Valdez Socioeconomic Baseline Indicators Study December 10 2015
Transcription
Valdez Socioeconomic Baseline Indicators Study December 10 2015
Valdez Socioeconomic Baseline Indicators December 2015 Thompson Pass, fall 2015 prepared for City of Valdez Economic Diversification Commission by Sheinberg Associates and McDowell Group Cover photograph of Thompson Pass, fall 2015 courtesy Matthew S. Brown www.PhotosonTheWildSide.com Valdez Economic Sector icons created by graphic illustrator Averyl Veliz www.averylveliz.blogspot.com/ Table of Contents Common Data Sources and Geography ................................................................................................................ i 1 Introduction, Purpose, Methods, and Study Deliverables............................................................................1 2 Demographics........................................................................................................................................................2 Population ..............................................................................................................................................................2 Profile of Age Groups and Race ..........................................................................................................................5 Migration to and from Valdez .............................................................................................................................7 3 Community and Individual Income .................................................................................................................9 Measures of Personal Income (household, per capita, family) .......................................................................9 Total Resident Income ........................................................................................................................................ 11 Income Distribution and Equality .................................................................................................................... 13 4 School Performance ............................................................................................................................................ 17 Valdez City School District Performance ........................................................................................................ 17 Prince Williams Sound Community College .................................................................................................. 20 5 Civic and Social Indicators ............................................................................................................................... 22 Crime Rates .......................................................................................................................................................... 22 Voter Participation .............................................................................................................................................. 23 Library Use .......................................................................................................................................................... 23 6 Cost of Living ...................................................................................................................................................... 24 7 Housing ................................................................................................................................................................ 26 Housing Stock...................................................................................................................................................... 26 New Housing Development .............................................................................................................................. 28 Cost of Housing, Affordability, and Vacancy Rates ...................................................................................... 29 Housing Needs of an Aging Population .......................................................................................................... 32 8 Undeveloped Land in Valdez ........................................................................................................................... 33 9 Overview-Valdez Workforce and Earnings, Top Economic Activities ..................................................... 40 Complete Valdez Work-Related Economy ...................................................................................................... 40 Valdez Nonemployer Businesses...................................................................................................................... 44 Valdez Employment and Wages ....................................................................................................................... 46 Resident/Nonresident Workforce ..................................................................................................................... 48 Seasonality of Workforce ................................................................................................................................... 51 Unemployment.................................................................................................................................................... 52 10 Transportation Data ........................................................................................................................................... 53 Valdez Pioneer Field ........................................................................................................................................... 53 Richardson Highway .......................................................................................................................................... 54 Alaska Marine Ferry System ............................................................................................................................. 54 Valdez Ports and Harbors .................................................................................................................................. 56 11 Oil Industry ......................................................................................................................................................... 58 Employment and Wages .................................................................................................................................... 58 Current Trends .................................................................................................................................................... 59 12 Local Government .............................................................................................................................................. 61 Wages and Employment .................................................................................................................................... 61 Services and Revenue ......................................................................................................................................... 62 Top 10 Property Tax Payers ............................................................................................................................... 63 13 Commercial Fishing & Seafood Processing ................................................................................................... 65 Valdez Resident Participation ........................................................................................................................... 66 Participation and Earnings in Prince William Sound Seine and other Fisheries ....................................... 67 Value of Prince William Sound Seine Fishery ................................................................................................. 69 Valdez Landings ................................................................................................................................................. 70 Seafood Processing ............................................................................................................................................. 71 14 Health Care & Social Assistance ...................................................................................................................... 73 Valdez Health Care & Social Assistance Sector .............................................................................................. 73 Providence Valdez System Indicators .............................................................................................................. 75 Health Rankings for Valdez-Cordova Census Area ...................................................................................... 75 15 Visitor Industry ................................................................................................................................................... 78 Visitor Industry Employment and Wages ....................................................................................................... 78 Valdez Visitor Volume, Characteristics, and Activities or Destinations ..................................................... 80 Bed and Hotel Tax Receipts ............................................................................................................................... 82 Charter and Sport Fishing .................................................................................................................................. 83 16 United States Coast Guard ................................................................................................................................ 86 17 Environmental Indicators.................................................................................................................................. 87 Climate ................................................................................................................................................................. 87 Post Exxon Valdez Oil Spill Effects .................................................................................................................. 88 18 Sources .................................................................................................................................................................. 89 Appendix 1 – Dashboards: Industry Indicators, by NAICS ............................................................................ 94 Natural Resources and Mining ......................................................................................................................... 96 Construction ........................................................................................................................................................ 98 Manufacturing ..................................................................................................................................................... 99 Trade, Transportation, and Utilities ............................................................................................................... 102 Leisure and Hospitality .................................................................................................................................... 105 Information ........................................................................................................................................................ 108 Financial Activities ........................................................................................................................................... 110 Professional and Business Services................................................................................................................. 113 Education and Health Care Services .............................................................................................................. 116 Other Services (except Public Administration) ............................................................................................. 118 Government Services ........................................................................................................................................ 120 Acronyms AADT ACS ADEED or DEED ADF&G ADOLWD or DOLWD ADOR ADOT&PF AHFC AMHS BEA BLS BTS CFEC DCCED DCRA IFQ IRS NAICS NOAA PFD PK-12 PWS QCEW USCG or Coast Guard Average Annual Daily Traffic American Community Survey Alaska Department of Education and Early Development Alaska Department of Fish and Game Alaska Department of Labor and Workforce Development Alaska Department of Revenue Alaska Department of Transportation and Public Facilities Alaska Housing Finance Corporation Alaska Marine Highway System U.S. Bureau of Economic Analysis U.S. Bureau of Labor Statistics U.S. Bureau of Transportation Statistics Commercial Fisheries Entry Commission Alaska Department of Commerce and Community Economic Development Alaska DCCED, Division of Community and Regional Affairs Individual Fishing Quota Internal Revenue Service North American Industry Classification System National Oceanic and Atmospheric Administration Permanent Fund Dividend Preschool through 12th Grade Prince William Sound Quarterly Census of Employment and Wages United States Coast Guard Common Data Sources and Geography NAICS The North American Industry Classification System (NAICS) two to six digit codes are the primary way that businesses are classified for economic data reporting and analysis. NAICS are used for Alaska Department of Labor and Workforce Development (ADOLWD) Quarterly Census of Employment and Wages (QCEW), categorizing and reporting IRS/US Census Nonemployer Business establishments and income, and by the US Census Bureau’s American Community Survey (ACS) for its economic and industry analyses. Businesses self-identify and report their NAICS classifications, and counts on this report’s dashboards reflect this for both state and city business license purposes. Periodically ADOLWD recognize that a business has misclassified itself and will correct this for its reporting purposes. QCEW QCEW is the ADOLWD Quarterly Census of Employment and Wages. The program originated in the 1930s, and was known as the ES-202 program until 2003 when the current QCEW title was adopted. The primary economic product is the tabulation of employment and wages of establishments which report to i the Unemployment Insurance (UI) programs of the United States. Employment covered by these UI programs represents about 97% of all wage and salary civilian employment in the country. QCEW is the most commonly used and reported employment data in Alaska. The QCEW data set counts the number of jobs by place of work. It does not include business owners, the self-employed, unpaid family workers, or private household workers. It counts all full-time and part-time jobs – so, if a person holds two wage and salaried jobs, total industry employment will report both jobs. QCEW employment data are released quarterly (with a time lag of about six months) for Alaska as a whole and for all of the Alaska’s boroughs and census areas. QCEW data includes the number of jobs in an area held by commuters who live outside the area (non-residents) as well as local residents. To support the Valdez Socioeconomic Indicators study, the ADOLWD segregated Valdez QCEW data from the Valdez-Cordova Census Area. Nonemployer Statistics Nonemployer businesses are those that either have no paid employees or they are self-employed soleproprietor businesses. Data on their income comes from annual or quarterly business income tax returns filed with the Internal Revenue Service. In this report, nonemployer businesses are sometimes referred to as Self-Employed or Sole Proprietor Businesses. The income of nonemployer business owners is not included in QCEW data or other data sets that report on employee income, as this is income of business owners, not employees. The smallest geography that nonemployer data is usually available is the borough, however to support this report the U.S. Census separated zip code 99686 (City of Valdez) data and prepared an analysis for Valdez. Nonemployer business data availability lags one-year behind QCEW employment data. It is common to combine 2014 QCEW data and 2013 Nonemployer data to better understand the whole workrelated economy. Annual analyses prepared the same way allow accurate year-to-year comparison of indicators and trends. To support Valdez Socioeconomic Indicators study, the US Census segregated Valdez Nonemployer Statistics data from the Valdez-Cordova Census Area. American Community Survey The American Community Survey (ACS) is the largest household survey in the United States. The ACS is conducted by the US Census Bureau and has replaced the former long-form sample questionnaire. Oneyear and 5-year ACS survey data is released, depending on the size of the place. For the City of Valdez, only 5-year data is available; the most recent is the 2009-2013 5-year survey release. The 5-year estimates from the ACS are "period" estimates that represent data collected over a period of time (as opposed to “point-in-time” estimates, such as the decennial census). The 5-year estimate includes data collected over a 60-month period. The primary advantage of using multiyear estimates is the increased statistical reliability of the data for less populated areas and small population subgroups due to a larger sample size. However, it is less current than one-year data. The 5-year estimate is not calculated as an average of 60 monthly values; nor is it the average of 5 single-year estimates. Rather, the ACS collects survey information continuously nearly every day of the year and then aggregates the results over 5 years. The ii data collection is spread evenly across the entire period represented so as not to over-represent any particular month or year within the period. The City of Valdez, Valdez-Cordova Census Area, and Gulf Coast Economic Region Valdez is a Home Rule City, incorporated in 1901. It is within the Valdez-Cordova Census Area, which is not part of any organized borough. The Valdez-Cordova Census Area has 25 communities within it, including the cities of Valdez, Cordova, and Whittier (Figure 1). The Valdez-Cordova Census Area is part of the Alaska Gulf Coast Economic Region, which also includes the Kenai Peninsula Borough and Kodiak Island Borough (Figure 2). iii Figure 1 – Valdez-Cordova Census Area iv Figure 2 – Alaska Economic Regions v 1 Introduction, Purpose, Methods, and Study Deliverables Valdez faces much the same fiscal uncertainties as the State of Alaska thanks to a high dependency on the oil industry. It accounts for 80-85% of the Valdez annual city government operating revenue and much of the community’s employment base. In response to expected oil industry decline, the Valdez City Council determined in February 2014 that economic diversification must be the community’s number one priority. Shortly thereafter, Valdez formed an Economic Diversification Commission to provide economic development leadership. A Community Strategic Plan adopted in 2014 identified three initial tasks for the new Economic Diversification Commission to accomplish: 1. Conduct a Year Round Mountain Recreation Site Feasibility Analysis 2. Collect Socioeconomic Baseline Indicator Data 3. Collect local Visitors Statistics Data Through a competitive process, the City selected the Sheinberg Associates/ McDowell Group Team to prepare this Socioeconomic Baseline Indicators Data report, called for in the Community Strategic Plan. Information in this report establishes a 2014 baseline against which to measure economic diversification and other economic and community efforts. In addition to 2014 baseline data, five to ten years of previous data if offered for most indicators to allow consideration of current position and trends. Three reports comprise the Valdez Socioeconomic Baseline Indicator study: 1. Socioeconomic Baseline Indicators Study (full report with all indicator and socioeconomic data) 2. Executive Summary - Socioeconomic Baseline Indicators Study (focuses on key indicators and trends) 3. Business Survey Report (results of September 2015 online business owner survey that 133 Valdez business owners or non-profit managers completed) The project team completed the following steps to prepare this report: 1. Gather and analyze data from about 100 sources, 2. Request and obtain City of Valdez/zip code 99686-only data from Alaska Department of Labor and Workforce Development (ADOLWD) for Quarterly Census of Employment and Wages (QCEW) and from the US Census for Nonemployer Business Statistics; 3. Receive assistance from City of Valdez for Geographic Information System (GIS) mapping and analysis of property, zoning, and development; 4. Interview dozens of industry leaders to seek deeper understanding of local concerns and trends as well as obtain data; 5. Conduct an online Business Survey that was completed by 133 Valdez business owners and nonprofit managers; 6. Review initial data with the Valdez Economic Diversification Commission on August 4, 2015; and 7. Discuss data from the draft Executive Summary with the Valdez City Council and Economic Diversification Commission at a joint meeting on October 20, 2015. Valdez Socioeconomic Baseline Indicators Study December 2015 Page 1 2 Demographics Population Looking back 25 years, the hallmark of Valdez’s population pattern has been its stability: the population in 1990 was 4,068, and in 2014 it was 4,032 (Figure 4). During the last 25 years, the population peak for both the city and census area occurred in 1995. During this period, the number of residents grew as high as 4,305 (1995) and dropped as low as 3,819 (2009). Alaska’s population during this 25 year period increased 140%. While stability has been the long-term trend, the Valdez population dropped in 2013 and 2014 by 2.5%. Figure 3 – Key Demographic Indicators, Valdez City 2000-2014 2000 2010 2011 2012 2013 2014 2010-2014 2013-2014 change change change (15-year) (5-year) (1-year) Population 4,036 3,976 4,040 4,136 4,097 4,032 -0.1% 1.4% -1.6% Median Age 35.4 36.7 36.2 35.2 36.3 36.0 -0.6 yr -0.7 yr -0.3 yr Number age 0-4 297 279 305 338 317 309 4.0% 10.8% -2.5% Number age 5-19 989 831 793 823 828 801 -19.0% -3.6% -3.3% Number age 65+ 141 220 240 261 279 283 100.7% 28.6% 1.4% 4,006 3,480 3530 3587 3,619 3,444 -14.0% -1.0% -4.8% 868 673 688 686 638 614 -29.3% -8.8% -3.8% Number of PFDs PK-12 School District Enrollment (FY) Sources: Population-US Census (2000, 2010, ADOLWD Est. (2011-2014); PFD--Alaska DOR; Enrollments Alaska DEED Figure 4 - Local, Regional, and State Population - Estimates and Projections Year Valdez Valdez-Cordova Cen. Area Alaska Year Valdez Valdez-Cordova Cen. Area Alaska 1970 1,005 4,955 302,583 2008 3,941 9,679 686,818 1975 6,512 7,100 371,000 2009 3,819 9,494 697,828 1980 3,079 8,348 401,851 2010 3,976 9,636 710,231 1985 3,667 9,917 543,900 2011 4,040 9,847 722,818 1990 4,068 9,952 550,043 2012 4,136 9,936 731,191 1995 4,305 10,416 601,581 2013 4,097 9,811 735,662 2000 4,036 10,195 626,932 2014 4,032 9,567 735,601 2001 3,995 10,083 632,716 2002 4,161 10,140 641,729 2017 N/A 9,851 770,417 2003 4,126 10,298 649,466 2022 4,105** 9,724 806,479 2004 3,980 10,102 659,653 2027 N/A 9,552 839,191 2005 4,028 10,177 667,146 2032 4,010** 9,368 868,902 2006 3,958 9,951 674,583 2037 N/A 9,171 897,034 2007 3,892 9,818 680,169 2042 3,899** 8,985 925,042 Projections Sources: 1970-1990: U.S. Census, except Valdez 1975: Baring-Gould; 1990 -2014 Population Est, ADOLWD; 2017-2042 Population Projections, ADOLWD; **Sheinberg Associates Valdez Socioeconomic Baseline Indicators Study December 2015 Page 2 Figure 5 - Population Growth Rates (average annual) City of Valdez Valdez-Cordova Census Area Alaska 19701980 19801990 19902000 20002010 20102014 20102011 20112012 20122013 20132014 12.5% 1.5% -0.1% -0.1% 0.3% 1.6% 2.4% -0.9% -1.6% 5.2% 1.8% 0.2% -0.6% -0.6% 2.2% 0.9% -1.3% -2.5% 2.8% 3.1% 1.3% 1.2% 0.0% 1.8% 1.2% 0.6% 0.0% Source: ADOLWD, Sheinberg Associates While Valdez’s population has been stable, the Valdez-Cordova Census Area population has been shrinking over the last 15 years. The census area’s population is down 6.2% since 2000. Throughout the census area, most communities besides Valdez and Whittier, have been losing population (since 2000, Cordova is down 7%, Kenny Lake down 25%, and Copper Center down 22%, etc.). The Alaska Department of Labor and Workforce Development (ADOLWD) projects continued population decline for the census area. If past patterns of births/deaths and in/out-migration continue, a shift share analysis suggests that the city of Valdez population will remain stable for about ten years, even as the Valdez-Cordova Census Area population shrinks, and then begin a slow decline (Figure 6). Figure 6 - Local, Regional, and State Population Estimates and Projections 12,000 1,000,000 900,000 800,000 700,000 8,000 600,000 6,000 500,000 400,000 4,000 300,000 Valdez City State Population CA and City Population 10,000 200,000 2,000 100,000 2040 2035 2030 2025 2020 2015 2010 2005 2000 1995 1990 1985 1980 1975 0 1970 0 Sources: 1970, 1980, 1990: US Census Bureau Decentennial Census; 1975, 1985, 1995: US Census Intercensal Population Estimates; 1975 Valdez Estimate: Baring-Gould, M. and Bennet, M; 2000 - 2014 Population Estimates: ADOLWD; 2017 2042 Population Projections: For Census Area and State - ADOLWD Population projections 2017 - 2042, vintage 2012. City of Valdez population projections: Sheinberg Associates. Valdez Socioeconomic Baseline Indicators Study December 2015 Page 3 Seasonality of Population The city’s annual population fluctuates seasonally. In 2014, ADOLWD QCEW data shows 788 more workers employed in Valdez in August than in January. These are seafood processing workers employed at the processing plants and hatcheries, contractors and workers living at the Valdez Airport Mancamp supporting Alyeska Valdez Marine Terminal and construction work, and retail, food, and accommodations workers supporting summer visitor industry businesses. Number of PFD Applicants Despite the stable Valdez population during the last 15 years, the number of Permanent Fund Dividend (PFD) applicants has declined 15% since 2000 (Figure 7). Between 2010 and 2013 the number of PFD applicants grew, but in 2014 dropped almost 5%, the largest decline in a decade. The population and number of PFDs are never perfectly correlated, as individuals must reside in Alaska for one year beginning January 1 before applying for a dividend. However, the disparity between the stable population and declining PFD applicants could signal an increasing number of non-residents living in Valdez since 2000. Average employment in Valdez has increased since 2000 (see Figure 57, chapter 9) while the overall population has remained steady; another factor that suggests increased non-residents in town. Figure 7 - Valdez Permanent Fund Dividend Applicants 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Adults 2,722 2,745 2,698 2,655 2,740 2,644 2,614 2,658 2,661 2,682 2,580 Children 1,067 1,048 1,013 964 886 887 866 872 926 937 864 Total 3,789 3,793 3,711 3,619 3,626 3,531 3,480 3,530 3,587 3,619 3,444 0% -2% -2% 0% -3% -1% 1% 2% 1% -5% Percent change Source: State of Alaska Department of Revenue, Annual Reports School Enrollment School enrollment has declined almost 30% over the last 15 years and 12% over the last five years (2011-2015), a trend seen in many Alaska communities (Figure 8). The number of school-age youth (ages 5-19) is also decreasing, though not as rapidly. One reason for this is enrollment in home schools. There are approximately 35 enrolled at Chugach School District FOCUS home school and reported to be additional private home schools in Valdez. Youth enrolled at the Valdez Home School (launched in fall of 2014 with 11 students and with 23 in fall of 2015) are included in Valdez City School District total student count, though the district receives less per pupil reimbursement for these students. Valdez Socioeconomic Baseline Indicators Study December 2015 Page 4 Figure 8 - Valdez City School District Enrollment, PK-12 900 800 700 600 500 400 300 200 100 0 TOTAL FY 04 FY 05 FY 06 FY 07 FY 08 FY 09 FY 10 FY 11 FY12 FY 13 FY 14 FY 15 874 836 801 756 729 698 673 688 686 638 614 608 Valdez Home School 0 0 0 0 0 0 0 0 0 0 0 11 Valdez High School 300 285 278 262 244 229 226 222 228 200 184 168 Hermon Hutchens Elementary 430 414 400 383 375 364 332 354 358 301 285 276 George H Gilson Jr High 144 137 123 111 110 105 115 112 100 137 145 153 Source: Alaska DEED, School Enrollment Totals Profile of Age Groups and Race Like the nation, the City of Valdez is home to a significant population of baby boomers. By the year 2025, all members of this generation will have reached the age of 60, and most will be over the age of 65. The percent of Valdez’s population that is age 65 or older has increased 29% over the past five years (Figure 4). In 2014, the median age in the City of Valdez was 36.0, for the Valdez-Cordova Census Area it was 39.0, and for Alaska it was 34.4 years old. In 2014, the percentage of the population that is age 65 or older in the City of Valdez was 7% and in the Valdez-Cordova Census Area it was 10%. Valdez’s overall population is a little younger