Budget Process

How is the Budget Created?

The Mayor is required to submit the proposed operating and capital budgets to the Assembly 90 days prior to the end of the fiscal year (October 2nd).  Thirty days earlier (September 2nd),  the Mayor is required to provide to the Assembly preliminary operating budget information on projected revenues, preliminary Tax Cap calculation, major reorganizations, and preliminary capital budgets.

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How we pay for capital projects

How are Roads and Buildings Financed?

The annual Capital Improvement Budget (CIB) pays for large-scale improvements such as purchase and/or construction of high-cost, long-lasting assets such as roads, buildings, parks and trails. The Capital Improvement Program (CIP) is a six-year plan that guides the Municipality’s capital improvement plans into the future.  Each year it is updated and serves as the starting point for developing the current year’s CIB.

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Tax cap

What is the Tax Cap?

The Tax Cap: A Voter-Mandated Limit on Taxes In October 1983, Anchorage voters approved an amendment to the City Charter known as the Tax Cap.  While some think of it as a property Tax Cap, it actually sets a limit on how much all taxes, regardless of sources, can increase from one year to the next.  Other taxes subject to the Tax Cap are: automobile registration, tobacco, aircraft registration, and motor vehicle rental.

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Taxes

How Are Property Taxes Calculated?

Property Taxes levied in Anchorage are approved by the Assembly.

A property tax is an ad valorem tax, which means it is based on the value of the taxable property.   Taxpayers pay a flat rate per dollar value of taxable property that they own. The flat rate, called a mill levy or mill rate, is $1.00 of tax per $1,000 of assessed value.

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Revenues

The primary source of revenue that pay for the operating budget is property taxes.  The revenue categories are:

  • Property taxes
  • Non-property taxes (i.e. tobacco tax)
  • Interest on earnings and other earnings
  • Program-generated fees, fines
  • Federal revenue
  • State revenue
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Budget Terminology

The average tax rate (mill levy) computed by:

Total Property ÷ Total Areawide x 1,000 = Average
Tax Required Assessed Mill Rate
Valuation

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