Ten Million Dollar Budget Proposed for School Year
By Julie M. Morgan
Star Reporter
SCHOOL BOARD--The Citizens Budget Review committee, charged with making recommendations on how Valdez City Schools should allocate its funding, has completed their process and approved the district administration's proposed $10 million budget for fiscal year 2005-06.
During the school board's regular meeting, a spokesperson from the committee made several suggestions for the administration's "best case scenario" recommendation list should additional funding become available.
"These are assumptions that we have absolutely no control over," said spokesperson Laurie Hull-Engles.
Budget recommendations are based on current revenue assumptions in state and city funding.
"We know we're going to get additional revenue," said Superintendent Ernie Manzie. "We just don't know how much."
Included in the 'reprioritized' list is a budget for assigning a grant writer to an existing administration position at a cost of $2,500, upgrading the Herman Hutchens counselor position at an increase of $38,500, upgrading existing computer technology in the high school lab, replacing the phone system at the elementary school and the district office buildings at a cost of $18,000 and replacing outsourced travel to benefit non-league activities for $20,000. The total cost of the additions is $255,000.
According to the budget, funding at state level for dollars per student is estimated at $4576. These figures are expected to go up during the current legislative session in Juneau with possible additional funding from the Senate and House Bills.
About $4 million in State funding is based on district wide student enrollment of 800. This figure is down 4.19 percent from FY04-05 count of 835 and still further reduced from the previous year's count of 864 students.
City allocation is expected to be funded at the maximum contribution. Other Sources of revenue include: $250,000 from the Federal and local lunch programs; $20,000 from interest earned on reserves and excess funds held throughout the year and $23,500 from doubled activity fees from Gilson Junior High and Valdez High Schools.
Major budget considerations include initiating a vehicle and equipment replacement schedule due to aging equipment and maintenance issues. The No Child Left Behind requirements and declining enrollment were also implemented into the budget.
Reductions include two certified teaching positions at $130,000, one bilingual aide position at $24,000 and a 50 percent cut in hours of a Special Education Paraprofessional at $14,800.
The new breakfast program is not included in the budget as funding would come from other sources.
Two public hearings are scheduled for April 12 and April 16 before the budget is formally adopted. The board plans to adopt the budget at their meeting on April 25 before a final presentation to the City Council on May 2.
Wednesday, March 30, 2005
Natural Gasline Presentation this Saturday
Natural Gasline Presentation this Saturday
By Pat Lyn
For The Star
CIVIC CENTER – Everything you ever wanted to know about the All-Alaska natural gas line but were afraid to ask.
That's the thrust of a public information meeting set for the Valdez Civic Center this Saturday afternoon. Questions from all will be on the table at the 3 p.m. session following a 30-minute status report by gas line executives.
The event is designed to update Valdez residents on the latest developments in the effort to bring an All-Alaska natural gas line from the North Slope to tidewater at Valdez.
Among those present will be a representative from San Diego-based Sempra Energy, the nation's second largest natural gas marketer behind British Petroleum. The firm is currently constructing an LNG conversion plant near Ensenada in Mexico.
Sempra has signed a Memorandum of Understanding with the Gas Line Port Authority to acquire all of the natural gas that will be coming down the pipeline.
At press time, the board of directors of the Alaska Gasline Port Authority was also attempting to organize a board meeting at 10 a.m. Saturday at the Civic Center.
Mayor Bert Cottle, a member of the board, said the meeting was not yet etched in stone but said the public could call him Friday to confirm. If it comes off, that meeting will also be open to the public.
By Pat Lyn
For The Star
CIVIC CENTER – Everything you ever wanted to know about the All-Alaska natural gas line but were afraid to ask.
That's the thrust of a public information meeting set for the Valdez Civic Center this Saturday afternoon. Questions from all will be on the table at the 3 p.m. session following a 30-minute status report by gas line executives.
The event is designed to update Valdez residents on the latest developments in the effort to bring an All-Alaska natural gas line from the North Slope to tidewater at Valdez.
Among those present will be a representative from San Diego-based Sempra Energy, the nation's second largest natural gas marketer behind British Petroleum. The firm is currently constructing an LNG conversion plant near Ensenada in Mexico.
Sempra has signed a Memorandum of Understanding with the Gas Line Port Authority to acquire all of the natural gas that will be coming down the pipeline.
At press time, the board of directors of the Alaska Gasline Port Authority was also attempting to organize a board meeting at 10 a.m. Saturday at the Civic Center.
Mayor Bert Cottle, a member of the board, said the meeting was not yet etched in stone but said the public could call him Friday to confirm. If it comes off, that meeting will also be open to the public.
Council Seeks Answers on Valdez Permanent Fund
Council Seeks Answers on Valdez Permanent Fund
By Lee Revis
Editor, Valdez Star
CITY HALL- A bid to use half of the earnings from the Valdez Permanent Fund left more questions than answers after a work session by the Valdez City Council a week ago Monday night.
