The Haines Borough has a healthy amount of savings, better than many other Alaska municipalities, according to the 2020 financial audit.
Based on average monthly spending and roughly $6.2 million in savings accounts (not counting the borough’s permanent fund), Haines has 8.6 months of operating funds in reserve.
“We consider that to be reasonable,” auditor Max Mertz said. “When you compare Haines to other municipal entities around the state, you’re actually in pretty good shape. You’ve got some reserves to withstand the storm, if you will.” He said at minimum, a municipality should have 2 months of operating funds in savings.
Borough proprietary funds, including the harbor, Lutak Dock, Port Chilkoot Dock, and water and sewer, are also in solid positions in terms of savings, according to Mertz.
He said the borough has been conservative with public dollars in that spending hasn’t kept up with inflation over the past decade.
“Since 2011, you’ve spent in total less than inflation would indicate that you would have by $823,000,” Mertz said. “What it does indicate is that you, as a government, have been very frugal. You haven’t had a significant increase in your expenses dramatically over time.”
Mertz said overall, borough finances, including state and federal grants like the CARES Act, were well-handled. “We generally found things to be as you would hope they would be, which is without significant error or findings or questioned costs,” he said.
The audit comes as the assembly is gearing up for another round of budget talks. A budget priorities workshop is scheduled for Feb. 13 at 9 a.m. The public can tune in via Zoom.
In preparation for the meeting, the borough is soliciting feedback through an online form that asks residents how they would divide $10 between public infrastructure projects including the Lutak Dock, Chilkat Center, Public Safety Building and school.
Interim manager Alekka Fullerton said the form has received more than 100 responses and will remain open through Friday. Responses will be used to inform assembly decisions about funding capital projects.
The form can be found at https://www.hainesalaska.gov/budget