City Manager’s Budget Proposes Reduced Property Tax Mill Rate

The City Manager’s FY2024 Budget proposes to reduce the operating mill levy to 9.08, which is the lowest since at least 1992. The total mill levy, including voter-approved debt, will be 10.28 mills, a decrease of 0.28 mills from last year. Since 1992, the total mill rate was lower only in 2007 (10.17 mills).

The proposed mill levy for this year still yields increased property tax revenue resulting from a 13% increase to total borough-wide property valuation, which reflects Juneau’s exceptionally hot residential home sale market in recent years. High rates of inflation are driving up both the cost of municipal services and the revenues that fund those services. The Manager’s budget reflects this reality as it proposes to fund an inflationary driven budget, receive more in property taxes and reduce the rate of taxation.

The budget reflects increased sales tax revenues and cruise ship passenger fees in anticipation of cruise tourism returning to record levels in the summer of 2023, with passenger counts estimated to surpass 1.6 million. These new revenues are necessary fund inflationary cost growth in both the operating and capital budgets, as well as $2.3 million of additional CBJ funding for the Juneau School District. As proposed, the recurring FY24 budget is balanced after consideration of a $1 million lapse, and is forecast to have no impact on general fund balance. However, the proposed budget also includes $12 million of proposed one-time spending including $10 million for New City Hall and $2 million for police radio system replacements. The manager has also proposed to deposit $4 million to the Restricted Budget Reserve. These one-time investments yield a general fund deficit of $15.3 million in the FY24 proposed budget, which will be funded by CBJ’s significant unrestricted general fund balance.

The budget includes the following major components:

  • $96.3 million for the Juneau School District, an increase of $9.7 million (11.1 percent) over the FY23 Amended Budget. This increase primarily reflects an increase to the Public Employees’ and Teacher retirement systems on-behalf contributions.
  • $177.2 million for Enterprise Funds (hospital, airport, water utilities, docks, and harbors), a decrease of $6.1 million (3.4 percent). This change is primarily due to cost reductions at the hospital in light of lower than anticipated revenue projections.
  • $101.6 million for general government, an increase of $6 million (6.2 percent) from the FY23 Amended Budget. This increase primarily reflects negotiated wage increases, inflationary impacts on commodities and services, and an increased amount of sales tax spent on CIPs in light of higher tax revenues to aid against the rising cost of construction.
  • $57.9 million for capital improvement projects, an increase of $7.7 million (15.3 percent) from the FY23 Amended Budget. This increase reflects the proposed $10 million appropriation for New City Hall and $2 million investment in police radio upgrades.
  • $11.5 million for the debt service budget, an increase of $652,200 (6 percent) over the FY23 Amended Budget. This reflects a reduction in outstanding school construction debt, as multiple bonds were fully paid off during FY23, offset by new debt service for the $6.6 million general obligation bond approved by voters on the October 2022 ballot. This new debt obligation in FY24 keeps the debt service portion of the mill rate flat.

Take a tour of the proposed CBJ budget and try your hand at balancing the budget in a way that funds your priorities!

For a complete summary of the general fund budget, check out the City Manager’s Budget Message on pages 19-22 of the FY24 Budget Book. The City Manager will introduce the proposed budget during the Special Assembly meeting immediately before the Assembly Finance Committee meeting on April 5. Join the committee meeting on Wednesday, April 5 at 5:30 p.m. in person at City Hall, online at https://juneau.zoom.us/j/93917915176 or call 1-253-215-8782 with webinar ID: 939 1791 5176.

April 4th, 2023|

Comment on proposed CBJ budget at April 25 Assembly Meeting

The public is invited to provide feedback on the proposed City and Borough of Juneau budget for fiscal year 2023 at a Regular Assembly Meeting on Monday, April 25 at 7 p.m. The public can comment on the property tax mill levy rate, the CBJ operating budget, the Juneau School District operating budget, and the capital improvement program. The agenda packet will be posted here by close of business Friday, April 22. For more information on the budget ordinances and resolution, see the official Notice of Public Hearing here or go to juneau.org/budget.

