**REPORT TITLE:** Anchorage Socioeconomic and Physical Baseline. Final
Report.

**STUDY TITLE:** Anchorage Socioeconomic and Physical Baseline (TR-12);
Beaufort Sea, Petroleum Development Scenarios, Impacts Anchorage, Alaska
(TR-13).

CONTRACT NUMBER(S): BLM: CT6-61; MMS: 14-12-0001-29002.

SPONSORING OCS REGION: Alaska.

APPLICABLE PLANNING AREA(S): Cook Inlet; Beaufort Sea.

FISCAL YEAR(S) OF PROJECT FUNDING: 1977.

COMPLETION DATE OF REPORT: June 1978.

COST(S): FY 1977: \$33,854; CUMULATIVE PROJECT COST: \$33,854.

PROJECT MANAGER(S): R. Ender.

AFFILIATION: Policy Analysts, Limited.

ADDRESS: 5139 East 42nd Avenue, Anchorage, Alaska 99504.

PRINCIPAL INVESTIGATOR(S)\*: R. Ender, J. Gehler, S. Gorski, S. Harper.

KEY WORDS: Cook Inlet; Beaufort Sea; Alaska; socioeconomics; historical
review; human population; development; economics and demographics;
employment; transportation; impacts; Anchorage; Alaska Region.

ACCESS NUMBER: 29002

**BACKGROUND:** The boom and bust history of Anchorage can be
graphically portrayed as a series of ever higher plateaus. The city has
evolved into a major metropolitan crossroads, with many resultant
benefits and problems. Inherent in future petroleum development in
Alaska is the indirect impact upon Anchorage. This study effort, part of
the Alaska Outer Continental Shelf (OCS) Socioeconomic Studies Program,
was designed to examine the historical trends and current data, identify
key issues or problems within specified sectors of the community, and
explore planning processes designed to respond to critical issues.

**OBJECTIVES:** (1) To provide necessary baseline information for the
analysis of the impact of proposed petroleum development in the Beaufort
Sea Region upon Anchorage, Alaska.

**DESCRIPTION:** Descriptive indicators, beginning with a historical
overview (e.g., community origins) and followed by an examination of
population and economic growth, and the development of governmental
institutions provided the framework for the profile of Anchorage. Using
baseline population estimates, individual census data, and individual
based economic data, a thorough demographic and economic description of
the heterogeneous nature of the city was developed. Attitudes toward
change and perception of development in the Anchorage area were deemed
important indicators of public opinion. Community attitudes specifically
reflected the incidence and degree of receptivity or reflection of
future petroleum development. Based on the opinions of Anchorage
residents, a section of the report was devoted to examining the
public\'s perceptions of the problems, perceptions of future growth,
community values, attitudes toward growth and development, and community
services. A discussion of Anchorage and its service support sectors
indicated the capability of Alaska\'s largest city to cope with its
needs. Investigation of health and social services, education and
educational opportunities, public safety, and utilities were also
identified as key indicators.

**SIGNIFICANT CONCLUSIONS:** Economically, Anchorage is presently on the
high side of prosperity which has been generated primarily by the
development of oil and gas reserves within the State. A leveling of the
boom cycle, related to the construction of the oil pipeline, indicated
that there was a strong potential for the development of long-term
unemployment problems should no major development project(s) arise in
the near future. An increase in labor unions in the public sector and
the expansion of local government programs has produced major financial
impacts. Continuing population growth and any major expansion of the
city due to OCS development was projected to impact municipal services
by: increasing diversity of service demands; increasing the extension of
urban services to the less populated areas of the basin; increasing
demand for major capital expenditures for facilities usually found in
large urban centers; and increasing incidence of public safety, social
services, transportation, health, and other service problems generally
endemic to large urban areas. Factors (including OCS development) which
may increase the rapidity of the growth tendency will have at least some
indirect impact on the community service sectors.

