In an effort to blunt the effects of a roughly 16% percent increase in property tax assessments this year due to the implementation of a new mass appraisal system, borough manager Annette Kreitzer recommended lowering property taxes in her manager’s budget.
In the townsite, she recommended decreasing the mil rate by 9%. Boroughwide, she recommended lowering the rate by 11%. Despite the proposed reductions, property tax revenue is expected to increase by $101,000 in the general fund and up $33,000 in the townsite service area fund.
Total revenues are up $269,064 in the general fund compared to last fiscal year and up $42,187 in the townsite service area fund. Sales tax is expected to climb by $109,000 compared to last fiscal year. Sales tax lodging is expected to increase by $32,000.
“Infrastructure” is the theme of borough manager Annette Kreitzer’s budget that was introduced to the assembly Tuesday.
“Government should provide and maintain basic infrastructure upon which opportunities can expand,” Kreitzer wrote in her manager’s budget. “With adequate infrastructure in place, economic opportunities can build on the availability of these necessary elements.”
Kreitzer’s list of major changes to the budget include moving the contract and grants administrator position to the public facilities department, increasing the pay of emergency dispatchers due to recruiting shortages, creating a full-time paid fire chief position and requiring nonprofits to request public funding through the assembly’s Government Affairs and Services Committee.
Kreitzer said potential decreased revenues will come in the form of a reduction of state revenue, community assistance and community jails contracts. “We appear to be coming to the end of the waterfall of federal and state funding meant to address communities recovering from disasters, Covid pandemic health and economic fall-out, and the economic repercussions to sales tax income due to the visitor industry downturn in 2020-2021,” Kreitzer wrote.
She added that expenses in the form of increased fuel, power and shipping costs, staff salary and wage increases, and a potential reduction of the state’s school bond debt reimbursement will all impact the budget. The state’s school bond debt reduction back to 50% funding would result in a $448,717 hole in the budget. The borough is prepared to provide $200,000 to the Haines Borough School District with remaining American Rescue Plan funding.
Kreitzer also cited survey data indicating cruise ship passengers who were dissatisfied during last year’s dockings. She raised concerns about the loss of sales tax dollars from passengers who arrive in the late evening hours and have nowhere to spend money. Last year, many of the big ships docked after many Haines businesses closed for the day.
Budget hearings will continue throughout May. The committee of the whole will meet in the assembly chambers Thursday, April 27 at 6:30 p.m. to discuss the areawide general fund and Thursday, May 4 at 7 p.m. to discuss the townsite service area fund. The second public hearing for the budget at the regular assembly meeting is scheduled for May 25 at 6:30 p.m.