The manager’s proposed citywide budget, including the school district, hospital, and all city enterprises, totals $408 million, which is down $26.9 million from the FY22 Amended Budget. The budget proposes a property tax increase of 0.1 mills, resulting in a total mill levy rate of 10.66 mills.

How to watch the meeting:

How to provide spoken comments during the meeting:

  • Testify in person by attending the meeting. A sign-up sheet will be available.
  • Testify remotely via Zoom online or phone. To do this, you are required to call the Municipal Clerk’s Office at 907-586-5278 and give advanced notification by 4 p.m. Monday, April 25.

The public is also welcome to email comments in advance of the meeting, or anytime during the budget process, to [email protected].

Budget items up for public hearing at the Assembly Meeting include:

  • Ordinance 2022-06: An Ordinance Appropriating Funds from the Treasury for FY23 City and Borough Operations.
  • Ordinance 2022-07: An Ordinance Appropriating Funds from the Treasury for FY23 School District Operations.
  • Ordinance 2022-08: An Ordinance Establishing the Rate of Levy for Property Taxes for Calendar Year 2022 Based Upon the Proposed Budget for Fiscal Year 2023.
  • Resolution 2975: A Resolution Adopting the City and Borough Capital Improvement Program for Fiscal Years 2023 through 2028, and Establishing the Capital Improvement Project Priorities for Fiscal Year 2023.

The public will have another opportunity to comment on the budget prior to adoption: the Assembly plans to adopt the Juneau School District general operating budget during a Regular Assembly Meeting on May 16; and CBJ’s operating budget, capital improvement plan, and the property tax mill levy rate during a Regular Assembly Meeting on June 13.

For more information, contact the City Clerk’s Office at 907-586-5278 or [email protected].

April 21st, 2022|

Try balancing CBJ’s budget

The Juneau Assembly is currently in the process of reviewing the City and Borough of Juneau’s budget for fiscal year 2023, which has a general fund deficit of $3.4 million. The Assembly’s job is to get that number to $0. Through a new online simulation tool, it can be your job as well. Do you agree with how CBJ proposes to spend its revenue? The tool allows you to raise taxes, lower taxes, put money into services that matter most to you and, likewise, take funding away from programs you think Juneau cannot afford. Try your hand at balancing the budget here or by going to juneau.org/budget.

The online budget balancing tool serves two purposes. First, it is a learning opportunity for members of the public to learn where CBJ gets revenue and how that money is spent. Second, it is an opportunity for the public to make adjustments to the budget and then submit their version of the budget as feedback to city staff.

Using the online tool is simple and interactive. It does not require any prior knowledge of city budgeting. At the top of the webpage, an indicator describes whether the budget is in balance, in deficit, or in surplus. As you adjust revenues or spending, that indicator shows if you’re moving closer to a balanced budget, or further away.

For more information, contact Finance Director Jeff Rogers at 907-723-6907 or [email protected].

April 7th, 2022|

Assembly begins budget review process at April 6 Finance Committee meeting

The Juneau Assembly will begin its multi-week process to review the City and Borough of Juneau’s budget for fiscal year (FY) 2023 at the Assembly Finance Committee meeting on Wednesday, April 6 at 5:30 p.m. Join the committee meeting in person at City Hall, online at https://juneau.zoom.us/j/93917915176, or call 1-253-215-8782 with webinar ID: 939 1791 5176.

The City Manager introduced the proposed budget during the Regular Assembly meeting on April 4. The manager’s proposed citywide budget, including the school district, hospital, and all city enterprises, totals $408 million, which is down $26.9 million from the FY22 Amended Budget. The budget proposes a property tax increase of 0.1 mills, resulting in a total mill levy rate of 10.66 mills. Prior to the 10.56 mill rate established in 2021 for the FY22 budget, CBJ’s property tax rate was 10.66, or higher, for 8 years straight.

