the road impediments and

4:49:52figure out where the best where the

4:49:54calls are distributed and where the best

4:49:55place to locate it is. And then also

4:49:57where the Heritage Land Bank has

4:49:59property that we can acquire.

4:50:01>> Great. Thank you. Um, something I would

4:50:03still love some clarity around after

4:50:06four years of doing this job is design

4:50:10study versus planning effort

4:50:14and like what the differences are

4:50:16because I've heard in the past, you

4:50:17know, you can't bond for a plan

4:50:21or a a planning study, but you can bond

4:50:24for a design study. And so because I

4:50:28know like for instance um we we bonded

4:50:31for um cost of the I think 2025 was just

4:50:36the the Basher parking lot design study

4:50:38and then last year for the construction.

4:50:41So would love just like maybe a a memo a

4:50:44one pager on that

4:50:48>> uh through the chair. think that is uh

4:50:51in conversation um for the assembly

4:50:54particularly. But um I I think one of

4:50:58the things that has changed on the

4:51:00administration side is that we have a

4:51:03different bond council, new onboarding

4:51:06into how the municipal process works,

4:51:08but also uh sort of an expanded

4:51:12opportunity to understand the rules

4:51:14around all of that. So I don't see that

4:51:16I don't I don't think there is a problem

4:51:17in in figuring out how to identify the

4:51:21specific question you are asking. I

4:51:23don't know the answer to that right now.

4:51:30Okay. Um so I think we're good with

4:51:32fire. Thanks for being here. Um and then

4:51:34as I said uh just for again for the

4:51:36record we are going to skip over uh

4:51:39[clears throat] excuse me project

4:51:40management and engineering as well as

4:51:41police. We will come back to those next

4:51:43week in the context of operating budget

4:51:45but also for PM. We'll come back to uh

4:51:47discussion of capital. So I think next

4:51:49we're doing uh traffic engineering. Is

4:51:51that right? So I'll invite our traffic

4:51:52engineer up and then I'll turn everybody

4:51:54to page uh 60 since we skipped around a

4:51:57little bit on the slides.

4:52:04Okay. So, uh, Director Koi is here and

4:52:06can answer questions, um, from traffic

4:52:08engineering on the projects and how they

4:52:12use this funding, but, uh, the three

4:52:14projects, uh, being offered for traffic

4:52:17engineering bond funding are the annual

4:52:21programs associated with, uh, signage,

4:52:24uh, maintenance, and, uh, school zone

4:52:26safety, traffic calming, and safety

4:52:28improvements. these dollar amounts are

4:52:31um significantly larger than the last

4:52:34few years. I think when uh in 2024 maybe

4:52:38the amounts were 500,000 and a million

4:52:41and then in 2025 uh the administration

4:52:43and the assembly increased them because

4:52:46of the need and demand for this work to

4:52:49be done. Um, this I believe is another

4:52:52increase on top of last year's

4:52:54specifically to continue to address the

4:52:56deferred maintenance that is uh uh the

4:52:59condition of our community and uh

4:53:03director po can answer specifics.

4:53:06Um

4:53:08uh before we go to specific did you have

4:53:09additional you wanted to add before we

4:53:10go to questions?

4:53:13Um I think one thing to add is that the

4:53:15way we run our program is as the funds

4:53:17come in we then do a design one year and

4:53:21build the next year. So so this funding

4:53:24is what we would use to kick off design

4:53:27that would then be built in 2028.

4:53:30So that's how we've managed our rolling

4:53:32so that we can make sure to hit the

4:53:34ground running each summer.