than the Census Area as a whole. The percent of people age 65 or older in the Valdez-Cordova Census Area is projected to double by 2022, according to the ADOLWD (Figures 9 and 10). Those ages 65 and older are expected to increase from 962 people today (10% of the population) to 2,119 people (22% of population) by 2022. And in the census area, the percentage of the population that is age 85 or older, a group typically with more intensive needs, is expected to double as well, increasing from 66 in 2014, to 125 in 2022. By 2032, this demographic will more than triple, reaching 195. Similar or slightly smaller increases to the percentage of the population that is older can be expected in Valdez, compared to the Census Area as a whole. The growth of residents age 65 and older will affect health care, housing, community engagement, and other needs. Valdez Socioeconomic Baseline Indicators Study December 2015 Page 5 Figure 9 - Age Distribution Projections, Valdez-Cordova Census Area 1% 1% 85+ 2% 4% 1% 2% 9% 19% 17% 15% 14% 20% 20% 19% 16% 16% 26% 27% 27% 2014 2022 2032 80-84 26% 65-79 50-64 19% 35-49 20-34 0 -19 Sources: ADOLWD Population Est.; 2022-2032 ADOLWD Population Projections by Age and Sex, vintage 2012 Figure 10 - Age Distribution for Valdez City, the Valdez-Cordova Census Area, and Alaska 2014 Age 0-19 Valdez City 2022 Projections Census Area 2032 Projections State Census Area State Census Area State Pop. % of Pop. Pop. % of Pop. % of Pop. Pop. % of Pop % of Pop Pop. % of Pop. % of Pop. 1,110 28% 2,525 26% 28% 2,601 27% 29% 2,541 27% 29% 20-34 849 21% 1,818 19% 23% 1,498 16% 21% 1,491 16% 20% 35-49 834 21% 1,784 19% 19% 1,929 20% 20% 1,897 20% 21% 50-64 956 24% 2,478 26% 21% 1,405 15% 17% 1,312 14% 14% 65-79 252 6% 834 9% 8% 1,783 19% 12% 1,565 17% 12% 80-84 17 0.4% 62 0.6% 1% 211 2% 1% 367 4% 3% 85+ 14 0.3% 36.0 66 0.7% 1% 34.4 125 1% 1% 35.4 195 2% 2% 36.1 Median Age 39.0 40.5 40.3 Sources: 2014-ADOLWD Population Est. by Age and Sex; 2022-2032 ADOLWD Population Projections by Age and Sex, vintage 2012 Valdez Socioeconomic Baseline Indicators Study December 2015 Page 6 Valdez is less racially diverse than Alaska as a whole (Figure 11). The percent Alaska Natives in Valdez is slightly less than the statewide average. The big difference is the lack of people of other races in Valdez compared to Alaska as a whole. Figure 11 - Population by Race and Ethnicity, 2009-2013 Race Valdez % of Alaska % of Population Population White 80% 67% Black or African American 1% 4% American Indian or Alaska Native 11% 14% Asian 1% 5% Native Hawaiian and other Pacific Islander 1% 1% Other Race 2% 8% More Than One Race 5% 8% 100% 100% Total Population Source: 2009-2013 American Community Survey 5-year Estimates Migration to and from Valdez Permanent Fund Dividend (PFD) records are used to track the movement of Alaska residents through address changes in annual dividend applications. PFD-based migration data has broad in-state coverage but is slow to record new migrants from outside the state (because residents aren’t eligible for the PFD until they’ve lived in Alaska for one calendar year). Similarly, PFD data does not capture people who do not live in Alaska long enough to qualify for a PFD. However, this data is available by zip code and provides useful insight into migration to and from Valdez. PFD migration data shows that the majority of Valdez residents (over 3,000) stay in place from year to year (Figures 12 and 13). Between 2013 and 2014, a net 36 PFD applicants left Valdez. Of those leaving Valdez in 2014, the majority (273 or 58%) left the PFD program altogether meaning they either moved out of Alaska or died. The remainder (199 or 42%) moved somewhere else in the state (Figures 12 and 13). The majority of new PFD applicants in Valdez in 2014 (315 or 72%) were new to the PFD program, meaning they either were born in Valdez that year or moved there from out of state. Valdez Socioeconomic Baseline Indicators Study December 2015 Page 7 3,500 600 3,400 500 3,300 400 3,200 300 3,100 200 3,000 100 2,900 0 2,800 In Out No. Who Stayed in Place No. of In or Out Migration Figure 12 - Migration In and Out of Valdez 700 Stayed in Place Figure 13 - Change in Place of Residence for PFD Applicants in City of Valdez Stayed in Valdez In from Other Place in Census Area In from Other Place in Gulf Coast In from Other Part of State New to PFD (incl. births) Total IN Out to Other Place in Census Area Out to Other Place in Gulf Coast 20043,261 17 21 107 309 454 15 18 2005 20053,220 24 25 122 249 420 19 16 2006 20063,152 25 11 95 250 381 25 16 2007 20073,139 14 24 119 274 431 13 12 2008 20083,095 19 12 110 230 371 24 16 2009 20093,043 21 13 133 319 486 13 11 2010 20103,085 17 18 117 317 469 31 10 2011 20113,100 26 17 123 351 517 13 14 2012 20123,111 18 17 123 276 434 19 18 2013 20133,073 15 13 93 315 436 13 32 2014 Source: Alaska Department of Labor and Workforce Development, Research and Analysis Section Out to Other Part of State Left PFD (incl. deaths) Total OUT Net Change 134 277 444 10 161 299 495 -75 195 252 488 -107 134 235 394 37 176 259 475 -104 162 237 423 63 164 239 444 25 126 301 454 63 137 332 506 -72 154 273 472 -36 Valdez Socioeconomic Baseline Indicators Study December 2015 Page 8 3 Community and Individual Income Economic development policies often seek ways to maximize retention and recirculation of income within the community as well as increase new income and revenue from outside sources. This chapter presents information about: 1. Personal Income (for households and families, per capita, and adjusted gross) 2. Total Resident Income by Type (from work, investments etc.) 3. Measures of Income Distribution and Income Equality This information comes from several data sources; each with strengths and weakness. When all data sources and information are considered together, a picture emerges that suggests Valdez residents earned approximately $140 to $145 million in work-related income including benefits in 2014. When investments, rents, transfer payments, other community income sources and non-resident work earnings are included, a total of between $190 and $230 million circulates annually in the community. Measures of Personal Income (household, per capita, family) Data for household, per capita, and family income comes from the US Census Bureau American Community Survey (ACS). These numbers are calculated from five years of survey data; therefore, the 2013 estimate is based on data collected from 2009-2013. The 5-year ACS is the only household and family income data source available for the Valdez city. Valdez remains among Alaska’s top communities in terms of median household income, at $93,625. Valdez was well above the Alaska median of $70,760, and above nearly all other municipalities in Alaska (Figure 14). Valdez remains among Alaska’s top communities in terms of median family income, at $95,734. Valdez was well above the Alaska median of $82,870, and above most other municipalities in Alaska (Figure 14). Valdez ranks highly for per capita income in Alaska. Per capita income in Valdez was an estimated $35,243. This is a measure of total community income divided by community population, though the ACS estimates do not include income for children under 15. Of the communities listed on Figure 14, only Anchorage, Juneau, and Cordova had higher per capita incomes. Valdez Socioeconomic Baseline Indicators Study December 2015 Page 9 Figure 14 - Valdez Income Measures Compared to Select Alaska Communities, 2009-2013 Estimate Community Median Household Income Valdez $93,625 Cordova Juneau Per Capita Income Median Family Income $35,243 $95,734 $96,875 $37,992 $116,115 $81,490 $37,558 $95,112 Anchorage $77,454 $36,214 $90,466 Palmer $59,966 $25,352 $74,301 Sitka $69,405 $32,521 $78,000 Fairbanks city $54,781 $28,872 $76,815 Kenai city $63,019 $31,710 $76,815 Homer $53,750 $32,046 $74,583 Glennallen $47,500 $21,858 $83,125 Whittier $42,500 $29,583 $51,806 Alaska $70,760 $32,651 $82,870 United States $53,046 $28,155 $64,719 Source: American Community Survey 2009-2013 5-year Estimate Despite the high 2009-2013 income levels in Valdez, when inflation is considered, income has been flat since 2000 (Figure 15). Measured in inflation adjusted dollars, median household income in Valdez has been flat over the past 15 years. Median household income of $93,625 in 2013 is equivalent to a 2000 median of $93,810 (as measured in 2013 dollars, or $66,532 in 2000 dollars). Per capita income has actually declined since 2000. When adjusted for inflation, Valdez’s 2000 per capita income of $27,341 is the equivalent of $38,550 in 2013 dollars. But, in 2013 it was only $35,243 (in actual or nominal dollars). Estimates of median family income show less change over the past several years than median household income. Median family income was steady at around $98,000 over the 2011 to 2013 period (Figure 15). Caution is required in using ACS income estimates. The estimates are based on survey samples, with attendant error margins. For example, the 2009-2013 estimate of $93,625 for Valdez median household income has an error margin of plus or minus $23,000. The 2013 estimate of $95,734 in family income has an error margin of plus or minus $17,000. Due to the size of the error margins, caution is also required when considering year-to-year change. For example, the difference between the 2009-2013 and 2008-2012 estimated median household income of $13,100 is within the margin of error. Therefore the difference between the two estimates may not be statistically significant. Valdez Socioeconomic Baseline Indicators Study December 2015 Page 10 Figure 15 - Valdez Per Capita, Houshold, and Family Income $100,000 $80,000 $60,000 $40,000 $20,000 $0 2000 2006-2010 2007-2011 2008-2012 2009-2013 Per Capita Income $27,341 $34,822 $34,614 $36,609 $35,243 Median HH income $66,532 $69,536 $73,068 $80,476 $93,625 Median Family Income $74,188 $81,458 $94,841 $96,862 $95,734 Sources: US Census (2000) and ACS 5-Yr Estimates (2010-2013) Total Resident Income The US Bureau of Economic Analysis (BEA) reports personal income data for boroughs and census areas. According to the BEA, personal income for residents of the Valdez-Cordova Census Area totaled $504 million in 2013. Valdez’s share of that is $211 million (42% of the census area total) in 2013 based strictly on a proportional distribution by population. Again, based on census area population distribution, two- Figure 16 - Personal Income for Valdez Residents, by Source, 2013 (as reported by BEA) thirds (68%, approximately $143 million) of that income Transfer payments 13% derives from workplace-related income (wages, salaries and proprietor’s income), 19% ($40 million) from “dividends, interest and rent,” and 13% Dividends, interest, and rent 19% ($27 million) from transfer payments (payments from Workplacerelated income 68% government to individuals, including the Permanent Fund Dividend) (Figure 16). Source: McDowell Group estimates based on BEA CA30 data Approximately one-quarter of workplace-related income (23%), is the value of employer paid benefits, such as health insurance and retirement contributions. Excluding these benefits, Valdez residents earned about $110 million in workplace-related income in 2013. Valdez Socioeconomic Baseline Indicators Study December 2015 Page 11 The US Census Bureau’s ACS estimate of resident community income yields a similar result as the BEAbased estimate. Using per capita income estimates, total community income for Valdez residents was approximately $145 million in 2013. A third estimate of Valdez community resident income is from individual tax returns filed with the Internal Revenue Service (IRS). There were 2,100 tax returns filed by Valdez residents in 2012; these can be from individuals, married couples, or families. Together, they indicate that total adjusted gross income (AGI)1 for Valdez residents was $149 million in 2012 (the most recent available data). Adjusted gross income reported on individual income tax returns by Valdez residents has increased 33% from 2004 to 2012 (Figure 17). However, if adjusted for inflation, the real increase is about 8%. In 2012, 79% of adjusted gross income reported on Valdez tax returns was from salaries and wages; 10% from pensions and retirement; 2.5% from business or profession net income; 2% from social security; 2.1% from interest, dividends, and capital gains; and about 5% from other sources (Figures 18 and 19). Income ( in 000s ) Figure 17 - Valdez Total Resident Income, 2004-2012 (as reported by IRS) $180,000 $160,000 $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $0 2004 2005 2006 2007 2008 Salaries and wages 2009 2010 Other income 2011 2012 Source: IRS Individual Income Statistics. Figure 18 - Sources of Valdez Residents Income, 2012 Pensions and retirement, 10% SS and unemployment, 2% Other income, 5% Interest, dividends, capital gains, 2% Business or profession net income, 2% Salaries and wages , 79% Source: IRS Individual Income Statistics 1 Adjusted gross income equals gross income less a variety of expenses: health savings account deductions; certain moving expenses; one-half of self-employment tax; certain retirement contributions; college tuition, fees, and student loan interest; and others. Valdez Socioeconomic Baseline Indicators Study December 2015 Page 12 Figure 19 - Valdez Total Resident Income, 2004-2012 (dollar values in $000s) (as reported by IRS) Number of Returns Salaries and Wages Other Income 2004 2005 2006 2007 2008 2009 2010 2011 2012 2,144 2,076 2,050 2,144 2,161 2,148 2,155 2,149 2,100 $94,294 $91,812 $95,538 $100,240 $106,811 $111,524 $112,855 $110,234 $117,045 $18,074 $22,989 $23,153 $28,503 $34,296 $27,810 $43,277 $39,666 $31,940 Business or profession net $1,363 $2,568 $1,733 $2,647 $2,156 $1,822 $3,010 $1,991 $3,659 $2,843 $4,133 $4,534 $6,067 $5,342 $3,534 $12,745 $3,515 $3,129 n/a n/a n/a $11,888 n/a $13,012 $13,712 $13,964 $14,817 n/a n/a n/a $2,355 n/a $2,711 $3,479 $3,217 $3,037 $13,868 $16,288 $16,886 $5,546 $26,798 $6,731 $10,331 $16,979 $7,298 $112,368 $114,801 $118,691 $128,743 $141,107 $139,334 $156,132 $149,900 $148,985 income (less loss) Interest, dividends, capital gains Pensions and retirement SS and unemployment Misc. other income Adjusted Gross Income Source: IRS Individual Income Statistics Income Distribution and Equality Several sources of information provide insights into income distribution in Valdez. These include: IRS tax returns provide data for 2,100 Valdez individuals and families in 2012 The 2009-2013 Census Bureau’s ACS Estimate reports income data for 1,340 Valdez households and 1,103 families. It also lists the percent locally who qualify for federal Supplemental Nutrition Assistance Program (SNAP) and that live below the federal poverty level. The 5-year ACS also reports on the “Gini Index,” which provides a measure of income inequality. Alaska DEED provides information on the number of students who qualify for a free or reduced fee school lunch. ACS data for household income show that among the 1,340 households in Valdez, 27% earned less than $50,000 in annual household income, and 44% earned over $100,000 (Figures 20 and 22) in 2009-2013. Similarly, among Valdez families, 27% made less than $50,000 in annual income, and 45% earned greater than $100,000 (Figures 20 and 22) in 2009-2013. IRS tax returns for residents (individuals and families) indicate that those with an adjusted gross income in 2012 that is greater than $100,000 account for about one-quarter of all Valdez 2012 tax returns, and 60% of the total community income (Figures 20 and 21). Valdez Socioeconomic Baseline Indicators Study December 2015 Page 13 Figure 20 - Measures of Valdez Income Distribution Income % of Total Tax % of Total Community % of Total Households % of Total Families Returns (2012) Income (2012) (2009-2013) (2009-2013) Based on… 1,340 Households 1,103 Families Under $25,000 31% 2,100 Individual Tax Returns 5% 10% 10% Under $50,000 50% 14% 27% 27% Over $100,000 26% 61% 44% 45% Sources: % of Total tax returns & total community income - 2012 IRS Tax Returns; % of total households and families 2009-2013 5-yr ACS Figure 21 - Valdez 2012 Income Distribution, based on IRS Tax Returns Number of % of Total of Adjusted Gross % of Total Returns Returns Income Income 2,100 - $148,985,000 - $1 under $25,000 660 31.4% $6,759,000 4.5% $25,000 under $50,000 390 18.6% $14,202.000 9.5% $50,000 under $75,000 270 12.9% $16,486,000 11.1% $75,000 under $100,000 240 11.4% $20,307,000 13.6% $100,000 under $200,000 440 21.0% $62,028,000 41.6% $200,000 or more 100 4.8% $29,203,000 19.6% All combined Source: IRS Individual Income Statistics Figure 22 – Distribution of Valdez Household and Family Income, 2009-2013 (as reported by ACS) No. of Households % of No. of Families % of (Total=1,340) Households (Total = 1,103) Families Less than $10,000 32 2.4% 32 2.9% $10,000 to $14,999 22 1.6% 0 0.0% $15,000 to $24,999 81 6.0% 81 7.3% $25,000 to $34,999 74 5.5% 55 5.0% $35,000 to $49,999 151 11.3% 130 11.8% $50,000 to $74,999 209 15.6% 148 13.4% $75,000 to $99,999 186 13.9% 166 15.0% $100,000 to $149,999 408 30.4% 314 28.5% $150,000 to $199,999 110 8.2% 110 10.0% Income $200,000 or more 67 5.0% 67 6.1% 1,340 100% 1,103 100% Median household or family income $93,625 -- $95,734 -- Mean household or family income $95,145 -- $98,960 -- totals Source: American Community Survey 2009-2013 5-year Estimate In addition to income data, there are other measures to gauge poverty and wealth distribution. One such measure is the number of students eligible for free and reduced cost school lunches. The Alaska Department of Education and Early Childhood Development (ADEED) provides information on the number of students who qualify for free or reduced fee school lunches. If a family of four earns less than Valdez Socioeconomic Baseline Indicators Study December 2015 Page 14 185% of the federal poverty level the students qualify for a reduced fee lunch, and if earning less than 130% of the federal poverty level, they qualify for a free school lunch. For example, the students in a family of four making less than $55,167 qualify for a reduced fee lunch and if earning less than $38,766, qualify for a free lunch. For a single parent with one child, the annual income limit to qualify for a reduced fee lunch is $36,371 or $25,558 for a free school lunch. The number of students that qualify for reduced or free lunches in Valdez Schools has trended upward over the last 10 years (Figure 23). In 2014, over one-quarter (28%) of Valdez students live in a household whose income is less than 185% of federal poverty limits. This is fewer than the percentage that qualify in Alaska statewide (47%) or other Southcentral Alaska School Districts such as Kenai Peninsula Schools (39%) and Anchorage Schools (46%) (Figure 27). Figure 23 - Valdez Free and Reduced School Lunch Eligibility Percentage, 2004-2014 35% 32% 30% 25% 20% 18% 18% 2004 2005 23% 23% 23% 23% 2006 2007 2008 2009 25% 25% 2010 2011 26% 28% 15% 10% 5% 0% 2012 2013 2014 Source: Alaska Department of Education and Early Development According to the 2009-2013 ACS Survey, 4.8% of Valdez households receive federal Supplemental Nutrition Assistance Program (SNAP) food benefits (“food stamps”), with an error margin of plus or minus 2.9%. For 2009-2013, an estimated 7.8% of Valdez individuals earned income below the federal poverty level ($14,580 for an individual), with an error margin of plus or minus 3.5% (Figures 24 and 25). Figure 24 - Individuals Living Below the Poverty Level, 2009-2013 Place Individuals Below Federal Poverty Level Valdez 7.8% US 15.4% Alaska 9.9% 2009-2013 5-yr ACS Survey. Cordova 1.0% Note: The margin of error for Glennallen 4.7% these ACS estimates is sizable; Homer 10.2% for Valdez, it is +/- 3.5% Kenai Peninsula 8.6% Soldotna 5.0% Anchorage 7.9% Whittier 18.0% Source for Figure 24: Valdez Socioeconomic Baseline Indicators Study December 2015 Page 15 Figure 25 - Valdez Individuals Living Below the Federal Poverty Limit 2000 Valdez 6.2% Individuals below Poverty Limit 2006- 2007- 2008- 2009- 2010 2011 2012 2013 4.7% 5.1% 5.5% 7.8% Sources: 2000-US Census; 2010-2013 5-yr American Community Survey Estimates. Note: The margin of error for these ACS estimates is sizable. For 2013, the margin of error for individuals is +/- 3.5% The American Community Survey also tracks the “Gini Index,” which provides a measure of income distribution inequality. A Gini coefficient of zero expresses perfect equality, where all values are the same (for example, where everyone has the same income). A Gini coefficient of one (or 100%) expresses maximal inequality (for example, where only one person has all the income). Valdez’s Gini Index of 0.3414 in 2013 was below the Alaska statewide and national measures (Figures 26 and 27). Figure 26 - Valdez Gini Index of Income Inequality, 2010-2013 2006-2010 2007-2011 2008-2012 2009-2013 Estimated Gini Index 0.3520 0.3555 0.3548 0.3414 Margin of Error 0.0300 0.0460 0.0452 0.0435 Source: 2010-2013 5-yr American Community Estimates Figure 27 - Valdez Poverty Measures Compared to Selected Alaska Communities Community Gini Index (2009-2013 Estimate) Individuals below Students Qualifying Poverty Level for Free or Reduced (2009-2013 Estimate) School Lunch (2014) Valdez 0.3414 7.8% 28% Cordova 0.3769 n/a 53% Juneau 0.3869 6.2% 27% Anchorage 0.4145 7.9% 46% Mat-Su 0.3955 9.9% 39% Sitka 0.3774 10.0% 33% Fairbanks 0.4066 8.4% 39% Kenai Peninsula 0.4266 8.6% 39% Homer 0.4499 10.2% 37% Glennallen 0.3867 n/a 51% Whittier 0.4224 18.0% n/a Alaska 0.4143 9.9% 47% United States 0.4735 15.4% n/a Sources: 2009-2013 ACS Estimate; DEED Valdez Socioeconomic Baseline Indicators Study December 2015 Page 16 4 School Performance Valdez City School District Performance The Valdez City School District is very high performing, and is an asset to the Valdez economy. For the last two years, the elementary, middle and high schools in Valdez have received 4 out of 5 stars from the Alaska Department of Education and Early Development (DEED) Alaska School Performance Index (ASPI). The new ASPI star rating issued by DEED replaces the former "Annual Yearly Progress" rating. It has only been used in the 2012-2013 and 2013-2014 school years. The ratings themselves, as well as press releases and other info sheets about the system, are available here. The 5 star rating is based on a 100 point scale, which is based on state assessment testing, attendance rates, high school graduation rates, and college entrance exam results. The Valdez City School District was rated the 3rd top school district in Alaska for 2014-2015 and top ranked for 2013-2014 by SchoolDigger.com This rank was based on standardized test scores, adjusted using a normal distribution of test scores for each subject test at each grade level. The standard score they calculate for each test is therefore an assessment of how Valdez student performance compares by grade level to other districts. Figure 28 - School Indicators Dropout Rate ACT Test Scores English, Valdez/Alaska ACT Test Scores Math, Valdez/Alaska SBA Assessments, % students proficient - English Valdez/Alaska SBA Assessments, % students, proficient - Math Valdez/Alaska Prince William Sound - Annual Credit Hours 5 year 1 year change change 0.4% (13/14) -0.5% -1.4% 21.8 / 20.1 22.2 / +0.8 (Vz) +0.4 (Vz) 21.3 / 21.2 21.7 / 21.1 22.9 / +1.6 (Vz) +1.2 (Vz) 93.1% / 81.9% 89.8% / 78.2% 91.6% / 80.1% -1.5% (Vz) +1.8% (Vz) 85.0% / 71.1% 84.2% / 69.4% 87.0% / 68.4% +2.0% (Vz) +2.8% (Vz) 8,524 7,177 7,315 -1,209 hr 138 hr 2010 2013 2014 0.9% (09/10) 1.8% (12/13) 21.4 / 20.3 Other: 2015 Business Survey respondents rank the quality of local education as one of the greatest advantages of doing business in Valdez. Sources: Alaska DEED, Prince William Sound Community College, Valdez School District Valdez Socioeconomic Baseline Indicators Study December 2015 Page 17 Across all grades and all subjects, Valdez students have consistently performed better on Standards Based Assessment (SBA) testing over the last five years than Alaskan students on average (Figure 29). The year 2014 was the last time that the Alaska DEED administered the SBA test, which was given to all 3rd through 10th graders in reading, writing and math, and to 3 rd, 7th and 10th graders in science. While this metric will not be comparable to future statewide student assessments, the past record of student performance across the District in comparison to Alaska-wide averages nonetheless illustrates the quality of public education in Valdez. 92% of Valdez students in grades 3-10 tested were proficient in reading, 87% were proficient in writing, and 87% were proficient in math. By comparison, statewide only 80% of students in this age range tested were proficient in reading, 68% were proficient in writing, and 69% were proficient in math. Figure 29 - Standards Based Assessment (SBA) Results for Grades 3, 7 and 10 (Total % of students proficient by subject) Reading Writing Math Science Valdez Alaska Valdez Alaska Valdez Alaska Valdez Alaska FY’10 93% 82% 87% 71% 85% 71% 76% 56% FY’11 90% 78% 87% 69% 83% 69% 75% 57% FY’12 91% 80% 85% 69% 80% 69% 65% 56% FY’13 90% 78% 87% 69% 84% 69% 71% 57% FY’14 92% 80% 87% 68% 87% 68% 82% 58% Source: Alaska Department of Education and Early Development, District Report Cards to the Public Valdez students routinely perform as well or better than the state average in all areas on ACT college preparatory tests (Figure 30). These test results provide an indicator of the degree to which students are prepared for post-secondary schooling. The one exception is in math, where Valdez High School students have historically achieved results slightly below the Alaska-wide average. However, in the most recent year than comparisons are available (2013) Valdez scores jumped above statewide averages. Respondents to the 2015 Business Survey conducted as part of this study rank the quality of local education as one of the greatest advantages of doing business in Valdez (September 2015 Online Business Survey Report, Sheinberg Associates/McDowell Group). When asked to rank advantages and barriers to doing business in Valdez, respondents list the quality of local education as the 3rd highest ranking advantage. 46 respondents (out of 115) call the quality of education a significant or moderate advantage to their business. 14 rank this as a significant or moderate barrier to their business, which is also the 3rd lowest concern when all barriers are considered. Valdez Socioeconomic Baseline Indicators Study December 2015 Page 18 Figure 30 - Average ACT scores, Valdez High School and State Average English Math Reading Science English Comp. 2007 2008 2009 2010 2011 2012 2013 2014 VHS 23.1 21.7 19.9 21.4 20.9 20.4 21.8 22.15 AK N/A 20.3 20.1 20.3 20.3 20.3 20.1 VHS 23 21.7 20.2 21.3 19.3 20.5 21.7 AK N/A 21.2 21.2 21.2 21.4 21.3 21.2 VHS 23.8 23.7 21.9 22.9 20.9 22.2 24.3 AK N/A 21.8 21.8 21.7 21.7 21.8 21.7 23 21.4 21.3 22.6 19.5 20.7 22.4 AK N/A 20.8 20.8 20.9 21 20.8 21 VHS 23.4 22.3 21 22.2 20.2 21.1 22.5 AK N/A 21.2 21.2 21.1 21.2 21.1 21.1 VHS 22.91 23.8 22.38 21.59 Source: Alaska Department of Education and Early Development, District Report Cards to the Public Valdez School District enjoys an exceptionally low drop-out rate among students in grades 7-12, at 0.4% in FY 2014, down from a ten year high of 2.4% in FY 2009 (Figure 31). Attendance rates have remained stable and high. The 94% attendance rate in FY 2014 was the highest the district has seen since FY 2004 (Figure 31). Figure 31 - Valdez School District Statistics School Year Attendance Rate VHS Graduation Rate2 Dropout Rate3 2003/2004 94.6% 81.2% 2.9% 2004/2005 93.6% 90.4% 1.7% 2005/2006 86.1% 79.1% 2.0% 2006/2007 93.8% 83.1% 1.1% 2007/2008 93.1% 88.4% 0.6% 2008/2009 91.9% 96.2% 2.4% 2009/2010 92.1% 92.2% 0.9% 2010/2011 92.8% 88.2% 0.9% 2011/2012 92.6% 92.1% 1.2% 2012/2013 92.6% 91.7% 1.8% 2013/2014 94.0% 90.7% 0.4% Sources: All Data – Alaska Department of Education and Early Development except Attendance Rate and Graduation Rate 08-09 through 13-14 – Valdez City School District, VHS year-end Report 2013-2014 2 3 Calculated as the percentage of students in a cohort who graduate high school within four years. Calculated from total students grades 7-12. Valdez Socioeconomic Baseline Indicators Study December 2015 Page 19 Prince Williams Sound Community College Prince Williams Sound Community College (PWSCC) has served Valdez and surrounding communities for many years through its combined role as the provider of higher education, workforce development, and personal enrichment opportunities to varied audiences including local residents, non-resident students, and community visitors. The school’s largest program has traditionally been a General Associate of Arts degree, which affords students an opportunity to complete core requirements needed to progress to a Bachelor’s degree at one of the state’s 4-year universities or elsewhere. Other traditionally strong programs include the Industrial Technology (Millwright) programs, Computer Information and Office Systems programs, and Disability Services programs. Perhaps because of the presence of the Community College, Valdez residents are more likely to complete some college or attain an Associate’s Degree when compared to residents statewide. According to the 2009-2013 ACS, individuals aged 25 and over who have attained a high school education or less make up 24% of the Valdez adult population, whereas this group makes up 35% of the adult population statewide. 