The city’s months-long budget process is nearly finished. When the Sitka Assembly met on Tuesday (5-14-24), it approved the general fund and enterprise fund budgets for next fiscal year, on first reading.
The city’s budget has grown over the last couple of years– sales tax revenue is up due, in large part, to increased tourism and inflation. While the city is bringing in more money, expenses are also up by over 14 percent. Even so, the general fund budget will still shake out with a small surplus– around $40,000. City Administrator John Leach said next year’s budget addresses some community concerns and desires while remaining balanced, and he was happy with where it landed.
“A city budget works as a working capital fund. As the money comes in, the citizens expect those dollars to be spent back on to services provided to the citizens. We heard a lot this year about things like the pool you know, taking over some some of the burdens from the school…chipping away at some of our deferred maintenance, and as the Mayor mentioned, potholes and striping because we haven’t been able to do for quite some time,” Leach said. “So I believe we presented something that is starting to hit some of those desires of the community.”
That includes funding the Sitka School District to the cap, or maximum allowed by state law, and a plan to take over management and maintenance of the Blatchley Middle School swimming pool.
Rates will increase for most of the city’s enterprise funds this year as well. Water, solid waste and moorage rates will rise by 4%, and the wastewater rate will jump by just over 8%. Electric rates aren’t expected to rise, though there will be an increase to the base customer fee.
The assembly has been meeting with city staff regularly since January to consider budget proposals from various departments—giving staff direction on everything from utility rates to requests for new full time positions. When the final document came before them for consideration last night, there was little discussion. Mayor Steven Eisenbeisz thanked staff for creating a streamlined process.
“I think it was about as painless as it could be, and there’s some positive news for Sitka in the future, I believe,” Eisenbeisz said. “I think it’s exciting that we have a little bit more free spending money. It’s still intimidating to me to spend more instead of cut budgets. I’m still not quite sure how to do that, but that was a good exercise. So thank you to the assembly and staff for that one.”
The assembly unanimously approved the general fund and enterprise fund budgets on first reading. Both budgets will come before the assembly for a final reading on May 28.