4:53:36>> Thanks. And then just for historical

4:53:37context, um I've been here long enough

4:53:39to remember when traffic calming was

4:53:41only 500,000. We ran a amendment to

4:53:44increase. So thank you for increasing

4:53:46that further. I think we doubled it at

4:53:47that time to a million and that was a

4:53:49discussed as a big deal but ended up

4:53:51being small compared to this. And then

4:53:52I'll also note for everybody who gets

4:53:54requests for speed humps, traffic

4:53:57calming, that is this line. Uh that is

4:53:59where all of that funding comes from. Uh

4:54:01so with that, um Mr. Holland in the

4:54:02queue. Yeah, I was going to say um what

4:54:05I would love to see I I don't know how

4:54:08you all will feel about this, but um I

4:54:11think with these programs, it's very

4:54:14important for us to be able to

4:54:15communicate to our various

4:54:17constituencies. You know, you're going

4:54:19to get your speed bump um because you're

4:54:21in the program. So, I don't know if

4:54:22that's like a thing that we could

4:54:23include in future budget binders. um for

4:54:26instance like the traffic and calming

4:54:28program what that the qualified list is

4:54:31um and and the ones that you're working

4:54:32your way down through I think that'd be

4:54:34kind of awesome and then we can explain

4:54:36that to our constituents

4:54:39>> through the chair I will say that um uh

4:54:41OM has had that same question and uh we

4:54:44have started down the path of re

4:54:47researching all of the historical bond

4:54:49appropriations and how that money was

4:54:51spent and whether or not the projects

4:54:52are completed etc etc that will take a

4:54:55very long time as we are an office of

4:54:56six, myself included, and the demands

4:55:00associated with that level of research

4:55:02can be very challenging, but we have not

4:55:05we've just scratched the surface on it.

4:55:06So, so we're thinking in the same sort

4:55:09of line of we not only want to ask you,

4:55:12are you okay with us doing this? We want

4:55:14to tell you we did it or we want to tell

4:55:16you we're going to do it, right? And and

4:55:18and some of that has to do with the

4:55:20limitations on staff capacity. Full

4:55:22stop. We we just don't have enough

4:55:25people to do the work and tell you we're

4:55:27doing the work and that is a real

4:55:29mistake in public [laughter] process.

4:55:33>> Um if I could follow up. Yeah, thank you

4:55:35for that. Um Brad, will you send us the

4:55:38qualified list on the Okay. And then um

4:55:43what else was I gonna say? I just left

4:55:45my mind. You can come back to me.

4:55:48>> Uh next scout and then Miss Bald. Um,

4:55:52yeah, echoing Vice Sher Voland would

4:55:54love to see that list. We get a lot of

4:55:56questions. Um, one thing I'm curious

4:55:58about is is alleyway paving included in

4:56:01this program or is that somewhere else?

4:56:06>> That's street street maintenance has a

4:56:09alleyway paving I believe. I guess you

4:56:11can answer that.

4:56:11>> No, that's correct to the chair to

4:56:13member scout Kent Cole's director of

4:56:14public works. Yes. uh alleyway paving is

4:56:17included in the the broad PME program

4:56:19which we'd be speaking about next week I

4:56:21think. So

4:56:22>> thank you

4:56:24member thing

4:56:26>> I'm gonna go to Miss Go ahead.

4:56:30>> Thank you. Um I think similar similar

4:56:32question. Um you how does how does

4:56:35something arrive on the qualified list

4:56:38of traffic calming and safety

4:56:39improvements? And secondarily,

4:56:43how do how do we assess

4:56:46um do we assess that list based on

4:56:49population density or where people are

4:56:52actually living?

4:56:54>> Yeah. So that list is developed through

4:56:57traffic counts and other criteria that

4:57:00we look at. So each summer we do data

4:57:04collection and based on what the traffic

4:57:07speeds that we're observing and the

4:57:10other different characteristics whether

4:57:12it's some of the density questions, some

4:57:15of the proximity to schools. We take all

4:57:18the qualified streets and create a

4:57:20prioritized

4:57:21list. Uh and it's also based on

4:57:24different other projects that are going

4:57:26on and just our understanding of what

4:57:28the community's needs are. Uh and and so

4:57:32we develop kind of the next priority of

4:57:34projects that we then work through the

4:57:37process.

