The Denali Recovery Alliance was formed with the purpose of examining how to best aide recovery from the effects of Covid-19 on our local economy and tourism industry.
The future of the 2020 tourism season, as well as the ripple effects to other industries have gone from bright and optimistic, to uncertain and scary. Statistically, 1 in 4 small businesses do not reopen after facing a disruption of this magnitude. Impacted businesses can affect Denali Borough revenue, limit services for residents, limit options for tourists or affect other entities they do business with. There are ways for us as a community, to not only weather this storm, but to strengthen our community for the future.
As a community we have historically valued our schools, emergency services, non-profit programs and limited government. It is time to look forward to determine how we will continue to provide that support during a time of diminished revenue and uncertain future.
The Denali Recovery Alliance is seeking public input on how COVID-19 has affected businesses and residents, in order to best assist with recovery efforts in the short term. Additionally, we are seeking input on a long term recovery plan to diversify and strengthen the economic base of the Denali Borough.
The Denali Recovery Alliance is chaired by Denali Borough Mayor, Clay Walker and Denali Chamber of Commerce Executive Director, Vanessa Jusczak. Panelist include members of the Denali Borough Assembly, local business employees, the Denali School District Superintendent and community members.
We believe the residents represented by the Denali Borough need to have an clear understanding of income and expenditures as discussions about our fiscal health and future take place. A complete copy of the 2019 fiscal year budget is found under the ‘Important Links’ tab, but this simplified snapshot shares the values (in %) for the 2019 fiscal year budget. Hover over a section to view its value in percent.
FY 2020 Revenue and Expenditures (in %)
FY 2020 Income
- Overnight Accommodation Tax (57%)
- Severance Tax (1%)
- PILT Act (7%)
- Intergovernmental Assistance (8%)
- Interest Income (1.2%)
- Miscellaneous Income (<1%)
- Projected Lost Revenue (25%)
- Overnight Accommodation Tax (57%)
- Severance Tax (1%)
- PILT Act (7%)
- Intergovernmental Assistance (8%)
- Interest Income (1.2%)
- Miscellaneous Income (<1%)
- Projected Lost Revenue (25%)
FY 2020 Expenditures
- Governmental Expenses (29%)
- Denali Borough School District Expenses (45%)
- Deposits to Fund Accounts (9%)
- Matching Grant Expenses (<1%)
- Cut Expenses (16.2%)
- Governmental Expenses (29%)
- Denali Borough School District Expenses (45%)
- Deposits to Fund Accounts (9%)
- Matching Grant Expenses (<1%)
- Cut Expenses (16.2%)
2019 Income Total = $3,833,338
2019 Expenditures = $5,149,683
Shortfall of $1,286,500 (loss of $1,300,000 OAT revenue for March-June 2020)
Explanation of Income Categories
PILT Act (Payment in Lieu of Taxes) are Federal payments to local governments that help offset losses in property taxes due to the existence of nontaxable Federal lands within their boundaries.
Intergovernmental Assistance is contributions from various State of Alaska programs or co-op tax payments,
Interest Income is from Denali Borough accounts.
Miscellaneous Income …………………
FY 2021 Estimated Revenue and Expenditures (in %)
FY 2021 Estimated Income
- Overnight Accomodation Tax (40%)
- Severence Tax (<1%)
- PILT Act (7.3%)
- Intergovernmental Assistance (7%)
- Interest Income (1.15%)
- Miscellaneous Income (<1%)
- Alcohol/Marijuana Tax (3%)
- Projected Lost Revenue (40%)
- Overnight Accomodation Tax (40%)
- Severence Tax (<1%)
- PILT Act (7.3%)
- Intergovernmental Assistance (7%)
- Interest Income (1.15%)
- Miscellaneous Income (<1%)
- Alcohol/Marijuana Tax (3%)
- Projected Lost Revenue (40%)
FY 2021 Estimated Expenditures
- Governmental Expenses (41%)
- Denali Borough School District Expenses (40%)
- Deposits to Fund Accounts <1%)
- Reduced Expenses (22%)
- Governmental Expenses (41%)
- Denali Borough School District Expenses (40%)
- Deposits to Fund Accounts <1%)
- Reduced Expenses (22%)
2020 Projected Income = $3,100,239
2020 Projected Expenditures = $4,165,117
Projected shortfall of $1,064,878 (Loss of $2,100,000 OAT revenue for July-December 2019)
Explanation of Expenditures Categories
Governmental Expenses are all inclusive expenses related to the operations of the Borough Office and Borough Assembly, including salaries, benefits, utilities, IT services, rent, travel, training, non-profit contributions, supplies, etc.
Deposits to Fund Accounts include transfers to dedicated special funds, such as Capital Project Funds, Emergency Response Apparatus Funds, Parks & Recreation, Special Revenue and Disaster Contingency Reserves.
Matching Grant Expenses include monies awarded to non-profits for the Borough matching grant program.
We are currently gathering information from both residents and businesses of the Denali Borough.
If you’d be willing to take a few minutes, it would be greatly appreciated.
Community Resident Covid-19 Impact Survey
Community Business Covid-19 Impact Survey
The Denali Recovery Alliance Economic Impact & Recovery Plan is below. The additional documents were used to contribute to the plan, as well as to evaluate potential actions for recovery. We encourage personal examination of the documents, for the most in depth understanding of our local fiscal situation and possibilities.
Denali Recovery Alliance Economic Impact & Recovery Plan
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