Three-month pool closure continued
Haines Borough manager Annette Kreitzer released her draft budget for the upcoming fiscal year—notable changes include increased sales and property tax revenues, reduced state and federal funding, a 2% staff wage increase and a continued three-month pool closure.
“As with most budget proposals, this one is not without controversy,” Krietzer wrote in a memo.
Kreitzer wrote that her proposed budget is focused “on the basics of government” and that new funding opportunities will be used “to care for the assets the borough already owns.”
Kreitzer is recommending closing the pool from May 9 through July 31, a nearly three-month closure that has occurred the past several years. She said part of that closure will focus on training the pool manager and assistant manager and performing maintenance.
“Both (staff) need water safety instructor training. They’re going to go down to Ketchikan in May and get that training. That’s a significant chunk of money,” Kreitzer told the CVN. “This is part of a bigger picture of borough operations.”
She also funded the Sheldon Museum in the amount of $102,000 in assembly appropriations. The funding amount is about $70,000 less than the museum requested and would cover a full-time curator, a position the museum board wanted to reestablish, and an existing quarter time youth education program position.
“There are three museums in town,” Kreitzer said. “Isn’t there some opportunity for the museums to work together in a town of 2,600 people? I know when you’re a board, you like your autonomy, but is it time to start thinking about working with other organizations? I felt they should at least approach that.”
Total revenues in the general fund and townsite are expected to increase next fiscal year by $953,000 and $412,220 respectively.
Mill rates remain unchanged in the townsite. Because the state fully funded school bond debt reimbursement, the mill rate associated with that debt decreased to 1.12 mills, closer to the historical norm.
Kreitzer made adjustments to expenditures in respect to increased fuel, power and shipping costs.
“The increase in fuel costs will translate to higher operating costs in the current fiscal year for every borough expense from heating buildings, to the shipment of supplies, to diesel and gasoline costs for vehicles and equipment,” she wrote in her proposed budget.
She also increased expenditures for staff training and travel so borough employees could “get the training necessary to stay proficient and effective in their positions.”
Kreitzer also included funding requests from Becky’s Place and the Haines Economic Development Corporation in the amounts of $24,000 and $25,000 respectively.
On the revenue side, property taxes went up from fiscal year 2022 by about $625,000, an 8% increase. Sales taxes are projected to increase by more than $600,000. Lodging taxes are expected to increase by $50,000.
Roughly $85,000 is left in CARES Act funding, which was designated by the assembly as an emergency fund. In 2021 the borough received American Rescue Plan Act funding of which $285,790 is remaining.
Kreitzer cautioned against spending those funds in light of anticipated reduced school bond debt reimbursement from the state, potential additional support for the Haines School, a decrease in expected bookings for the cruise industry in 2024 and the likely need to provide grant matches for federal infrastructure project funding.
The assembly will consider the budget’s areawide general fund during a committee of the whole meeting on April 28 at 6:30 p.m. in the assembly chambers and on Zoom–its first budget hearing. It will consider the townsite service area fund on May 5 at 6:30 p.m. in the assembly chambers and on Zoom. The budget’s first public hearing will be on May 10 and could be adopted as early as May 24. A full list of budget hearing meeting dates and times is available on the borough website.