ITEM TITLE:
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#26-37 - Establishing Council Priorities for the 2027 City Operating Budget
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SUBMITTED BY: Jordan Nelson, Finance Director
FISCAL NOTES:
Expenditure Required: n/a
Unencumbered Balance: n/a
Funding Source: n/a
RECOMMENDATION:
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Approve
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SUMMARY STATEMENT:
The budget parameters document (Attachment A) captures the council budget priorities for the 2026 operating budget as discussed, refined, and articulated through the city council strategic planning session and the budget parameters workshop held on August 5, 2025. This document provides formal directions to management as they construct their budgets.
Departments will begin working on budgets August 3rd of this year and submit them for review by the city manager by August 30th. The budget parameters approved by council provide high level strategic direction to administration and departments in the development and review of each budget.
The Budget parameters Identifies the top priorities of the council.
* Housing
* Projects
* Maintenance
The Budget Parameters makes the following assumptions for the 2026 budget:
Revenues
* 20 mill property tax levy
* 1.5% permanent fund appropriation
o As directed by Council, Management will formulate a budget that offsets any foregone property tax revenue pursuant to the implementation of exemptions allowed by the passage of HB13
* Special revenue funds
o Port/harbor will set rates and expenses to avoid a general fund operating subsidy
o Airport will minimize required general fund operating subsidy
o No Change to Utility Fund rates which results in general fund operating subsidy
Expenses
FTE Personnel
* 1.8% Citywide Increase
o 2.9% COLA based on Anchorage CPI,
o 3% projected health insurance increase.
* Management is directed to examine options to reduce costs without reducing quality of benefit.
Education: funded to maximum local contribution in accordance with prior year funding
Other Expenses: Each department quantifies every expense. De...
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