Assembly adopts budget, approves property tax levy

The Wrangell Borough Assembly gave a second reading of the proposed FY 2020 budget during their meeting on Tuesday, June 11. This year's budget season has been a challenge for local governments across the state, thanks in part to an ongoing battle over the state budget in the Alaska legislature. City governments and school boards are all looking at financial challenges in the near future, and Wrangell is no exception.

The proposed budget for the borough has revenues set at about $16.62 million, while expenditures are set at about $20.12 million. Wrangell has an expected $27 million in reserve for 2019-2020. Of these reserves, about $5.95 million is "unrestricted," according to a summary of funds attached to the meeting's agenda packet. This means that the borough can spend this money as they deem fit. The remaining money is restricted by charters, ordinances, resolutions, or a vote by the Wrangell public.

The borough is deficit spending in several categories, according to the summary of funds. The residential construction fund, for example, is expected to bring in $34,600 while also spending $68,500. Wrangell Municipal Light and Power will also dip into the red this year, requiring reserve spending. They will be spending about $5.29 million while bringing in $4.36 million.

The assembly also approved a resolution to levy a general property tax for school and municipal purposes for the 2019 tax year. The resolution sets the mill levy across all three of Wrangell's different tax zones. The mill rate in the Wrangell Service Area has been set at 12.75, and at 4 for areas outside of the service area and within the differential tax zone. The mill levy is the tax rate that is applied to the value of a property, and is basically a percentage. According to a chart in the meeting's agenda packet, there is a total of $137 million in taxable property value within the Wrangell Service Area. At a levy rate of 12.75, or 12.75 percent, this would bring in about $1.75 million in taxes. The total value of property in the borough was valued at about $149 million, after exemptions were subtracted. The estimated total property tax revenue this year, for FY 2020, is set at about $1.82 million. This is about $43,330 more in property tax from last year, according to the packet.

During the meeting, the assembly also approved of a proposition to repeal section 3-9 of the Wrangell home rule charter. This is a housekeeping matter, according to the agenda packet, as section 3-9 deals with the Wrangell Medical Center, which is now under SEARHC control and not the borough's. The proposition will come before the public for a vote in October, pending its final approval by the assembly.

The assembly also took time during the meeting to introduce themselves to Officer Jay Huerta, a new member of the Wrangell Police Department.

It was also announced during the meeting that, due to scheduling conflicts, the planned town hall meeting on the city's conservation efforts on Wednesday, June 12, had been postponed. It will be rescheduled in the next few weeks, though a date has not been set at this time.

Mayor Steve Prysunka and Borough Manager Lisa Von Bargen added that Wrangell's water situation had begun to improve. Thanks to recent rain and local conservation efforts, the reservoirs were beginning to refill and water consumption had lowered by about 100 gallons per minute. However, they both reiterated that Wrangell was not out of the woods yet. With crab season beginning soon, the upcoming Fourth of July celebrations, and a forecast of drier-than-normal weather, demands on the water supply are only going to increase. Conservation remains a high priority, they said. The city will be under a Stage I water watch until further notice.

Before adjourning, the assembly held an executive session to discuss upcoming negotiations between the borough and the International Brotherhood of Electrical Workers Union.

 

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