42% of Valdez residents attended some college, and 14% attained an Associate’s Degree, whereas statewide 29% of residents have attended some college, and 8% have an Associate’s Degree. PWSCC is a primary workforce development and post-secondary training program in Valdez. During the last two years, PWSCC has taken steps to redirect its efforts to align more closely with both regional and statewide demand. As part of this process, the Community College eliminated some low-performing programs, revised and/or expanded some existing programs, (including the Millwright and Outdoor Leadership programs) and has begun discussions about creation a small number of new programs targeted to meet the changing economic demands of the area. In the Millwright program, administrators are exploring the creation of emphasis areas within mining, energy production, and fisheries. The college is also exploring options for new programs in information technology and business, and is offering new web development and mobile applications software development courses in the fall of 2015. Enrollment levels rose at the Prince Williams Sound Community College in the 2014-2015 school year (Figure 32). PWSCC experienced a cycle of growth, followed by a decline, and more recently a rebounding in enrollment. Many community colleges had enrollment increases during the 2008-2011 national economic downturn as displaced workers sought to expand their education and/or potential new entrants to the workforce delayed job seeking in favor of additional training or education. Valdez Socioeconomic Baseline Indicators Study December 2015 Page 20 Figure 32 - Prince William Sound Community College Utilization Rates Term Enrollment Headcount Credit Hour Totals Summer Fall Spring 2008-09 300 1,143 1,055 7,164 2009-10 253 1,286 1,283 8,428 2010-11 311 952 1,615 8,524 2011-12 518 957 1,731 9,122 2012-13 214 753 1,712 8,162 2013-14 175 834 1,328 7,177 2014-15 134 749 1,959 7,315 Source: Prince William Sound Community College Valdez Socioeconomic Baseline Indicators Study December 2015 Page 21 5 Civic and Social Indicators Measures such as library circulation rates, voter turnout, and the crime rate help assess the degree to which community members are civically minded, engage in current community issues, and provide a sense of well-being. Crime Rates Valdez has a lower average overall crime, violent crime, and property crime rate per 1,000 people than several other Southcentral communities, including than Seward, Homer, and Soldotna. Only Cordova’s crime rate is lower, among Southcentral communities of similar size. Business survey respondents listed the 2 nd highest advantage to doing business in Valdez as low crime rates and sense of safety. Nearly one-half (60) of the respondents to the 2015 Online Business Survey listed low crime and a feeling of safety as a significant or moderate advantage to doing business in Valdez. Only eight listed this as a barrier. Crime rates are measures of reported criminal activity averaged against a community’s population. Data are reported by the national Uniform Crime Reporting program (UCR), which relies on local police records. UCR data are only a measure of reported crimes; rural populations routinely under-report criminal activity due to the desire to maintain positive relations with neighbors, and to a common tendency to take care of issues without calling police or Troopers. Additionally, some crimes, such a vehicle theft, are far more likely to be reported than violent crimes, especially incidences of domestic violence or rape. Nonetheless, UCR’s data collection is consistent across the country and is the best source available to gauge criminal activity in Valdez. On Figure 33, for each city listed the number of reported crimes and population are averaged from 2009 to 2013, and used to generate a 5-year average rate of crime incidents per 1,000 people. Figure 33 - Five Year Average Reported Crime Rates per 1,000 Residents 1 Community Overall Crimes Violent Crimes 2 Property Crimes 3 Cordova 21.0 8.6 12.4 Valdez 38.2 12.7 25.5 Seward 54.5 18.1 36.5 Homer 56.0 14.5 41.6 Kenai 62.9 21.8 41.1 Soldotna 63.7 24.2 39.4 Sources: Alaska Dept. Public Safety Statewide Services Section, “Crime in Alaska” Reports, 2009-2013; ADOLWD Population Estimates 2000-2014; Sheinberg Associates. Notes: 1 - Rates calculated using mean averages of actual crime incidents and ADOLWD population estimates from 2009 to 2013. 2- Includes manslaughter, assault, robbery, and rape. 2 - Includes burglary, larceny/theft, and motor vehicle theft. Valdez Socioeconomic Baseline Indicators Study December 2015 Page 22 Voter Participation Valdez residents consistently have lower voter participation rates in national elections than Alaska as a whole. Figure 34 - Valdez Voter Participation Over the last decade, Valdez Alaska has experienced high voter turnout, Year especially in presidential election years, peaking at 66% in 2008. That same Valdez Alaska Participation, Participation, Participation, Local General National General National General Elections Elections Elections 2004 39% 48% 65% 2005 18% N/A N/A year, 44% of Valdez 2006 27% 40% 51% residents voted in the 2007 30% N/A N/A national elections. 2008 31% 44% 66% Valdez turnout is also 2009 31% N/A N/A reasonably high for 2010 34% 41% 52% municipal elections, 2011 19% N/A N/A reaching 34% in 2010 and 2012 N/A 40% 60% 27% in 2013. 2013 27% N/A N/A 2014 24% 40% 56% Sources: Alaska Division of Elections, Valdez City Clerk’s Office Library Use Library circulation for total materials at the Valdez Consortium library remained relatively stable from 2009 to 2013, ranging around 5-6 items per capita over the course of a year. This rate of circulation is similar to that of the Cordova Public Library, but less than at peer community Soldotna’s library. According to library staff, the Valdez Consortium Library serves two distinct populations in Valdez. The first are families with young children who come to the library to check out books or attend programs. The second group includes seasonal or traveling workers, who utilize the library as a home base for internet use. Figure 35 - FY 2013 Library Usage While all public libraries in Alaska monitor public computer use annually, this is no longer a Total No. of Annual Attendance Circulation, Volunteers, Library Events, Per Capita Hr/Year Per Capita reasonable measure of library Valdez (pop 4,101) 5.16 40 9.28 activity, as more and more Cordova (pop 2,303) 5.62 30 9.86 people access the library Soldotna (pop 4,284) 8.41 110 14.94 wireless connection from their Kotzebue (pop 4,074) 2.35 0 7.93 personal device. Source: Alaska State Library, Alaska Public Library Statistics Valdez Socioeconomic Baseline Indicators Study December 2015 Page 23 6 Cost of Living Combining information on the cost of essential commodities such as electricity, heating fuel, food, gasoline, and housing provides an overall sense of the relative cost of living in Valdez. Food, rent, and gasoline cost more in Valdez than in other comparison southcentral Alaska communities. Electricity, heating oil, and propane costs less in Valdez than in most of the comparison communities (Figure 36). The price of a gallon of gasoline was higher in Valdez than any of the other Southcentral Alaska comparison communities; in 2014 it was almost a dollar higher per gallon than in Anchorage. In 2014, food was more expensive in Valdez than in all comparison Southcentral communities except Cordova; it was 39% more expensive than in Anchorage. Heating oil prices in Valdez are less than in all comparison communities except Anchorage. The price of electricity for residences in Valdez is close to the Anchorage rate and significantly less than in communities on the Kenai Peninsula. The big difference for Valdez residential utility payers is that they purchase more heating fuel than their neighbors and thus pay a significantly larger proportion of their income toward household energy. Valdez residents spend an average of 13% of their income on household energy (Figure 37) (AHFC, 2014 Housing Assessment). This is due to a combination of the local climate, the age of the housing stock, and because over one-quarter of all housing are (generally older) mobile homes. This suggests that home weatherization efforts in Valdez could reap significant reward. The cost of housing is typically the largest factor in community cost of living because people usually pay more for housing than for any other good. Valdez has some of the highest monthly costs for rental housing in Alaska. More information on housing in Valdez is found in the next Chapter of this report on Housing. Valdez Socioeconomic Baseline Indicators Study December 2015 Page 24 Figure 36 - Cost Of Living Indicators Valdez Anchorage Cordova Homer Kenai $288 $207 $333 $264 $234 Week of Food for a Family of Four w/Children (June 2014) % of Anchorage 139 100 161 127 113 Mat-Su Borough $223 108 Median Rent (2009-2013, ACS) $1,205 $1,142 $777 $892 $885 $1,026 Electricity-Residential $/1000 kWh (Oct 2015) $171.70 $170.93 $168.77** $243.62 $243.62 $197.79 Heating Oil ($/gal) (Aug 2014) $4.13 $3.71 $4.62 $3.66 $3.88 $4.54 Gasoline ($/gal) (June 2014) $4.76 $3.85 $4.66 $4.28 $4.41 $3.85 Propane ($/gal) (Aug or June 2014) $4.50 $4.58 $4.98 $4.43 $4.79 N/A Per Capita Income (2009-2013, ACS) $35,243 $36,214 $37,992 $32,046 $31,710 $29,534 Notes: ** Cordova is the only community in this sample that receives Power Cost Equalization from the state; if it did not, its Oct 2015 rate for 1000/kwh would be $278.27 Sources: Food and Gasoline Prices: University of Alaska Fairbanks, Alaska Food Cost Survey, June 2014. Propane and Heating Fuel #1 Prices: Alaska Housing Finance Corporation Fuel Price Survey, August 2014; except Mat-Su Borough Heating Fuel, UAF Alaska Food Cost Survey. Electricity Rates: October 2015 Residential Rates from Homer Electric Association, Matanuska Electric Association, Chugach Electric Corporation, Cordova Electric Cooperative, Per Capita Income: 2009-2013 ACS Survey. Median Rent: includes all housing costs for renters such as utilities, source is 2009-2013 ACS Estimate Figure 37 - Household Energy Costs as a Percent of Annual Income Anchorage 3.7% Valdez 13.0% Cordova 9.7% Homer 10.8% Kenai 5.2% Mat-Su 5.2% Sitka 0.0% 7.1% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% Source: Alaska Housing Finance Corporation, 2014 Housing Assessments Valdez Socioeconomic Baseline Indicators Study December 2015 Page 25 14.0% 7 Housing Several factors combined result in a tight Valdez housing market and reduced available housing choice. This chapter reviews data for each factor. Over one-quarter (28%) of the Valdez housing stock are mobile homes. This is a higher rate than in Alaska (5%) or the rural US (7%). This leaves a large proportion of the population vulnerable to energy inefficient aging structures and, if they reside in a mobile home park, a lack equity in real property. An immediate housing crisis facing the city is the pending August 2016 closure of the 60-unit Aleutian Village Trailer Park, leaving park residents with few alternatives for affordable housing. The number of dwelling units constructed per year in Valdez has declined sharply over the last 15 years; from an average of 29 per year during 2000-2002, to 11 per year in 2003-2011, to 4 constructed per year during 2012-2014. The decrease in new construction creates an aging housing stock and limits housing options for buyers and renters. Over the last five years, the average household size for both owner- and renter-occupied housing has increased. Median rent, at $1,205 for the Census Area, is very high. The 2015 Alaska Housing Finance Corporation survey of landlords for Alaska census areas and boroughs estimates that rents in the Valdez-Cordova Census Area are exceeded in Alaska only by those in Kodiak and Juneau. Compared to the state average, median home prices are rising faster in Valdez (an estimated 12% for Valdez over last four years versus 6% statewide). Realtors report that high property tax rates discourage home purchases by retirees looking for summer homes and first time home buyers. As the senior population doubles between now and 2022, so too will grow the need for a range of senior housing including independent living, assisted living, and nursing home care. Housing Stock A number of sources track the number of housing units in Valdez; the most accurate and current source is from the City of Valdez’s annual population estimate, based on a survey that combines randomly selected households with households participating in the city’s energy assistance program. The most recent year that this city survey data is available is for 2012; on Figure 40 this is updated with the state’s count of new housing units constructed between 2012 and 2014 (based on city permit data provided to state). There are an estimated 1,750 dwelling units in Valdez today, including 107 in group quarters (Figure 38). Group housing includes dwelling units on the Coast Guard base, man-camps, bunkhouses for seasonal seafood and other industry workers, Prince William Sound Community College dorms, and the Valdez Senior Center independent living facility. Valdez Socioeconomic Baseline Indicators Study December 2015 Page 26 Figure 38 – Most Recent Valdez Housing Unit Count Housing Type Housing % of Total Units Housing Units Single Family (SF) 790 New units 2012-2014** 12 Total 802 Duplexes/Zero Lots 111 6% Multi-Family 238 14% Mobile Homes 492 28% Boats/Other 46% Unknown Group Quarters 107 Total 6% 1,750 Sources: Number of Housing Units & Vacancy Rates: City of Valdez, SFY 2012 Population Determination Challenge; **ADOLWD for 2012-2014 Number of New Housing Units Over one-quarter (492 or 28%) of the Valdez housing stock are mobile homes; this proportion of total housing stock in mobile homes is higher than the average for the US (7%), rural US (15%)4, or Alaska (5%)5. These mobile homes are partly remnants of the housing demand boom during the 1970’s pipeline construction and the 1989 Exxon-Valdez oil spill response efforts. An immediate housing crisis facing Valdez is the pending August 2016 closure of the 105 space (currently 60-units filled) Aleutian Village Trailer Park, leaving park residents with few alternatives for affordable housing. The potential impact of the removal of 60 affordable dwelling units highlights the vulnerability of mobile home park residents. A new mobile home park has not been constructed in Valdez since 2006. Creative financing and land use solutions will be needed to accommodate this population. Mobile homes are a common source of affordable housing in Valdez, but many mobile homes and parks in the community date back to the 1970’s. The older age of many mobile homes often means they are energy inefficient and have higher heating costs. In Valdez and other places these older units are not designed to meet today’s minimum construction code standards. Years of wear in the harsh Valdez environment has taken its toll on the overall integrity of many of these units. Frequently, mobile home owners live in mobile home parks owned and managed by another by entity, leaving residents with no control over the land, utilities, or upgrades to the property. There is no incentive to make property improvements, because mobile home park residents are renters and cannot gain equity on the increased value of the property. Across the state as utility systems at parks fail, it is often more profitable for the landowner to sell the park for redevelopment than upgrade the utilities. 4 Berlin, Loren. July 2015. “From Stigma to Housing Fix: The Evolution of Manufactured Homes.” Land Lines. Wiebold, Karinne. June 2015. “Juneau’s Housing Market.” Alaska Economic Trends. Alaska Department of Labor and Workforce Development. 5 Valdez Socioeconomic Baseline Indicators Study December 2015 Page 27 Over the last five years, the average household size for both owner and renter occupied housing in Valdez has increased (Figure 39). Figure 39 - Valdez Average Household Size, 2010-2013 2006-2010 2007-2011 2008-2012 2009-2013 Owner-occupied 2.47 2.53 2.64 2.76 Renter-occupied 2.07 1.88 2.40 3.03 Source: sequential 5-year ACS Estimates The majority (63%) of Valdez’s housing was built between 1960 and 1989 (Figure 40). These older homes frequently come with increased maintenance costs and are likely to be less energy efficient than their modern counterparts, a critical affordability consideration for residents in the snowiest city in the US. Based on AKWarm estimates, annual energy costs constitute approximately 13% of median area income in the City of Valdez6 (Figure 37). Figure 40 - Valdez Existing Housing, by Decade Built 2000Pre-1940s 1940s 1950s 1960s 1970s 1980s 1990s 2014 0 39 97 94 644 370 263 201 0% 2% 6% 6% 38% 22% 15% 12% Number of Housing Units % of total Sources: 1940s-1990s: 2009-2013 ACS 5-Year Estimate; 2000-2014: ADOLWD/AHFC counts of residential development New Housing Development The number of dwelling units being constructed per year in Valdez has declined sharply over the last 15 years; from an average of 29 per year during 2000-2002, to 11 per year in 2003-2011, to an average of four constructed per year during 2012-2014 (Figure 41). The decrease in new construction creates an aging housing stock and a limited range of housing options for both buyers and renters. Those familiar with the housing sector in Valdez attribute the decline after 2003 to a combination of factors: the 2011 retirement of one prolific builder who constructed homes in developments on parcels sold by the city; a recent lack of larger city land disposals; more limited available financing for affordable home purchases; the challenges of a seasonal economy and housing demand; high property taxes deterring prospective homeowners (at 20-mill, Valdez has the highest municipal property tax levy in Alaska); and the escalating cost of building materials and transportation (in 2014, the cost of construction materials in Alaska increased by 7%) 7. Despite the decline in the amount of new residential construction, the number of building permits issued has been relatively steady, indicating that homeowners are renovating and improving their dwelling units (Figure 42). The total valuation of residential construction that 6 2014 Valdez Housing Assessment, Alaska Housing Finance Corporation 7 2015 Construction Cost Survey, Alaska Housing Finance Corporation Valdez Socioeconomic Baseline Indicators Study December 2015 Page 28 these permits authorize has dropped in the last three years, coincident with the decrease in new home construction. Figure 41 - New Housing Built Units in Valdez 35 Multi-family 5+ units Average 29/yr Mobile homes 30 25 Multi-family 3-4 units 1 Duplex 16 Single Family 20 Average 11/yr 31 15 26 3 3 10 1 12 11 5 4 1 9 7 Average 4/yr 11 10 11 13 9 6 6 3 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 3 2012 2013 2014 Source: ADOLWD, Research and Analysis Section Figure 42 - Valdez Residential Building Permits, Number of and Valuation ($000s) Residential Development Permits Valuation (000s) 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 103 84 87 92 123 86 109 112 80 98 $3,164 $1,759 $3,265 $2,710 $3,675 $4,968 $2,710 $1,464 $1,971 $1,435 Source: City of Valdez, Community & Economic Development Department Cost of Housing, Affordability, and Vacancy Rates Valdez has some of the highest monthly costs for rental housing in Alaska. (Median rental housing costs listed in Figures 43 and 44 include rent payments, utilities, taxes, insurance, and other monthly housing expenses.) The Alaska Department of Labor and Workforce Development (ADOLWD) and Alaska Housing Finance Corporation (AHFC) conduct an annual residential rental market survey in boroughs and census areas of landlords across the state. The 2015 ADOLWD/AHFC survey of landlords done at the census area/borough level estimates that Valdez-Cordova Census Area rents in 2015 are exceeded in Alaska only by those in Kodiak and Juneau (Figure 43). Valdez Socioeconomic Baseline Indicators Study December 2015 Page 29 The 2009-2013 rental cost survey by the American Community Survey also estimated that Valdez had the most expensive monthly rents compared to several Southcentral communities (Figure 44), Figure 43 – 2015 Rental Costs and Vacancy Rates (All Units, Select Boroughs and Census Areas) Borough or Census Area Average Adjusted Rent Number of Units Vacancy (includes utility costs) Surveyed Vacant Rate City and Borough of Juneau $1,300 1,084 37 3.4% City and Borough of Sitka $1,208 298 26 8.7% Fairbanks North Star Borough $1,217 3,034 485 16.0% $992 1,043 71 6.8% Ketchikan Gateway Borough $1,077 422 56 13.3% Kodiak Island Borough $1,446 390 18 4.6% Matanuska-Susitna Borough $1,214 1,198 40 3.3% Municipality of Anchorage $1,255 8,247 323 3.9% Valdez-Cordova Census Area $1,289 236 8 3.8% Kenai Peninsula Borough Wrangell-Petersburg Borough Survey Total $869 132 5 3.8% $1,229 16,379 1,096 6.7% Source: ADOLWD prepared for AHFC – 2015 Residential Rental Market Survey Figure 44 - Median Monthly Housing Costs, 2009-2013 Valdez $2,000 Homer Mat-su Sitka Soldotna Whittier Kenai Cordova Anchorage Homer Mat-su Sitka Soldotna Whittier Kenai Anchorage Valdez Cordova Homer Mat-su Sitka Soldotna Whittier Renter-occupied housing units Owner- occupied without a mortgage Owner- occupied with a mortgage Anchorage $1,142 $703 $2,011 Valdez $1,205 $527 $1,660 Cordova $777 $570 $1,851 Kenai $885 $510 $1,365 Homer $892 $509 $1,670 Mat-su $1,026 $463 $1,678 Sitka $1,139 $554 $1,862 Soldotna $990 $469 $1,317 Whittier $750 $588 $854 Valdez Socioeconomic Baseline Indicators Study December 2015 Page 30 source: ACS 5-yr. estimate, 2009-2013 $0 Kenai $500 Anchorage $1,000 Cordova Valdez $1,500 The 2009-2013 ACS estimates that in Valdez overall, 21% of households, or about one in five, were cost-burdened (Figure 45). This is even more pronounced among renters, over a quarter of whom (28%) were cost-burdened. (A household is considered cost-burdened if it pays more than 30% of its total income on housing costs, including rent or mortgage, utilities, and energy.) Figure 45 – Percent of Valdez Cost Burdened Households and Median Housing Costs 2006- 2007- 2008- 2009- 2010 2011 2012 2013 46.1% 51.7% 32.9% 27.5% 19.5% 18.2% 16.7% 19.3% 12.3% 8.8% 3.9% 4.3% Median Monthly Housing Costs (includes rent, utilities etc) Median monthly gross rent Median monthly housing costs for owners with mortgage $1,082 $1,103 $1,111 $1,205 $1,406 $1,444 $1,550 $1,660 Median monthly housing costs for owners without a mortgage $516 $528 $514 $527 Cost of Homes Valdez, Median Value Owner Occupied Units $159,000 $162,400 $172,100 $177,900 Alaska, Median Value Owner Occupied Units $229,100 $235,100 $237,900 $241,800 Percent Cost Burdened, by Type Percent paying over 30% of income for Housing - Renter Occupied Percent paying over 30% of income for Housing - Owners with Mortgage Percent paying over 30% of income for Housing - Owners without a Mortgage Source: sequential 5-year ACS Estimates (2006-2010, 2007-2011, 2008-2012, 2009-2013) Compared to the state average, median home prices are rising faster in Valdez (an estimated 12% for Valdez over last four years versus 6% statewide) (Figure 45). Valdez has the highest property tax rate in state, at 20 mills, which adds to monthly housing payments. For a $200,000 home, deducting the City’s allowed $20,000 reduction in value, yields a property tax payment of $3,600 annually, or $300 a month, to mortgage payments. To assist homeowners Valdez currently exempts 30%, up to a cap of $20,000, from homeowner’s property valuation. Of note, Alaska law recently changed (AS 29.45.050 a) and cities have the option of exempting up to $50,000 per home, if approved by local voters. Valdez Socioeconomic Baseline Indicators Study December 2015 Page 31 Housing Needs of an Aging Population Just as Valdez’s housing stock is aging, the city’s population is also growing older. The ADOLWD projects that the percent of people age 65 or older in the Valdez-Cordova Census Area will double by 2022, as will the percentage of the population that is age 85 or older (refer to chapter 1 of this report). As the older senior population grows, so too will the need for a range of senior housing including independent living, assisted living, and nursing home care. Valdez is well positioned to keep elders in the community with its Valdez Senior Center, the Senior Apartments with ten independent living apartments, and a Long Term Care facility. Increased capacity in these facilities will likely be needed. More personal care attendants to help people stay in their homes will be needed, as will assisted living. The demand will increase for smaller affordable housing units located walking distance from the grocery store and other services. Valdez Socioeconomic Baseline Indicators Study December 2015 Page 32 8 Undeveloped Land in Valdez This chapter analyzes how much undeveloped land there is in Valdez and provides maps showing where it is located, how it is zoned, and who owns it. Chapter 7 on Housing reviewed the increasingly tight housing market in Valdez: Median rental costs are among the highest in the Alaska; an average of four homes/year were built during 2012-2014; the number of occupants per household in Valdez is increasing; and there is the potential loss in 2016 of 60+ affordable housing units in a mobile home park slated for closure. There are many potential actions to address the housing market and spur development. These could include the sale of additional city land for housing development, zoning and other regulatory changes to encourage certain types of housing development, the creation and funding of a low interest housing development loan fund to stimulate certain types of development, formal partnerships with for and nonprofit developers, additional exemptions to property taxation, and so on. To begin considering these matters, the City of Valdez Community and Economic Department’s Geographic Information System (GIS) staff, with assistance from the City Assessor, helped develop the information and maps in this chapter to analyze the location, quantity, zoning and ownership of undeveloped land in Valdez. These maps were developed using the Valdez property tax roll, which for property assessment purposes determines an assessed value for the land and for any built improvements upon the land, for each parcel. To identify lands that are undeveloped, parcels were segregated that have “$0” value for built improvements – in other words there is no structure upon the land. All parcels with $0 value for built improvements were also grouped together by ownership type. Excluded from this set of undeveloped parcels are right-of-ways, snow lots, and easements. Parcels zoned as specific land-use types that prohibit development were also excluded from the tallied and mapped undeveloped land; instead they are identified on the maps as “excluded zoning districts”. Figure 46 lists the acreage of undeveloped land in Valdez, by zoning district and by landowner. Figure 47 tallies the undeveloped acres of land zoned only for residential development. The four maps that follow (Figures 48-51) parcels of undeveloped land zoned for residential development in and near the town core, and undeveloped municipal entitlements. Figures 50 and 51 show municipal entitlements; these are City-owned lands but have not yet been officially conveyed from the State of Alaska to the City of Valdez. Municipal entitlements are lands conveyed to the City to expand the tax base, generate revenue through land sales and leases, provide land for public areas or facilities, provide a land base for community expansion, and for similar municipal purposes. Valdez Socioeconomic Baseline Indicators Study December 2015 Page 33 A survey of municipal entitlement land must be prepared (generally by the City, who must bear the cost) and accepted by the State Department of Natural Resources (DNR) in order to complete the conveyance procedures. Valdez has interim management authority for these lands, but cannot subdivide or sell them until formal conveyance occurs. Currently Tract A-1 (614 acres) and A-2 (437 acres) of the Robe Lake Entitlement Selection ASLS 2004-6 has been surveyed with preliminary plats submitted to DNR for approval. Sections 33, 34, and 27 (640 acres each) of the Browns Creek Entitlement Selection ASCS 98-30 are still in the survey process. Both of these areas must go through the City’s master planning process before they can be developed, subdivided, and/or sold. For the four maps (Figures 48-51), note the following disclaimers: Source: Base map provided by City of Valdez, GIS Services. Drawing compiled by City of Valdez, Community & Economic Development Department. All features associated with these maps are subject to the City of Valdez Disclaimer for accuracy and use. Figure 46 – Acres of Undeveloped Land in Valdez, by Landowner and Zoning District in 2015 Private State