4:57:39I

4:57:39>> is that available

4:57:41like as a map or a GIS layer or I mean

4:57:44is there a place that the public can go

4:57:46to see here's what's in design, here's

4:57:49what's slated for construction next

4:57:50summer. Is that publicly viewable in any

4:57:53way?

4:57:53>> We have been working on that and I

4:57:55believe that there is um a version that

4:57:59I'll have to go check to see what the

4:58:00status is, but that is a newer idea.

4:58:03It's something that we have been been

4:58:05working to develop and I think I think

4:58:07it's out there. I'd have to double check

4:58:09for sure. Um, every January as well, we

4:58:13usually send out an a letter that goes

4:58:16to you and the representatives for the

4:58:18state legislature and others that lists

4:58:21all the qualified streets and explains

4:58:24the the program and status and findings.

4:58:27So, that's something as well that you

4:58:29can look for that letter.

4:58:34And

4:58:36how much of that I mean it sounds like a

4:58:38lot of this is really about about data,

4:58:41traffic counts, traffic speeds,

4:58:44geographic proximity to schools, other

4:58:46projects. Um

4:58:49what would you suggest we share with

4:58:51constituents in like perhaps a

4:58:53neighborhood that doesn't have a road

4:58:56that meets the threshold but they think

4:58:59that it should? Um do you have any

4:59:01thoughts on

4:59:03what we ought to communicate in terms of

4:59:05prioritization?

4:59:07>> Yeah, so we we do our best to look at

4:59:11the needs across the entire city and

4:59:13prioritize

4:59:15uh those of of greatest need and impact.

4:59:18And so that that weighs in our our

4:59:21prioritization with the funds and the

4:59:23staffing and capacity for projects. Um,

4:59:27so if there is a specialty project that

4:59:30a a community wants that isn't fitting,

4:59:34isn't within our prioritization from our

4:59:36perspective, having assembly members add

4:59:39it to the bond package as a named

4:59:42project so that it's specifically called

4:59:44out or having uh the state legislature

4:59:49provide a grant for a specific area

4:59:51which has been done before. Those are

4:59:53ways that it then becomes a political

4:59:56decision as to what projects or um

5:00:00yeah, where funds in that case would go.

5:00:03>> Thank you. That's helpful. Yeah, I I'll

5:00:05share that the um the community or the

5:00:07neighborhood around Kimell STEM is

5:00:08really concerned about what will happen

5:00:10on Roana Street in terms of traffic if

5:00:12there's no longer actually a school zone

5:00:14in their neighborhood. Um which has

5:00:16served to slow traffic um especially

5:00:18during you know commute hours and such.

5:00:20Uh, and so I think um that would be

5:00:23something, you know, maybe one of those

5:00:25special scenarios where installation of

5:00:27speed bumps or something would um or a

5:00:29raised intersection would actually

5:00:33be really helpful in continuing to

5:00:35manage traffic in a different way now

5:00:37that perhaps a school will no longer be

5:00:40the reason that traffic would slow down.

5:00:44>> Madam Chair,

5:00:47>> go ahead, Ken.

5:00:49>> Thank you, Madam Chair. Um, just to to

5:00:51follow on on what Mr. Koi said. Fully

5:00:53agree with his comments. Also, I know I

5:00:55would say that some of you certainly

5:00:57have received emails from me. I think

5:00:58member Broly certainly with related to

5:01:00some past communication about Jewel

5:01:02Terrace Street where we had the I and PM

5:01:06had the difficult task of telling

5:01:07homeowners that we were not going to be

5:01:08able to do what they wanted us to do.

5:01:11And sometimes that's just the case. You

5:01:13know, as Miss Browse said at the outset

5:01:15that there the the funding limitations,

5:01:18the staffing limitations and the ability

5:01:20to do what we would all like to do in

5:01:22every neighborhood just isn't there. So,

5:01:24we'd be I'd be glad to it's a difficult

5:01:27message, be be glad to help frame a

5:01:29message like that. Sometimes the answer

5:01:31is we know that you want this, but there

5:01:34just isn't the ability to do that right

5:01:35now.