The budget reflects increased projections of sales tax revenues and cruise ship passenger fees in anticipation of cruise tourism returning to near pre-pandemic levels this summer. The budget also includes higher property tax revenues as a result of a 6.2% increase to total borough-wide property valuation. This is primarily reflective of the robust residential home sales market during the pandemic in response to high demand and low supply of homes. These revenue increases are offset by inflationary cost growth in both the operating and capital budgets, as well as shifting costs for education funding from the State to the City as a result of property valuation increases. These factors contribute to a general fund deficit of $3.4 million in the FY23 proposed budget.

The budget includes the following major components:

  • $86.7 million for the Juneau School District, a decrease of $5.7 million (6.2 percent) over the FY22 Amended Budget. This decrease primarily reflects one-time expenditures in FY22 associated with the Elementary and Secondary School Emergency Relief Fund grant to address the impacts of the COVID-19 pandemic on students, as well as a reduction to the Public Employees’ and Teacher retirement systems on-behalf contributions.
  • $179.4 million for Enterprise Funds (hospital, airport, water utilities, docks, and harbors), an increase of $18.5 million (11.5 percent). This change is primarily due to higher anticipated patient volume at the hospital as a result of increased capacity.
  • $87.3 million for general government, an increase of $705,600 (0.8 percent) from the FY22 Amended Budget. While total budget change is relatively small, the budget reflects a big shift from federal pandemic relief revenues back to local taxes and other revenues.
  • $36.5 million for capital improvement projects, a decrease of $32.3 million (47 percent) from the FY22 Amended Budget. This decrease is a result of significant supplemental appropriations made in FY22 to the capital budget, as well as the Hospital issuing $20 million in revenue bonds for which the proceeds were fully appropriated to capital projects.
  • $10.9 million for the debt service budget, a decrease of $4.2 million (27.7 percent) over the FY22 Amended Budget. This reflects a reduction in outstanding school construction debt, as multiple bonds were fully paid off during FY22. However, unreimbursed school bond debt from FY22 will be paid off with property taxes collected in FY23, which keeps the debt service portion of the mill rate flat.

Read CBJ’s proposed Biennial Budget for fiscal years 2023 and 2024. The City Manager’s Budget Message is on pages 19-22.

For more information, contact Finance Director Jeff Rogers at 907-723-6907 or [email protected].

April 5th, 2022|

Wondering how CBJ spends your tax dollars? Now, it’s easier to find out.

The City and Borough of Juneau Finance Department is rolling out a helpful resource that allows residents to see how CBJ spends tax dollars. The program Taxpayer Receipt provides residents an estimate of how CBJ spends property and sales taxes, with a breakdown of programs and services supported by residents’ tax dollars. The goal is to improve residents’ understanding of how their taxes are being spent. By providing transparency about fiscal priorities funded by taxes, CBJ hopes to enhance public engagement during the budget process, which occurs each spring. Use Taxpayer Receipt here.

To use the resource, residents anonymously answer questions regarding age, annual income, whether they own a home, and the home’s assessed value, if applicable. Based on this information, the tool applies an algorithm that calculates their estimated taxes paid and how they are being spent. The tool will produce a tax receipt that includes CBJ’s 5% sales tax for all residents and CBJ’s property tax rate of 10.56 mills for home owners. The receipt does not include additional taxes levied on the sale of tobacco, liquor, or marijuana, and it does not account for property taxes that are paid via rental costs. Taxpayer Receipt breaks that total tax burden down into proportional amounts for all of CBJ’s individual programs and services – police, fire, parks, recreation, libraries, etc. – that are supported by those taxes.

Juneau residents can access Taxpayer Receipt here or by going to juneau.org/budget.

For more information, contact Budget Analyst Adrien Speegle at [email protected] or 907-586-5215 ext. 4058.

 

October 26th, 2021|
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