Federal City Central Business District Zoning District 3 0 0 2 5 acres Commercial Residential 80 13 0 3 96 acres General Commercial 82 30 0 9 121 acres Heavy Industrial 224 15 0 2,915 Light Industrial 179 144 23 412 758 acres Multiple-Family Residential 45 0 0 0 45 acres Neighborhood Commercial 1 0 0 0 1 acres Residential Mobile Home 10 0 0 2 12 acres Rural Residential 336 489 0 35 860 acres Semi-Rural Residential 5 0 0 0 5 acres Single-and Two Family Residential 0 0 0 0 0 acres 208 50 0 223 Unclassified Lands 0 20,858 0 2,974 Waterfront Industrial 0 0 0 12 1,173 acres 21,599 acres 23 acres 6,587 acres Single-Family Residential Totals Sources: City of Valdez Community and Economic Development Department, Valdez GIS and Assessment Data using 2015 property tax roll Valdez Socioeconomic Baseline Indicators Study December 2015 Page 34 Totals 3,154 acres 481 acres 23,832 acres 12 acres 29,382 acres Figure 47 – Residential Zoned Land - Acres of Undeveloped in Valdez, by Landowner and Zoning District in 2015 Zoning District Private State Federal City Commercial Residential 80 13 0 3 96 acres Multiple-Family Residential 45 0 0 0 45 acres Neighborhood Commercial 1 0 0 0 1 acre Residential Mobile Home 10 0 0 2 12 acres Rural Residential 336 489 0 35 860 acres Semi-Rural Residential 5 0 0 0 5 acres Single-and Two Family Residential 0 0 0 0 0 acres 208 50 0 223 685 acres 552 acres 0 acres 263 acres Single-Family Residential Totals Sources: City of Valdez Community and Economic Development Department, Valdez GIS and Assessment Data using 2015 property tax roll Valdez Socioeconomic Baseline Indicators Study December 2015 Page 35 Totals 481 acres 1,500 acres E a s t M a i n To w n DATE | 11.09.15 Robe River Dr W Hanagita St RM RM Hanagita St Cottonwood Dr Oumalik St Gulkana St RA RM Nabesna St Foraker St Mendeltna St Eklutna St Lowe St RA RA Klutina St Chena St RC G Dr RB E W Klutina St Dadina St an Hazelet Ave W Lowe St Eg Copper Dr RC RC RA Bremner St Jago St WP G ion eer Meals Ave RC Alatna St Iditarod St St Pioneer Dr LI WE ga n CBD CBD G G G Fairbanks Dr CBD CBD Dr Egan Dr G Galena Dr Dr Wrangell Me S LI als Av e G G G N Harb tt Kennico RA G Chitina G S Hazelet Ave Harris Ave LI E Pioneer Dr or Dr Dr Clifton Fidalg o Dr LI S Harb or Dr LI Ferry Termin al LI LI ® 1 inch = 870 feet UNDEVELOPED PARCELS BY OWNERSHIP ZONING EXCLUDED FROM ANALYSIS CITY OF VALDEZ PUBLIC PRIVATE AVALANCHE HAZARD STATE CONSERVATION OTHER PARCELS DELINEATED DEVELOPED, SNOW STORAGE, OR EASEMENTS ZONING LETTERS CBD = Central Business District RA = Single-Family Res. RB = Single&Two Family Res. CR = Commercial Res. G = General Commercial RC = Multiple-Family Res. LI = Light Industrial RR = Rural Res. WI = Waterfront Industrial RM = Res. Mobile = Unclassified U We s t M a i n To w n DATE | 11.09.15 RA U Cliffside Ct RA ts Ko Anchorcrest RA a in Ct e re RC Cottonwood Dr ka Pl ay RC W Lowe St S Morain RR e S Glacier o oh S Whirlw M in e ra l Ct C Copper Dr e RA N Morain St C nt as Al o Fr W Hanagita St RA k RA R W Klutin a St RB Homestead Rd W Egan rk Birch d Aspen ll R Winter Pa b Hi Dr U LI RA ion eer St LI Harris Ave G WP G RC LI G RA Salm e rry onb G y Wa RA ® Ferry Termin al 1 inch = 920 feet UNDEVELOPED PARCELS BY OWNERSHIP ZONING EXCLUDED FROM ANALYSIS CITY OF VALDEZ PUBLIC PRIVATE AVALANCHE HAZARD STATE CONSERVATION OTHER PARCELS DELINEATED DEVELOPED, SNOW STORAGE, OR EASEMENTS ZONING LETTERS CBD = Central Business District RA = Single-Family Res. RB = Single&Two Family Res. CR = Commercial Res. G = General Commercial RC = Multiple-Family Res. LI = Light Industrial RR = Rural Res. WI = Waterfront Industrial RM = Res. Mobile = Unclassified U Hazelet Ave ue Bl ry er Tonsina Clark Av e Av e W ha le n CR RC Shoup RC Browns Creek Municipal Entitlement Area DATE | 11.03.15 RR RR RR CR CR RR CR RR Section 27 Richardson Hwy RR Old Richardson Hwy il 12 M RR 4 A pl e Sta RR te Gr RR 1 Rd avel Pit Lo we Riv er Section 34 Section 33 ® 1 inch = 2,258 feet UNDEVELOPED PARCELS ZONING EXCLUDED FROM ANALYSIS BY OWNERSHIP CITY OF VALDEZ PRIVATE STATE PUBLIC OTHER PARCELS DELINEATED DEVELOPED, SNOW STORAGE, OR EASEMENTS ZONING LETTERS RA = Single-Family Res. CR = Commercial Res. U = Unclassified MUNICIPAL ENTITLEMENTS Section 33 ASCS 98-30 Section 34 ASCS 98-30 Section 27 ASCS 98-30 Robe Lake Municipal Entitlement Area DATE | 11.03.15 Robe Lake RC CR Tract A-1 Richard RR Cor son Hwy RR RR bin RR RR Deep L ake RR U RR Tract A-2 U Lowe River ® 1 inch = 2,764 feet UNDEVELOPED PARCELS ZONING EXCLUDED FROM ANALYSIS BY OWNERSHIP CITY OF VALDEZ PRIVATE STATE PUBLIC OTHER PARCELS DELINEATED DEVELOPED, SNOW STORAGE, OR EASEMENTS ZONING LETTERS RA = Single-Family Res. CR = Commercial Res. U = Unclassified MUNICIPAL ENTITLEMENTS Tract A-1 ASLS 2004-6 Tract A-2 ASLS 2004-6 9 Overview-Valdez Workforce and Earnings, Top Economic Activities Complete Valdez Work-Related Economy The most commonly used datasets to analyze the economy are only available at the borough or census area level. However, to support this Valdez 2015 Baseline Socioeconomics Report, both the Alaska Department of Labor and Workforce Development (ADOLWD) and the US Census provided unique reports to separate Valdez city data from the Valdez-Cordova Census Area. In addition, the US Coast Guard provided data for enlisted personnel in Valdez. To obtain the most current and complete tally of the Valdez workforce and earnings, data are combined from ADOLWD Quarterly Census of Employment and Wages, 2014; US Census Nonemployer Statistics, 2013; and USCG civilian and enlisted personnel information from 2014/2015. NAICS industry sector codes are used to aggregate all data8. Total annual work-related earnings in the City of Valdez are $139 million (including local business owners and all USCG), which are generated by: 336 self-employed individuals and small business proprietors whose income is 11% ($15.5 million) of all work related earnings. 182 firms and government agencies that collectively have 2,238 employees (average annual) whose wages account for 89% ($123.5 million) of all work related earnings. The top economic activities in Valdez are: Oil industry (pipeline, marine and land oil shipment, refining, safety) Local government (city, school, and tribally provided services, facilities, and maintenance) Commercial fishing, seafood processing, and hatchery activity and businesses Health care and social assistance services Visitor industry services and businesses US Coast Guard services These sectors are Valdez’s primary economic drivers and supporting industries. In order to make informed decisions about economic diversification, it is critical to understand the role these sectors play in the city’s present economy. This chapter and the remainder of this report, offer findings and indicators for each sector. 8 Nonemployer statistics lag one-year behind QCEW employment data. It is common to combine QCEW data and the previous year’s Nonemployer data to understand the complete work-related economy. Analyses prepared the same way year to year allow a comparison of data and trends over time. In this report, when 2014 QCEW data and 2013 Nonemployer statistics are combined, the resultant overall picture of work-related earnings and workforce is called 2014 for simplicity as it is the most current complete data available. Valdez Socioeconomic Baseline Indicators Study December 2015 Page 40 Figure 52 - Whole Valdez Work Economy: All Work-Related Earnings TOTAL, All WORK-RELATED EARNINGS, $139 million Earnings from EMPLOYMENT WAGES, $123.5 million Earnings from NONEMPLOYER BUSINESSES, $15.5 million Government Basic/Goods -Producing, Service, 17% 21% Basic/ Government GoodsService Producing 21% 13% Support/ ServiceProviding 51% Support/ ServiceProviding 63% Support/ ServiceProviding, 61% Basic/GoodsProducing 49% Sources: 2014 ADOLWD QCEW, 2013 US Census Nonemployer Business Statistics, USCG Figure 53 - WORKFORCE & EARNINGS - Key Indicators Employment Number of Employees (avg. ann.) Private Sector Government (civilian only) 5 or 4 year 1 year change change 2,145 7.0% 0.7% 1,604 9.9% 1.3% 2010 2013 2014 2,005 2,131 1,459 1,583 546 548 541 -0.9% -1.3% $103,733,167 $117,443,926 $119,991,534 15.7% 2.2% Private Sector $78,986,256 $91,102,866 $93,924,133 18.9% 3.1% Government (civilian only) $24,746,911 $26,341,060 $26,067,401 5.3% -1.0% Total Employment Wages Nonemployer Business Owners (self-employed and sole proprietors) Number of Nonemployer Businesses (self-employed and 328 sole proprietors) Total Earnings, Nonemployer $13,655,000 Businesses TOTALS (employees + nonemployer businesses) Workforce (avg. annual) 2,333 Work Earnings $117,388,167 308 336 8 28 (2012) (2013) (4 yrs) (2012-2013) $12,591,000 $15,491,000 13.4% 23% (2012) (2013) (4 yrs) (2012-2013) 2,439 2,481 6.3% 1.7% $130,034,926 $135,482,534 15.4% 4.2% 1.1% -3.1% Other 100 jobs 2015 USCG (civilian +enlisted) Annual Unemployment Rate (V-C Census Area) $4,097,200 wages 9.4% 9.8% 9.5% Sources: ADOLWD 2014 QCEW, US Census 2013 Nonemployer Statistics, USCG Valdez Socioeconomic Baseline Indicators Study December 2015 Page 41 Most people work for or have businesses in the following five areas, which together accounted for 58% of the total Valdez workforce (Figure 54): 1. Transportation and warehousing (a good proxy for the oil industry, but also includes visitor industry employment) 2. Local government 3. Health care and social assistance 4. Accomodations and food services 5. Professional and business services Figure 54 - Number in Valdez Workforce, by Industry NAICS Sector (2014 employees + 2013 nonemployer business owners) 341 Local Government State Government 157 Federal Government (civilian + USCG enlisted) 137 Other Services (except public admin) 54 274 Health Care and Social Assistance Educational Services No. of Employees (ave ann) No. of Nonemployer Businesses 8 199 Professional and Business Services Real Estate, Rentals, Leasing 33 Finance and Insurance 15 Information 58 263 Accommodations & Food Services Arts, Entertainment, and Recreation 41 Wholesale Trade 9 Retail Trade 189 409 Transportation and Warehousing Manufacturing 157 Construction 87 Natural Resources (ag, forestry, fishing, oil & gas,… 0 143 100 200 300 Number in Workforce Sources: ADOLWD QCEW 2014; US Census Nonemployer Statistics, 2013; USCG Valdez Socioeconomic Baseline Indicators Study December 2015 Page 42 400 500 The greatest earnings are in the following five areas, which together accounts for 65% of all Valdez workrelated earnings (Figure 55): 1. Transportation and warehousing 2. Local government 3. Professional and business services 4. Natural resources (includes fishing, forestry, agriculture, oil and gas extraction, and mining/quarries) 5. Health care and social assistance Figure 55 - Total Earnings for Valdez Workforce, by Industry NAICS Sector (2014 employment wages + 2013 nonemployer business income) $15.69 Local Government State Government $7.35 Federal Government (civilian + USCG enlisted) $6.51 Other Services (except public admin) $1.63 $10.84 Health Care and Social Assistance Employee Wages Educational Services $0.26 $13.33 Professional and Business Services Real Estate, Rentals, Leasing $2.13 Finance and Insurance Nonemployer Business Owner Income $0.66 Information $3.78 Accommodations & Food Services $5.78 Arts, Entertainment, and Recreation $1.23 Wholesale Trade $0.23 Retail Trade $5.59 $39.95 Transportation and Warehousing Manufacturing $7.26 Construction $5.86 $10.89 Natural Resources (ag, forestry, fishing, oil & gas,… $0 $10 $20 $30 Earnings ($millions) Sources: ADOLWD QCEW 2014; US Census Nonemployer Statistics, 2013; USCG Valdez Socioeconomic Baseline Indicators Study December 2015 Page 43 $40 $50 Valdez Nonemployer Businesses9 The last section reviewed the complete work-related economy; this section looks more closely at the earnings and numbers of nonemployer businesses. Nonemployer businesses are typically smaller businesses whose owners are self-employed or sole proprietors. The income of nonemployer business owners is not included in Alaska Department of Labor (ADOLWD) Quarterly Census of Employment and Wage (QCEW) data that report on employee income because this is income of business owners, not employees. Despite the title, some of these businesses do have employees and these employee wages are reported to and included in ADOLWD QCEW wage tallies, but the income of the business owner is not reported to ADOLWD. Data on nonemployer income comes from annual or quarterly business tax returns filed with the Internal Revenue Service. The number of nonemployer businesses in Valdez between 2010 and 2013 varied from 308 to 336. Since 2010, collective income to these small business owners grew by $1.8 million (Figure 56). In 2013 (most recent data), there were 336 nonemployer businesses in Valdez whose income was 11% ($15.5 million) of all work related earnings in the community. The greatest number of self-employed business proprietors in Valdez each year between 2010 and 2013 were in agriculture, forestry, fishing, and hunting businesses (NAICS 11) – it is likely that almost all were commercial fishermen. In 2013, there were 81 business owners in this area whose income was $6.25 million. Between 2010 and 2013, the number of these businesses increased by 20 (33%) and their income rose by $1.9 million (44%) (Figure 56). After commercial fishermen, the professions with the most Valdez small business owners are those in professional and technical services (39 business owners), followed by those who provide other services (31), then those who own construction businesses (28). Between 2010 and 2013, the number of sole proprietor businesses and overall income they generate dropped for three business types: (1) arts, entertainment and recreation, (2) real estate, rental and leasing, and (3) construction. Most (60%) of the Valdez-Cordova Census Area’s health care and social assistance nonemployer businesses are in Valdez. 9 The smallest geography that nonemployer data is usually available is the borough. However to support this report the U.S. Census separated zip code 99686 (City of Valdez) data and prepared an analysis for Valdez. Valdez Socioeconomic Baseline Indicators Study December 2015 Page 44 Figure 56 - Nonemployer Businesses and Receipts by Industry NAICS Sector, City of Valdez, Alaska*: 2010-2013 2010 NAICS Code & Sector (alphabetical order) # Establish Total 328 2011 Receipts ($000s) $13,655 # Establish 332 2012 Receipts ($000s) $13,476 #. Establish 308 2013 Receipts ($000s) $12,591 Accommodations & Food 72 28 $528 22 $521 19 $309 Services Admin., Support, Waste 56 16 $353 24 $960 24 $417 Mgt., & Remediation Ag. Forestry, Fishing, & 11 61 $4,351 67 $4,407 62 $4,081 Hunting Arts, Entertainment, & 71 14 $1,039 13 $182 12 $156 Recreation 23 Construction 32 $1,379 30 $1,530 26 $970 61 Educational Services D D D D D D 52 Finance & Insurance D D D D D D 62 Health Care & Social Asst. 14 $461 15 $532 18 $452 51 Information D D D D D D 31-33 Manufacturing 0 0 11 $72 11 $83 21 Mining D D D D 81 Other Services 34 $1,071 36 $1,252 33 $1,014 Professional, Scientific, & 54 39 $929 33 $755 D D Technical Services 53 Real Estate, Rental, Leasing 25 $1,549 19 $1,336 16 $1,312 44-45 Retail Trade 0 0 22 $693 18 $539 Transportation & 48-49 19 $900 20 $960 20 $1,152 Warehousing 22 Utilities 42 Wholesale Trade 4 72 5 $92 6 $140 Source: 2010-2013 US Census Nonemployer Statistics Notes: Data is for City of Valdez, Alaska as identified by ZIP code 99686. D = Non-disclosable because three or less firms in this sector. Data from these businesses is included in the Annual Totals. - Data not reported to City of Valdez Valdez Socioeconomic Baseline Indicators Study December 2015 Page 45 # Establish Receipts ($000s) 336 $15,491 23 $533 27 $633 81 $6,252 10 $250 28 D 19 D 8 D 31 $1,340 D $470 D $53 D $1,039 39 $1,671 15 21 $1,238 $505 24 $1,166 6 $117 Valdez Employment and Wages Previous sections of this chapter reviewed both the complete work-related economy and nonemployer small businesses; the remainder of this chapter looks more closely at income and jobs for employed workers. Unless noted otherwise, information in this section is for federal civilian personnel only. With an average of 2,14510 annual employees in 2014 who worked for 182 firms or government agencies, employed workers comprise the majority of the Valdez workforce. In 2014, approximately 75% of employees worked in the private sector (Figure 57). Over the last 10 years, the total number of employees (resident and non-resident) in Valdez has been relatively flat, similar to population trends (Figure 57). Employment was lowest in 2008, coincident with the national recession. Between 2008 and 2014, total employment grew by 200 workers to a 2014 high point of 1,604 total employees. Growth in private sector jobs fueled increased employment since 2008, while federal (civilian) jobs declined during this period. Between 2004 and 2014, total employment wages increased by 26% from $94.9 million to $119.9 million (Figure 58). However, measured in inflation-adjusted dollars, total employment wages in Valdez are slightly below the level needed to have kept pace with inflation over the last decade. Total wages of $119.9 million in 2014 are about equal to 2004 wages of $122.8 million (in 2014 dollars). Figure 57- Number of Valdez Employees, 2004-2014 2,500 2,000 16% 7% 2% 1,500 75% 1,000 500 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Local Government 365 314 308 314 309 329 338 342 362 349 341 State Government 128 125 127 124 129 140 150 157 152 152 157 Federal Government 24 25 29 29 26 55 58 53 51 47 43 1,520 1,457 1,537 1,524 1,472 1,469 1,459 1,488 1,521 1,583 1,604 Private Sector Source: ADOLWD QCEW 10 If civilian and enlisted personnel is included for 2014, total is 2,238. Valdez Socioeconomic Baseline Indicators Study December 2015 Page 46 Figure 58 - Valdez Total Wages - Actual (nominal) and Inflation-Adjusted (real) $130,000,000 $120,000,000 $110,000,000 $100,000,000 $90,000,000 $80,000,000 2004 2005 2006 Actual Total Wages 2007 2008 2009 2010 2011 2012 2013 2014 Inflation-adjusted Total Wages Wages(2014 dollars) Inflation-adjusted Total Average annual wages for employees in 2014 were highest for those working in Transportation and Warehousing (Figure 59). The Transportation and Warehousing sector includes industries providing transportation of oil, other goods and cargo, and people; warehousing and storage for goods; scenic and sightseeing transportation; and support activities related to transportation. Valdez businesses include much of the Alyeska Pipeline Service Company and the Valdez Marine Terminal, trucking companies, Crowley Maritime Corporation, some Petro Star Inc. employment (most in NAICS 32/manufacturing), air and marine sightseeing and charter businesses, marine cargo and oil transshipment tugs, tankers and vessels, aviation businesses, taxis, and more. Figure 59 - Valdez 2014 Average Annual Wages, by Industry (NAICS) Food Svcs & Drinking Places Accommodation Other Services, except Public Admin Retail Trade Arts, Entertainment, & Recreation Health Care & Social Assistance Finance & Insurance Local Government State Government Federal Government (civilian+enlisted) Real Estate, Rental & Leasing Manufacturing Wholesale Trade Information Natural Resource & Mining Construction Professional & Business Svcs Transportation & Warehousing $17,210 $25,336 $25,491 $30,303 $32,025 $40,595 $43,805 $46,090 $46,866 $47,550 $48,298 $48,373 $50,695 $64,857 $75,432 $76,356 $82,726 Source: ADOLWD QCEW Valdez Socioeconomic Baseline Indicators Study December 2015 Page 47 $100,754 Resident/Nonresident Workforce Knowing the industries and occupations in which nonresidents are working can help guide policy decisions about promoting the hire of Valdez residents, whether through creating or expanding certain types of training programs, or collaborating with companies to help them identify qualified local workers. To determine residency, ADOLWD matches QCEW for each worker with PFD dividend applications. Residency data does not include federal employees, the military, or self-employed business owners. Residency data typically over estimates he number of non-residents because one must live in Alaska for a full calendar year to be eligible to apply for a PFD. Thus, a certain percentage of the people initially identified as nonresidents will eventually be categorized as residents. The worker counts for resident/nonresident data are different from employment estimates. Employment estimates (ADOLWD QCEW) are the number of filled positions, and worker counts are the cumulative number of people who worked in an occupation over the course of a year. Because a single position can be filled by more than one person over a period of time due to turnover, worker counts are almost always higher than employment estimates. Worker data presented here also makes no distinction between parttime and fulltime workers11. Statewide, 21% of the Alaska’s workers were nonresidents in 2013 (most recent data). The seafood processing industry employs the greatest percentage of nonresidents at 20% (17,631 jobs), who earned 11% of all nonresident wages. High-paying, year-round jobs with high percentages of nonresidents are most heavily concentrated in the oil industry, where in 2013, nonresidents accounted for 7% of the nonresident workforce in Alaska (6,029 jobs) but earned 24% of total nonresident wages. The smallest geography that nonresident worker data is available for is the Valdez-Cordova Census Area. For the Valdez-Cordova Census Area, 40% of all workers (3,048) in 2013 were non-residents and 19% of total worker wages ($42.2 million) in the Census Area went to non-residents (Figures 60 and 61). Over one-fifth of the non-resident workers in the following four job areas lived in the ValdezCordova Census Area Valdez for four quarters (9-12 months) in 2013: Information (NAICS 51) Professional, Scientific, and Technical Services (NAICS 54) Others Services (NAICS 81) Public Administration (NAICS 92) Either these workers are on their way to becoming residents, or there is an opportunity to determine whether any actions or services could help convert these virtual residents to full time Valdez residents. 11 2013 Nonresidents Working in Alaska, ADOLWD, Research and Analysis Section, February 2015 Valdez Socioeconomic Baseline Indicators Study December 2015 Page 48 Figure 60 - 2013 Valdez-Cordova1 Census Area, Nonresident Workers2 and Wages, by Industry NAICS Sector % of Number of NAICS Code & Sector Nonresident (alphabetical order) Workers Total Number Total % of Total Nonresident Nonresident of Resident Workers Workers in Worker Resident Worker that are Census Area Wages Workers Wages Nonresident for 4 Quarters (9-12 Mon) Totals 72 56 11 71 Accommodation & Food Services Admin. Support/Waste Mgmt. & Remediation Agriculture, Forestry, Fishing & Hunting Arts, Entertainment & Recreation 3,048 $42,178,112 4,607 $177,814,943 40% 371 $3,020,462 550 $9,754,605 40% 6% 42 $825,078 205 $9,398,524 17% 13% 136 $1,693,488 102 $2,767,283 57% 11% 118 $758,966 56 $801,566 68% 3% 23 Construction 147 $3,960,651 261 $11,742,083 36% 10% 61 62 Educational Services Health Care & Social Asst. 53 $979,971 382 $12,584,501 12% 18% 19% 51 Information 12 $490,264 95 $6,216,836 11% 27% 103 $1,880,974 814 $25,621,903 11% 31-33 Local Government Manufacturing 1,706 $21,210,260 265 $10,181,623 87% 9% 81 Other Services 25 $488,679 194 $5,257,789 11% 23% Other/Unknown 28 $510,505 222 $10,611,397 11% 27 $657,745 93 $4,561,149 23% 23% - - - - - 25% 16 $170,422 51 $1,552,027 24% 0% Retail Trade 97 $848,917 431 $9,237,702 18% 10% State Government 46 $1,232,435 375 $16,728,000 11% 121 $3,449,295 511 $40,797,954 19% 54 53 44-45 48-49 Professional, Scientific & Technical Services Public Administration Real Estate, Rental & Leasing Transportation & Warehousing 17% Sources: ADOLWD, Research and Analysis Section, Sept 2, 2015 and October 7, 2015 data runs. 1/Place of work as reported by the employer 2/Unduplicated count of total workers employed at any time during the year. - data not reported to Sheinberg Associates Workers are assigned to the industry in which they earned the most money. Residency is calculated by matching workers reported by Alaska employers with the two most recent Permanent Fund Dividend files. Note that these worker counts are different from employment estimates that come from QCEW data. Valdez Socioeconomic Baseline Indicators Study December 2015 Page 49 Figure 61 - 2013 Valdez-Cordova 1 Census Area, Nonresident Workers 2 by Occupation Number of Total Nonresident Nonresident Workers Worker Wages 1,436 $14,239,154 Sailors and Marine Oilers 92 $1,309,232 Maids and Housekeeping Cleaners 68 $707,850 Farmworkers, Farm, Ranch, and Aquacultural Animals 66 $629,880 Tour Guides and Escorts 60 $308,018 Waiters and Waitresses 56 $489,391 Fishers and Related Fishing Workers 47 $392,109 Carpenters 42 $750,689 Construction Laborers 41 $1,304,357 Office Clerks, General 40 $621,392 Material Moving Workers, All Other 38 $918,838 Food Preparation and Serving Related Workers, All Other 36 $235,994 Customer Service Representatives 32 $233,371 Cashiers 29 $225,721 Compliance Officers 29 $363,075 Maintenance and Repair Workers, General 28 $647,742 First-Line Supervisors of Farming, Fishing, and Forestry Workers 26 $731,781 Cooks, Restaurant 25 $254,032 Recreation Workers 25 $253,462 Occupation Meat, Poultry, and Fish Cutters and Trimmers Source: ADOLWD, Research and Analysis Section, Sept 2, 2014 data run. 1/ Place of work is reported by the employer 2/Unduplicated count of total workers employed at any time during the year. Workers are assigned to the industry in which they earned the most money. Residency is calculated by matching workers reported by Alaska employers with the two most recent Permanent Fund Dividend files. Valdez Socioeconomic Baseline Indicators Study December 2015 Page 50 Seasonality of Workforce Valdez’s average annual employment is 2,145 (2014, ADOLWD). In the summer, the local workforce swells by about 760 (35%) above the average to over 2,600. Statewide, the summer workforce is about 14% higher than in the winter (Figure 62). In the winter, the local workforce shrinks to about 1,840(Figure 62). These seasonal changes reflect Valdez School District schedules, seasonal tourism, and regular seafood processing seasons. Of note, local government employment is counter-cyclical, with 101 more employees in January than in July because schools close in the summer. Valdez industries with the most summer workers in 2014 were: Manufacturing (seafood processing, oil refining) with an estimated 354 more workers in August compared to December. Trade and warehousing, with 161 more workers in August compared to January. Natural resource and mining (mostly commercial fishing work), with 59 more workers in July compared to January. Leisure and hospitality, with 214 more workers in July compared to January. Figure 62 - Valdez Employment by Month, 2014 3,000 2477 Numebr of Employees 2,500 2,000 2548 2631 2267 1843 1882 1974 2,265 2089 1993 1897 1871 1,500 1,000 500 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Federal Govt 38 38 38 42 41 49 48 48 49 43 41 41 State Govt 155 167 164 161 155 155 150 150 159 154 156 157 Local Govt 365 356 349 341 358 339 264 336 338 343 349 348 1,321 1,423 1,545 1,713 1,934 2,086 2,097 1,719 1,453 1,351 1,325 Private Sector 1,285 source: ADOLWD QCEW database, custom run segregating City of Valdez data Valdez Socioeconomic Baseline Indicators Study December 2015 Page 51 Unemployment The annual unadjusted unemployment rates for the Valdez-Cordova Census Area are consistently 1-2 percentage points higher than the statewide rate (Figure 63). Unemployment rates are only available at the census/borough level. Figure 63 - Annual Unemployment Rate Year Valdez-Cordova Census Area Alaska 2003 9.9% 7.8% 2004 9.9% 7.5% 2005 9.5% 6.9% 2006 8.4% 6.6% 2007 8.1% 6.3% 2008 8.1% 6.7% 2009 8.5% 7.7% 2010 9.4% 7.9% 2011 9.9% 7.6% 2012 9.7% 7.1% 2013 9.8% 6.9% 2014 9.5% 6.8% Source: ADOLWD Unemployment Rates, Seasonally Unadjusted Unemployment rates run counter cyclical to employment - when employment is high in July, unemployment is low (Figure 64). (See Figure 62 for employment numbers) Figure 64 – Valdez-Cordova Census Area - 2014 Unemployment Rate, by Month Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2014 13.6% 13.9% 12.8% 10.8% 8.4% 7.3% 6.8% 6.4% 7.1% 9.5% 10.3% 10.6% Source: ADOLWD Unemployment Rates, Seasonally Unadjusted Valdez Socioeconomic Baseline Indicators Study December 2015 Page 52 Annual 9.5% 10 Transportation Data Valdez is fortunate to be accessible by air, sea, and highway. This chapter presents available data on the transportation of people and goods to and from Valdez by air, sea and highway. Valdez Pioneer Field Daily commuter service and air freight at the state-owned Valdez Pioneer Field is provided primarily by Ravn Alaska (formerly Era Aviation), and at times by Alaska Central Express, Grant Aviation, and Peninsula Airways, Inc. Other freight transhippers are Frontier Flying Service, Federal Express, and Hageland Aviation Service. Charter service is also available by these and other carriers. The data on Figure 65 represents scheduled (not charter) air service. Over the last decade, passenger traffic at the Valdez airport has averaged 15,263 outbound passengers and 15,191 inbound passengers per year, with minor deviations from year to year. Outbound air freight has declined over this time period. It is not clear what led to the high outbound freight numbers in 2005, 2006, and 2007. 