The Permanent Fund Committee, which met at the direction of the City Council to weigh in on the ramifications of using 50% of earnings from the fund, valued at around $98 million. The committee recommended that the fund remain untouched. "We as a committee decided we didn't want to touch that money," said Council Member Bob Leisy, who also sits on the permanent fund committee.
This did not sit well with some of the other members of the council. While some favored using half of the fund earnings to establish an emergency cash reserve, Mayor Bert Cottle is looking for a way to fund the construction of the new junior high school. "The voters voted to put the school in," declared Cottle, who was defending his position on using the funds.
"I recognize that people voted," replied Council Member Dorothy Moore, who also sits on the permanent fund committee, "but that was before Alyeska started the gloom and doom."
According to Leisy, Valdez City Schools lost 32 students from the last school year to the current year, raising the question whether or not it would be prudent to build a new school with declining enrollment in Valdez City Schools.
To further complicate matters, a memo dated February 10 from the former City Manager Dave Dengel states: the city cannot sell the bonds to finance the project because the city is currently being sued by Polar Tankers (shipping company for Conoco Phillips) and SeaRiver Marine (shipping company for Exxon Mobil) over the personal property tax on vessels. Until this lawsuit is resolved the city cannot sell the general obligation bonds to pay for the school construction.
"Why don't we bring the bond people here?" asked Cottle, who felt it is dubious that the city can not bond a project while sitting on an asset worth approximately 98 million dollars. No one on the council or city administration who were present at the meeting had a concrete answer as to why the project is not bondable. Cottle is concerned that if the city waits too much longer to begin building a new middle school that the 60% funding from the state, worth around $9 million dollars, will be lost. The estimated cost of the project is around $16 million and he see earnings from the fund as the solution for funding the balance.
Under current policy, the fund is supposed to grow to $120 million, after which time the earnings on the principal of the fund are to be used to offset tax revenue losses to the city due to declines in the value of TAPS. However, by ordinance, the city council can use one half of the actual gains from the fund for city business. However, the money from last year's gains can not be used by council without a public vote due to the fact that the managers for the fund have been reinvesting the gains back into the fund. Once those monies are added to the principle of the fund, they can not be spent by the council without a vote from the public.
Many members of the council were caught off guard by the news that the funds are out of their reach, at least for this year. According to Christine Sasse, Finance Director for the city, the fund made approximately $8.2 million last year. Return to top of page.
By Lee Revis
Editor, Valdez Star
CITY HALL- A bid to use half of the earnings from the Valdez Permanent Fund left more questions than answers after a work session by the Valdez City Council a week ago Monday night.
The Permanent Fund Committee, which met at the direction of the City Council to weigh in on the ramifications of using 50% of earnings from the fund, valued at around $98 million. The committee recommended that the fund remain untouched. "We as a committee decided we didn't want to touch that money," said Council Member Bob Leisy, who also sits on the permanent fund committee.
This did not sit well with some of the other members of the council. While some favored using half of the fund earnings to establish an emergency cash reserve, Mayor Bert Cottle is looking for a way to fund the construction of the new junior high school. "The voters voted to put the school in," declared Cottle, who was defending his position on using the funds.
"I recognize that people voted," replied Council Member Dorothy Moore, who also sits on the permanent fund committee, "but that was before Alyeska started the gloom and doom."
According to Leisy, Valdez City Schools lost 32 students from the last school year to the current year, raising the question whether or not it would be prudent to build a new school with declining enrollment in Valdez City Schools.
To further complicate matters, a memo dated February 10 from the former City Manager Dave Dengel states: the city cannot sell the bonds to finance the project because the city is currently being sued by Polar Tankers (shipping company for Conoco Phillips) and SeaRiver Marine (shipping company for Exxon Mobil) over the personal property tax on vessels. Until this lawsuit is resolved the city cannot sell the general obligation bonds to pay for the school construction.
"Why don't we bring the bond people here?" asked Cottle, who felt it is dubious that the city can not bond a project while sitting on an asset worth approximately 98 million dollars. No one on the council or city administration who were present at the meeting had a concrete answer as to why the project is not bondable. Cottle is concerned that if the city waits too much longer to begin building a new middle school that the 60% funding from the state, worth around $9 million dollars, will be lost. The estimated cost of the project is around $16 million and he see earnings from the fund as the solution for funding the balance.
Under current policy, the fund is supposed to grow to $120 million, after which time the earnings on the principal of the fund are to be used to offset tax revenue losses to the city due to declines in the value of TAPS. However, by ordinance, the city council can use one half of the actual gains from the fund for city business. However, the money from last year's gains can not be used by council without a public vote due to the fact that the managers for the fund have been reinvesting the gains back into the fund. Once those monies are added to the principle of the fund, they can not be spent by the council without a vote from the public.
Many members of the council were caught off guard by the news that the funds are out of their reach, at least for this year. According to Christine Sasse, Finance Director for the city, the fund made approximately $8.2 million last year. Return to top of page.
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