5:01:36Um, and I think my last question along

5:01:38those same lines is, um, is the primary

5:01:41constraint capital funding or is the

5:01:44primary constraint staffing at this

5:01:46point to be able to deliver on projects?

5:01:48What what what's the ceiling that we're

5:01:49bumping up against or is the answer

5:01:51both?

5:01:54>> Yeah, I would say it's both. Um, both of

5:01:57them interplay. Um, being able to have

5:01:59the staff that can analyze, manage, and

5:02:03uh, move projects along. Um, so those

5:02:07all play in for sure.

5:02:11>> Um, with this 2.6 million that we're

5:02:14proposing in this bond package, um, how

5:02:18how much more could we add without

5:02:21bumping into the limitation of staff

5:02:24capacity or do you feel like this is at

5:02:26a pretty good balance point?

5:02:29>> Uh, I I think we're pretty close to

5:02:32staff capacity. Um we have been

5:02:34envisioning ways to to bump that up

5:02:37given that that number is been high for

5:02:40the last year or so and if it does move

5:02:42forward um but it it it is hard to fill

5:02:46positions. So give us a little bit to

5:02:48figure that out. Um and and hopefully we

5:02:52can have a different answer maybe next

5:02:54year.

5:02:57>> Okay, Mr. Volunt.

5:03:02>> Sorry. Go ahead, Mr. count.

5:03:03>> I apologize if I could just step back

5:03:05for a moment. I just received a text

5:03:07from somebody who's listening in. The

5:03:09active trafficcoming projects are also

5:03:11on muna.org/pin

5:03:13projects. So maybe that's what Brad was

5:03:15referring to, but there is a way to see

5:03:16those. So apologize for being a little

5:03:17off, but I didn't want to miss providing

5:03:19that information to you. Thank you.

5:03:23>> Thanks. Okay, Mr. Bolt,

5:03:25>> I remembered what I was going to say

5:03:26earlier. So, I once had the opportunity

5:03:28to go to a ribbon cutting for a

5:03:30crosswalk at the Anchorage Senior

5:03:32Center. It was pretty awesome. And I I'm

5:03:35just kind of thinking um as we go back

5:03:36through the projects and seeing which

5:03:38ones we're still working on, which ones

5:03:39have been delivered, one of the ways

5:03:41that we could instill more voter

5:03:43confidence, I think, in our bonds,

5:03:45support for our bonds, um would be to

5:03:47celebrate those wins. District District

5:03:51One reps, we love a groundbreaking. We

5:03:53love a ribbon cutting. We've been to

5:03:55several of them recently. Um, so yeah, I

5:03:58don't know. A speed bump ribbon cutting

5:04:01could be kind of cool. Getting

5:04:05>> Yeah, you're right. Exactly. We could

5:04:08have a new ambulance drive over the new

5:04:10speed bump. Um, but yeah, I I just think

5:04:12that that might be a fun opportunity is

5:04:14to get out into the neighborhoods and

5:04:16and really celebrate these things when

5:04:18they are um delivered projects.

5:04:22>> Okay, thanks. Um, so we have um 7

5:04:25minutes left and uh we're going to turn

5:04:27now to maintenance and operations. I

5:04:29think we're good with traffic calming.

5:04:30Thanks for being here and uh we know

5:04:32there's a lot more discussion we can

5:04:33have uh but we are going to be running

5:04:34out of time. So I'll turn last to

5:04:36maintenance and operations and then I'm

5:04:38going to note um generally what I'm

5:04:40seeing on this list is facilities. And

5:04:43I'm going to again remind folks um there

5:04:45are many different places we could go

5:04:46with some of these uh that would be a

5:04:48different department and a different

5:04:50discussion. I'm looking at animal

5:04:51control center. If you have questions

5:04:53about that, please hold them for the

5:04:54health department because M is not going

5:04:56to be able to answer your questions. And

5:04:57so, uh, with the last time we have, I'm

5:04:59going to ask, um, folks to give an

5:05:01overview and then, uh, we'll go right up

5:05:03to our time. Thanks.

