The assembly on Tuesday is scheduled to approve a $17.8 million budget that for now includes some new, large expenditures, $50,800 worth of amendments made by the assembly, $95,000 for economic development and $97,000 for a fifth police officer, which includes associated benefits and equipment costs.
During a committee of the whole meeting May 25, Haines Police chief Heath Scott said he didn’t think the budgeted salary for a fifth police officer is adequate to attract a seasoned candidate.
“We are not at a very high marketable rate,” Scott said. “We are one of six or seven communities in the Southeast who are trying to hire officers…It’s going to be hard for us to compete for a lateral candidate.”
The proposed budget includes a salary of around $60,700 for a new officer.
In Petersburg, an entry-level officer would earn around $51,200 and after two to three years on the job, would get paid $56,900. In Ketchikan, a starting salary is also around $51,800. Officers are paid around $60,000 after two years on the job. In Sitka, an entry level officer is paid around $56,300 and after two years on the job, around $59,200.
Juneau, Sitka and Ketchikan are among the Southeast communities currently hiring. Juneau pays entry level officers around $62,000.
The assembly also wrested with how to fund nonprofits and whether or not to give the Haines Economic Development Corporation $95,000.
The development corporation is led by a board that represents various Haines businesses and nonprofits.
“In the first year what you’re investing in is having people get up in the morning and think about economic development and think about the base work that has to be done to allow this community to approach economic development,” Debra Schnabel said.
The bulk of the $95,000 would go towards hiring an economic development director, local bank manager and board member Kyle Gray said.
Communities across Southeast have and fund economic development organizations. Petersburg, Wrangell and Sitka gave their economic development organizations a boost in the late 1990s with appropriated federal money based on historic timber receipts after the federal government canceled timber contracts.
Assembly member Tresham Gregg said he didn’t think the development corporation had done enough to engage the community.
“It seems like they’ve already made up their mind that the only way to do this is to hire an outside consultant to come in and tell us what to do,” Gregg said. “From my perspective at least I’m trying to get our local people to be empowered and to be funded and to make it come from who we are.”
The HEDC has made multiple pitches to boards and committees during the past several months, and Gray said there is no way the partnership between the corporation and the borough will work without public and assembly input.
Gray has said in the past he’d like to fund a local revolving loan program for entrepreneurs.
The assembly is also debating how to fund nonprofits. Some assembly members, including Tom Morphet, want to designate a pot of money that nonprofits can draw from. Margaret Friedendauer, who resigned from the assembly last week, wanted to identify services and needs and fund the nonprofits to fulfill those needs.
The budget deficit amounts to around $490,000, which will be covered by savings from respective fund balances.
Savings will be drawn to cover deficits in the following accounts: areawide general fund ($178,127), the townsite general fund ($243,003), the economic development fund ($62,692) and fire services areas ($6,317).
The assembly also cut $22,500 in lobbying services.
The budget includes a .1 mill rate townsite property tax increase, which will raise an estimated $18,000.
Given the amount borrowed from the townsite service area fund balance, assembly member Ron Jackson questioned the necessity of the proposed property tax increase in the townsite.