After multiple workshops, rewrites, and edits, the borough assembly met Tuesday evening to finally adopt a budget for FY 2021. This budget, overall, barely breaks even between revenues and expenses. However, despite recent concerns of a deficit in their general fund, the budget brought before the assembly this night actually had a general fund surplus.
The general fund now has revenues of about $4.95 million, and expenses of roughly $4.91 million. After transfers, Borough Manager Lisa Von Bargen said the general fund would have a surplus of $436,637. In their last workshop, last week, the assembly was facing a general fund deficit of about $224,000.
There are two major changes to the revenue of the general fund, according to the meeting's agenda packet. City administration learned last Thursday that wages and benefits for dispatch staff could potentially be reimbursed through the CARES Act, raising the amount of offset wages in the budget from $640,000 to $890,000. Secondly, according to the packet, it was recently discovered that $460,000 in PILT payment money had not been included in the general fund. These helped increase revenues.
Meanwhile, multiple cuts in expenses have also been put in place, but some have been reinstated. Travel costs have been removed across multiple departments in the general fund. Money for air compressor block equipment for the fire department was reinstated, however. A salary cut in the administration department was also reinstated.
More broadly, the entire budget for the City and Borough of Wrangell is going to barely break even, according to this budget. Approved revenues, in a summary of funds in the agenda packet, are estimated at a little less than $15.6 million. Expenses are estimated at a little less than $16.1 million. However, Von Bargen clarified after the assembly meeting that there are several fund transfers that need to be considered, that count towards revenue. For example, she said that $280,000 is being pulled out of the city's permanent fund and placed into the general fund. There is another transfer of $397,750 from the "Sales Tax – Schools/Health/Sanitation" fund, as well. Lastly, Von Bargen said that this budget had a transfer of $112,214 out of the Secure Rural Schools fund that would count towards revenue. In all, with these transfers considered, Von Bargen said revenues for FY 2021 made up the difference. Counting these transfers, revenues can be estimated at a little less than $16.4 million.
Assembly Member David Powell, during the meeting, said he was uncomfortable with the budget. The numbers had changed quite a bit since the last time he looked at it, he said, and he had asked for further information on some items but he never received any. One such item, the actual costs for operating the armory building, Von Bargen presented during the meeting. Not counting the cost of fuel, for which the city has not had to purchase for the building at this time, utility costs for the building were just over $1,700, she said.
A report on bad debt was also included in the packet, she said, which had been requested by Assembly Member Patty Gilbert.
Assembly Member Julie Decker added that she was unhappy with the budget, as well, but it was a rough year for Wrangell. Things were bleak, she said, and could possibly be bleaker next year. They would have to work hard to try and improve things as time goes on. Assembly Member Anne Morrison added that this budget would have to be reviewed and amended as the fiscal year goes on, and some numbers changed.
Mayor Steve Prysunka reiterated a point he has made through several budget workshops, that he does not want to raise any local rates to make the budget work. It would not be fair to ask Wrangell residents to pay more in a time like this, he said, when many people are stretched for money. He also said that he would want regular reports regarding this budget, preferably on a monthly basis. Assembly Member Patty Gilbert added she would like to see some reports on accounts receivable, as well.
After some discussion, the assembly voted to adopt the FY 2021 budget. Powell was the only dissenting vote.
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