FY10 Adopted Budget

Adopted by the Assembly on May 18, 2009

FY10 Adopted Budget Overview

The Assembly has adopted a biennial budget development policy. That is for each biennial budget cycle the Assembly adopts the first year’s budget (FY09) and approves, in concept, the second year’s budget (FY10). The Assembly then revisits the second year budget to make adjustments as appropriate.

The FY10 Revised Budget or second year budget was presented back to the Assembly on March 25, 2009. This was nearly two weeks prior to the normal April 5 budget submission date, as required by the Charter. Between March 25 and May 6, the Assembly Finance Committee reviewed the FY10 Revised Budget. On May 18 the Assembly adopted the FY10 Revised Budget. All changes approved by the Assembly for the FY10 Revised Budget are presented in this document. The significant items considered and implemented during this second year of our biennial budget process include:

Elimination of travel and training budgets not considered mandatory to maintain certifications or safety related.
Elimination of overtime and comp. time budgets unless required for shift coverage in critical areas.
Reduction in fuel budgets to reflect market price changes.
Exclusion of increments unless funded through reductions in other programs budgets and without unacceptable impacts to the reduced program.
An increase in capital project funding from the Port Development, Marine Passenger Fee and Water Enterprise funds.
Implementation of a procedure that requires all hiring to be approved in advance by the Manager’s Office.
A $152,800 increase in School District local support due to enrollment changes.
A $663,900 increase in School District state foundation funding support due to enrollment changes.

The FY10 budget as adopted shows a surplus of approximately $2 million in the general governmental funds (those areas funded primarily with property and general sales taxes). However, projections for FY11 through FY14 indicate the CBJ will be facing significant funding shortfalls of $4 to $5 million per each year. As elsewhere throughout the world, Juneau’s economy has suffered from the economic recession; housing values have declined, sales tax revenues have dropped, summer visitor numbers are projected to decline, all of which have negatively impacted the CBJ’s financial outlook. Some of the FY10 budget actions taken are a direct result of the City’s management taking proactive steps to reduce the projected shortfalls.

The Assembly and the City and Borough’s management will continue to monitor our revenues and expenditures closely to proactively respond to these projected shortfalls.

If you have questions regarding the budget, please contact Bonnie Chaney, Budget Analyst at 586-5215 or at Bonnie_Chaney@ci.juneau.ak.us.