Anchorage assembly reviews 2025 first-quarter budget revisions; proposal remains $480,000 under tax cap

Ona Prowse, director of the Office of Management and Budget, told the Anchorage Assembly on April 11 that the municipality's proposed 2025 first-quarter revisions would increase direct costs by about $8.5 million and leave the revised municipal budget roughly $480,000 under the city's tax-cap calculation.

The proposed revised budget increases the total municipal budget from $648.3 million (approved in November) to $656.8 million and adds 13 positions, largely to operate the Mountain View Community Center after the Boys & Girls Club ceased managing the facility. Prowse said the 2025 revised package assumes continued revenue recovery tied to judgments and emergency-ordinance closeouts and reflects several technical and programmatic updates across general government, utilities and enterprise funds.

Why it matters: the first-quarter revision adjusts spending and revenue projections after the 2025 budget was adopted. The changes affect service-area levies, utility capital planning, a new voter-approved levy for heavy-equipment fleet needs (ARD S A), and a string of one-time recoveries tied to settlements and emergency responses. Assembly members were briefed on funding sources, fund balances for special taxes, and the schedule for amendment submissions ahead of the Assembly's April 22 meeting, when the revision will be considered.

The most consequential line items

- Direct-cost increase: OMB summarized a net $8.5 million increase in direct costs for 2025 driven by a mix of revenue true-ups, expense adjustments and service-area requests. The revised total budget is $656.8 million, compared with $648.3 million in the approved budget.

- Tax cap and recoveries: Prowse said the 2025 revised package is about $480,000 under the municipal tax cap after…