Frequently Asked Questions

 

  1. What is the 2011 Municipal Election Schedule, and where do I vote?

  2. Why are we being asked to approve $36 million in Municipal bonds?

    • The Municipality of Anchorage (MOA) cannot incur general obligation debt without voter approval. The bonds before voters this April, if approved, will provide funds to invest in the infrastructure of our city to keep our economy healthy and meet some core responsibilities such as road improvements and public safety. Such capital improvements contribute to the quality of life for all Anchorage residents.

  3. What will the bond proceeds be used for?

    • The proceeds from sale of the bonds will be used to pay for capital improvement projects, such as road improvements and fire trucks. Under Alaska State Statute, bond proceeds can only be used for capital-type expenditures such as acquisition, design, construction, construction management and equipping the capital improvement. Costs to issue the bonds are paid from bond proceeds.

  4. How much debt does the Municipality currently have and how much of it is tax-supported?

    • Outstanding Municipal "general purpose" (non-schools) debt (such as what is on the April ballot) totals $482.3 million as of December 31, 2010.

  5. How will the new bonds impact annual debt, service payments and property taxes?

    • If all the general purpose bonds on the 2011 city ballot are approved, the overall estimated increase for debt service would be $2.9 million per year for the areas in which the capital improvements are located. The actual amount will depend on the interest rate and the maturity schedule as determined at the time when the bonds are issued.

      The actual impact on property taxes will vary depending on the service areas in which the property is located. For the bonds on this April's ballot, the estimated maximum increase for each $100,000 of assessed value is $11.49 for debt service and $3.26 for increased operating and maintenance costs.

  6. Will issuing these new bonds impact the Municipality's bond rating?

    • There should be no impact. The current rating for the MOA's general obligation debt is AA by Standard & poor's and AA+ by Fitch. The MOA's Financial Advisor, First Southwest Company, has reviewed the Municipality's debt capacity and has advised that "the proposed increase in bonded indebtedness is well within the debt capacity limits of the MOA."

      To come to this conclusion they considered the condition of our local economy, the Municipality's financial performance and flexibility, our rate of debt repayment, and quality of the Municipality's management.

  7. What is the dollar amount of general obligation bonds scheduled to be paid off in 2011?

    • The principal amount of general obligation, general purpose bonds scheduled to be paid off in 2011 is $26,050,000.

  8. Why do some of the bond propositions include an increase to the tax cap for operating and maintenance costs while others do not?

    • Some bonds will fund projects that will require on-going' operating and maintenance expenses. For such projects, voters also are being asked to approve an increase in the tax limit in order to collect additional taxes to cover the increased operating costs.

  9. When will taxes be impacted by approval of the proposed bonds?

    • Typically, there is a 12 to 18 month lag between when voters approve a bond to when taxpayers see the increase reflected in their tax bill. Taxes to pay debt service associated with the April 2011 bonds can be expected to appear on the 2012 or 2013 tax bills, depending on when the bonds are issued.

  10. What is the Municipality’s Capital Improvement Program?

    1. What is the “Capital Improvement Program (CIP)”?
      • It’s a six-year funding plan for capital projects.
      • Proposed by the mayor and approved by the assembly.
      • Provides a framework for future local road bonds and legislative grant requests.
      • Includes the latest federal funding plan from the AMATS TIP.
      • Includes all departments in the general government part of the MOA.
    2. How does a project get funded in the Municipality’s Capital Improvement Program (CIP)?
      • The need is identified.
      • A preliminary project scope to meet the need is developed.
      • The project is evaluated, prioritized, and included in a Needs List.
      • A project cost estimate is developed.
      • A project phasing is identified.
      • Project funding is proposed.
    3. How are capital project needs identified (What’s the problem)?
      • All through the year with phone calls, letters, and observations.
      • Community Council responses to the OMB annual survey.
      • Recommendations from the Traffic Department or Street Maintenance.
      • Comments during the bond/CIP public hearings.
      • Road Improvement Districts.
      • Coordination with the Water and Wastewater Utility.
    4. How is the project scope developed (What’s the fix)?
      • Options are identified.
      • Cost estimates for each are prepared.
      • A preliminary project scope is selected based on the most cost effective solution (bang for buck).
    5. How is the project prioritized?
      • Each department has specific criteria used for evaluating projects.
      • Each project is scored using individual criteria.
      • The individual criteria scores are totaled for each project.
      • A prioritized needs list is developed based on the total scores.
    6. How are project costs estimated?
      • In PM&E, engineers make assumptions on the probably project scope and limits.
      • Project estimating sheets, based on past experience, are used.
    7. What typical phases are involved in a project?
      • Design Study Phase
      • Design Phase
      • Utility/Right-of-way acquisition phase
      • Construction phase
    8. How long does it take to design and build a project?
      • Depends on the project size, complexity, and public involvement needs.
      • Typical range is from 2 months for simple projects not requiring much design that can be done by our street maintenance staff to 3-4 years for larger complex projects.
    9. What is the typical schedule for development of the CIP?
      • In the spring, OMB routes project lists to the community councils for comments.
      • In the spring, PM&E evaluates projects identified and develops a prioritized needs list.
      • In May, OMB provides PM&E with proposed funding levels for next six years.
      • In May and June, PM&E puts together a draft CIP and it routes for agency review.
      • In June, the draft CIP is submitted to OMB for review.
      • In the summer, Community Planning and the Administration review it.
      • In September, the draft CIP is submitted to the Assembly.
      • In October and November, the Assembly holds CIP public hearings and takes action.
      • In December or January, the Assembly takes action on the Legislative Program.
      • In February, the Assembly holds a public hearing and takes action on the bonds.