The Haines Borough’s general fund revenues were about 8% higher than originally budgeted, according to a report from the borough’s chief fiscal officer earlier this month.
That’s because the borough’s investment income, which was just over $300,000, was higher than expected due to short-term interest rates, and higher sales tax revenues, which brought in nearly $80,000 more than expected.
But revenues were still 25% lower this year over last, primarily due to one-time school debt reimbursement funds the borough got from the State of Alaska last year. Still, areawide revenue overall is up about 6%, with the bulk of that being investment income and property tax revenue.
“Notably, sales tax revenue was more or less flat from FY23, increasing less than 1% during a period when inflation was at least 3%,” wrote chief fiscal officer Jila Stuart in an Oct. 3 memo to the Haines Borough Assembly.
The borough spent less than budgeted, though that was primarily because funds for replacement of the school roof were not spent until FY25. But the borough also came in nearly $210,000 under what it had budgeted for wages and benefits, which Stuart attributed to an inability to fill vacant positions.
“The reduced payroll costs were partially offset by other costs over budget, including work orders and professional services,” she wrote.
The townsite service area general fund, which contains funds that can only be spent on the townsite, ended FY24 with just over $2.3 million in revenue, which was about 3% higher than the amended budget.
That’s primarily due to higher property tax revenues, according to Stuart’s report. Sales tax revenue was down by more than $20,000 in the townsite service area.
The areawide general fund’s preliminary ending balance as of the June 30 end of the fiscal year was $4,129,618 while the townsite service area ended the year with nearly $1.8 million in the coffers. But Stuart wrote in her report that those numbers are preliminary until an audit of the last fiscal year is finished.