Preliminary 2012 Budget Information
Anchorage Municipal Code 6.10.040 (A) requires the Administration to provide preliminary information regarding the 2012 budget for general government, utilities, and enterprises at least 120-days prior to the end of the fiscal year.
The required information included in this memo is:
- Preliminary 2012 revenue estimate;
- Preliminary 2012 tax limit calculation;
- Preliminary 2012 CIB and 2012-2017 CIP for general government;
- Administration’s priorities; and
- Utility and Enterprise budget information.
Preliminary 2012 Revenue Estimate
Preliminary estimates show a $4.2 million increase in revenue from non-property taxes:
Preliminary 2012 Tax Limit Calculation
When compared to the 2011 Tax Limit, the preliminary 2012 calculation provides:
- Increase of $8.9 million in the total of all taxes that can be collected;
- Decrease of $2.5 million in the maximum amount of property taxes that can be collected.
The lower property tax amount is the result of an $11.5 million increase in non-property taxes. Because the Tax Limit caps the amount that all taxes (not just property taxes) can increase from one year to the next, the practical effect is that every dollar increase in a non-property tax translates into a dollar less in property taxes. Non-property tax increases in 2012 include $7.8 million from utility and enterprise payments-in-lieu-of taxes (MUSA/MESA) as the final phase of Proposition 9 implementation and $3.8 million in automobile registration taxes. The Tax Limit will be finalized in April during the first quarter amendment process at which time 2012 property tax rates will be set.
Preliminary 2012 CIB and 2012-2017 CIP for General Government
A major goal for this Administration is to take care of what the Municipality has—from roads to parks to specialized equipment. To that end, the preliminary 2012 Capital Improvement Budget (CIB) will propose a $31.7 million general obligation bond package that will include $28.6 million for roads and infrastructure and $2.3 million for parks, trails, and recreational facilities. The Municipality also will continue to work with the Governor and Alaska Legislature on funding that can help meet Anchorage’s infrastructure needs. Preliminary funding levels for the 2012 – 2017 Capital Improvement Program (CIP) are included in the full 120 Day Memo to Assembly. CIB and CIP project details will be provided in the submittals to the Assembly on October 1st.
As in 2010, the challenge continues to bring spending to a level the Municipality—and taxpayers—can afford over the long-term. A priority is to ensure appropriate services are delivered efficiently. The Administration is in the midst of initiatives that will leverage technology to bring savings to the administrative operations. These initiatives include an electronic timekeeping system; a new Enterprise Resource Planning (ERP) system that will streamline management of human resources, accounting, purchasing, and budget functions; and a third party review of all maintenance and operations functions.
Utility and Enterprise Budget Information
In the full 120 Day Memo to the Assembly you will also find the updated strategic and business plans and preliminary CIB and CIP information for:
- Municipal Light and Power
- Anchorage Water and Wastewater
- Merrill Field Airport
- Port of Anchorage
- Solid Waste Services