Haines Borough Manager Debra Schnabel previewed her $13.3 million draft budget for the coming fiscal year, which includes a small increase in townsite property tax rates and an unexpected increase in tax revenues that helped the borough reduce its use of savings to balance the budget. Despite a roughly $60,000 increase in personnel costs, which includes hiring a new employee and merit-based raises beyond union requirements, the budget is in the black by $407,225.

One of the bright spots on the revenue side of the spending plan is the higher-than-expected raw fish tax. Ocean Beauty’s Excursion Inlet cannery increased production last summer after a Petersburg plant closed, which more than doubled local raw fish tax revenues to around $300,000.

The borough will draw about $73,000 from its fund balance in the areawide general fund—$77,000 less than this fiscal year. The borough will draw about $100,000 from the townsite service area fund—$144,000 less than this fiscal year.

“We don’t need to stress terribly about spending our fund balance,” Schnabel told the assembly. “We need to monitor and we need to be smart about how we budget to spend our fund balance, but things happen in life and sometimes it doesn’t always come out the way you budgeted.”

Congress restored secure rural schools funding at an estimated $125,000. The borough is projecting to see about $80,000 in tobacco excise tax and $15,000 in marijuana excise tax revenues, both new income streams that went into effect this year. Schnabel is also proposing an increase to tour permit fees, a change that would necessitate a borough code change, which is anticipated to increase revenues by more than $15,000. The manager is proposing to establish an annual base $250 tour permit fee that increases based on the size and frequency of each tour.

In her draft budget, Schnabel allocated more funding to the Lands Management department. “Planning is an essential government function,” Schnabel said. “A budget should reflect as accurately as possible not only what we do, but what we want to be. Planning is as important to becoming what we want to be as describing what we want to be.”

Schnabel budgeted a new position for the borough’s planning department that will allow borough planner Holly Smith to focus on other tasks, she said.

“We’re going to introduce a planning and zoning technician that will take care of a lot of the details that right now in that small department sap the intellectual energy that one needs for the bigger planning,” Schnabel said.

The position comes with a $37,565 annual salary. Schnabel also gave the borough assessor a 12 percent wage increase and gave the planner an 11 percent wage increase.

The overall budget increase to the department compared to this fiscal year is around $64,870.

The borough is eliminating the assistant municipal clerk position, which will decrease administrative personnel costs. The assembly recently approved the hire of borough clerk Alekka Fullerton, who will be paid $75,574 next fiscal year.

Schnabel also proposed funding the Haines Economic Development Corporation by $95,000, the same amount as this fiscal year.

Property taxes will decrease for residents living outside the townsite service area by .45 mils, but will increase by .17 mils, or $17 per $100,000 of assessed property value, for property owners inside the townsite service area.

Schnabel left “political issues” out of the budget including how to address borough-wide police protection, public safety building improvements, new taxes and the Lutak Dock. Budget meetings will continue through May where the assembly addresses specific funds. The next meeting is scheduled for April 17 at 6:30 p.m. to discuss the areawide general fund.

Assembly member Heather Lende said she has no comment on the draft budget yet except to say she wants to increase funding for the Parks and Recreation Department. “I want to try to figure out a way to…include activities beyond just community youth development, in particular keeping the school gym and facilities open in the summer and using it more as a community facility,” Lende said.

Lende said she also wants to address the aesthetic appeal of the public safety building. “I’d like it to look better. Rather than have it just crumble before us I think we need to address the facility that’s right in the middle of our town.”

Lende said she also supports continued funding of the HEDC.

Assembly member Tom Morphet said adding a new position to the lands department “is going to take a lot of discussion…I think people assumed with the elimination of the deputy clerk position we’d be able to cut payroll.”

Morphet said cuts will need to be made so the borough won’t have to rely on spending from its fund balances. He also questioned the decision to increase tour permit fees.

Assembly member Stephanie Scott said she is “very impressed with the budget.” She said she supports adding a position to the planning department. “I am so impressed with our planner and her ability to lead and talk about facts. I really think she’s an asset and I hope that it is successful to get her an assistant so she can spend more time doing that.”

Scott said her biggest concern regarding the budget is what to do about police service outside the townsite. “We don’t have a particular plan. We don’t have a strategy. I think there’s money there to implement a plan we can all agree on.”

Assembly member Sean Maidy said he’s impressed with the manager’s draft budget and that the borough is “really lucky we don’t have to make any drastic cuts this year.”

Assembly members Brenda Josephson and Tresham Gregg were unavailable for comment.