Matanuska-Susitna Borough manager proposes budget that trims area-wide mill rate, funds infrastructure and school capital

Matanuska-Susitna Borough Manager Mike Brown presented his proposed fiscal 2026 budget to the borough assembly on April 9, saying the plan would slightly lower the area‑wide mill rate to 8.612 while increasing the capital program and funding strategic priorities.

Brown said the proposal’s central aim is ‘‘retooling’’ rather than a simple tune‑up. "This budget is a retooling budget," he told the assembly, adding it includes what he called ‘‘thoughtful structural changes to drive progress through service improvements, increased efficiency and infrastructure investments." He identified school and transportation bond obligations, Port McKenzie, transit matching funds, the Big Lake recreation acquisition and a larger capital program as drivers of an above‑average capital year.

The nut graf: the manager’s proposed budget would hold operations steady while expanding one‑time and strategic capital spending; officials point to $4.9 million in projected savings from recent bond refinancing as a major factor that makes the package possible.

Key numbers and program priorities - Proposed area‑wide mill rate: 8.612 (current 8.748), a modest reduction the manager presented as sustainable given upcoming debt service and bond sales. - Tax base: the assessor reported a roughly 8.3% increase in taxable assessed value and a 4.3% estimated increase in tax revenue year over year; the manager said the average single‑family home value used in the estimate is about $388,000 and projected area‑wide tax impact is about $115 for that average home if levies are set as proposed. - Capital: the proposed capital program is just over $15 million, up from a historic $8–9 million typical level; Brown attributed the increase to a handful of new or out‑of‑cycle items including school deferred maintenance, Port McKenzie barge ramp funding, Big Lake recreation center acquisition, transit match and the Jonesville shooting park. - Education: the budget includes a 4% increase in the local education contribution to just over $78 million and $2.45 million earmarked for school capital needs, largely boilers and facilities.

Brown and Finance Director Cheyenne Bridal said the borough recently completed a bond refinancing and new bond sales that together will produce savings and support future projects. The manager said refinancing and related actions will save the borough about $4.9 million. Bridal confirmed refunding and new money sales were closed in the current process and that the borough will continue to monitor markets as it completes the remaining school bond sales next year.

Efficiency and program changes Brown emphasized embedded efficiencies, including moving ambulance billing to a third‑party vendor (which will eliminate one FTE and redeploy two others), consolidating some parks recreation operations, digitizing personnel files, modernizing permitting and tax reporting systems, and centralizing cleanup of borough lands. He also highlighted planned investments in permitting and website modernization being led by IT.

Staffing changes described in the presentation include three full‑time positions for the central fire service area, two additional landfill positions to operate a new tipping floor, two parks and recreation positions to staff a potential Big Lake facility, one fleet mechanic and one appraiser. Brown noted those additions would largely be matched to expanded services included in the proposal.

Calendar and next steps Brown said the proposed budget will be formally introduced at the assembly’s next regular meeting and followed by three statutory public hearings. He urged assembly members and the public to review the two‑page budget transmittal letter included in the packet for context.

Discussion and assembly direction Assembly members asked clarifying questions about the plan’s capital priorities, staffing assumptions for the proposed Big Lake recreation acquisition and the assumptions behind the mill‑rate estimate. The manager said the proposal intentionally includes a contingency in the projected fund balance to allow the assembly to adjust during deliberations. No formal action or vote on the budget occurred at the April 9 meeting; the assembly will take up introduction and hearings at subsequent meetings.

Ending The manager said the transmittal memo and packet material will be available for assembly members and the public; he described the proposal as ‘‘aggressive’’ but targeted to sustain operations while funding strategic capital and service changes.