**STUDY RESULTS:** The city of Anchorage experienced an initial boom in
growth subsequent to its establishment as a construction camp for a
major section of the Alaska Railroad in 1914. This trend was brought to
a close as a result of World War I. Growth remained modest until the
military began major construction within the area during the 1940s.
Vigorous growth continued through the 1950s and subsequently faded
during the 1960s. Growth once again increased toward the end of the
1960s as North Slope oil became important. The decade also saw several
governmental actions, including the formation of the Greater Anchorage
Area Borough (GAAB) in 1964 and passage of the Native Claims Settlement
Act and Pipeline Act in 1975. The city\'s first local government was a
mixture of Alaska Engineering Commission (AEC) officials and the local
Chamber of Commerce, and was primarily concerned with basic services
such as water, sewer, light, and power. With the granting of statehood
in 1959, a home rule charter was brought to the city and resulted in the
creation of a large government with a broad range of services. The
present population of Anchorage can be characterized as typically young,
composed of small nuclear households, predominantly white (Caucasian),
well-educated, and reasonably affluent. The population as of 30 January
1978 was 195,316 people, a 3.5% increase over estimates made in July
1977. A slightly higher male to female ratio and a median age of 25
years were also noted. Only 2% of the residents were 65 years of age or
older. Racial composition was relatively stable, with whites
representing 89.5% of the population and blacks and Alaska Natives
representing approximately 3 and 4%, respectively. A large transient
population has been responsible for a very high housing turnover.
Unemployment in Anchorage has historically been higher than the national
average as a result of: high seasonal variation within certain
employment categories; employment expansion unable to keep up with the
increase in the work force; and the inability to match skill needs in
employment openings with the available labor pool. Occupational patterns
have been fairly stable over time. Attitudes of the population towards
continued growth were negative, yet opportunities for economic advance
were viewed positively. Services provided by the municipality were
generally rated as unsatisfactory by the population. The size,
complexion, and role of local government in Anchorage has changed
commensurately with the growth of the area. Unification of the city and
borough governments was accomplished in 1975 and served to integrate the
various services and management systems which had previously operated
independently. The local government received the majority of its local
revenues from property tax. Indications were that property tax revenue
would continue to grow rapidly, at least through the mid-1980s.
Intergovernmental transfers constitute an important source of revenue.
State revenues, however, have greater potential. The municipality
provides primary, secondary, and tertiary health care to its residents
and serves as a secondary and tertiary center for the entire State. A
relatively high ratio of health care providers to population was
attributed to the State\'s isolation and the role that Anchorage has
played as the center for service delivery for the entire State. Social
services delivery has been provided predominantly by field offices of
the State and Federal government. A limited scope of services has also
been provided by the local municipal government, as well as select
private agencies and organizations. Current issues for such services
included cost, and the lack of a centralized information and referral
system. No unified planning effort was evident for the coordination of
social services delivery within Anchorage. The Department of Planning
Resources Division, however, was noted as being in the initial stages of
developing a local plan for social services delivery in order to
coordinate efforts of Federal, State, and local governmental and private
providers in the Anchorage area. Such a system will be used to
facilitate coordination of services between all city providers and to
provide a data base upon which the Municipal Assembly will determine the
direction and scope of local social services planning. The majority of
local primary and secondary grade students attend public schools under
the jurisdiction of the Anchorage School District. Historically, school
enrollment has shown trends similar to population growth. The schools
have been almost solely supported by student tuition fees; enrollment
has been limited by physical capacities. Plans to meet increased costs
depend upon four sources of revenue: local, State, Federal, and
facilities rental. Higher education is divided into three categories:
public supported; private, non-profit; and proprietary institutions.
Public supported institutions include the University of Alaska and
Anchorage Community College. Private, non-profit institutions include
Alaska Methodist University and various apprentice programs. A number of
private institutions within the community come under the category of
proprietary. The law enforcement system in Anchorage consists of the
Anchorage Police Department (APD) and Alaska State Troopers. The primary
objectives of the APD are to enforce the observation of all laws and
ordinances, protect the lives and property of its citizens, and to
promote and maintain order. The APD has been classified into three major
divisions: Field Operations; Administrative Services; and Technical
Services. The primary functions of the State Troopers are oriented
toward highway patrol and law enforcement for the area outside the old
city limits and Spenard. Fire protection in Anchorage was initiated in
1921 as a volunteer organization and continued on a volunteer basis
until 1950, when a municipally operated department was developed. The
Anchorage Fire Department is classified into four major divisions: Fire
and Rescue Operations; Emergency Medical Services; Fire Prevention; and
Support Services. Recreational and leisure activities within Anchorage
have been provided by both public and private agencies and
organizations. The majority of the recreational facilities, programs,
and activities have been provided by the municipality. The municipality
of Anchorage is located in the south central portion of Alaska on a
roughly triangular landmass lying between two estuarine drainages at the
head of Cook Inlet, Knik Arm, and Turnagain Arm. It covers a land area
of approximately 4,403 km^2^ of which only 15% is suitable and available
for human habitation. As of 1978, urban sprawl had consumed the majority
of land suitable for development and outstripped the extension of
utilities and other community services. Major changes projected between
1975 and 1995 involve an increase in community and industrial land use
with an associated increase in highways, water, and recreational
facilities. The municipality provides solid waste, water, and sewer
services; electricity; telephone; and public transportation. Management
of solid waste has utilized sanitary landfills. Surface water sources
and ground water has been utilized to meet water needs. Anchorage has
abundant water resource potential, much of which is untapped and of very
good quality. The status of water resources, however, was characterized
as being an inadequate and undependable supply. Wastewater disposal has
been managed by on-site septic disposal, or through an extensive sewer
system operating under the municipal government. Electricity is
generated and distributed from several sources including the Chugach
Electric Association and Municipal Light and Power. Telephone service
has been city owned since unification of the GAAB and the city.
Transport systems were classified into four major divisions: roadways;
mass transit; port facilities; and airports. The Anchorage Metropolitan
Area Transportation Plan has incorporated both transit and road
expansion together with plans geared to a long-range calendar. The Port
of Anchorage is owned and operated by the municipality. Consisting of a
petroleum oil lubricant terminal and three general cargo terminals, the
ability of the facility to accommodate several large vessels
simultaneously has been limited by the available general cargo dock
area. Once the Port has reached capacity, it is likely that a new port
will need to be created. Much of the distribution of goods for the State
is funneled through the Anchorage International Airport. Other airfields
operating in the general area include Bryant, Elmendorf Air Force Base,
Merrill Field, and Lake Hood. An extremely critical air space problem
brought on by restrictive topographic boundaries and a high volume of
air traffic was noted. The solution to crowded air space has yet to be
found.

**STUDY PRODUCT(S):** Ender, R. L., J. Gehler, S. Gorski, and S. Harper.
1978. Anchorage Socioeconomic and Physical Baseline. Final Report. A
final report by Policy Analysts, Limited for the U.S. Department of the
Interior, Bureau of Land Management Alaska OCS Office, Anchorage, AK.
NTIS No. PB‑291916/AS. Social and Economic Studies Program Technical
Report No. 13. Contract No. 14-12-0001-29002. xx + 277 pp.

\*P.I.\'s affiliation may be different than that listed for Project
Manager(s).