Treasurer: year‑to‑date revenues tracking; room tax and building permits encouraging, alcohol and marijuana taxes weaker

Municipal Treasurer Glenn Cipriano and OMB Director Ona Brouse briefed the Assembly Budget & Finance Committee on revenue performance and budget‑to‑actuals, and members asked questions about tax billing and procurement.

Cipriano told the committee the municipality is showing "about 6.2% of the budgeted revenues for the year, about 38,000,000" as recorded in SAP through June 16. He called attention to room tax year‑to‑date receipts of about $9.4 million and said most room‑tax revenue typically arrives July through October, which keeps the municipality on track for its annual estimate. He also noted the motor fuel excise tax appears on schedule for a $14 million forecast and that building safety permit receipts are running ahead of estimates — a positive sign for future activity.

On alcohol and marijuana taxes, Cipriano said collections have weakened compared with recent years. He cited a Gallup trend in consumer drinking and reported alcohol tax collections fell from a 2022 high of roughly $21 million to about $19.5 million in 2025; he said the 2026 alcohol tax estimate is $14.2 million and that the marijuana/ACE fund estimate for 2026 was lowered to $5,000,000 from $5.4M in 2025 due to retail saturation in the Anchorage area.

Members pressed why tax bills are printed out of state; Baldwin Day asked about the vendor and a perceived delay. Cipriano explained the municipality uses a formal RFP process and that the current vendor (Peregrine) is based in Louisiana and has been the successful bidder for more than 15 years; he said the mailing delay was due to postal transit and that staff will review vendor practices after the tax cycle.

OMB Director Ona Brouse reviewed the budget‑to‑actuals packet and said the municipality is 41.1% through the fiscal year (end of May) with roughly 40% of budget spent and encumbered. She broke out labor at about 41% and non‑labor at about 38%, noted maintenance & operations is running at ~48% because of first‑quarter snow response, and said some departments with traditionally high early‑year spending should balance later as contracts and encumbrances roll. Brouse said overtime trends are improving in some departments where vacancies have been filled, and that the municipal attorney's overtime dropped substantially after staffing improvements.

On dedicated funds, Brouse said the alcohol tax report shows the fund at 94% spent/encumbered because grant awards and contractual encumbrances are largely out the door; marijuana/ACE fund encumbrances are about 83% with active grant lines; and the Best Beginnings grant (a library‑appropriated grant historically funded by alcohol tax) is currently at 0% in the packet while reporting requirements are completed and administration transitions grant administration to the health department.

Committee members asked whether adjustments to tax estimates are likely; staff said they will monitor actual receipts and that any midyear adjustments would be made in Q3 or Q4 or handled via underbudgeting practices in FY27 because these are closed funds. Members requested follow‑up information on vendor selection for tax mailings and any enforcement or tracking data that could better explain alcohol/marijuana revenue trends.

The committee did not take formal action on the reports; members asked for more detail at future meetings and for public outreach as the Assembly drafts budget priorities.