200,000 180,000 160,000 140,000 120,000 100,000 80,000 60,000 40,000 20,000 0 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Passengers Outbound 15,521 15,317 16,225 14,962 14,363 15,739 16,444 16,087 13,318 14,658 Passengers Inbound 15,711 15,694 16,108 14,642 14,320 15,295 15,965 15,996 13,568 14,611 Freight Outbound 198,030 68,814 68,522 39,429 39,556 37,235 31,437 30,286 26,434 32,464 Freight Inbound 97,485 111,274 125,732 105,265 82,421 112,463 116,322 118,222 105,862 133,667 Source: Bureau of Transportation Statistics Valdez Socioeconomic Baseline Indicators Study December 2015 Page 53 0 Freight (pounds) Passengers Figure 65. Valdez Airport Passenger and Freight Volumes, Inbound and Outbound, 2005-2014 Richardson Highway Traffic on the Richardson Highway averaged 435 daily north and southbound combined vehicles per year during the period of 2004-2013, with a high of 461 in 2004 and a low of 400 in 2006 (Figure 66). Commercial vehicle traffic on the Richardson Highway decreased 33% over the last decade, from an average of 175 vehicles per day in 2004 to an average of 118 vehicles per day in 2013. About one quarter of the traffic is commercial. Traffic near Valdez city at the Valdez ADOT&PF offices on Richardson Highway Mile 0.35, has declined 9% over the last decade, from 4,979 Average Annual Daily Traffic (AADT) in 2004 to 4,523 AADT in 2013. Figure 66 - Average Annual Daily Traffic (AADT) by Location, 2004-2013 Annual Average Daily Traiffic, combined directions 6,000 5,000 4,000 3,000 2,000 1,000 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 4,979 4,790 5,061 4,694 4,305 4,505 4,735 4,565 4,648 4,523 Richardson Hwy M62 461 458 400 444 418 445 422 M62, Commerical 175 165 116 115 105 125 118 1,881 1,611 1,201 1,931 1,595 1,766 1,927 Valdez DOT Dayville Rd 1,524 1,601 1,460 Source: AK DOT&PF, Northern Traffic Data Manager. Notes: Not all stations are surveyed each year. Data include traffic in both directions combined. Alaska Marine Ferry System Each year more vehicles and passengers leave Valdez than arrive by Alaska Marine Highway System (AMHS) ferry (Figures 67 and 68). It not known whether this is due to the ferry schedule, a preference of visitors for an Anchorage-Valdez-Whittier drive/ferry route, or for another reason. Over the last decade, an average of 12,849 passengers and 4,149 vehicles left Valdez by ferry, and an average of 9,902 passengers and 3,283 vehicles arrived in Valdez by ferry each year. Similarly, during this period, an average of 511 RVs left Valdez by ferry per year, while an average of 355 RVs arrived in Valdez by ferry (44% more leaving than arriving). In 2014, 35% more passengers and 27% more vehicles left than arrived in Valdez. Valdez Socioeconomic Baseline Indicators Study December 2015 Page 54 Figure 67 - Valdez’s AMHS Disembarking and Embarking Passengers and Vehicles by Type 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 2004 2005 2006 2007 2008 2009 2010 2011 Disemb. Passengers Emb. Passengers Disemb. Vehicles Emb. Vehicles 2012 2013 2014 Source: ADOT&PF AMHS Figure 68 - AMHS travel Data to and from Valdez, 2004-2014 Year Sailings 2004 2005 Passengers Total Vehicles Comm. Vehicles Cars RVs Disemb. Emb. Disemb. Emb. Disemb. Emb. Disemb. Emb. Disemb. Emb. 212 11,368 13,257 3,662 4,097 8 9 3,229 3,550 425 538 277 9,022 10,858 2,760 3,296 0 2 2,450 2,941 310 353 2006 372 10,422 13,457 3,268 4,246 20 9 2,876 3,730 372 507 2007 290 10,592 13,745 3,301 4,042 2 7 2,960 3,577 339 458 2008 291 10,082 13,325 3,251 4,207 10 8 2,864 3,667 377 532 2009 351 9,257 12,786 3,361 4,534 6 10 2,981 3,997 372 522 2010 275 9,601 12,640 3,297 4,259 4 3 2,979 3,718 306 518 2011 331 10,631 14,195 3,547 4,809 11 11 3,181 4,144 342 634 2012 244 8,633 11,485 2,910 3,765 3 1 2,559 3,175 339 558 2013 268 9,858 12,800 3,463 4,178 6 3 3,139 3,671 312 465 2014 252 9,461 12,788 3,298 4,201 13 12 2,864 3,608 406 541 Source: ADOT&PF AMHS Valdez Socioeconomic Baseline Indicators Study December 2015 Page 55 Valdez Ports and Harbors Valdez has played an important role in the infrastructure and economic development of Alaska, given its strategic location, deep water port, and access to Interior Alaska communities and resources. The port offers commercial shippers important linkages between Alaska and world markets. Yet it captures only a small percentage of the freight shipped in and out of Southcentral Alaska’s ports. Days of use of the port have steadily increased over the last ten years, from 272 in 2004 to 677 in 2014, an increase of 150% (Figure 69). The total number of vessels using Port of Valdez marine facilities has increased substantially in recent years. Twice as many vessels used the port in 2014 as in 2012 (Figure 69). Reasons include growth in the pink salmon harvest in Prince William Sound, expanded fish processing operations in Valdez leading to increased shipping, and training activities conducted by Shell. Recent withdrawal of Shell Oil from Alaskan waters will likely cause a short term decline in port use. However, a 2015 McDowell Group study, “Competitive Market Analysis and Long Range Planning for the Port of Valdez” suggests opportunities for the port to capture increased freight activity and shipping: Linked to the export of seafood Related to Valdez’s proximity to North Slope oil and gas activity, Interior mines, and military bases That is oversized or hazardous cargo because some shippers want to avoid the more congested port and streets of Anchorage Figure 69 - Valdez Port Annual Cargo, Days of Use, and Total Number of Vessels 60,000 Short Tons 50,000 40,000 30,000 20,000 10,000 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Days of Use 272 268 245 378 371 295 433 406 581 465 677 Number of Vessels 174 185 177 167 182 155 188 192 193 262 386 Cargo (short tons) 35,115 45,621 24,220 23,508 32,848 26,818 31,593 19,125 38,294 50,209 44,044 Source: Valdez Port Valdez Socioeconomic Baseline Indicators Study December 2015 Page 56 800 700 600 500 400 300 200 100 0 At the small boat harbor, a multi-year, phased expansion is underway. This project is in response to several factors including (Figure 70): Opportunities to support for increased commercial fishing and seafood processing activity; Long wait list for slips; Demand from Interior Alaskans who consider Valdez their “local” harbor (Figure 71); Demand for larger vessel moorage; and Strong national economy that favors tourism growth. Figure 70 - Valdez Small Boat Harbor Wait List and Expansion Project Small Boat Harbor 2007 2015 # Wait # Wait Listed Listed After Harbor Expansion Slip Length # Slips Slip Total 20’ 109 13 0 109 24’ 107 63 16 107 30’ 173 95 92 173 36’ - - 9 17 40’ 66 48 46 117 50’ 49 24 46 101 60’ - - 15 11 100’ 6 - 2 10 Total 510 243 Transient/Parallel Moorage (lineal feet) 226 645 1,893 LF 2,549 LF Source: City of Valdez Harbor Department Figure 71 - Valdez Harbor Tenants, By Residence Total, 2007 Total, 2015 Outside Alaska 6% 6% Valdez 37% 40% Other Alaskan Communities: 57% 54% Fairbanks/North Pole/Eagle 35% 32% Palmer/Wasilla/Big Lake/ Sutton 5% 6% Eielson AFB, Ft Wainwright/Central/ Salcha 3% 3% Anchorage/Whittier 3% 3% Chugiak 3% 1% Delta Junction/Tok/Slana 3% 4% Ester/Nenana/Healy/Denali Park 2% 3% Copper Center/Glennallen/Gakona 2% 1% Kenai/Soldotna/Homer/Nikiski/Cordova/Tatitlek 1% 1% Source: City of Valdez Harbor Department Valdez Socioeconomic Baseline Indicators Study December 2015 Page 57 11 Oil Industry Oil movement and shipping, storage, refinement, and ensuring the safety of these activities, is the lead economic driver in Valdez and the primary component of Valdez’s basic economy. Components of the Valdez oil industry include: Movement of North Slope crude oil through the Trans Alaska Pipeline System (TAPS) by Alyeska Pipeline Service Company, along the Richardson Highway, into Valdez. Delivery of pipeline crude oil to holding tanks at Alyeska’s 1,000-acre Valdez Marine Terminal (VMT), and loading crude oil into private shipping company tankers (e.g., Crowley and others) for shipment to market. The VMT also has a ballast water treatment system, a vapor recovery system, and a power plant. Refinement of crude oil at the Petro Star Refinery into a variety of diesel products, jet fuel, and heating oil. Approximately 90% is shipped to markets through the Valdez Petroleum Terminal and the remaining 10% trucked to market by North Pacific Fuel Company. Employment at the refinery approximately doubled around 2010 when expansion was completed to refine ultra-low sulfur diesel. Routine training and activities associated with Alyeska’s Ship Escort/Response Vessel System (SERVS) oil spill preparedness and response operations. U.S. Coast Guard monitoring of vessel traffic and other activity to ensure marine safety. Employment and Wages A 2014 Alaska Oil & Gas Association report, titled “The Role of the Oil and Gas Industry in Alaska’s Economy,” estimated that in Valdez the oil industry contributes 700 direct and indirect jobs and $65 million in accompanying wages annually. In 2014, this would equal 28% of the community’s annual workforce and 48% of work earnings. Oil industry employment in Valdez is primarily classified as part of the Transportation and Warehousing Sector (NAICS 48-49), oil-related jobs are also in Administration of Waste Remediation (NAICS 56), and Manufacturing (NAICS 31-33). And, there is non-oil related work also classified with Transportation and Warehousing12; however this sector is about 65-75% oil-related in Valdez and can serve as a proxy for employment and wage trends in the local oil industry. 12 The Transportation and Warehousing sector includes industries providing transportation of oil, other goods and cargo, and people; warehousing and storage for goods; scenic and sightseeing transportation; and support activities related to transportation. Valdez businesses include much of the Alyeska Pipeline Service Company and the Valdez Marine Terminal, trucking companies, Crowley Maritime Corporation, some Petro Star Inc. employment (most part of NAICS 31-32, Manufacturing), air and marine sightseeing and charter businesses, marine cargo and oil transshipment tugs, tankers and vessels, aviation businesses, taxis, and more. Valdez Socioeconomic Baseline Indicators Study December 2015 Page 58 Transportation and Warehousing is the largest sector in Valdez in terms of total employment, total earnings, and highest average annual wages, out of 13 large sectors. Average annual wages in this sector in 2014 were $100,750 (Figure 72). However, since 2004, Valdez total wages in the Transportation and Warehousing sector have lost ground to inflation. Measured in inflation-adjusted dollars, the Transportation and Warehousing sector’s average annual wage of $100,750 in 2014 is well below 2004 wages of $130,800 (in 2014 inflation-adjusted dollars). Interviews with oil industry executives suggests that current wages meet industry standards and have not decreased per se, but relevant factors over the last decade are that retiring high-paid employees are replaced with younger workers who have lower starting salaries, and that increased mechanization over time has changed the nature of some of the work. Since this is the community’s largest sector, the failure to keep pace with inflation affects overall community purchasing power. Figure 72 – Oil Industry Key Indicators Indicator TAPS throughput, annual barrels Transportation & Warehousing: # Employees (avg. annual) Total Wages Average Annual Wage Oil related property tax to City 2010 2013 2014 5 year change 1 year change 226,174,050 195,085,253 187,406,088 -17% -4% 392 $40,562,749 $103,454 358 $38,227,476 $106,657 385 $38,781,877 $100,754 -2% -4% -3% 8% 1% -6% -1% -19% $43,816,134 $53,531,774 $43,380,273 Sources: Alyeska Pipeline Company, City of Valdez, ADOLWD Current Trends Declining Trans Alaska Pipeline System (TAPS) oil throughput and transshipment has significant negative implications for City of Valdez revenue, local employment, and the overall economy. More than 2 million barrels a day once surged through the TAPS. Since that peak flow in the late 1980s, TAPS throughput has dropped and is now declining at over 5% per year. Less oil means slower-moving oil and colder oil, which complicates pipeline operations. Daily throughput is now lower than it was at pipeline startup in 1977 (Figure 73). Reduced pipeline throughput also means decreased oil export from the Valdez Marine Terminal, which like oil throughput, has declined steadily over the last decade from 800,000-900,000 bbl/day in 2002 to 400,000-550,000 bbl/day in 201413. 13 Prince William Sound Regional Citizen’s Advisory Council, “Statistics for Valdez Marine Terminal, VMT Monthly Loading Statistics, 2002-2014” http://www.pwsrcac.org/resources/statistics-for-valdez-marine-terminal Valdez Socioeconomic Baseline Indicators Study December 2015 Page 59 On the other hand, Petro Star employment approximately doubled in 2009-2010 when it expanded to include refining of ultra-low sulfur diesel. Industry representatives note that recruiting and retaining process technology trained employees can be a challenge. 800 700 600 500 400 300 200 100 0 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 BBLs (in millions) Figure 73 - TAPS Throughput (in millions of barrels) exported from Valdez Source Alyeska Pipeline Service Company Regardless of oil throughput, the assessed value of the TAPS and the VMT is declining over time (Figure 74), which will reduce the property tax the City of Valdez collects from these assets. Figure 74 - Trans Alaska Pipeline System Assessed Value Year TAPS Property Value Value as set by 2015 $9.6 billion State Assessment Review Board (SARB) certified 2014 $10.2 billion SARB certified 2013 $11.8 billion SARB certified 2012 $8.2 billion stipulated value to which parties agreed Source: Alaska Department of Revenue, Petroleum Assessor In 2014, one Economic Diversification Commission strategic idea was to leverage Valdez expertise in marine tourism, event coordination, and the oil industry to (1) become a world class venue for technology field testing and training related to maritime environmental and emergency response and cleanup in the Arctic and other cold weather regions, and (2) become recognized as an Arctic-support port. Shell Oil was using Valdez as a support location for arctic oil exploration related equipment and training and its withdrawal reduces these activities and needs. However, the Arctic continues to open up for increased transshipment, tourism, fishing, and more due to melting sea ice. This Valdez strategic economic concept is still of merit. Valdez Socioeconomic Baseline Indicators Study December 2015 Page 60 12 Local Government Wages and Employment Government jobs typically are year-round family-wage paying work that provides economic stability in smaller communities. Valdez is no exception. Just under one-quarter of all Valdez resident employees (average annual) are federal, state, or local government workers14. Local government is a lead component of Valdez’s support economy. Local government provides more jobs and total wages in Valdez than any other sector except Transportation and Warehousing. This sector includes the City of Valdez, Valdez School District, and the Valdez Native Tribe (Figure 75). State and local government wages have not kept pace with inflation over the last decade, while federal civilian wages, some of the highest in the town, have risen at a pace that exceeds inflation (Figure 76). Figure 75 - Government - Average Annual Employment & Total Wages, 2004-2014 number of workers 500 $30,000,000 55 24 25 400 29 29 26 127 124 129 58 53 128 125 140 150 157 51 47 152 152 43 157 $25,000,000 $20,000,000 300 $15,000,000 200 $10,000,000 100 $5,000,000 365 314 308 314 309 329 338 342 362 349 341 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 0 wages 600 $0 Local State Federal WAGES - Total-Government Source: ADOLWD, includes only civilian USCG Figure 76 - Government Wages (Average Annual) and Inflation 2014 2004 2004 Average Annual Average Annual Wage Average Annual Wages in 2014 dollars Wages Federal government (civilian only) $70,223 $60,522 $46,751 State government $46,886 $48,843 $37,729 Local government $46,090 $48,065 $37,128 Sources: ADOLWD, Anchorage Consumer Price Index by US BLS 14 Federal includes civilian and enlisted personnel. Valdez Socioeconomic Baseline Indicators Study December 2015 Page 61 Services and Revenue The City of Valdez provides and maintains city infrastructure and municipal services as well as a significant share of local school funding. Regular (formula-driven) local, state, and federal government revenue for the City of Valdez has varied from $43 million to $63 million during the last six years. The large $20 million variance is primarily due to the changing valuation of the Trans Alaska Pipeline System (TAPS) and Valdez Marine Terminal (VMT) and resultant property tax to the City (Figures 74 and 79). Valdez is highly dependent on a single declining source of revenue (Figures 77 and 79). Each of the last six years, 80-85% of annual City operating revenue has come from local property tax levied on the assessed value of the TAPS within City boundaries. The current property tax rate is 20-mills (property value x 0.020). Because property taxes must be applied equally to all, local residential, commercial, and industrial property is also subject to this levy and tax. Property tax revenue collected from local non-oil and gas assets accounts for 8-11% of regular City revenue. About 4-6% of annual City operating revenue each year comes from the federal government’s Payment-In-Lieu of-Taxes (PILT) or Secure Rural Schools/National Forest Receipt (SRS/NFR) sources. Both PILT and SRS/NFR have been reauthorized by Congress for only for 1-2 years at a time for the last decade and thus these revenue contributions are continually uncertain (Figure 77 and 79). Unless SRS is reauthorized, the last payment will be in January 2016. If not reauthorized, the program and payments will revert to the greatly reduced revenues under the NFR. For example, in 2015 Valdez received $1.58 million under SRS and under NFR it would only have received an estimated $18,400. PILT was reauthorized for federal FY 15 only; Valdez got most of its FY 15 payment in July 2015 and will get another increment in January 2016. Valdez Socioeconomic Baseline Indicators Study December 2015 Page 62 Figure 77 - 2014 Valdez Regular (formula-driven) General Fund Revenue, by Source Other state 1% State community revenue sharing, 1% Federal PILT Federal SRS, 3% 1% Valdez hotel tax, 1% Valdez non-oil & gas property tax, 10% State fisheries business tax, 1% Valdez oil & gas property tax 82% Source: Alaska DCCED Alaska Taxable Top 10 Property Tax Payers Of the 10 largest property tax payers in 2015, four are associated with the oil industry, three are linked to the visitor industry, and one to seafood processing. The other two include a housing developer and the grocery store (Figure 78). Approximately 89% of the total gross taxable value of all property in Valdez is Alyeska Pipeline Service Company’s Trans Alaska Pipeline System (TAPS), storage tanks, marine terminal, barges, and associated land and facilities. Figure 78 - Top Ten Property Tax Payers, 2015 1. Alyeska Pipeline Service Company (several components) 2. Petro Star Inc. 3. Crowley Marine Services Inc. 4. Kae Soung Hotel Enterprises Inc. (Mountain Sky Hotel) 5. Peter Pan Seafoods Inc. 6. North Pacific Rim Housing Authority 7. Totem Inn 8. Johnson Inn Valdez, LLC. (Best Western Harbor Inn) 9. Valdez Properties LLC (Valdez Airport Mancamp, other commercial property) 10. CFG Properties, Inc. (Safeway) Source: 2015 Valdez Property Tax Roll Valdez Socioeconomic Baseline Indicators Study December 2015 Page 63 Figure 79 - City of Valdez General Fund - Regular (formula-based) Revenues Type Source 2009 TOTAL LOCAL TAXES Local 1 Bed tax (6%) Property Tax: NonO&G (20 mill, 18.29 in 2012) Property Tax - O&G (20 mill, 18.29 in 2012) Local 1 Local 1 TOTAL STATE SHARED State 2 2010 2011 2012 2013 2014 $48,260,233 $49,218,209 $43,802,178 $39,436,853 $58,990,232 $49,227,552 $389,169 $437,354 $387,512 $442,309 $387,153 350,000 $4,847,767 $4,964,721 $4,537,124 $4,540,653 $5,071,305 $5,497,279 $43,023,297 $43,816,134 $38,877,542 $34,453,891 $53,531,774 $43,380,273 $646,053 $676,248 $1,086,197 $908,455 $1,835,991 $1,168,397 $1,580 $0 $0 $0 $0 $0 $0 $31,730 $2,335 $1,650 $828,865 $1,265 $43,623 $20,236 $26,183 $28,163 $29,875 $30,416 State 2 Aviation fuel CPV Excise (cruise ship) State 2 Electric Coop State 2 Fisheries Business $0 $127,685 $521,771 $274,176 $354,769 $621,634 State 2 Fishery landing $0 $0 $0 $0 $0 $0 State Liquor $28,600 $17,900 $13,550 $17,750 $9,800 $20,650 $214,219 $128,383 $138,225 $163,939 $168,134 $164,403 $320,332 $325,462 $321,582 $391,555 $411,940 $291,345 $37,699 $24,852 $62,551 $31,222 $32,608 $38,684 $3,243,595 $2,933,515 $2,929,515 $2,665,648 $2,338,467 $2,331,536 $713,638 $734,740 $704,009 $713,016 $703,602 $752,184 $2,529,957 $2,198,775 $2,225,506 $1,952,633 $1,634,864 $1,579,352 $52,149,881 $52,827,972 $47,817,890 $43,010,956 $63,164,690 $52,727,485 2 State 2 Telephone Coop Community Revenue Sharing Shared fisheries tax (DCCED) State 3 State 3 TOTAL FEDERAL SOURCES Federal 3 Federal 3 Federal PILT FEDERAL SRS/ NFR (primarily to schools) GRAND TOTAL Change from year before % of total from local % of total local from O&G property tax 1% -9% -10% 47% -17% 93% 93% 92% 92% 93% 93% 82% 83% 81% 80% 85% 82% Sources: 1 - Alaska Taxable, Alaska DCCED/DCRA, 2014-2009; Pers. Comm., State Department of Revenue Assessor’s Office 2 - State Shared Tax Reports, Alaska DOR, 2009-2014 3 - State Community Aid & Accountability Reports, Alaska DCCED/DCRA, SY16/CY15-SY10/CY09; Pers. Comm., State Assessor’s Office Notes: Data is generally reported in City Year (CY) rather than federal or state fiscal year or program year. Property tax revenue may not include City of Valdez exemptions. Table includes formula-driven revenue only, does not include investment, the voter approved 1.5% of Valdez Permanent Fund’s value, capital or other funding/income sources. Valdez Socioeconomic Baseline Indicators Study December 2015 Page 64 13 Commercial Fishing & Seafood Processing15 Valdez’s seafood industry is a growing economic driver in the town. The most recent assessment of the full economic impact of the seafood industry found that commercial fishing and seafood processing together employed just over 700 workers in Valdez, including local fishermen, processing workers, hatchery employees and government workers engaged in fisheries management. This work creates other jobs in the support sector. In total, seafood generated an estimated $16.7 million in local labor income in Valdez in 2013 16 (this includes direct, indirect, and induced income). Figure 80 - Commercial Fishing and Seafood Processing Indicators 2013 2014 5 year change 28,906,190 68,213,215 -6.3% (2012) (2013) (4 yr) $21,710,232 $34,398,840 9.1% (2012) (2013) (4 yr) 12,533,242 12,160,514 6,711,292 -46.5% -44.8% 12,892,892 12,440,587 6,909,090 -46.4% -44.5% $5,284,731 $5,377,764 $2,445,521 -53.7% -54.5% Valdez Permit Owners Fishing 32 28 23 -28.1% -17.9% Valdez Crew Members 73 74 69 -5.5% -6.8% Total Valdez Commercial Fishermen 105 99 92 -2.9% -9.8% State Fisheries Tax Shared with City $127,685 $354,769 $621,634 387% 75% Est. Number of Workers 610 FTE Employment 180 Est. Labor Income ($millions) $8.8 30 20 $0.9 Indicator 2010 Seafood Landings in Valdez (pounds) Seafood Landings in Valdez (ex-vessel value) Pounds Landed by Valdez Residents in PWS Seine Fishery Pounds Landed by Valdez Residents for all Fisheries in Alaska Valdez Commercial Fishermen Gross Earnings 72,811,388 $31,532,402 Valdez Seafood Processing Economic Impact, 2013 Seafood Processing VFDA Hatchery and ADF&G 1 year change 136.0% 58.4% Sources: CFEC Fishery Statistics; Alaska Department of Revenue, McDowell Group 2015 “Economic Impact of the Seafood Industry in Southcentral Alaska.” 15 Data Sources - Using wage and employment data to determine commercial fishing and seafood processing employment and wages is difficult for because there aren’t enough seafood processors in Valdez to allow the state to disclose their data, and most commercial fishermen are self-employed and therefore not included in ADOLWD reporting. Also, employment and wages from seafood processing jobs reported to the state are classified as NAICS 32 Manufacturing, which in Valdez also includes most of Petro Star refinery; so it is not easy to distinguish between the two based only on ADOLWD QCEW data. Other sources do provide indicator data to help understand this sector, including information from the Alaska Department of Fish and Game, Commercial Fisheries Entry Commission, and National Oceanic and Atmospheric Administration (NOAA). Together these sources along with interviews paint a picture of commercial fishing and seafood processing activity in Valdez. In addition, McDowell Group assembled information as part of its 2015 study titled, “Economic Impact of the Seafood Industry in Southcentral Alaska.” 16 McDowell Group, “Economic Impact of the Seafood Industry in Southcentral Alaska,” 2015 Valdez Socioeconomic Baseline Indicators Study December 2015 Page 65 Valdez Resident Participation In 2014, the Valdez commercial fishing industry included 23 resident active permit holders, 69 crew members, and 57 commercial fishing vessels licensed in town (Figures 80-81). Many local boats are seiners that also participate in longline Individual Fishing Quota (IFQ) fisheries for black cod and halibut. The local commercial fleet includes 20 longline, pot, and jig boats homeported in Valdez, in addition to three tenders and two other small support vessels. Numerous additional seiners that are homeported elsewhere deliver fish in Valdez. The number of Valdez residents holding crewmember licenses dropped 16% from 82 in 2004 to 69 in 2014. The number of Valdez residents owning and actively fishing commercial fishing permits has ranged between 23 and 32 over the past decade. In 2013, there were 28 residents with permits fishing, and in 2014 the number dropped to 23. Figure 81 - Valdez Resident Active Permit Holders and Crew Members 150 100 82 89 0 28 2004 81 65 70 26 25 27 31 2005 2006 2007 2008 50 73 65 67 74 29 32 31 32 28 23 2009 2010 2011 2012 2013 2014 52 Active Permit Holders 69 Crew Members Source: CFEC, Fishery Statistics Total assets of commercial fishermen in Valdez (boats and permits) were estimated at $13.3 million in 2015 (Figure 82).17 Figure 82 - Estimated 2015 Asset Value Held by Valdez Residents ($Millions) Limited Entry Permits $4.8 IFQ Quota Shares $1.4 Fishing Vessel Value, Gear, and Misc. $7.1 Total Asset Value Held by Resident Commercial Fishermen $13.3 Source: McDowell Group. 2015. “Economic Impact of the Seafood Industry in Southcentral Alaska.” Notes: Labor income figures include estimated income from tender vessels owned by local residents. 17 McDowell Group. 