Haines Borough officials preview tighter FY27 budget, stress grants and utility risks
January 21, 2023 | Haines Borough, Alaska
This article was created by AI summarizing key points discussed. AI makes mistakes, so for full details and context, please refer to the video of the full meeting. Please report any errors so we can fix them. Report an error »
Assembly Chair (speaker 6) convened a special briefing in advance of the borough’s planning retreat to review preliminary fiscal figures and prospects for fiscal year 2027. Chief Fiscal Officer Jill Stewart led the presentation and said the figures are an early, "back‑of‑the‑napkin" look that will be refined before the assembly adopts a formal budget.
Jill Stewart, the borough’s chief fiscal officer, said the FY26 closing undesignated fund balances were used as the baseline for FY27 planning and that budget amendments enacted during FY26 reduced the amount of fund balance the assembly expects to use. "With the adopted budget we were planning on using $958,274 of our $4,300,000 fund balance in [the area‑wide general fund]," Stewart said, adding that after amendments the borough now plans to use roughly $607,000 in that fund for FY26. Across funds, Stewart said the borough is currently projecting to use about $828,000 of fund balance to provide services in FY26; she noted those totals reflect prior one‑time injections and are subject to revision.
Stewart listed several revenue changes that could improve FY27’s outlook, noting the end of the borough’s obligation for the final year of a school bond payment (staff estimated roughly $350,000 in relief if property tax rates remain unchanged) and projected incremental sales‑tax gains from a seasonal sales tax (staff estimated about $290,000). She also said the borough expects to receive Secure Rural Schools (SRS) funding from the federal government but that the FY27 amount remains uncertain; previous SRS payments were in the low‑hundreds of thousands of dollars.
Assembly members pressed staff on school funding mechanics and the Basic Student Allocation (BSA). Speakers noted the state formula changed and the borough will meet with district leadership to clarify how BSA changes affect local payments. Stewart said she and staff will hold follow‑ups with the school superintendent.
Utility finances and infrastructure dominated discussion. Stewart told the assembly that running a small water or wastewater utility in Alaska is expensive and generally requires subsidies, grants or low‑interest loans because fixed costs are high and the customer base is small. She noted the borough received two consecutive DEC grants—about $1.3 million each, or roughly $2.6 million total—to rehabilitate the water‑treatment plant and has additional wastewater project funding in development. "We got 2 $1,300,000 grants, so we got like $2,600,000 to rehab our water treatment plant," Stewart said, while cautioning that federal and state funding streams vary year to year.
The assembly also discussed the borough’s long‑standing federal waiver that allows primary (screening/settling) wastewater processing instead of full secondary treatment. A member warned that converting to full secondary treatment could be extremely costly: staff cited an example from a neighboring community that estimated conversion costs in the tens of millions. Stewart said the waiver is monitored and, while not an immediate crisis, the borough must plan for that potential long‑term expense.
During remote public comment, Don Turner asked whether the borough had budgeted for legal costs related to a previously discussed lawsuit and referenced an attorney fee figure he’d heard. "I was just wondering... where the lawsuit money... my understanding was that we're gonna pay $500,000 for the attorneys," Turner said. Staff responded they do not have a specific dollar figure budgeted for potential litigation; one official said they expect to settle without additional cost but could not provide a concrete number.
Remote participant Laurie asked whether the borough had been reimbursed for Phase 1 of the Porcupine Road repairs (about $1.4 million withheld). Stewart said roughly $300,000 had been reimbursed to date, FEMA is processing the remainder, and the borough accounts for such reimbursements as receivables until cash is received.
The chair reminded members that the assembly’s weekend planning session will prioritize essentials and nonessentials and that the briefing was intended to give members context before that retreat. No formal votes or motions were taken during the briefing; staff framed the numbers as preliminary and said they will bring revised figures and additional detail at future meetings.
