Anchorage revenues close to target; tobacco, municipal assistance and back taxes reshape 2026 outlook

Deputy Treasurer Lauren Crawford told the Anchorage Budget and Finance Committee on March 19 that the municipality's 2025 actual revenues are tracking at about 99.3% of target but that several timing and adjustment items will shape the 2026 budget outlook.

"We're coming in pretty close to our target at about 99.3%," Lauren Crawford said, highlighting several specific items that could alter next year's revenue picture. She told the committee tobacco-tax receipts were lower than expected and that the municipality now expects about $19 million in tobacco tax revenue for the coming year — roughly $4.2 million below a prior figure after refunds for overstated taxes. Ms. Crawford said municipal assistance funding worth about $4 million had not yet been received and that roughly $1 million in court fines and counter fines remained in accounting and should improve the bottom line when posted.

A committee member asked why personal-property-tax revenue for 2025 was about 1.5% above estimates; Ms. Crawford explained the increase reflects adjustments and collections on prior-year liabilities that were not included in the original tax roll, not a midyear mill-rate change. She said conversations about raising the personal-property exemption occurred in late 2025 and that the exemption increase will apply to the 2026 tax roll, not retroactively to 2025.

Committee members also noted the Building Safety Service Area is performing at about 153% of its original budget. Staff attributed that overperformance to increased construction activity rather than a mill-rate change. Members linked higher construction and fee-generated revenue to housing policy implications and the fees that fund inspection and permitting staff.

No vote was taken. Staff said they will continue to monitor timing-sensitive items and present updated budget-to-actuals in upcoming reports.