2015. “Economic Impact of the Seafood Industry in Southcentral Alaska.” Valdez Socioeconomic Baseline Indicators Study December 2015 Page 66 Participation and Earnings in Prince William Sound Seine and other Fisheries The vast majority of earnings from commercial fishing activities by Valdez residents are a result of participation in the Prince William Sound (PWS) seine fishery (82% in 2014) (Figures 83 and 84). The pink salmon runs on which this fishery is based can fluctuate significantly from year to year. In 2013, 12.2 million pounds were harvested by Valdez residents in the PWS seine fishery generating an estimated $4.95 million in gross earnings. In 2014, the harvest dropped by almost half to 6.7 million pounds, which brought in only $2 million in earnings for resident seiners. Figure 83 - Commercial Fishing by Valdez Residents, 2004-2014 Total for All Fisheries Year Pounds 2004 2005 2006 Prince William Sound Seine Fishery Estimated Gross Estimated Gross % of Total Pounds % of Total Landed Earnings Earnings 4,878,207 $1,092,583 $533,806 Earnings Landed Landings 48.9% 4,601,760 94.3% 17,186,507 $2,886,610 4,865,792 $1,598,151 $2,261,372 78.3% 16,798,345 97.7% $959,515 60.0% 4,568,369 93.9% 2007 13,505,896 2008 9,933,834 $3,341,262 $2,523,593 75.5% 13,194,954 97.7% $4,561,492 $3,718,392 81.5% 9,501,575 95.6% 2009 2,085,508 $1,141,251 $453,037 39.7% 1,626,131 78.0% 2010 12,892,892 $5,284,731 $4,549,880 86.1% 12,533,242 97.2% 2011 6,526,542 $3,697,163 $2,853,960 77.2% 6,136,437 94.0% 2012 6,003,965 $3,553,855 $2,754,181 77.5% 5,558,728 92.6% 2013 12,440,587 $5,377,764 $4,952,499 92.1% 12,160,514 97.7% 2014 6,909,090 $2,445,521 $2,010,038 82.2% 6,711,292 97.1% Source: CFEC, Fishery Statistics Notes: Data do not necessarily represent landings in Valdez; rather, they represent landing and earnings by Valdez residents no matter where the fish are landed. Figure 84 - Estimated Gross Earnings by Valdez Residents, 2004-2014 $6,000,000 $4,000,000 $2,000,000 $0 2004 2005 2006 2007 2008 Other Fisheries 2009 2010 2011 2012 PWS Seine Fishery Source: CFEC, Fishery Statistics Valdez Socioeconomic Baseline Indicators Study December 2015 Page 67 2013 2014 In addition to the PWS seine fishery, Valdez residents are active in the halibut, sablefish, shellfish and PWS gillnet fisheries (Figure 85). There has been a decline in the number of Valdez resident permit holders in the halibut and sablefish IFQ fisheries, from 12 in 2004 to 8 in 2014 for halibut, and from 6 in 2004 to 4 in 2014 for sablefish. Figure 85 - Number of Valdez Residents Fishing Permits, by Fishery, 2004-2014 Year Total All Fisheries PWS Seine PWS Gillnet Halibut Sablefish Shellfish 2004 28 9 7 12 6 * 2005 26 10 6 11 6 * 2006 25 9 5 11 5 * 2007 27 9 5 13 5 * 2008 31 13 6 14 5 * 2009 29 14 5 12 5 * 2010 32 13 3 11 5 10 2011 31 16 4 7 5 5 2012 32 16 * 10 4 4 2013 28 13 * 8 3 5 2014 23 12 * 8 4 3 Source: CFEC, Fishery Statistics. Notes: Numbers are not necessarily additive, since a fisherman may own and fish permits in multiple fisheries. Valdez residents participate in other fisheries that are not listed due to very small numbers and confidentiality issues. * denotes confidential data due to low numbers of participants. Between 2004 and 2014, the amount of IFQ quota held by Valdez residents has declined by 27.5% for sablefish and 9.3% for halibut (Figure 86 and 87). Note: these fish may or may not be landed in Valdez. Earnings from other fisheries — including halibut, sablefish, other salmon fisheries, and others — are more stable, though gaps in the data are present due to confidentiality concerns. Figure 86 - Commercial Fishing by Valdez Residents, Other than PWS Seine Fishery, 2004-2014 PWS Gillnet - Salmon Year Sablefish Halibut Shellfish Total Est. Gross Pounds Est. Gross Pounds Est. Gross Pounds Est. Gross Pounds Earnings Landed Earnings Landed Earnings Landed Earnings Landed 2004 $112,224 89,281 $63,577 20,175 $250,009 85,240 * * 2005 $166,962 181,697 $228,641 108,884 $213,269 71,317 * * 2006 $127,826 101,322 $150,590 63,465 $335,927 95,225 * * 2007 * * $214,260 62,201 $440,031 105,029 * * 2008 $157,706 198,801 $157,270 54,211 * * * * 2009 $181,596 210,934 $150,601 51,962 * * * * $171,704 51,989 * * * * 2011 $202,915 154,246 $218,276 50,209 * * $11,928 3,264 2012 * * $173,426 45,532 * * $3,538 679 2013 * * * * * * $27,804 4,786 2014 * * $96,870 31,495 * * * * 2010 Source: CFEC, Fishery Statistics. Notes: Data do not necessarily represent landings in Valdez; rather, they represent landing and earnings by Valdez residents no matter where the fish are landed. Valdez residents participate in other fisheries that are not listed due to very small numbers and confidentiality issues. * denotes confidential data due to low numbers of participants. Valdez Socioeconomic Baseline Indicators Study December 2015 Page 68 Figure 87 - Halibut and Sablefish IF Quota Share Holdings by Valdez Residents, 2004-2014 1,000,000 800,000 600,000 400,000 200,000 0 2004 Halibut 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 645,431 645,431 771,519 771,519 797,761 638,199 593,722 593,722 627,682 602,662 585,642 Sablefish 459,041 711,077 458,156 458,156 389,073 389,073 389,073 389,073 334,108 332,821 332,821 Source: NMFS. https://alaskafisheries.noaa.gov/ram/ifqreports.htm. Value of Prince William Sound Seine Fishery The Prince William Sound seine fishery was valued at $100 million in 2013, $40 million in 2014, and preliminary figures for 2015 are $72 million (Figure 88). Average earnings of Alaskan residents participating in the PWS seine fishery in 2014 were $182,748 while average earnings for non-residents were $173,299; the average was $179,982 (Figure 89). Figure 88 - PWS Seine Fishery, Alaska Resident and Non-resident Harvests and Values, 2004-2014 Number of Permits Fished Year Alaska Non- Resident Resident 2004 78 26 2005 76 25 2006 84 27 2007 89 31 2008 104 2009 2010 Total Pounds Harvested (million pounds) ($ millions) Alaska Non- Resident Resident 104 $34.1 $16.0 101 128.4 41.1 111 38.8 14.8 120 137.3 47.0 37 141 98.1 33.2 131.3 115 39 154 27.5 8.0 35.5 134 40 174 171.1 53.8 224.8 2011 134 49 183 58.9 22.3 81.2 2012 161 63 224 68.5 27.0 95.5 2013 153 57 210 180.2 63.7 2014 157 65 222 93.7 37.1 Total Total Earnings Alaska Non- Resident Resident $50.1 $4.0 $1.9 $5.9 169.5 $14.9 $4.5 $19.4 53.5 $8.5 $2.9 $11.4 184.3 $26.9 $9.1 $36.0 $39.1 $13.0 $52.0 $8.1 $2.3 $10.5 $62.5 $19.7 $82.2 $27.3 $10.4 $37.7 $34.9 $13.7 $48.6 243.8 $74.1 $26.0 $100.1 130.8 $28.7 $11.3 $40.0 Total Source for Figure 88 and 89: CFEC, Fishery Statistics Valdez Socioeconomic Baseline Indicators Study December 2015 Page 69 Total Figure 89 - PWS Seine Fishery, Average Participant Earnings and Permit Price $600,000 $400,000 $200,000 $0 2004 Average Earnings 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 $56,718 $191,981 $102,820 $299,626 $369,135 $67,864 $472,488 $205,969 $216,742 $476,738 $179,982 Average Permit Value $14,000 $19,200 $26,100 $30,900 $70,200 Average Earnings $75,300 $100,500 $140,000 $168,700 $168,000 $204,600 Average Permit Value Source: CFEC Fishery Statistics Valdez Landings Shared fisheries business tax revenue, an indicator of commercial fishery landings in Valdez, rose 188% from 2004 to 2014. The total value of landings in Valdez increased from approximately $10 million in 2004 to $34.4 million in 2013. McDowell Group estimates that in 2013, 68 million pounds of seafood with and exvessel value of $34.4 million was landed in Valdez. In 2012, landings included 29 million pounds of fish valued at $22 million. The volume and value of fish landed in Valdez can vary widely year to year, depending the pink salmon harvest. Figure 90 - Valdez Seafood Landings, 2010-2013 Year Pounds Landed Ex-vessel Value 2010 72,811,388 $31,532,402 2011 23,635,456 $16,289,664 2012 28,906,190 $21,710,232 2013 68,213,215 $34,398,840 Source: McDowell Group estimates Estimated Value of Total Landsing (millions) Figure 91 - Shared Fisheries Business Tax Revenue and Estimated Value of Total Landings in Valdez, 2004-2014 $40 $600 $30 $500 $400 $20 $300 $200 $10 $100 $0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 estimated landings ($millions) $10.0 $13.6 $12.1 $18.8 $22.7 $7.7 $31.5 $16.3 $21.7 $34.4 tax receipts ($000s) $700 $216 $166 $225 $201 $311 $376 $128 $522 $274 $355 $622 Sources: ADOR, Shared Tax Reports; Landings- McDowell Group estimates Valdez Socioeconomic Baseline Indicators Study December 2015 Page 70 $0 Seafood Processing Valdez has seen substantial growth in its processing sector in recent years, and more expansion is expected. Recent expansion by two local processors are the result of strong pink runs, increased production at the two local hatcheries, and successful marketing of salmon by-products. Expansion at the Peter Pan Seafoods plant involves a joint venture with Trident Seafoods to produce high-quality salmon oil from salmon heads and other parts. Silver Bay Seafoods is in the process of building a new 70,000 square feet facility and expects to roughly double the company’s processing capacity, utility usage, and workforce. Seafood processing employment data for the Valdez-Cordova Census Area provides an indication of the scale and timing of processing employment in the region (Figures 92 and 93). In 2014, seafood processing employment averaged 443 jobs, however monthly employment ranged from a low of 58 in January to a peak of 1,161 in August. Data is not available from ADOLWD on processing employment in Valdez, due to confidentiality restrictions. Previous McDowell Group research estimates of the total number of individual workers employed at local processing plants at about 600 (almost all in seasonal positions). In 2013, 88% of the workers employment in seafood processing in the Valdez-Cordova Census Area were not Alaska residents. However, Alaska residents employed in the industry earn double that of nonresidents. Resident workers made an average of $26,573 in wages, while non-residents made $12,760. Figure 92 - Valdez-Cordova Census Area Average Employment and Total Wages in Seafood Processing, 2004-2014 $20.0 $18.0 600 $16.0 500 $14.0 400 $12.0 $10.0 300 $8.0 200 $6.0 $4.0 100 0 Average Employment $2.0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 393 394 437 487 539 597 387 419 418 476 443 Total Wages (millions) $10.5 $13.2 $12.6 $16.7 $16.5 $17.2 $12.7 $12.7 $12.0 $16.1 $14.1 Average Employment Total Wages (millions) Source: ADOLWD, QCEW Valdez Socioeconomic Baseline Indicators Study December 2015 Page 71 $0.0 Total Annual Wages (millions) Number of Workers (ave. ann.) 700 Figure 93 - Valdez-Cordova Census Area Seafood Processing Employment by Month, 2014 1,400 1,200 1,081 890 1,000 800 782 497 600 400 200 1,161 58 81 157 225 185 101 0 Source: ADOLWD, QCEW Valdez Socioeconomic Baseline Indicators Study December 2015 Page 72 97 14 Health Care & Social Assistance Valdez Health Care & Social Assistance Sector The Health Care and Social Assistance sector is the 4th largest employer in Valdez and also ranks 4th for total work earnings paid to Valdez residents. Employment in this sector doubled over the last decade, growing from 130 to 255. Total employee wages grew from $2.6 million to $10.4 million. Since 2005, annual pay for workers in this sector significantly outpaced inflation. Measured in inflation adjusted dollars, health care/social assistance average annual wages of $40,595 in 2014 are well above 2004 wages of $25,688 (adjusted to 2014 dollars, actual wages were $19,843 in 2004.). This is also a top growing sector statewide. In 2014, Health Care and Social Assistance employment accounts for 14% of all private sector work in Valdez (255 employees + 19 self-employed businesses) and 10% of all Valdez work earnings ($10.4 million in wages + $0.47 million proprietor income). Work is split between health care (54%) and social assistance (46%). Number of employees (ave. ann.) Figure 94 - Valdez Health Care & Social Assistance Sector, Number of Employees (average annual), 2014 300 250 200 150 100 50 0 103 99 101 94 95 93 2006 2007 2008 104 99 25 26 2004 2005 Health Care 152 141 103 115 126 125 125 104 2009 2010 2011 2012 118 151 141 137 2013 2014 Social Assistance Source: ADOLWD QCEW There are 11 health care and social assistance employers in Valdez. The largest employer is the Providence Medical Center, which in conjunction with its Counseling Center and Long-Term Care wing accounts for approximately 50% of all employment in Health Care and Social Assistance. Other health care employers are physician and dentists offices, offices of other health practitioners, vocational rehabilitation services, and home health care services. Other social assistance employers include child day care services, individual and family services, and emergency and other relief service providers. Valdez Socioeconomic Baseline Indicators Study December 2015 Page 73 Statewide, the health care industry has been a source of employment growth for the past 20+ years, and although growth seems to be slowing, experts consider much of the state underserved and forecast slow growth for 2015. The statewide social assistance industry was shaken in 2014 by the state’s crackdown on Medicaid fraud, and several large social assistance firms went out of business as a result. Fewer losses are expected in 2015. In addition to employees who work for others, there are 19 sole proprietors or self-employed businesses in the Health Care and Social Assistance sector, whose owners generate another $470,000 in income (2013). Figure 95 - Valdez Health Care and Social Assistance Sector, Total Wages, 2014 8.00 7.00 Wages ($millions) 6.00 5.00 4.00 3.00 2.00 1.00 0.00 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Health Care 0.66 0.79 4.04 4.15 4.36 5.86 5.99 6.19 6.44 6.69 6.79 Social Assistance 1.80 1.84 1.85 1.82 2.23 2.42 2.62 3.94 3.93 3.83 3.58 Source: ADOLWD QCEW Alaska’s recent acceptance of Medicaid Expansion was important to this sector as this will reduce charity and bad debt everywhere including at Valdez Providence and help it and other local health care provider’s bottom line. A major concern now is what Medicaid Reform may entail including the impact on reimbursement rates for services. The high cost of providing and obtaining health care services is a concern throughout Alaska and most acutely in rural areas. Alaska also has the highest health insurance premiums in the nation. Factors in these high costs are higher hospital costs, higher physician reimbursements, the higher cost of doing business in Alaska, and the very limited number of private insurers in the state. Nationally, for 2014-24, health spending is projected to grow at an average rate of 5.8 percent per year (CMS, National Health Expenditure projections). Valdez’s stable population makes expanding services challenging. Additionally, it can be hard to attract health care practitioners and keep them in a small town. Valdez is fortunate in that there are a number of long-time providers who love the community and choose to stay and raise families, here foregoing higher salaries in larger urban places. Maintaining local quality of life and quality of education are important to keep health practitioners (and others with flexible professional options) living in town. Valdez Socioeconomic Baseline Indicators Study December 2015 Page 74 As the large cohort of baby boomers ages, the percent of seniors statewide and locally is forecasted to increase. Valdez is well positioned to keep elders in the community with its Senior Center, Senior Apartments, and Long Term Care facility. Providence Valdez System Indicators As the largest health and social assistance provider in the area, as well as one of the community’s top employers, Providence Valdez warrants special attention. Providence presents a report to the City Council annually. Data excerpted from its 2014 reports shows: (Figure 97): Patients are highly satisfied. Medical Center usage is decreasing, Long Term Care census is steady, and Counseling Center visits are increasing. Bad Debt/Charity Care is steadily increasing. Medical Center net income declined in 2014 due to an absence of one-time cash infusions that added to previous year totals (state settlement of reimbursement rates, federal incentives to switch to electronic medical records, etc.). Health Rankings for Valdez-Cordova Census Area The Robert Wood Johnson Foundation gathers data annually on 35 measures 18 to calculate Borough/County health rankings. The Valdez-Cordova Census Area ranks in the top half of the state in all categories, and is especially well-positioned when the Social and Economic environment is considered (Figure 98). 18 Robert Wood Johnson Foundation, “County Health Rankings & Roadmaps,” 2015 The 35 measures are: HEALTH OUTCOMES – Premature death, Poor or fair health, Poor physical health days, Poor mental health days, Low birthweight; HEALTH BEHAVIORS: Adult smoking, Adult obesity, Food environment index, Physical inactivity, Access to exercise opportunities, Excessive drinking, Alcohol-impaired driving deaths, Sexually transmitted infections, Teen births; CLINICAL CARE: Uninsured, Primary care physicians, Dentists, Mental health providers, Preventable hospital stays, Diabetic monitoring, Mammography screening; SOCIAL AND ECONOMIC ENVIRONMENT: High school graduation, Some college, Unemployment, Children in poverty, Income inequality, Children in single-parent households, Social associations, Violent crime, Injury deaths; PHYSICAL ENVIRONMENT: Air pollution - particulate matter, Drinking water violations, Severe housing problems, Driving alone to work, Long commute - driving alone. Valdez Socioeconomic Baseline Indicators Study December 2015 Page 75 Figure 97 - Providence Valdez Indicators 2010 Overall Patient Experience - Satisfaction Scores 2011 2012 2013 2014 93% 85% 96% 96% 4.32 3.5 2.64 2.59 Medical Center Census & Visits Acute Average Daily Patient Census 3.61 Long Term Care Average Daily Resident Census 9.92 9.93 9.68 9.58 9.47 Total Outpatient Visits 9,691 9,936 10,002 9,370 8,695 Emergency Room Visits 1,749 1,661 1,623 1,617 1,508 45 49 41 54 39 $11.1 $13.2 $14.7 $15.5 $15.9 Births Medical Center Financials Providence Valdez Medical Center (PVMC) Gross Patient Revenues ($ millions) PVMC Charity Care/Bad (Patient) Debt $850,000 $640,000 $843,000 $1,000,000 $1,600,000 $1,280,000 $441,000 $875,000 $1,530,000 $79,000 84.2 85.7 84.3 86.7 87.9 107 114 111 117 127 2,537 2,297 2,093 2,386 2,595 PVCC Gross Patient Revenues $269,000 $271,000 $307,000 $321,000 $398,000 PVCC Net Operating Income $28,000 $57,000 $98,000 $158,000 $41,000 PVMC Net Operating Income Employment Number of FTEs (full time equivalent employees) PVMC+PVCC Total Number of Employees - PVMC+PVCC Counseling Center Data Providence Valdez Counseling Center (PVCC) Client Visits Source: Providence Valdez Medical Center 2014 Year-End Operating Report Valdez Socioeconomic Baseline Indicators Study December 2015 Page 76 Figure 98 - 2015 Health Rankings (based on a variety of 2010-2013 data sources) Health Outcomes Health Behaviors Borough or Census Area Clinical Care Social & Economic Environment Physical Environment Rank (1 - 23; one for each borough with data. A “1” is the rank with highest or best outcomes. Aleutians West 2 10 1 Anchorage 12 2 Bethel 19 19 3 5 16 19 21 14 Dillingham 18 16 Fairbanks North Star 6 4 9 18 13 2 7 19 Haines 7 10 12 11 10 Juneau Kenai Peninsula 3 1 1 1 6 5 5 8 8 11 Ketchikan Gateway 9 6 6 4 22 Kodiak Island 4 8 11 3 7 Lake and Peninsula 13 15 22 16 12 Matanuska-Susitna 15 11 7 9 21 Nome 22 21 16 19 9 North Slope 16 17 23 13 2 Northwest Arctic 20 22 17 20 20 17 18 21 17 18 14 3 5 2 5 1 14 18 15 3 Southeast Fairbanks 11 13 14 14 23 Valdez-Cordova 10 9 10 6 8 Wade Hampton 23 23 13 23 17 Prince of Wales-Outer Ketchikan Sitka Skagway-HoonahAngoon 12 15 Wrangell-Petersburg 8 7 4 12 4 Yukon-Koyukuk 21 20 20 22 15 Aleutians East NR NR NR NR NR Bristol Bay NR NR NR NR NR Denali NR NR NR NR NR Yakutat NR NR NR NR NR Source: Robert Wood Johnson Foundation, “County Health Rankings & Roadmaps,” 2015 Valdez Socioeconomic Baseline Indicators Study December 2015 Page 77 15 Visitor Industry Businesses and jobs related to the visitor industry continue to be forecast for statewide growth due in part to the robust national economy and current inexpensive gasoline prices. The visitor industry could be a source of increased economic activity in Valdez by better leveraging the area’s natural resources into more jobs, wages, and business activity. A Valdez study slated for spring 2016 completion is underway to evaluate the community’s potential as a mountain recreation destination, including snow sports and a variety of summer activities. Valdez’s most significant assets for drawing visitors are scenic attractions (including glaciers, waterfalls, mountains, and Prince William Sound) and sport fishing. Guided and unguided sport fishing are particularly important components of the visitor industry in Valdez. In addition, day cruises are very popular, showcasing the Sound’s marine life and glaciers. Other common visitor activities include kayaking, hiking, camping, and visiting museums. Valdez’s tourism industry is heavily seasonal, with most nonresident traffic concentrated between Memorial Day weekend and Labor Day weekend. Snow sports, particularly skiing and snowboarding, bring an influx of visitors in March and April. Visitor Industry Employment and Wages Traditional data sources do not include comprehensive measures of visitor industry employment. Visitor employment is spread across the transportation, retail, and leisure and hospitality sectors. In the absence of better data, the Leisure and Hospitality sector (NAICS 71, 72) serves as a proxy for employment trends in the visitor industry. In 2014, employment in the Leisure and Hospitality sector was the 3rd largest in Valdez. However, in terms of total wages it was closer to the low end, ranking 8th out of 13 sectors. In 2014, employment in this sector accounted for 271 annual average jobs, with total annual wages of $6.2 million. Employment in this sector has been generally trending up over the past decade, adding about 55 jobs since 2005 (Figure 99). There were also 33 business proprietors in this sector that in 2013 earned $700,000 in income. Accommodations (hotels, lodges, and B&Bs) makes up the largest sub-sector, generating 137 jobs and $3.5 million in wages in 2014. Employment in the Accommodations sub-sector has also been trending up slowly over the past several years. Employment and wages in Food Services and Drinking Places sub-sector is affected by local resident spending, but also substantially impacted by visitors. Up until a 2012 peak, employment in this sector had been trending up as well. Valdez Socioeconomic Baseline Indicators Study December 2015 Page 78 In 2014, the average wage for all work in Valdez was $58,544. Jobs in Arts, Entertainment, and Recreation paid $32,023 on average in 2014, while those in Accommodations had an average annual wage of $25,336, and Food and Drinking Places employees made an average of $17,210. Figure 99 - Leisure & Hospitality - Employment (average annual), 2004-2014 300 250 number of workers 200 89 107 116 101 103 72 69 101 100 85 88 117 123 105 110 118 116 129 125 137 97 22 26 27 31 30 29 29 33 32 31 31 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2012 2013 2014 150 100 146 50 0 Arts, Entertainment, Recreation Accommodations Food Services and Drinking Places Figures 99 and 100 - Source: ADOLWD QCEW Figure 100 - Leisure & Hospitality - Total Wages, 2004-2014 $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 2004 2005 2006 2007 2008 2009 2010 2011 Arts, Entertainment, and Recreation Accommodations Food and Drinking Places Valdez Socioeconomic Baseline Indicators Study December 2015 Page 79 Employment in Leisure and Hospitality is highly seasonal (Figure 101). In June, July, and August, tourism-related employment more than doubles (382 in 2014) compared to January (168). Employment begins its annual climb in late winter due to snow sports-related visitation (279 by March). Figure 101 - Valdez Average Employment in Leisure and Hospitality Industry, by Month, 2014 450 382 400 350 318 279 300 250 200 196 168 290 382 374 299 185 187 187 150 100 50 0 Source: ADOLWD QCEW Valdez Visitor Volume, Characteristics, and Activities or Destinations Little information is available on the total number of visitors to Valdez, which includes substantial numbers of non-Alaskans (profiled below), Fairbanks and Anchorage residents, and others. McDowell Group will launch a visitor intercept survey in early 2016 to gather information about the Valdez visitor market. The survey will include intercepts along the Richardson Highway, at the ferry terminal, the airport, at camp groups, and potentially other locations. The survey research project will for the first time provide a detailed profile of all Valdez visitors, including Alaska residents and non-Alaskans. The most recent measure of non-Alaskan visitor travel to Valdez dates from summer 2011, from the Alaska Visitor Statistics Program (AVSP), a periodic study conducted by McDowell Group for the Alaska Department of Commerce, Community, and Economic Development. The 2011 AVSP reported the following: Out of all Alaska visitors in summer 2011 (1.56 million), an estimated 4% (57,000) traveled to Valdez. This included 6% of all cruise visitors, 1% of all air visitors (entering and exiting Alaska via air), and 18% of highway/ferry visitors (entering or exiting Alaska via highway or ferry). Two-thirds (67%) of Valdez visitors entered and exited the state via airplane, while one-quarter entered or exited via highway or ferry. Just 9% traveled to/from/within Alaska via cruise ship. Valdez Socioeconomic Baseline Indicators Study December 2015 Page 80 The most popular transportation modes used by Valdez visitors to travel between Alaska communities were rental vehicle (32 percent), personal vehicles (25%), the Alaska state ferry (23%), and motor coaches (22%). Valdez visitors spent an average of 15.5 nights in Alaska, and 2.9 nights in Valdez. The most popular activities in Valdez were camping (36%), wildlife viewing (30%), day cruise (29%), museums (20%), hiking/nature walks (19%), and fishing (17%). Valdez visitors spent an average of $196 per person while in Valdez, Valdez hosts a number of special events which bring visitors to the community, and are particularly important in the winter months when visitation drops off. The list below highlights the larger events: Valdez Ice Climbing Festival, Feb 12-15. (Around 150 to 200 participants) Fat Bike Festival, March 11-13. New event in 2016. Thompson Pass Snowkite and AirSports Festival, March 28-April 6. Tailgate Alaska, April 3-12. (Around 400 participants.) Mountain Man Snowmachine Hillclimb, April 17-19. Valdez Fly-In Air Show, May 8-10. Valdez Rock Climbing Festival, Memorial Day Weekend. (Around 200 participants.) Silver Salmon Fishing Derby, July and August (several thousand non-local participants) Visitation at Valdez’s two main museums increased from 2008 to 2014 by 57% at the Valdez Museum and by 75% at the Whitney Museum (Figure 102). Figure 102 - Valdez Museums, Annual Visitation, 2008-2014 20,000 15,000 10,000 5,000 0 2008 2009 2010 2011 2012 2013 2014 Whitney Museum 3,756 3,557 5,353 3,522 4,701 6,344 6,591 Valdez Museum 9,525 12,043 10,597 9,277 13,450 13,496 15,034 Sources: Whitney Museum, Valdez Museum Note: Whitney Museum instituted free admission starting in 2010. Valdez has limited near-term potential to attract large cruise ships due to logistical constraints relative to Seward and Whittier, where the vast majority of Southcentral Alaska’s cruises embark or disembark. Valdez’s lack of tours and excursions is another barrier to tapping into the cruise market. Valdez Socioeconomic Baseline Indicators Study December 2015 Page 81 Valdez has experienced a steady decline in cruise ship visitation over the past 15 years (Figure 103). At its peak, annual cruise visitation to Valdez totaled just over 80,000 passengers, in 1998 and 1999. From 2004 through 2014, Valdez only saw significant numbers of large cruise ship port calls in 2008 and 2009. Figure 103 - Valdez Cruise Ship Passengers, 1996-2014 100,000 82,098 80,000 72,311 59,856 60,000 81,133 65,396 57,965 37,859 40,000 16,824 20,000 369 0 369 0 5,541 6,224 490 330 0 245 0 0 Source: Port of Valdez, Cruise Line Agencies of Alaska. Bed and Hotel Tax Receipts Valdez charges a public accommodation tax of 6% to hotels and other businesses offering short term accommodations, as well as boarding houses and apartment rentals for stays under six months in length. Bed tax receipts provide an important indication of trends in the visitor industry in Valdez (Figures 104 and 105). Adjusting for inflation, public accommodation tax receipts stayed roughly consistent from 2005-2014, with no clear trend and an average of $383,242 collected per year in 2014 dollars (Figure 104). Figure 104 - Valdez Public Accommodation Tax Receipts, 2004-2015 $500,000 $450,000 $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $0 4th Quarter 3rd Quarter 2nd Quarter 1st Quarter Source: City of Valdez, Finance Department. Note: Fourth quarter receipts are included with the following year annual totals. Valdez Socioeconomic Baseline Indicators Study December 2015 Page 82 Figure 105 - Valdez Public Accommodation Tax Receipts, 2004-2015 Year 4th 1st 2nd 3rd Quarter Quarter Quarter Quarter Total Total without Residential Total Estimated without Gross Residential Sales (2014 $) (millions) 2004-2005 $32,388 $29,119 $88,470 $174,095 $324,072 $296,788 $372,807 4.95 2005-2006 $32,224 $33,950 $91,083 $161,858 $319,114 $296,401 $348,059 4.94 2006-2007 $41,189 $41,090 $98,328 $194,599 $375,206 $344,811 $393,693 5.75 2007-2008 $41,002 $29,389 $97,975 $189,859 $358,225 $335,087 $368,444 5.58 2008-2009 $38,655 $41,409 $104,326 $202,770 $387,160 $318,608 $351,608 5.31 2009-2010 $49,127 $33,745 $130,141 $225,257 $438,271 $409,759 $444,861 6.83 2010-2011 $47,034 $35,485 $108,633 $198,315 $389,467 $359,655 $378,517 5.99 2011-2012 $42,855 $43,816 $138,075 $208,828 $433,575 $397,925 $410,303 6.63 2012-2013 $51,589 $33,290 $109,694 $201,744 $396,317 $365,893 $371,828 6.10 2013-2014 $42,424 $30,080 $117,943 $234,743 $425,189 $392,300 $392,300 6.54 2014-2015 $34,393 $30,357 $65,737 n/a n/a n/a n/a n/a Source: City of Valdez, Finance Department Charter and Sport Fishing Sport fishing, both guided and unguided, is a popular activity for visitors to Valdez and locals alike. The primary species targeted is coho salmon, but halibut, rockfish, king salmon, pink salmon, and shrimp are also caught in large numbers. However, the recent decline in charter and sportfishing activity is a source of concern. The size of the charter fishing industry has declined by just under 50%, from 53 vessels operating in 2004 to 28 vessels in 2013 (Figure 106). A steady decline in fishing activity and the number of charter businesses operating in Valdez can be partly attributed to federal regulations related to charter halibut fishing, increased fuel costs, variations in salmon runs, and other factors outside of the city’s control. When the halibut charter permit limited entry program began in 2011, 13 charter halibut permits were issued for operators based in Valdez, based on previous charter halibut activity. As of September 2015, this number was the same, with 13 charter halibut permits held by Valdez residents (all but three held by the same individuals or businesses that received permits in 2011).19 All types of sport fishing near Valdez saw declines in the number of days fished or number of anglers fishing between 2004 and 2013 (Figures 107 – 109). Overall, compared to 2004, in 2013 there were 5,112 fewer anglers (-22%) and 11,023 fewer days fished (-16%) in Valdez. 