Next steps: staff will refine FY27 estimates, follow up with the school district on BSA impacts, continue FEMA and DEC coordination for reimbursements and grants, and include a fuller FY27 budget proposal for assembly review at upcoming meetings.
Jill Stewart, the borough’s chief fiscal officer, said the FY26 closing undesignated fund balances were used as the baseline for FY27 planning and that budget amendments enacted during FY26 reduced the amount of fund balance the assembly expects to use. "With the adopted budget we were planning on using $958,274 of our $4,300,000 fund balance in [the area‑wide general fund]," Stewart said, adding that after amendments the borough now plans to use roughly $607,000 in that fund for FY26. Across funds, Stewart said the borough is currently projecting to use about $828,000 of fund balance to provide services in FY26; she noted those totals reflect prior one‑time injections and are subject to revision.
Stewart listed several revenue changes that could improve FY27’s outlook, noting the end of the borough’s obligation for the final year of a school bond payment (staff estimated roughly $350,000 in relief if property tax rates remain unchanged) and projected incremental sales‑tax gains from a seasonal sales tax (staff estimated about $290,000). She also said the borough expects to receive Secure Rural Schools (SRS) funding from the federal government but that the FY27 amount remains uncertain; previous SRS payments were in the low‑hundreds of thousands of dollars.
Assembly members pressed staff on school funding mechanics and the Basic Student Allocation (BSA). Speakers noted the state formula changed and the borough will meet with district leadership to clarify how BSA changes affect local payments. Stewart said she and staff will hold follow‑ups with the school superintendent.
Utility finances and infrastructure dominated discussion. Stewart told the assembly that running a small water or wastewater utility in Alaska is expensive and generally requires subsidies, grants or low‑interest loans because fixed costs are high and the customer base is small. She noted the borough received two consecutive DEC grants—about $1.3 million each, or roughly $2.6 million total—to rehabilitate the water‑treatment plant and has additional wastewater project funding in development. "We got 2 $1,300,000 grants, so we got like $2,600,000 to rehab our water treatment plant," Stewart said, while cautioning that federal and state funding streams vary year to year.
The assembly also discussed the borough’s long‑standing federal waiver that allows primary (screening/settling) wastewater processing instead of full secondary treatment. A member warned that converting to full secondary treatment could be extremely costly: staff cited an example from a neighboring community that estimated conversion costs in the tens of millions. Stewart said the waiver is monitored and, while not an immediate crisis, the borough must plan for that potential long‑term expense.
During remote public comment, Don Turner asked whether the borough had budgeted for legal costs related to a previously discussed lawsuit and referenced an attorney fee figure he’d heard. "I was just wondering... where the lawsuit money... my understanding was that we're gonna pay $500,000 for the attorneys," Turner said. Staff responded they do not have a specific dollar figure budgeted for potential litigation; one official said they expect to settle without additional cost but could not provide a concrete number.
Remote participant Laurie asked whether the borough had been reimbursed for Phase 1 of the Porcupine Road repairs (about $1.4 million withheld). Stewart said roughly $300,000 had been reimbursed to date, FEMA is processing the remainder, and the borough accounts for such reimbursements as receivables until cash is received.
The chair reminded members that the assembly’s weekend planning session will prioritize essentials and nonessentials and that the briefing was intended to give members context before that retreat. No formal votes or motions were taken during the briefing; staff framed the numbers as preliminary and said they will bring revised figures and additional detail at future meetings.
Next steps: staff will refine FY27 estimates, follow up with the school district on BSA impacts, continue FEMA and DEC coordination for reimbursements and grants, and include a fuller FY27 budget proposal for assembly review at upcoming meetings.
Don't Miss a Word: See the Full Meeting!
Go beyond summaries. Unlock every video, transcript, and key insight with a Founder Membership.
✓
Get instant access to full meeting videos
✓
Search and clip any phrase from complete transcripts
✓
Receive AI-powered summaries & custom alerts
✓
Enjoy lifetime, unrestricted access to government data
30-day money-back guarantee