5:05:17Um, we have uh 12.7 in bonds on the

5:05:22maintenance and operations list with a

5:05:24total 21 uh $22 million uh capital

5:05:29budget.

5:05:31The uh other funding is as I mentioned

5:05:34before either uh Denina center is uh

5:05:38convention center funding general

5:05:41government fleet replacement is uh

5:05:44either IGC's or levy or both. Uh major

5:05:49municipal facility infrastructure

5:05:50repairs annual program. Everybody look

5:05:52at that one middle of the page. Major

5:05:54municipal facility infrastructure

5:05:56repairs annual program. That is the

5:05:59amount of money we spend on maintenance

5:06:01in the municipality on a guaranteed

5:06:03basis every year. It's in the other

5:06:06column because it's a part of our

5:06:07operating uh total. But

5:06:12that's not enough.

5:06:15>> And it used to be more. We used to have

5:06:18more uh mainten maintenance money in our

5:06:21operating budget. But as everything else

5:06:24has gone, it gets cut and shifted out to

5:06:26a different fund source. whatever is

5:06:28possible in the one, two, three, four

5:06:31years when people are making cut

5:06:33decisions and we don't think about

5:06:35necessarily what that means to the

5:06:36building in year five through 40. Uh so

5:06:41that's a real challenge. Um

5:06:44all of these are deeply needed and if we

5:06:46have questions on individual projects I

5:06:49believe uh director troop or Mr. Cohes

5:06:54or Mr. Falsy can answer them.

5:06:57Okay, thanks. Yeah, I mentioned this

5:06:58questions. I think if if just at a high

5:07:00level if you can because I know some of

5:07:01these are not building specific and we

5:07:04know for example Dina center has its own

5:07:05funding but most of these would be

5:07:07bonds. Um can you describe generally

5:07:09kind of how you're looking at

5:07:10priorities? We know there's a big

5:07:12maintenance backlog at our facilities

5:07:14but what are some of the things that

5:07:15these are addressing? I see roofs are up

5:07:16there but beyond that kind of if you can

5:07:18just characterize some of the main

5:07:20themes.

5:07:21[clears throat]

5:07:23>> Yes to the chair. Um

5:07:26probably our our main uh area of focus

5:07:30right now is in updating control systems

5:07:33and fixing control systems and bringing

5:07:36uh a level of operability to them. The

5:07:39problems going on at the lusac library

5:07:41is a perfect example. Um all of that

5:07:44infrastructure and all of our kind of

5:07:47keystone buildings is original to the

5:07:49building. So we're talking about stuff

5:07:50that's 40ome years old and uh

5:07:54all of it needs repaired or replaced

5:07:56even. So the control systems are

5:08:00woefully inadequate for the modern

5:08:02world.

5:08:03>> Okay. Thank you. Uh other questions for

5:08:05members, Miss Baldwin Day.

5:08:09>> Um so I have a question about the the

5:08:11major municipal facility infrastructure

5:08:13repairs annual program. Um, number one,

5:08:16uh, it looks like we have $100,000

5:08:18earmarked for energy conservation

5:08:20upgrades. How are those the same or

5:08:22different than the facility energy

5:08:24efficiency program? That's the $4

5:08:25million bond.

5:08:28>> What page are you on?

5:08:29>> Um, I am on M O page 15, which is the

5:08:32facility energy efficiency program, and

5:08:34then um M19,

5:08:37which is the major municipal facility

5:08:39infrastructure repairs annual program.