19 NOAA. https://alaskafisheries.noaa.gov/ram/ifqreports.htm Valdez Socioeconomic Baseline Indicators Study December 2015 Page 83 The vast majority of anglers in recent years (69% in 2013) fished from either private boats or chartered vessels. From 2004-2013, the peak year for participation in sport fishing was 2007, with 25,515 anglers fishing 75,502 days near Valdez. 2005 and 2010 were also strong years. Those fishing from a boat averaged approximately 3.1 days of fishing in Valdez in 2013, higher than the average of 2.8 days for 2004-2013. An estimated 5,982 anglers fished from the Valdez shoreline in 2013 (the lowest amount from 2004-2013), spending an average of 2.7 days each. Figure 106 - Valdez Charter Fishing Participation by Number of Businesses and Vessels, 2004-2014 Year # of Charter Businesses # of Charter Vessels 2004 58 53 2005 52 45 2006 50 44 2007 55 46 2008 47 40 2009 47 41 2010 42 38 2011 n/a n/a 2012 n/a n/a 2013 35 28 2014 n/a n/a Source: ADF&G Logbook Program Reports Figure 107 - Valdez Sport Fishing, Days Fished, by Type, 2004-2013 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Freshwater 1,934 1,089 1,532 900 499 626 875 903 1,729 1,633 Shoreline 15,672 17,240 18,294 20,024 17,636 20,727 18,741 15,060 15,623 15,888 Saltwater boat 50,574 45,711 47,534 54,578 45,353 43,697 45,096 36,496 31,487 39,636 Source: Alaska Department of Fish and Game Statewide Harvest Survey. Notes: Saltwater boat data include all trips identified as occurring in East Prince William Sound, Valdez Arm, and/or Port of Valdez, where boats landed in Valdez. Valdez Socioeconomic Baseline Indicators Study December 2015 Page 84 Figure 108 - Valdez Sport Fishing, Number of Anglers by Type, 2004-2013 30,000 Number of Anglers 25,000 20,000 15,000 10,000 5,000 0 2004 2005 2006 2007 Saltwater boat 2008 Shoreline 2009 2010 2011 Freshwater 2012 2013 Total Source: Alaska Department of Fish and Game, Statewide Harvest Survey. Notes: Number of angler estimates are not additive because an angler may have fished in more than one site. Saltwater boat data include all trips identified as occurring in East Prince William Sound, Valdez Arm, and/or Port of Valdez, where boats landed in Valdez. Figure 109 - Valdez Sportfishing Days Fished and Number of Anglers, by Type, 2004-2013 Total Year Freshwater Saltwater Shoreline Saltwater Boat Days Number Days Number Days Number Days Number Fished Anglers Fished Anglers Fished Anglers Fished Anglers 2004 68,180 23,795 1,934 634 15,672 7,435 50,574 17,377 2005 64,040 25,994 1,089 528 17,240 8,883 45,711 18,529 2006 67,360 22,334 1,532 541 18,294 7,352 47,534 15,872 2007 75,502 25,515 900 319 20,024 8,641 54,578 18,059 2008 63,488 23,117 499 235 17,636 8,517 45,353 16,338 2009 65,050 22,679 626 251 20,727 9,183 43,697 14,985 2010 64,712 24,818 875 382 18,741 9,012 45,096 17,071 2011 52,459 22,515 903 414 15,060 8,860 36,496 14,530 2012 48,839 17,830 1,729 717 15,623 7,258 31,487 11,256 2013 57,157 18,683 1,633 842 15,888 5,982 39,636 12,893 -16.17% -21.48% -15.56% 32.81% 1.38% -19.54% -21.63% -25.80% Trend 2004-2013 Source: Alaska Department of Fish and Game, Statewide Harvest Survey. Notes: Number of angler estimates are not additive because an angler may have fished in more than one site. Saltwater boat data include all trips identified as occurring in East Prince William Sound, Valdez Arm, and/or Port of Valdez, where boats landed in Valdez. Valdez Socioeconomic Baseline Indicators Study December 2015 Page 85 16 United States Coast Guard There were 100 active duty and civilian Coast Guard personnel in Valdez in October 2015, making the USCG one of the larger employers in town20. These job numbers have been steady since at least 2007. Total wages were approximately $4.1 million, which is all income entering the local economy from outside sources. The average length of tour in Valdez is three years. Personnel are part of five units: the Marine Safety Office, 110-foot Cutter Long Island, Station Valdez, an Electronic Support Office, and a Section Field Office. There is also a small boat station with two 45-foot response vessels and a 25-foot response boat. Activities include year round search and rescue, maritime law enforcement, and ports, waterways and coastal security missions in Prince William Sound, including patrolling the port’s security zones around transiting tankers and oil loading berths at the Valdez Marine Terminal. The Marine Safety Unit (MSU) conducts prevention, response, and preparedness activities to ensure the safety and security of Prince William Sound, including commercial vessel inspections, fishing vessel training and safety, pollution prevention and response, maritime law enforcement, and casualty investigations. Valdez-based Coast Guard personnel have strong professional relationships with the city, state, and maritime operators in Valdez to ensure any response to pollution or natural disaster activity goes smoothly. As noted in an April 2014, 17th District Coast Guard Alaska blog post, these relationships were put to good use during the winter of 2012 to 2013 when a record setting 26‐feet of snow blanketed Valdez in a short period of time. Coast Guard personnel joined with City of Valdez employees and community members to remove heavy snow from the roofs of local schools, businesses, and homes. Total wages Figure 110 - 2014 USCG Valdez (civilian + enlisted) $4,097,178 Employees (Average Annual) 100 Sources: ADOLWD, USCG Valdez Station 20 There are additional reservists, but most live outside of Valdez and are in town only during periods of duty. Valdez Socioeconomic Indicators December 2015 Page 86 17 Environmental Indicators Climate Valdez is the snowiest city in the country, receiving an average of 326.3 inches (27.2 feet) of snow per year (Figure 111). The City of Valdez sits at the base of the Chugach mountain range, along the edge of the Valdez Port off of Prince Williams Sound. Cold air currents blow down from nearby glaciers, mixing with low pressure fronts circulating in from the Gulf of Alaska to generate heavy snowfalls in winter. Based on the 30-year Climate Normal averages developed by the National Oceanic and Atmospheric Association (NOAA), Valdez is the snowiest city in the nation.21 Figure 111 - Climate Normals (1981-2010) Valdez National Weather Service Office Station Annual Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Min Temp. (°F) 33 19 21 24 31 39 46 49 47 41 33 24 22 Max Temp. (°F) 45 28 31 36 45 55 61 62 61 54 44 33 30 Mean Temp. (°F) 39 24 26 30 38 47 53 55 54 47 38 28 26 Precip. (in.) 69 7 6 5 3 3 3 4 7 10 8 6 8 Snow (in.) 326 68 61 48 21 2 0 0 0 1 11 43 72 Sources: National Oceanic and Atmospheric Administration Climate Normals Figure 112 - Annual Snowfall (inches), Valdez and Thompson Pass Winter of Thompson Pass Valdez Winter of Thompson Pass Valdez 1990-1991 437 517 2003-2004 321 353 1991-1992 801 343 2004-2005 455 307 1992-1993 809 342 2005-2006 373 243 1993-1994 752 397 2006-2007 279 275 1994-1995 676 267 2007-2008 504 272 1995-1996 471 231 2008-2009 363 266 1996-1997 427 277 2009-2010 535 319 1997-1998 746 341 2010-2011 435 215 1998-1999 570 391 2011-2012 692 438 1999-2000 657 391 2012-2013 432 405 2000-2001 490 494 2013-2014 335 221 2001-2002 326 313 2014-2015 349 112 2002-2003 334 250 Sources: National Oceanic and Atmospheric Administration, Department of Transportation and Public Facilities, Valdez Avalanche Center Note: Valdez data taken at National Weather Service Office Station. 21 Erdman, Jon. Jan 7, 2015. “Six Snowiest Cities in America.” The Weather Channel, http://www.weather.com/ Valdez Socioeconomic Indicators December 2015 Page 87 As interest in outdoor recreation and recreational tourism continue to grow in Valdez, the community’s weather patterns could become a significant asset. While tourism is currently focused around summer activities, Valdez’s position as the snowiest city in the country positions the community well to build a reputation as a destination for snow sports. This position could be tempered, however, by warming trends that have led to lower snowfall and higher average temperatures in Valdez and other parts of Alaska in recent years. Post Exxon Valdez Oil Spill Effects Valdez is near the site of the 1989 Exxon Valdez Oil Spill, one of the largest oil spills in US history. The Exxon Valdez oil tanker ran aground on Bligh Reef, spilling approximately 11 million gallons of crude oil into Prince William Sound. Clean-up efforts lasted for four years, with Valdez playing a critical role as a base for spill response workers. The magnitude of the incident, and the lessons learned through the response efforts, led to an increase in coast guard marine safety procedures and oil spill response preparedness for Prince William Sound. A 2010 Alaska Department of Environmental Conservation report listed 23 beaches on the west end of Prince William Sound as impaired waterways due to residual oil from the Exxon Valdez spill. The affected areas are categorized collectively by the state and federal government as a 4b waterbody, meaning that they are being managed through vetted local procedures, and are expected to “meet standards in a reasonable time period.”22 None of the remaining impaired waterbodies lie within the immediate Valdez area; however, the impacts of the spill continue to affect the greater community of marine species in Prince William Sound. In 1994, the Exxon Valdez Oil Spill (EVOS) Trustee Council adopted a list of natural resources that had been injured by the event, in an attempt to monitor recovery and restoration efforts. The council initially named 28 species and habitats as injured by the spill. They have continued to monitor the recovery of these species and habitats. The 25th anniversary of the spill was in 2014. In its 2014 update to the Exxon Valdez Oil Spill Restoration Plan, the EVOS Trustee Council listed only five species of the original 28 species as unrecovered or unknown, meaning that recovery objectives for the species have not yet been met. 22 Alaska’s Impaired Waters, 2010, Alaska Department of Environmental Conservation. https://dec.alaska.gov/water/wqsar/Docs/2010impairedwaters.pdf. Valdez Socioeconomic Indicators December 2015 Page 88 18 Sources Publications and Data Sources Alaska Commercial Fisheries Entry Commission, Fishery Statistics, Participation and Earnings, http://www.cfec.state.ak.us/gpbycen/2014/261540.htm Alaska Department of Commerce, Community and Economic Development, Alaska Taxable Reports, 2004 through 2015 Alaska Department of Environmental Conservation: Alaska’s Impaired Waters, 2010, https://dec.alaska.gov/water/wqsar/Docs/2010impairedwaters.pdf Alaska's Final 2010 Integrated Water Quality Monitoring and Assessment Report Alaska Department of Education and Early Development: Alaska School Performance Index: 2013-2014, Summary of School Ratings Sorted by District District Report Cards to the Public Alaska School District Enrollments Alaska Department of Fish and Game, Exxon Valdez Oil Spill Restoration Plan - 2014 Update: Injured Resources and Services, Exxon Valdez Oil Spill Trustee Council Alaska Department of Labor and Workforce Development, Research & Analysis Division: 2013 Nonresidents Working in Alaska, February 2015 2014 Population Estimates by Age and Sex, 2010-2014 2017-2042, Census Area and State: ADOLWD Population Projections, vintage 2012. Components of Population Change, 2010-2014, Alaska Department of Labor and Workforce Development Alaska Economic Trends – Juneau’s Housing Market, June 2015 Alaska Economic Trends – 2015 Employment Projections, July 2015 Population Estimates 2000-2010, 2010-2014 Quarterly Census of Employment and Wages, 2004-2014 Quarterly Census of Employment and Wages, 2004-2014, special runs Sept 4, 2015 and October 6, 2015. Alaska Department of Public Safety, Statewide Services Section, “Crime in Alaska” Reports, 2009-2013 Alaska Department of Revenue, State Shared Tax Reports, 2004 through 2014 Alaska Division of Elections: Alaska Voter History by Age Gender and Party http://www.elections.alaska.gov/vi_vrs-er.php Primary and General Election Results http://www.elections.alaska.gov/vi_vrs-er.php Valdez Socioeconomic Indicators December 2015 Page 89 Alaska Housing Finance Corporation: 2015 Construction Cost Survey 2014 Alaska Housing Assessment, Valdez-Cordova Census Area Fuel Price Survey, August 2014 Alaska State Library, Alaska Public Library Statistics Alyeska Pipeline Service Company http://www.alyeska-pipe.com/TAPS/PipelineOperations/Throughput Baring-Gould, M. and Bennett, M., "Social Impact of the Trans Alaska Pipeline Construction in Valdez, Alaska 1974-1975," University of Alaska Anchorage. 2000 – 2014 Berlin, Loren, “From Stigma to Housing Fix: The Evolution of Manufactured Homes”, Lincoln Land Institute, July 2015 Land Lines Chugach Electric Association, Residential Electricity Rates (October 2015), http://www.chugachelectric.com/customer-service/rate-information City and Borough of Sitka, Residential Electricity Rates (October 2015), 2015 Utility Customer Fact Sheets, http://www.cityofsitka.com/government/departments/finance/utilities.html Copper Valley Electric Association, Residential Electricity Rates (October 2015), http://www.cvea.org/resources/pdfs/currentRates.pdf Cordova Electric Cooperative, Residential Electricity Rates (October 2015), http://cordovaelectric.com/ Erdman, Jon. Jan 7, 2015. “Six Snowiest Cities in America.” The Weather Channel, http://www.weather.com/. Harvard University, Joint Center for Housing Studies, Housing America’s Older Adults: Meeting the Needs of An Aging Population Homer Electric Association, Residential Electricity Rates (October 2015), http://www.homerelectric.com/rates/ Internal Revenue Service, Individual Income Statistics, https://www.irs.gov/uac/SOI-Tax-StatsIndividual-Income-Tax-Return-Form-1040-Statistics Matanuska Electric Association, Residential Electricity Rates (October 2015), Member Information Bulletin, 4th Quarter 2015 Valdez Socioeconomic Indicators December 2015 Page 90 McDowell Group: Alaska Visitor Statistics Program VI, prepared for the Alaska Department of Commerce, Community & Economic Development, Summer 2001 The Role of the Oil and Gas Industry in Alaska’s Economy, prepared for Alaska Oil and Gas Association, May 2014 Valdez Community Gap/Market Analysis, prepared for City of Valdez, January 2008 (draft) Competitive Market Analysis and Long Range Planning for the Port of Valdez, prepared for City of Valdez, August 2015 Economic Impact of the Seafood Industry in Southcentral Alaska, 2015 National Oceanic and Atmospheric Administration: Weather Station Annual Summaries Climate Normals, 1981-2010 National Health Expenditure data, CMS, https://www.cms.gov/research-statistics-data-andsystems/statistics-trends-and-reports/nationalhealthexpenddata/nhe-fact-sheet.html NPR Health News Report, January 2015 http://www.npr.org/sections/healthshots/2015/01/15/377271063/health-insurance-prices-highest-in-alaska-lowest-in-sun-belt National Marine Fisheries Service, https://alaskafisheries.noaa.gov/ram/ifqreports.htm Prince William Sound Community College, Total Enrollment Prince William Sound Regional Citizen’s Advisory Council, “Statistics for Valdez Marine Terminal, VMT Monthly Loading Statistics, 2002-2014” http://www.pwsrcac.org/resources/statistics-for-valdez-marineterminal Providence Valdez Medical Center 2014 Year-End Operating Report Providence Valdez Medical Center and Counseling Center, 2015 Budget presentation Robert Wood Johnson Foundation, “County Health Rankings & Roadmaps”, 2015 http://www.countyhealthrankings.org/app/alaska/2015/overview SchoolDigger.com, Alaska District Rankings FY 2013-2014, www.schooldigger.com University of Alaska Fairbanks, Alaska Food Cost Survey, June 2014 U.S. Census Bureau: A Compass for Understanding and Using American Community Survey Data, October 2008 5-year American Community Surveys, 2006-2010, 2007-2011, 2008-2012, and 2009-2013 Decennial Census, 1970, 1980, 1990, 2000, 2010 Valdez Socioeconomic Indicators December 2015 Page 91 Intercensal Population Estimates, 1975, 1985, 1995 Nonemployer Statistics, 2010-2013, special run for City of Valdez Valdez City School District, VHS Year End Report 2013-2014 Personal Communications Alice McDonald, Sound Realty, Owner Broker Allie Hendrickson, City of Valdez, Deputy City Clerk AnnMarie Lain, City of Valdez, Senior GIS/Planning Technician April Skorski, Homer Electric Association, Member Services Representative BJ Williams, Prince William Sound Community College Brad Myrstol, University of Alaska Anchorage, Alaska Justice Statistical Analysis Center, Director Brian Carlson, City of Valdez, Finance Director Brian Laurent, Alaska Department of Education and Early Development Brittany Cabello, Valdez Museum and Archive, Communications Manager Connor Bell, Alaska Department of Labor and Workforce Development, Economist Carrie Holsclaw, Matanuska Electric Association, Electronic Processing Specialist Debbie Soto, Alaska Department of Education and Early Development, Education Program Assistant Denise Runge, Prince William Sound Community College, Associate Professor and Assistant Director of Instruction Diane Kinney, City of Valdez, Port and Harbor Director Diane Ujioka, Cordova Electric Cooperative, Lead Customer Service Representative Drew Grant, Alaska Department of Environmental Conservation, Division of Water, Environmental Program Specialist Eddie Hunsinger, Alaska Department of Labor and Workforce Development, State Demographer Fred Millen, Alyeska Pipeline Company Jack Stickel, Alaska Department of Transportation & Public Facilities, Transportation Planner Janet Schwartz, City and Borough of Sitka, Budget Treasury Officer Jennifer James, Valdez Convention and Civic Center Director Jenny Mahe, Chugach Electric Association, Meter Reading and Field/Credit Support Jeremy O'Neil, Providence Valdez, CEO Jim Greeley, Alaska Department of Revenue, State Petroleum Property Assessor Karinne Wiebold, Alaska Department of Labor and Workforce Development, Economist Keri Talbott, City of Valdez, Senior Office Assistant Laurine Regan, Valdez Convention and Visitors Bureau, Executive Director Lawrence Blood, Alaska Department of Commerce Community and Economic Development, Local Government Specialist V Lisa Puritan, Alaska Department of Public Safety, Statewide Services Section, UCR Program Coordinator Lisa Von Bargen, City of Valdez, Community & Economic Development Director Mark Romick, Alaska Housing Finance Corporation, Director of Planning and Program Development Mary-Heather Kahklen, Alaska Department of Education and Early Development Mauricio Ortiz, US BEA, Chief, Regional Income Division Valdez Socioeconomic Indicators December 2015 Page 92 Meg Weaver, City of Valdez Finance Department, Accounts Receivable Manager Mollie Good, Valdez Consortium Library, Head Librarian Pamela Golden, AK DOT, Northern Region Traffic and Safety Engineer Peter Carter, Alaska Department of Transportation & Public Facilities, Safety and Emergency Supplies Specialist Robert Corcoran, Valdez Petroleum Terminal Manager, Petro Star Inc. Ron Brown, Alaska Department of Commerce Community and Economic Development, Assistant State Assessor Sarah Von Bargen, City of Valdez, Harbor Office Manager Scott Vockeroth, AK DOT, Northern Region Traffic Data Manager Tim Adamczak, Alyeska Pipeline Service Company Tracy Studer, City of Valdez, Accountant/ Property Tax Wendy Goldstein, Prince William Sound Community College, Whitney Museum Coordinator Valdez Socioeconomic Indicators December 2015 Page 93 Appendix 1 – Dashboards: Industry Indicators, by NAICS As discussed throughout this report, economic activity and jobs for specific industry sectors are spread among the traditionally used NAICS codes. For example, visitor industry jobs are part of Transportation and Warehousing (NAICS 48-49), Retail Trade (NAICS 44-45), and Hospitality and Leisure (NAICS 71, 72). Nonetheless, employment, wage, and nonemployer business data, reported by NAICS code, is data that can be consistently tracked and measured year to year. In this appendix, for each of the 13 traditionally used NAICS codes (see list below), the following is reported (by NAICS code): A description of the type of work and examples of Valdez businesses that are classified as part of the NAICS code The number of City of Valdez of Valdez annual business registrations issued (Sheinberg Associates made several of these code assignments) The number of State of Alaska business licenses issued for businesses that are physically located in Valdez The number of nonemployer businesses (2013) The number of employers (2014) The number of average annual employees, for 2014 and for 2004-2014 Total wages for 2014, for 2004-2014, and inflation-proofed Data Sources Used in this Chapter (these correspond with footnotes in tables) 1 State Business Licenses-State of Alaska, DCCED, Division of Corporations, Business and Professional Licensing, as of July 2015 (business owners self-select the NAICS code) 2 City Business Registrations-City of Valdez, as of July 2015 (business owners self-select the NAICS code) 3 and 8 Number of nonemployer businesses and income - 2013 US Census Nonemployer Statistics, special run for City of Valdez (zip code data for 99686). Conf. = confidential, non-disclosable because three or fewer businesses. 4, 5, 6 Number of employers, average annual employees and total wages - 2014 ADOLWD, QCEW database, and 7 special run for City of Valdez only data. Note: To adjust past wages to the equivalent of 2014 wages (inflation-adjusted), the Anchorage Consumer Price Index is used The 13 NAICS sectors analyzed in this appendix are: 1. Natural Resources (agriculture, forestry, 7. Financial Activities fishing and hunting), mining, quarrying, 8. Professional and Business Services oil & gas) 9. Educational and Health Care Services 2. Construction 10. Other Services (except public admin) 3. Manufacturing 11. Federal Government (civilian) 4. Trade, Transportation and Utilities 12. State Government 5. Leisure and Hospitality 13. Local Government 6. Information Services Valdez Socioeconomic Indicators December 2015 Page 94 The Whole Work Economy – City of Valdez, 2014 WORK EARNINGS NAICS Code & Sector 1011 23 31-33 48-49 44-45 42 71 721 722 51 52 53 1024 54 56 61 62 81 Natural Resources (agriculture, forestry, fishing and hunting), mining, quarrying, oil & gas Construction Manufacturing Trade, Transportation and Utilities Transportation and Warehousing Retail Trade Wholesale Trade Leisure and Hospitality Arts, Entertainment, and Recreation. Accommodations Food Services and Drinking Places Information Financial Activities Finance and Insurance Real Estate, Rentals, Leasing Professional and Business Services Professional, Scientific, and Technical Services Admin., Support, Waste Management and Remediation Educational and Health Care Services Educational Services Health Care and Social Assistance Other Services (except public admin) Federal Government (civilian + USCG enlisted) State Government Local Government Total for all sectors WORKFORCE Employment Wages ($millions) Proprietor Income ($ millions) TOTAL ($ millions) No. Employees (average annual) $4.64 $6.25 $10.89 62 81 143 $1.34 $0.05 $1.80 $1.17 $0.51 conf + $0.12 $0.78 $0.25 $5.86 $7.26 $45.54 $39.95 $5.59 conf $7.01 $1.23 59 149 555 28 8 51+conf 24 21 conf + 6 33 10 87 157 598+conf 409 189 conf 304 41 $0.53 $5.78 23 263 $0.00 $1.24 $0.00 $1.24 $2.30 $1.67 $0.63 $0.47+conf conf $0.47 $1.04 n/a n/a n/a $3.78 $2.79 $0.66 $2.13 58 34 $13.33 133 $10.84+conf conf $10.84 $1.63 $3.02 $7.35 $15.69 259 23 137 157 341 31 n/a n/a n/a 279-283 5-9 274 54 137 157 341 $138.97 2,238 336 2,574 $4.52 $7.21 $43.97 $38.78 $5.09 $0.10 $6.23 $0.98 $3.48 $1.77 $3.78 $1.55 $0.66 $0.89 $11.03 $10.39 conf $10.37 $0.59 $6.51 $7.35 $15.69 $123.48 $15.49 385 168 conf 271 31 137 103 No. Proprietors TOTAL 0 15 15 18 58 48 0 15 15 33 66 39 27 20-24 4 255 <5 19 199 Sources: 2013 US Census Nonemployer Statistics for Valdez; 2014 ADOLWD Quarterly Census of Employment and Wage for Valdez; United States Coast Guard Valdez Station Notes: conf= confidential Valdez Socioeconomic Indicators December 2015 Page 95 Natural Resources and Mining The size of the total workforce and total earnings generated by those in the Natural Resources and Mining super sector rank it in the top tier for work earnings at 3rd overall, out of 13 large sectors, but only 8th in terms of total workforce. More income in this sector comes from nonemployer businesses than those working for others as employees. This is the only sector in Valdez where this occurs. Natural Resources and Mining is a super sector of goods-producing work that that includes Agriculture, Forestry, Fishing and Hunting (NAICS 11) and Mining, Quarrying and Oil and Gas Extraction (NAICS 21). Valdez establishments in Agriculture, Forestry, Fishing and Hunting include the Valdez Fisheries Development Association, self-employed commercial fishermen, mariculture businesses, timber and firewood harvesters, and farms. Establishments in Mining, Quarrying, and Oil and Gas Extraction remove naturally occurring minerals (such as coal, ores, sand and gravel) and liquid minerals (such as crude petroleum and natural gas). In Valdez this is primarily Chugach Materials, LLC. Natural Resources and Mining establishments have the highest number of self-employed/business proprietors with no employees in Valdez, likely due to the many self-employed commercial fishermen. There are most nonemployer businesses in this industry area statewide as well, not surprising given that Alaska is still a resource extraction-based economy. Valdez Natural Resources and Mining (QCEW 1011), includes the following: Agriculture, Forestry, Fishing, Hunting, NAICS 11 Mining, Quarrying, Oil and Gas Production, NAICS 21 Number of Businesses and Employers Number of State business licenses with Valdez locations, 2015 1 Number of City business registrations, 2015 # Nonemployer businesses, 2013 2 3 # employers, 2014 (average annual) 4 TOTAL - 20 Ag, Forestry, Fishing, Hunting - 18 Mining, Quarrying, O&G Production - 2 TOTAL - 8 Ag, Forestry, Fishing, Hunting - 7 Mining, Quarrying, O&G Production - 1 Ag, Forestry, Fishing, Hunting - 81 Mining, Quarrying, O&G Production - conf. TOTAL- 4 Ag, Forestry, Fishing, Hunting - 1 Mining, Quarrying, O&G Production - 3 Work Income Total employment, 2014 (average annual) Total wages, 2014 6 Average annual wage, 2014 7 Business proprietors income, 2013 8 5 TOTAL - 62 TOTAL - $4,639,040 TOTAL - $75,432 Ag, Forestry, Fishing, Hunting - $6,252,000 Mining, Quarrying, O&G Production – conf. Valdez Socioeconomic Indicators December 2015 Page 96 Natural Resources & Mining - Total Employment and Wages, 2004-2014 (does not include self-employed) 70 $5,000,000 60 $4,000,000 50 40 $3,000,000 30 $2,000,000 20 10 $1,000,000 44 43 42 55 47 39 45 40 45 46 62 0 $0 2004 2005 2006 2007 2008 2009 2010 2011 Number of Employees 2012 2013 2014 Total Wages Natural Resources & Mining - Average Monthly Wages (actual and inflation-adjusted, in 2014 dollars) (does not include self-employed) $80,000 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $0 2004 2005 2006 2007 Average Annual Wage 2008 2009 2010 2011 2012 2013 Inflation Adjusted Annual Wage Valdez Socioeconomic Indicators December 2015 Page 97 2014 Construction The size of the average annual workforce and total earnings generated by those in the Construction sector rank it in the bottom half, at 9 th for earnings and 10th for size of workforce, out of 13 large sectors. The Construction sector includes establishments engaged in the construction of buildings, preparation of sites for new construction, subdividing land for sale, or engineering projects (e.g., highways and utility systems). This includes those that construct buildings, general contractors, heavy and civil engineering contractors, and specialty trade contractors (e.g., masonry, painting, and electrical work) A review of both city and state business licenses indicates there are about 30 Valdez-based Construction businesses. After a mid-2000’s dip, the number employed in Construction jumped in 2011 back to earlier levels, and perhaps as a result of competition for workers, wages more than doubled in 2011. AHFC/ADOLWD data (see chapter 7, Housing) data shows that during 2011-2013 there was a notable downturn in the number of residential homes constructed in Valdez. Increased construction sector work during this period is attributed to residential remodeling, and a series of small to mid-size municipal, commercial, and industrial projects. In 2014, seafood processing plant expansion occurred and in 2015 harbor-related construction activity will increase. Valdez Construction (QCEW 1012, NAICS 23) Number of Businesses and Employers Number of State business licenses with Valdez physical location, 2015 1 Number of City business registrations, 2015 # self-employed/businesses proprietors, 2013 # employers, 2014 (average annual) 39 155 (29 with a local address) 2 28 3 15 4 Work Income Total employment, 2014 (average annual) Total wages, 2014 5 $4,524,095 6 Average annual wage, 2014 59 $76,356 7 Business proprietors income, 2013 8 Valdez Socioeconomic Indicators December 2015 Page 98 $1,340,000 Construction -Total Employment and Wages, 2004-2014 (does not include self-employed) 80 $5,000,000 $4,000,000 60 $3,000,000 40 $2,000,000 20 $1,000,000 73 63 42 43 38 45 38 65 59 51 59 0 $0 2004 2005 2006 2007 2008 2009 2010 Number of Employees 2011 2012 2013 2014 Total Wages Construction - Average Monthly Wages (actual and inflation-adjusted, in 2014 dollars) (does not include self-employed) $100,000 $80,000 $60,000 $40,000 $20,000 $0 2004 2005 2006 2007 Average Annual Wage 2008 2009 2010 2011 2012 Inflation Adjusted Annual Wage Valdez Socioeconomic Indicators December 2015 Page 99 2013 2014 Manufacturing The size of the total workforce and total earnings generated by Valdez Manufacturing businesses rank it in the right in the middle, at a 6/7 th place tie for size of the average annual workforce and 7th for highest earnings, out of 13 large sectors. The Manufacturing sector comprises establishments engaged in the mechanical, physical, or chemical transformation of materials, substances, or components into new products. The assembling of component parts of manufactured products is also generally considered manufacturing. In Valdez this includes seafood processing plants, breweries, flat glass manufacturing, circuit board manufacturing, bakeries, and similar businesses. Some are small sole proprietors while the seafood plants are the largest employers in town when seasonal workforce is considered. Most (but not all) Petro Star refinery employment is classified as NAICS 31. 