By SHANNON HAUGLAND
Sentinel Staff Writer
With little discussion or debate Tuesday night, the Assembly narrowly approved fiscal year 2020 operating budgets for the general fund, as well as for the enterprise, internal service and special revenue funds.
Six of the separate ordinances covering these funds were passed 4-3 on first reading, and the seventh, relating to the Gary Paxton Industrial Park, the marine service center and the airport, passed 5-2.
Kevin Mosher, Kevin Knox, Steven Eisenbeisz and Mayor Gary Paxton were the four-vote majority in the 4-3 votes, and Aaron Bean, Richard Wein and Valorie Nelson voted against. Valorie Nelson joined the majority on the GPIP, marine center and airport ordinances.
The ordinances will be up for second and final reading at the June 11 meeting. If a significant change is made to any one at that time, a third reading at a later date will be required.
The Assembly must pass its budgets by June 20, or the ones proposed by the city administrator will be adopted. At previous meetings, the Assembly has amended Administrator Keith Brady’s spending plans with cuts of $38,000 to staff training and travel and $80,000 to the electric fund. The Assembly also added a $25,000 contribution to the non-profit RIDE bus service, among other changes.
Fiscal Year 2020 Budget
Some of the enterprise fund budgets contained increases for rate payers, including 6.5 percent for wastewater, 6.5 percent for solid waste collection, 3 percent for harbor moorage and 2.5 percent for solid waste drop off.
The finance department noted there are no rate increases in the electric fund budget.
There was no discussion or debate, except on the solid waste fund, for which Eisenbeisz proposed an amendment to reduce the proposed rate increase on collection from 6.5 percent to 2.5 percent, the same as the proposed increase for drop-off.
Explaining the need for the rate increase, Brady said, “Right now the solid waste enterprise is really in the red, it’s in a deficit, and we’re trying to pull it out. ... We’ve pushed out the date when (we go into) the black, and that’s why we need the 6 percent increase, to pull it out of the red.”
The vote on the amendment failed 3-4, with Eisenbeisz, Mosher and Nelson in favor.
There was some discussion about the effect of Gov. Dunleavy’s proposed budget on the finances of the harbor fund. Dunleavy proposed taking the municipal share of the raw fish tax revenue to help fund the state budget. In Sitka the city’s approximately $1 million share of raw fish tax has been dedicated to harbors.
“Although we did fund schools at the cap,” said Bean, “this is one of the things I’ve been concerned about, knowing where our governor is headed, and I don’t foresee anything changing in his mind. I’ll be betting that we are going to have to subsidize this fund from the general fund which will put us at a deficit at about $600,000.”
Paxton said he called Sen. Bert Stedman’s office earlier that day for an update “on a whole litany of things going on,” including raw fish tax and school debt reimbursement.
“The center of gravity now is school funding,” he said. “My view is that fish tax and bonded debt relief are in good shape. I’ll be surprised if the governor uses his red pen for that. That’s my opinion ...”
Planning Issues
Sitka Planning Commission member Randy Hughey presented a resolution that the commission adopted on May 17 outlining concerns over the lack of a city planning director.
“The work of the planning director is vital to citizens’ rights to use and develop their property,” he said, reading a prepared statement.
He cited the upcoming release of the state landslide risk report as “the most critical case in point.”
“Michael Scarcelli, our last planning director, was convening bankers and insurance representatives and other connected professionals to prepare for this report,” Hughey said. “We need to be in front of this and be learning about and considering options. Without experienced leadership in the planning department, the implications of this report just happen to us. Sitka deserves better. Sitka deserves experienced leadership in the planning office at this time.”
The Assembly has twice rejected the recommendation of a hiring committee to select an applicant for planning director. Temporary staff has been filling in since the departure of Scarcelli last August.
“Please allow Mr. Brady to locate and hire staff to accomplish the work which must be done,” Hughey said.
On another planning issue, the Assembly voted 6-1 on an ordinance to adopt a new zoning policy that will reduce minimum lot sizes, encourage higher-density development and reduce setbacks.
Nelson voted against, saying it has the potential of affecting property values of those who invested in their properties, and followed requirements such as the 8,000 square foot minimum lot size.
“I can’t support this,” she said. “The problem is we are watering down our zoning code in the name of affordable housing, but if people can’t afford to pay their utilities and all the other things they are struggling with we’re not going to have more affordable housing.”
Charter Change?
The Assembly voted 5-2 in favor of putting a question on the ballot of the next city election, to eliminate the charter requirement that proceeds of city land sales go into the Sitka Permanent Fund. Bean and Wein voted against. The ballot ordinance will be up for final reading June 11.
Nelson and Mosher co-sponsored the ordinance. The proposed ballot question asks whether citizens want to amend the charter by “changing the flow of net proceeds from the sale of any real property solely to the Sitka Permanent Fund to an equal division between the Sitka Permanent Fund and the governmental capital project fund?”
Wein said the question was “premature,” in light of current planning for property sales at No Name Creek and national financial trends. Bean said he felt the current policy of putting all land sale funds into the Sitka Permanent Fund was the best option for the community.
Knox said he would like the city’s investment committee to weigh in on the issue.
Other Business
On other items, the Assembly:
– appointed Brandon Marx to the Parks and Recreation Committee. Knox thanked him for stepping up and urged committee members to adopt an open-minded spirit in addressing the controversies over the use of Upper Moller field.
– heard an update from representatives of the Homeless Coalition, who are trying to find ways to meet the needs of “unsheltered men,” and find out what services they need, including a place to sleep, food and laundry services.
– heard updates from fellow members, including a report from Wein, SCH Board liaison, related to the merger between Sitka Community Hospital and SEARHC. He noted the number of SCH contracts to be negotiated, the $1 million cost of the cancellation of the Cerner electronics health records project, and the closure of the swing beds June 23, acute care June 26, surgery referrals June 28 and lab, radiology and emergency room on June 28. He told the Assembly that SEARHC plans to build its new complex on Japonski Island, starting with the long-term care unit, followed by the office complex then the hospital.
– approved an early termination of a lease agreement for Northline Seafoods at the Gary Paxton Industrial Park, at the request of the company.
– approved resolutions related to removal of Sitka Community Hospital employees from the Public Employees Retirement System and Supplemental Benefits System.
