Fairbanks mayor proposes 2027 budget, says revenue isn't keeping up with costs

Fairbanks Mayor Mindy O'Neall released a proposed 2027 budget Oct. 29 that projects a surplus of about $685,750, keeps all required reserves intact and keeps the city debt-free.

She paired the release with a warning that the city cannot keep relying on property owners alone to cover rising costs. O'Neall said the city faces financially constrained years ahead as revenue growth stagnates and Risk Fund losses continue to affect cash flow.

"The root cause is that our revenues are not keeping up with rising costs," O'Neall said. "That's an issue we have to figure out soon. We can't keep expecting property owners to foot the bill alone."

The release does not name a new revenue source.

The city describes the plan as one that holds government growth in check while prioritizing public safety, economic activity and long-term affordability. O'Neall said it focuses on essential services while limiting expansion of government operations.

The capital budget drops $15 million from 2026, a cut the mayor has attributed to lawsuit settlement payments. The capital plan still puts road and sidewalk improvements, City Hall upgrades and matching funds for road infrastructure first.

On the operating side, the budget continues downtown revitalization, including storefront improvements and expanded activation and security at Golden Heart Plaza. It keeps up snow removal and road maintenance, along with partnerships on homelessness response and behavioral health aimed at reducing pressure on first responders.

The budget adds staff in legal support, information technology and police evidence management. Police and emergency communications staffing are expected to reach full strength next year.

How Fairbanks pays for local government has also come up in the Legislature. At a May 29 House Finance Committee hearing on the gas line bill, Jeremy Bynum noted that many boroughs charge only a property tax and named Fairbanks among them. "There's no sales tax to support the local entities," Bynum said.

O'Neall will host a budget town hall Tuesday, Nov. 10, from 5:30 to 7 pm at the Noel Wien Library. The full budget is posted on the city website.