5:08:41uh and under various facilities uh

5:08:44paragraph one two three four five um it

5:08:47has a $100,000 for energy confer

5:08:49conservation upgrades and I'm just

5:08:51wondering how are those similar or

5:08:52different than the energy efficiency

5:08:56program that we're bonding for um the

5:08:58through the chair the energy efficiency

5:09:00program that we are offering on this

5:09:03list is new this year the annual program

5:09:07is just the summary total of what would

5:09:10be put into. So, director troop can

5:09:13answer this question, but I think uh

5:09:16they have $475,000

5:09:18a year and that gives them two three

5:09:20fixes on emergency

5:09:23repairs and and so it's they believe

5:09:26they will be of that category of spend.

5:09:29Gotcha. So, if we were to do both the

5:09:32energy efficiency program and I mean

5:09:35this it sounds like this is coming from

5:09:37operating funds that that like $100,000

5:09:41little drop could maybe go somewhere

5:09:44else and do different maintenance work

5:09:46through the chair to member Baldwin Day.

5:09:48The reason the facility energy

5:09:49efficiency program was created for this

5:09:51year is because it will do exactly what

5:09:54you are saying. We those are deeply

5:09:56needed improvements that are not only

5:09:59related to the deferred maintenance

5:10:01status of the municipality but related

5:10:03to the energy consumption and the

5:10:05challenges we are currently under. So we

5:10:07are trying to identify label make it

5:10:09transparent that these kinds of

5:10:12improvements are not just deferred

5:10:14maintenance. They are going to save us

5:10:16money and opportunity like costs that we

5:10:19are leaving on the table because of the

5:10:22level of deferred maintenance that we

5:10:24have. I think most of us understand that

5:10:28the health department building is a huge

5:10:31challenge and we are approaching health

5:10:34department building status with lots of

5:10:38things if not already at that status and

5:10:40that means it is so much more expensive

5:10:43to maintain in a year-over-year basis.

5:10:45We need to ask the question, do we

5:10:47invest in ourselves upfront to make

5:10:50these costs lower over time and also

5:10:52have good infrastructure? Yeah,

5:10:54absolutely. Um, is there a reason that

5:10:57we are not adding more bond funding to

5:11:00the facility repairs program?

5:11:05>> Through the chair. No.

5:11:10>> Thanks. [laughter]

5:11:11>> Yeah, I've been elevated to a judge

5:11:14guess. Um, so, uh, any other further

5:11:16questions for members? I don't see any.

5:11:18Um, I'll just say one word and that is

5:11:20pools. Uh, [laughter]

5:11:23Yeah, enough said there. Uh so, okay, so

5:11:26we're at 4:15 or well, we're at 4:16.

5:11:28So, uh we do need to end this work

5:11:29session. So, again, thank you so much

5:11:31for everybody uh for being here. Uh we

5:11:33know we will have the parade of

5:11:34directors uh for operating budget next

5:11:36week. Uh so, that is Friday, October

5:11:3823rd. Uh just a couple things I want to

5:11:40put on the record before we officially

5:11:41end. One is that that'll be our second

5:11:43work session overview on the budget.

5:11:45Please come prepared if you uh have an

5:11:47opportunity with your questions. Uh

5:11:49we'll de dive deeper into the operating

5:11:51budget. Um, also for members awareness,

5:11:53it will be during AFN. Um, and so the

5:11:55parking lot outside and for directors as

5:11:57well, parking lot will be closed and so

5:11:59folks will have to make alternative

5:12:00accommodations, um, look for an email

5:12:02from legislative services to members

5:12:04about, um, how we've handled that in the

5:12:06past and how we plan to handle it. And,

5:12:08uh, that work session will be 11:00 a.m.

5:12:09to 4 p.m. And we will definitely use

5:12:11those five hours. So, uh, with that, I

5:12:13think we are I think there's not any

5:12:15other business today. This is our last

5:12:17meeting of the day. So, uh, we are

5:12:18adjourned. Thank you.