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Mayor Sullivan’s budget approved by Anchorage Assembly

2012 spending plan focuses on public safety, limits property tax growth
ANCHORAGE- Mayor Dan Sullivan’s 2012 budget was approved by the Anchorage
Assembly tonight.

The budget set for next year comes in at $452.3 million, which is $10.4 million less than
a continuation level budget; it also comes in below the maximum amount of property
taxes allowed by the tax cap.

“Now is not the time to dramatically increase property taxes,” said Mayor Dan Sullivan.
The total budget includes more than $500,000 in spending added by members of the
Assembly at tonight’s meeting. It also holds property tax increases to two percent higher
than in 2011, or $7.24 more per $100,000 of assessed home value.

Citizens approved half of that increase when they voted for bonds, and for the
maintenance and operations costs associated with them. The remaining half was
necessary to account partially for higher labor costs, with reductions in other areas
accounting for the remaining increases.

Included in the 2012 budget are costs resulting from the hiring of 29 new firefighters and
safety officers, and 30 new police officers, reflecting Sullivan’s commitment to public
safety as the top community priority.

“This budget is a real achievement in that it protects public safety and other essential
services like road maintenance, but reduces continuation level costs by finding
efficiencies and scrubbing the numbers,” said Mayor Sullivan. “Core services will
continue to be delivered at a high level, and property taxes will remain under control.”
Prior to Sullivan taking office, the city budget grew by approximately 53 percent in just
six years, from $283 million in 2003 to $433 million in 2009.

The mayor released his proposed 2012 budget to the Assembly in October, and the
Assembly held three public hearings on the spending plan in the months since. Prior to
finalizing the 2012 mill levies in April, members of the Assembly and administration may
propose changes to the approved budget based on the Municipality’s year-end financial
reports.

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