3.0 Affected Environment - Knik Arm Bridge and Toll Authority

Knik Arm Crossing DraftFinal EIS
Affected Environment
Houston’s expenditures in FY 2005 are $481,000, up from $325,000 in FY 2004. Gross
wages account for about one-half of the expenditures. Capital budget expenditures are not
available as of this writing.
3.2.3.2.5 Anchorage revenue sources and major expenditure categories
Anchorage’s FY 2005 approved budget is based on total revenues of nearly $308 million, of
which $189 million (61.4 percent) is generated from property taxes. About 21.2 percent of
revenues is generated from other local taxes, interest, and a category termed “other,” and
16.7 percent is from local programs. Combined federal and state revenues contribute the
remaining 0.7 percent of projected revenues. Revenues to Anchorage from the State have
fallen from $11.8 million in 2002 to less than $2 million in the FY 2004 and FY 2005
budgets.
The average property tax rate in Anchorage is 16.37 mills, based on an average of 44 service
areas. There is an 8 percent bed tax, 8 percent car rental tax, a $1.30 tax on cigarette packs,
and a 45 percent tax on the wholesale price of other tobacco products. To fund a new
convention center, Anchorage voters recently approved a 4 percent increase in the bed tax,
effective in 2006. Anchorage has no sales tax.
Of the $189 million in total property taxes collected in 2005, just under $180 million came
from the Municipality’s property tax. Property taxes collected from specific areas provide the
other $9 million. There is a cap on property taxes, based on revenues from the preceding
fiscal year plus the average percentage growth or loss in Anchorage population over the
proceeding 5 fiscal years.
Personal services (wages for Anchorage employees) are anticipated to grow 5.8 percent
annually over the next 5 years. This is the largest category of expenditures shown. Set
increases for public safety are anticipated to be $2.5 million per year for 2006 through 2008.
Debt service expenditures are anticipated to increase 2.5 percent annually, and other
expenditures are expected to grow 3 percent annually.
The ASD budget for FY 2006 has revenues and expenditures at $569,588,806, an increase of
8.29 percent over the prior fiscal year (ASD 2005). The revenues come from local taxes and
other funds ($200.5 million), the State of Alaska ($300.6 million), and the federal
government ($68.4 million). State funding amounts to $4,955 per student, and local property
taxes provide $2,938 per student.
The Municipality’s capital improvement budget spending is expected to be just over
$97 million in FY 2005. Capital expenditures for the Anchorage Roads and Drainage Service
Area are nearly $60 million. Ongoing projects in the budget are expected to require nearly
$160 million of funding in 2006, followed by declining amounts through 2010.
Project management and engineering funding accounts for over 75 percent of the capital
improvement budget, followed by maintenance and operations (9 percent), and parks and
recreation, library, and museum (5.5 percent).
12/18/07 Page 3-69