2014 Valdez Manufacturing (QCEW 1013, NAICS 31) Number of Businesses and Employers Number of State business licenses with Valdez locations, 2015 1 Number of City business registrations, 2015 # self-employed/businesses proprietors, 2013 # employers, 2014 (average annual) 17 8 2 3 8 4 4 Work Income and Employers Total employment, 2014 (average annual) ** Total wages, 2014 ** 149 $7,207,630 Average annual wage, 2014 ** Business proprietors income, 2013 $48,373 $53,000 8 ** Sheinberg Associates estimates Valdez Socioeconomic Indicators December 2015 Page 100 Manufacturing - Total Employment and Wages, 2004-2014 (does not include self-employed) 250 10,000,000 200 8,000,000 150 6,000,000 100 4,000,000 50 163 151 182 190 185 225 170 119 122 153 149 0 2,000,000 0 2004 2005 2006 2007 2008 2009 2010 Number of Employees 2011 2012 2013 2014 Total Wages Manufacturing - Average Monthly Wages (actual and inflation-adjusted, in 2014 dollars) (does not include seld-employed) 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 2004 2005 2006 2007 Average Annual Wage 2008 2009 2010 2011 2012 2013 Inflation Adjusted Annual Wage Sources: in addition to ADOLWD, Sheinberg Associates estimates Valdez Socioeconomic Indicators December 2015 Page 101 2014 Trade, Transportation, and Utilities Transportation and Warehousing is the largest sector in Valdez in terms of total employment, total earnings, and highest annual wages, out of 13 large sectors. The only area where this sector is not ranked highest is the number of nonemployer businesses. See Chapter 11 (Oil Industry) for more information on this sector. This super sector has three components: the Transportation and Warehousing sector (NAICS 48-49), Retail Trade (NAICS 44-45), and Wholesale Trade (NAICS 42). Indicators for all three are reported here. The Transportation and Warehousing sector includes industries providing transportation of oil, other goods and cargo, and people; warehousing and storage for goods, scenic and sightseeing transportation, and support activities related to modes of transportation. Establishments in these industries use transportation equipment or transportation related facilities as a productive asset. The type of equipment depends on the mode of transportation, which in Valdez includes air, water, road, and pipeline. Valdez businesses include much of the Alyeska Pipeline Service Company and the Valdez Marine Terminal, trucking companies, Crowley Maritime Corporation, some Petro Star Inc. employment (most part of NAICS 31-32, Manufacturing), air and marine sightseeing and charter businesses, marine cargo and oil transshipment tugs, tankers and vessels, aviation businesses, taxis, and more. Average annual wages in this sector in 2014 were $100,750. Since 2004, Valdez total wages in the Transportation and Warehousing sector have, however, lost ground to inflation. Measured in inflation-adjusted dollars, the Transportation and Warehousing sector’s average annual wage of $100,750 in 2014 is well below 2004 wages of $130,800 (in 2014 inflation-adjusted dollars). Interviews with oil industry executives suggests that current wages meet industry standards and have not decreased per se, but relevant factors over the last decade are that retiring high-paid employees are replaced with younger workers who have lower starting salaries, and that increased mechanization over time has changed the nature of some of the work. The Retail Trade sector comprises establishments engaged in retailing merchandise, generally without transformation, and rendering services incidental to the sale of merchandise. Valdez Socioeconomic Indicators December 2015 Page 102 2014 Valdez Trade Transportation and Utilities (QCEW 1021), includes the following: Transportation & Warehousing NAICS 48-49 Retail Trade NAICS 44-45 Wholesale Trade NAICS 42 Number of Businesses and Employers TOTAL - 92 Number of State business licenses with Valdez locations, 2015 1 Transportation & Warehousing - 43 All Trade - 49 TOTAL - 95 Number of City business registrations, 2015 Transportation & Warehousing - 38 2 All Trade - 57 TOTAL- 51 # self-employed/businesses proprietors, 2013 Transportation & Warehousing - 24 3 Retail Trade - 21 Wholesale Trade - 6 TOTAL - 40 # employers, 2014 (average annual) Transportation & Warehousing - 22 4 Retail Trade - 17 Wholesale Trade - 1 Work Income TOTAL -555 Total employment, 2014 (average annual) 5 Transportation & Warehousing – 385 All Trade -170 TOTAL - $43,969,177 Total wages, 2014 Transportation & Warehousing - $38,781,877 6 Retail Trade - $5,085,910 Wholesale Trade - $101,390 TOTAL - $79,212 Average annual wage, 2014 Transportation & Warehousing - $100,754 7 Retail Trade - $30,303 Wholesale Trade - $50,695 TOTAL - $1,788,000 Business proprietors income, 2013 8 Transportation & Warehousing - $1,166,000 Retail Trade - $505,000 Wholesale Trade - $117,000 Valdez Socioeconomic Indicators December 2015 Page 103 Transportation & Warehousing Total Employment and Wages, 2004-2014 (does not include self-employed) 400 $44,000,000 380 $42,000,000 $40,000,000 360 $38,000,000 340 $36,000,000 320 $34,000,000 300 $32,000,000 2004 2005 2006 2007 2008 2009 2010 Number of Employees 2011 2012 2013 2014 Total Wages Transportation & Warehousing - Average Monthly Wages (actual and inflation-adjusted, in 2014 dollars) (does not include self-employed) $200,000 $150,000 $100,000 $50,000 $0 2004 2005 2006 2007 Average Annual Wage 2008 2009 2010 2011 2012 2013 Inflation Adjusted Annual Wage Valdez Socioeconomic Indicators December 2015 Page 104 2014 Retail Trade - Total Employment and Wages, 2004-2014 (does not include self-employed) 250 $6,000,000 200 $5,000,000 $4,000,000 150 $3,000,000 100 $2,000,000 50 $1,000,000 0 $0 2004 2005 2006 2007 2008 2009 2010 Number of Employees 2011 2012 2013 2014 Total Wages Retail Trade-Average Monthly Wages (actual and inflation-adjusted, in 2014 dollars) (does not include self-employed) $40,000 $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $0 2004 2005 2006 2007 Average Annual Wage 2008 2009 2010 2011 2012 2013 Inflation Adjusted Annual Wage Valdez Socioeconomic Indicators December 2015 Page 105 2014 Leisure and Hospitality The size of the total workforce and total earnings generated by Valdez Leisure and Hospitality sector generates interesting rankings out of 13 industry sectors. This sector is 3 rd largest in terms of number of workers (average annual), but ranks only 8th for earnings. This is not unusual as work in these businesses tend to pay lower wages. This super sector is comprised of: (1) Arts, Entertainment, and Recreation (NAICS 71), which includes a wide range of establishments that operate facilities or provide services to meet varied cultural, entertainment, and recreational interests of their patrons. (2) Accommodation and Food Services (NAICS 72) are establishments providing customers with lodging (NAICS 721) and/or preparing meals, snacks, and beverages for immediate consumption (NAICS 722). 2014 Leisure and Hospitality (QCEW 1026), includes the following: Arts, Entertainment, and Recreation, NAICS 71 Accommodations, NAICS 721 Food Services and Drinking Places, NAICS 722 Number of Businesses and Employers Number of State business licenses with Valdez locations, 2015 1 Number of City business registrations, 2015 # nonemployer businesses, 2013 3 # employers, 2014 (average annual) 4 # employees, 2014 (average annual) 5 Total wages, 2014 6 Average annual wage, 2014 7 Nonemployer Business income, 2013 8 2 TOTAL- 102 Arts, Entertainment, and Recreation - 45 Accommodations + Food Services + Drink Places - 57 TOTAL - 99 Arts, Entertainment, and Recreation - 41 Accommodations + Food Services + Drink Places - 58 TOTAL - 33 Arts, Entertainment, and Recreation - 10 Accommodations + Food Services + Drink Places - 23 TOTAL - 37 Arts, Entertainment, and Recreation - 7 Accommodations - 15 Food Services + Drinking Places - 15 Work Income and Employers TOTAL- 271 Arts, Entertainment, and Recreation -31 Accommodations - 137 Food Services + Drinking Places - 103 TOTAL - $6,226,577 Arts, Entertainment, and Recreation - $979,444 Accommodations - $3,481,656 Food Services + Drinking Places - $1,765,477 TOTAL - $23,012 Arts, Entertainment, and Recreation - $32,025 Accommodations - $25,336 Food Services + Drinking Places - $17,210 TOTAL - $783,000 Arts, Entertainment, and Recreation – $250,000 Accommodations + Food Services + Drink Places - $533,000 Valdez Socioeconomic Indicators December 2015 Page 106 Leisure & Hospitality -Total Employment & Wages, 2004-2014 (does not include self-employed) $8,000,000 $6,000,000 200 89 72 69 101 105 116 101 103 85 88 107 97 110 118 116 129 125 137 100 $4,000,000 wages number of workers 300 100 0 $2,000,000 146 117 123 22 26 27 31 30 29 29 33 32 31 31 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 $0 Food Services and Drinking Places Accommodations Arts, Entertainment, Recreation WAGES - All Leisure & Leisure & Hospitality Average Annual Wages (actual and inflation-adjusted, in 2014 dollars) (does not include self-employed) $35,000 Inflation adj. Arts, Entertainment, Recreation $30,000 Arts, Entertainment, Recreation $25,000 Inflation adj. Accommodations $20,000 Accommodations $15,000 Inflation adj. Food and Drink $10,000 Food and Drinking Places $5,000 Valdez Socioeconomic Indicators December 2015 Page 107 Information The size of the total workforce and total earnings generated by Valdez Information sector rank it near the bottom, at 11th place for workforce numbers and 10th for earnings, out of 13 large sectors. The Information sector (NAICS 51) comprises establishments engaged in (a) producing and distributing information and cultural products, (b) providing the means to transmit or distribute these products as well as data or communications, and (c) processing data. Major activities are publishing (including software, both traditional publishing and publishing exclusively on the Internet, motion picture and sound recording, broadcasting, telecommunications, and information services industries. The expressions ''information age'' and ''global information economy'' are used with considerable frequency today. The general idea of an ''information economy'' includes both the notion of industries primarily producing, processing, and distributing information, as well as the idea that every industry is using available information and information technology to reorganize and make themselves more productive. Examples of some of these businesses in Valdez are local radio stations, phone, wireless and satellite providers such as Copper Valley subsidiaries, and newspapers like the Valdez Star. Information (QCEW 1022, NAICS 51) Number of Businesses and Employers Number of State business licenses with Valdez locations, 2015 1 TOTAL - 11 Number of City business registrations, 2015 TOTAL - 13 # self-employed/businesses proprietors, 2013 2 0 3 TOTAL - 8 # employers, 2014 (average annual) Telecommunications - 3 4 Other Information - 5 Work Income TOTAL - 58 Total employment, 2014 (average annual) Telecommunications - 43 5 Other Information - 15 TOTAL- $3,783,310 Total wages, 2014 Telecommunications- $3,264,272 6 Other Information - $519,038 TOTAL - $64,857 Average annual wage, 2014 Telecommunications - $76,806 7 Other Information - unk Business proprietors income, 2013 8 Valdez Socioeconomic Indicators December 2015 Page 108 $0 Information-Total Employment and Wages, 2004-2014 (does not include self-employed) 80 $6,000,000 $5,000,000 60 $4,000,000 40 $3,000,000 $2,000,000 20 $1,000,000 0 $0 2004 2005 2006 2007 2008 2009 2010 Number of Employees 2011 2012 2013 2014 Total Wages Information - Average Monthly Wages (actual and inflation-adjusted, in 2014 dollars) (does not include self-employed) $80,000 $60,000 $40,000 $20,000 $0 2004 2005 2006 2007 Average Annual Wage 2008 2009 2010 2011 2012 2013 Inflation Adjusted Annual Wage Valdez Socioeconomic Indicators December 2015 Page 109 2014 Financial Activities The size of the total workforce and total earnings generated by Valdez Financial Activities sector rank it near the bottom, in last place for workforce numbers and 12th for earnings, out of 13 large sectors. The Finance and Insurance sector comprises establishments primarily engaged in financial transactions (transactions involving the creation, liquidation, or change in ownership of financial assets) and/or in facilitating financial transactions. Three principal types of activities are identified: 1. Raising funds by taking deposits and/or issuing securities and, in the process, incurring liabilities. 2. Pooling of risk by underwriting insurance and annuities. 3. Providing specialized services facilitating or supporting financial intermediation, insurance, and employee benefit programs. The Real Estate and Rental and Leasing sector comprises establishments primarily engaged in renting, leasing, or otherwise allowing the use of tangible or intangible assets, and establishments providing related services. The major portion of this sector comprises establishments that rent, lease, or otherwise allow the use of their own assets by others. The assets may be tangible, as is the case of real estate and equipment, or intangible, as is the case with patents and trademarks. This sector also includes establishments primarily engaged in managing real estate for others, selling, renting and/or buying real estate for others, and appraising real estate. These activities are closely related to this sector's main activity, and it was felt that from a production basis they would best be included here. In addition, a substantial proportion of property management is self-performed by lessors. Examples of some Valdez businesses in this sector are Avis Rental Car and Valdez U-Drive; Sound Realty; several apartment, storage and mini-storage rental outfits; Valdez Holding Company; and at least two mobile home parks. Valdez Socioeconomic Indicators December 2015 Page 110 Financial Activities (QCEW 1023), includes the following: Finance and Insurance, NAICS 52 Real Estate and Rental and Leasing, NAICS 53 Number of Businesses and Employers TOTAL - 39 Number of State business licenses with Valdez locations, 2015 Finance and Insurance - 2 1 Real Estate, Rental, Leasing - 37 TOTAL - 34 Number of City business registrations, 2015 Finance and Insurance - 2 2 Real Estate, Rental, Leasing - 32 TOTAL - 15 # self-employed/businesses proprietors, 2013 Finance and Insurance - 0 3 Real Estate, Rental, Leasing - 15 TOTAL - 7 # employers, 2014 (average annual) Finance and Insurance - 3 4 Real Estate, Rental, Leasing - 4 Work Income TOTAL - 34 Total Employment, 2014 (average annual) Finance and Insurance - 5 5 Real Estate, Rental, Leasing - 18 TOTAL - $1,550,210 Total wages, 2014 Finance and Insurance - $660,728 6 Real Estate, Rental, Leasing - $889,482 TOTAL - $46,275 Average annual wage, 2014 Finance and Insurance - $43.805 7 Real Estate, Rental, Leasing - $48,298 TOTAL - $1,238,000 Business proprietors income, 2013 Finance and Insurance - $0 8 Real Estate, Rental, Leasing - $1,238,000 Valdez Socioeconomic Indicators December 2015 Page 111 Financial Activities-Total Employment & Wages, 2004-2014 (does not include self-employed) 40 $1,000,000 20 $500,000 0 $0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Real Estate, Rentals, Leasing (53)-Employment Finance & Insurance (52)-Employment Finance & Insurance- Average Monthly Wages (actual and inflation-adjusted, in 2014 dollars) (does not include self-employed) 60,000 50,000 40,000 30,000 20,000 10,000 0 2004 2005 2006 2007 2008 2009 Average Annual Wages 2010 2011 2012 2013 2014 2013 2014 Inflation-Adjusted Real Estate, Rentals, Leasing - Average Monthly Wages (actual and inflation-adjusted, in 2014 dollars) (does not include self-employed $100,000 $80,000 $60,000 $40,000 $20,000 $0 2004 2005 2006 2007 Average Annual Wage 2008 2009 2010 2011 2012 Inflation Adjusted Annual Wage Valdez Socioeconomic Indicators December 2015 Page 112 Professional and Business Services The size of the total workforce and total earnings generated by Valdez Professional and Business Services sector ranks it in the top half, at 5th highest for both workforce numbers and earnings, out of 13 large sectors. This super sector is comprised of three types of businesses: (1) Professional, Scientific, and Technical Services (NAICS 54) with businesses that specialize in performing professional, scientific, and technical activities for others. This includes lawyers, accounting and bookkeeping services, architects and engineering, design services; consulting and research services, veterinarians and more. (2) Management of Companies and Enterprises (NAICS 55), which are establishments that administer, oversee, and manage companies, or those that hold the securities of or other equity interests in companies. (3) Administrative and Support and Waste Management and Remediation Services (NAICS 56), which perform routine support activities for the day-to-day operations of other organizations. This can include day-to-day office administrative services, such as financial planning, billing and recordkeeping, personnel, and physical distribution and logistics. In Valdez, this includes a diversity of businesses such as local engineers and environmental consultants including several firms from out of town that work in or have an office in Valdez, surveyors, hazmat materials handling, recycling businesses, Petro Management Services, Chugach Alaska Services, janitorial businesses, several snow removal businesses, landscape services, and more. Valdez Socioeconomic Indicators December 2015 Page 113 Professional and Business Services (QCEW 1024), includes the following: Professional and Technical Services, NAICS 54 Management of Companies, NAICS 55 Administrative and Waste Services, NAICS 56 Number of Businesses and Employers TOTAL - 43 Number of State business licenses with Valdez locations, 2015 1 Prof & Tech Svs - 23 Management of Companies - 1 Admin & Waste Svs - 19 TOTAL - 63 Number of City business registrations, 2015 Prof & Tech Svs - 43 2 Management of Companies - 1 Admin & Waste Svs - 19 TOTAL - 66 # self-employed/businesses proprietors, 2013 Prof & Tech Svs - 39 3 Admin & Waste Svs - 27 TOTAL - 15 # employers, 2014 (average annual) Prof & Tech Svs - 5 4 Management of Companies - 1 Admin & Waste Svs - 9 Work Income Total employment, 2014 (average annual) Total wages, 2014 TOTAL - 133 5 TOTAL - $11,030,166 6 Average annual wage, 2014 TOTAL - $82,726 7 TOTAL - $2,304,000 Business proprietors income, 2013 Prof & Tech Svs - $1,671,000 8 Admin & Waste Svs - $633,000 Valdez Socioeconomic Indicators December 2015 Page 114 Professional & Business Services-Total Employment and Wages, 2004-2014 (does not include self-employed) 200 12,000,000 10,000,000 150 8,000,000 100 6,000,000 4,000,000 50 154 20 158 21 2,000,000 52 58 138 133 0 0 2004 2005 2006 2007 2008 2009 2010 Number of Employees 2011 2012 2013 2014 Total Wages Professional & Business Serices-Average Monthly Wages (actual and inflation-adjusted, in 2014 dollars) (does not inclide self-employed) 100,000 80,000 60,000 40,000 20,000 0 2004 2005 2006 2007 2008 Average Annual Wages 2009 2010 2011 2012 2013 2014 Inflation Adjusted Annual Wage Data from 2004, 2007 and 2008 were not disclosable due to confidentiality. This occurs if there are only a few firms in the sector or if one large firm is paying 80% of wages in the sector. Review of data from all sources suggests that there was sizable employment in all three missing years, possibly related to spill response and maintenance and SERVS type work. Valdez Socioeconomic Indicators December 2015 Page 115 Education and Health Care Services The size of the total workforce and total earnings generated by Valdez Health Care and Social Assistance sector rank it in the top half, at 4 th highest for both workforce numbers and earnings, out of 13 large sectors. Private sector Educational Services (NAICS 61) in Valdez over the last decade has had only 1-4 employees earning a total of $17,000-$66,000 annually. At least 99% of all employment and wages are classified as NAICS 62, Health Care and Social Assistance; thus this dashboard focuses exclusively on this area. The Health Care and Social Assistance sector includes businesses providing both health care and social assistance for individuals, which more and more are seen as a continuum of services. It includes Providence Valdez, Makar Eyecare, Frontier Community Services, the Women’s Shelter, massage therapists, private psychiatrists, dentists, physicians, home health service providers, chiropractors, and similar services. This does not include the Valdez Public Health center, whose workers are state government employees. Educational services include day cares and preschools. 2014 Valdez Health Care and Social Assistance (QCEW 1025), includes the following: Educational Services, NAICS 61 Health Care and Social Assistance, NAICS 62 Number of Businesses and Employers TOTAL - 20 Number of State business licenses with Valdez locations, 2015 1 Educational Svs - 8 Health Care & Social Assistance - 14 TOTAL - 25 Number of City business registrations, 2015 Educational Svs - 8 2 Health Care & Social Assistance - 17 # nonemployer businesses, 2013 19 3 # employers, 2014 (average annual) 11 4 Work Income Total employment, 2014 (average annual) Total employment wages, 2014 Average annual wage, 2014 5 255 $10,368,701 6 $40,595 7 Nonemployer business income, 2013 8 Valdez Socioeconomic Indicators December 2015 Page 116 $470,000 Health Care & Social Assistance-Total Employment and Wages, 2004-2014 (does not include self-employed) 300 $12,000,000 250 $10,000,000 200 $8,000,000 150 $6,000,000 100 $4,000,000 50 $2,000,000 0 $0 2004 2005 2006 2007 2008 2009 2010 2011 Number of Employees 2012 2013 2014 Total Wages Health Care & Social Assistance - Average Monthly Wages, 2004-2014 (actual and inflation-adjusted, in 2014 dollars) (does not include self-employed) $50,000 $40,000 $30,000 $20,000 $10,000 $0 2004 2005 2006 2007 Average Annual Wage 2008 2009 2010 2011 2012 2013 Inflation Adjusted Annual Wage Valdez Socioeconomic Indicators December 2015 Page 117 2014 Other Services (except Public Administration) The size of the total workforce and total earnings generated by Other Services in Valdez rank it near or at the bottom, at 12th for both workforce numbers and 13th for total earnings, out of 13 large sectors. The Other Services (except Public Administration) sector are establishments engaged in providing services not specifically provided for elsewhere in the classification system. These establishments are primarily engaged in activities, such as equipment and machinery repairing, promoting or administering religious activities, grant-making, advocacy, and providing dry cleaning and laundry services, personal care services, death care services, pet care services, photofinishing services, temporary parking services, and dating services. In Valdez, this includes many sole proprietor businesses for things such as fire sprinklers, fire protection and fireworks, and many varied variety of personal care and pet care services. 2014 Valdez Other Services (except public admin), NAICS 81 Number of Businesses and Employers Number of State business licenses with Valdez locations, 2015 1 Number of City business registrations, 2015 # self-employed/businesses proprietors, 2013 # employers, 2014 (average annual) 60 124 2 3 31 10 4 Work Income and Employers Total employment, 2014 (average annual) Total employment wages, 2014 Average annual wage, 2014 5 23 $594,797 6 $25,491 7 Nonemployer business income, 2013 8 Valdez Socioeconomic Indicators December 2015 Page 118 $1,039,000 Other Services-Total Employees and Wages, 2004-2014 (does not include self-employed) 50 1,000,000 40 800,000 30 600,000 20 400,000 10 200,000 0 0 2004 2005 2006 2007 2008 2009 2010 Number of Employees 2011 2012 2013 2014 Total Wages Other Services- Average Monthly Wages (actual and inflation-adjusted, in 2014 dollars) (does not include self-employed) 30,000 25,000 20,000 15,000 10,000 5,000 0 2004 2005 2006 2007 Average Annual Wage 2008 2009 2010 2011 2012 Inflation Adjusted Annual Wage Valdez Socioeconomic Indicators December 2015 Page 119 2013 2014 Government Services Just under one-quarter of all Valdez resident employees (average annual) are federal, state, or local government workers. When Valdez’s 13 large employment sectors are considered, the: Size of Local government total workforce and earnings rank it in 2nd place for both; Size of State government ranks 6 th or in a 6/7th place tie for both workforce and earnings; and Size of Federal government (civilian + military) ranks 9th for the numbers of workers and 11th for total wages paid in 2014. Local government employment in Valdez is with the City of Valdez, the Valdez School District, and the Valdez Native Tribe. State employment is for Prince William Sound Community College, and most state departments but primarily for the Department of Transportation and Public Facilities, or the Natural Resources. Federal civilian workers are with the US Forest Service primarily but also NOAA, the TSA, Post Office, and Coast Guard. State and local government wages have not kept pace with inflation over the last decade, while federal civilian wages, some of the highest in the town, have risen at a pace that exceeds inflation 2014 Valdez Government Service Number of Businesses and Employers Number of State business licenses with Valdez locations, 2015 1 n/a Number of City business registrations, 2015 n/a # nonemployer businesses, 2013 2 n/a 3 # employers, 2014 (average annual) n/a 4 Work Income TOTAL - 653 Total employment, 2014 (average annual) 5 Local - 341 State - 157 Federal - 137 TOTAL - $26,067,401 Total employment wages, 2014 Local - $15,593,812 6 State - $7,354,016 Federal - $6,514,373 TOTAL - $48,184 Local - $49,060 Average annual wage, 2014 State - $46,866 7 Federal -$47,550 (or if civilian only- $70,223) Nonemployer business income, 2013 8 Valdez Socioeconomic Indicators December 2015 Page 120 n/a Government - Average Annual Employment & Total Wages, 2004-2014 600 400 58 55 24 128 300 25 125 29 29 26 127 124 129 140 150 $30,000,000 51 47 43 $25,000,000 157 152 152 157 $20,000,000 $15,000,000 200 $10,000,000 100 $5,000,000 365 314 308 314 309 329 338 342 362 349 wages number of workers 500 53 341 0 $0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Local State Federal WAGES - Total-Government Average Annual Wages, (actual and inflation-adjusted, in 2014 dollars) $75,000 Federal in 2014 dollars $70,000 Federal-average annual wages $65,000 $60,000 State State in in 2104 2014 dollars $55,000 State-average annual wages $50,000 Local in 2014 dollars $45,000 Local -Average Annual Wages $40,000 $35,000 $30,000 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Government Wages (Average Annual) and Inflation 2014 2004 2004 Average Annual Average Annual Wage Average Annual Wages in 2014 dollars Wages Federal government (civilian only) $70,223 $60,522 $46,751 State government $46,886 $48,843 $37,729 Local government $46,090 $48,065 $37,128 Sources: ADOLWD, Anchorage Consumer Price Index by US BLS Valdez Socioeconomic Indicators December 2015 Page 121