The Fairbanks North Star Borough Assembly Finance Committee voted 8–1 on April 19 to forward a recommended FY2026 budget to the full Assembly, after a daylong work session and multiple amendments.

Committee members approved the committee recommendation to forward Ordinance 2025-20 — the recommended borough budget for the fiscal year beginning July 1, 2025 — while adopting several changes intended to reduce the amount the borough must draw from fund balance. The committee’s action does not finalize the budget; the full Assembly will consider the committee recommendation and hold public hearings before final passage.

Why it matters: the recommended budget as presented to the Finance Committee required a sizable use of fund balance to balance revenue and spending. Members spent much of the session debating where to reduce the draw on reserves while preserving services. The committee’s amendments reduce one planned contribution to the Vehicle & Equipment Replacement Reserve and trim a projected transfer into the Capital Improvement Program maintenance reserve, while adding anticipated state revenue to help offset operating costs.

What the committee approved: The committee recorded a series of roll-call votes on department sections, and on a final motion to transmit the committee recommendation to the Assembly. Key changes adopted by the committee included a $383,500 reduction to the general-fund contribution to the vehicle-and-equipment reserve (VERR), a reduction to the proposed annual transfer into the Capital Improvement Program maintenance reserve (KIPP MR) after members amended that line, and several grant- and grant-source adjustments. The committee also incorporated a $750,000 expected state community‑assistance payment into the recommended revenue total (the payment is a statewide true‑up of prior year funding and remains subject to the final state budget). Committee Chair O’Neil and members said the goal was to lower the immediate draw on general reserves while keeping a reasonable contingency for unforeseen capital needs.

Major amendments and committee debate: Several amendments prompted extended debate. Assemblymember Theresa "Reese" Ramos offered an amendment to eliminate two lifeguard positions and related operating costs at Marysai (Mary’s Side) pool; that amendment passed in committee by roll call. A separate amendment to remove the Carlson Community Activity Center from the borough’s operating portfolio and close that facility drew lengthy testimony and failed in committee. Committee members also voted to reduce a proposed KIPP MR contribution and to move several vehicle/equipment purchases into a later year; committee members said those changes preserve capacity for urgent needs while lowering this year’s fund‑balance draw.

What was not decided: The Finance Committee’s action reflects only the committee’s recommendation. The full Assembly will hold public hearings (the chair announced a public hearing schedule and public‑testimony procedures) and vote later on Ordinance 2025‑20. Any state funding included in the recommended revenue — such as the $750,000 community‑assistance true‑up — remains contingent on final state appropriation.

Votes at a glance (selected amendments and outcomes)
- Finance Committee motion to transmit the recommended FY2026 budget to the full Assembly — Passed 8–1 (motion: O’Neil; second: Kras). This forwarded Ordinance 2025‑20 and the committee’s amendments to the Assembly with a positive recommendation.
- Reduce general‑fund contribution to Vehicle & Equipment Replacement Reserve (VERR) by $400,000 (Amendment 10; moved by Dr. Haney) — Passed 9–0. The committee removed $400,000 from the VERR contribution after transportation staff identified vehicle/equipment items that can be deferred one year.
- Reduce KIPP MR transfer (amendment to committee motion) — Passed (amendment to amendment 7–2). The committee accepted a smaller reduction than originally proposed; the result keeps a larger balance in the KIPP MR while lowering this year’s general‑fund draw.
- Add $750,000 in expected state community‑assistance revenue (Amendment 11; moved by Dr. Haney) — Passed 6–3. The committee added $750,000 in state revenue to offset general‑fund spending; members noted final state action remains a variable.
- Remove selected vehicle/equipment purchases from FY26 VERR purchases (committee amendment) — Passed 9–0. Transportation staff identified specific items that can be deferred without an immediate maintenance risk.
- Amendment to eliminate two lifeguard positions and related costs at Marysai (mover: Reeves Ramos) — Passed 6–3 in committee. The committee supported deferring certain pool operating costs; the full Assembly will consider the recommended budget and may receive public testimony before any final change.
- Amendment to remove Carlson Community Activity Center from borough portfolio (closure proposal) — Failed 4–5. Committee members debated economic-development and community‑use impacts before voting to keep the center on the borough’s books.
- Transit: reallocate FY2026 grant lines to reflect an expected FTA 5307 apportionment — Passed 9–0. Committee accepted a technical amendment moving anticipated grant dollars into appropriate line items; staff said the FTA apportionment will be finalized later in the legislative process.

Key figures and budget context:
- Committee recommended budget includes planned general‑fund draw (use of fund balance) of approximately $6.83 million in FY26, before state true‑ups and committee amendments. The committee’s adopted amendments reduce that draw in several places.
- Committee members discussed a range of capital needs (vehicle/equipment replacement, solid‑waste projects, building repairs) and emphasized the tradeoff between preserving reserves and deferring capital work.

What comes next: The full Assembly will hold public hearings on Ordinance 2025‑20 (the chair announced schedules and a procedure for telephonic testimony). The Assembly will take up the committee’s recommended budget, hear public testimony, and then vote on final adoption. Members and staff said the public comment period — and the state budget process that could affect municipal revenues — will affect final decisions.

Ending: The committee’s recommendation narrows the immediate use of reserves while leaving funds for future, unforeseen capital needs. Committee members said they aimed for a balanced approach: reduce short‑term pressure on the general fund without deferring all capital upkeep. The Assembly will consider the recommendation and the public’s response in the coming weeks.