The Anchorage Municipality put out audited financials in July.
The Municipality’s bond rating reserve and emergency fund have been fully restored, replenishing savings that had been drained since 2018.
Having an adequate “rainy day” fund stabilizes the Muni’s financial outlook and helps protect taxpayer dollars, according to a release put out by Mayor Suzanne LaFrance’s office. Financial rating agencies expect the Municipality to maintain 10% of its annual “major fund” operating expenses in a reserve fund—about $52 million—with an additional 2% set aside in a "rainy day" fund for immediate emergencies. Robust cash reserves indicate financial health to credit rating agencies, which helps secure lower interest rates and saves taxpayers money on public borrowing costs.
The Municipality uses bonds as a tool to finance major infrastructure projects, such as road, drainage and building repairs and parks and trails improvements.
Several factors had impacted Anchorage’s reserves. These included capital costs from the 2018 earthquake and delayed federal disaster reimbursements, pandemic-related expenses and revenue declines. While federal reimbursements for the COVID-19 pandemic are now largely complete, reimbursement for the 2018 earthquake continues.
