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FY08 Adopted Budget
Adopted by the Assembly on June 4, 2007
FY08 Adopted Budget Overview
The City develops a 2-year budget every other year and FY08 is the second year of the FY07/FY08 biennial budget. During the first year of the biennial budget, the Assembly adopts the first year (FY07) and conceptually approves the second year (FY08).
The Assembly conceptually approved the FY08 budget in June 2006 (during the FY07/FY08 biennial budget cycle). Beginning in January 2007, departments revised their FY08 Approved Budget to adjust for changes resulting from a variety of factors, including increases in energy costs, negotiated wage and benefit changes and unanticipated increases or decreases in other categories.
The uncertainty resulting from dramatic fluctuations in State funding and the continued increase in the Public Employees Retirement System (PERS) employer rate present on-going budgetary challenges for the City and Borough. This year was particularly challenging because early in the FY08 budget revision process, the City was notified that the PERS rate would increase from 26.22% to 42.56%. The impact on the City’s tax supported operations was over $3.0 million. The City funded this increase from the sales tax budget reserve as a temporary measure and kept the mill levy at the FY08 approved rate. If the 42.56% rate had remained, the City would have been faced with a combination of decreases in public services and a mill rate increase. However, on the last day of its session, May 16, the State legislature set the PERS rate at 22%. In addition, the State provided $1.7 million in support for general governmental operations. These changes allowed the Assembly to reduce the operating mill rate by 0.42 mills (from 9.68 to 9.26 mills).
The State also provided significant support to the Juneau School District (JDS), $11.3 million for PERS and TRS (Teacher Retirement System), $2.5 million for the area cost differential and $835,200 in a school improvement grant. These increases are offset by a $4.2 million decrease in State Foundation Funding, resulting in a net increase $10.4 million for State support to Education. The CBJ has continued to support the JDS to the maximum allowed under State law for operations plus additional amounts for after school activity buses, transportation of homeless students, food service and community schools. The total amount of CBJ support to the JDS for the 2007-2008 school year is $22.8 million.
One of the key purposes of developing a two-year budget is to reduce the amount of staff time devoted to budget in the second year. Therefore, all numbers and the narrative presented in the FY08 Adopted Budget have been reviewed. All of the numbers have been updated and narrative that has not been updated has been identified as such.
If you have questions regarding the budget, please contact Bonnie Chaney, Budget Analyst at 586-5215 or at Bonnie_Chaney@ci.juneau.ak.us.