By SHANNON HAUGLAND
Sentinel Staff Writer
The Assembly decided Tuesday to postpone until June 13 a hearing on the Youth Advocates of Sitka appeal of a Planning Commission decision denying a permit for a quasi-institutional home on Halibut Point Road.
The unanimous decision to delay the hearing came after City Attorney Brian Hanson said some key legal and constitutional issues have been raised by the request. These concerns “deserve some kind of review, consideration and opinion, and recommendation from either myself or an outside counsel,” Hanson said.
An audience of about 40 attended the regular Assembly meeting, and most of them left after the item was postponed. There were no objections by the YAS representatives or most others on the postponement.
On April 5 the Planning Commission narrowly denied the advocates’ request for a conditional use permit for a quasi-institutional group home in a residential zone at 3411 Halibut Point Road. Approval of the permit would have allowed year-round use of the large two-story duplex as a home for up to 12 clients ages 16-21, under a pilot program intended to help youths at risk or who have experienced homelessness and trafficking.
Hanson told the Assembly, which was acting as a Board of Adjustment, about some of the legal issues that he sees.
One, he said, is “whether it’s legal to require a conditional use permit for a quasi-institutional group residence.” Also, he said, “If it is legal, did the Planning Commission exceed its authority by denying the permit on unconstitutional grounds? And the third one, if it didn’t exceed its authority is, was the decision based on unconstitutional bias? In other words, (is the decision) discriminatory under the Fair Housing Act.”
Hanson had just returned from vacation and said he has not had sufficient time to come to an opinion.
“I think because of the potential liability for having any decision thrown out or affected by a lawsuit, this body should consider staying its process,” he said.
Assembly members heard from the public on the motion to postpone before deciding not to hear arguments for or against the appeal.
In the brief time before making that decision, a few people from the public testified, with all but one supporting postponement. The YAS advocates present agreed.
Noting the intense interest, Assembly member Kevin Mosher said he has received numerous emails from both sides on the issue, and saw a lot of people in the audience eager to speak.
“As much as I would like them to speak and want to give them the opportunity, it feels like if we rush it, it leaves the opportunity for mistakes or errors or issues,” he said. “I’d rather wait for the legal opinion.”
“Postponement is probably the best thing, so that there’s time to really gather the truth,” resident Mary Magnuson said, after stating her support for the Planning Commission’s decision. A few others stated some of their problems with the permit request, or had questions.
Among objections expressed by the public at the April 5 Planning Commission meeting were that a group home in the residential area would adversely affect the character of the neighborhood.
FY24 Budget Ordinance
In other business, the Assembly passed on first reading ordinances on the fiscal year 2024 budgets for the general fund, internal service funds and enterprise funds. Second reading and public hearing on the budgets is scheduled for the May 23 Assembly meeting.
The budgets have been under consideration in a series of special meetings over the past several months, and there was little comment by the Assembly prior to their passage on unanimous votes on first reading.
The finance department memo in the packet lists some key points in the general fund budget: spending will be up 14 percent, but there be no increase in full-time staff.
Revenue is projected at $42.6 million, with a $17,000 surplus at the end of the fiscal year. In the current fiscal year, revenues are above expectations, with projections of $41.9 million at the end on June 30. Expenditures are lower than budgeted, at $38.4 million.
“Certainly part of the 14 percent (increase) is based on inflation – everything is costing us more,” City Finance Director Melissa Haley said. “In addition, we’re comparing – in projections – close to full staffing compared to a significant number of vacancies in fiscal year 2023 and delays in filling new positions.”
The Assembly in the FY24 budget also approved a $750,000 expenditure for a housing study to identify city-owned parcels that could be developed for housing, which is a major concern in the community.
The ordinance on the enterprise funds includes capital projects as well as user rate increases. The finance department memo took note of the 5.4 percent rate of inflation in the last year, ending Dec. 31. Rate increases on household utility bills in the coming year include 3% for electricity; 6% for water; 8.5% for wastewater; and 6.75% for solid waste. Moorage rates in the harbors will increase 7.3%.
The administrator’s letter characterized FY23 as a year of recovery following three years of uncertainty from the pandemic.
“Over the past year, growth in the tourism industry has fueled CBS revenue at a level that exceeds pre-pandemic levels,” he said. “It’s important to note that while the increased revenue is a welcome side-effect of increased tourism, there are a number of challenges that the CBS faces as a result of tourism growth, lingering economic impacts of the pandemic, and unfunded federal and state mandates.”
Haley said the takeaway from the Assembly budget meetings was that members are comfortable with an “optimistic but cautious approach.” On the expenditures side, the memo takes note of “key investments” aligned with city organizational priorities.
“While the increased capital investment doesn’t fully make up for pandemic-related reductions, this budgeted investment, combined with last year’s investment, is a significant improvement,” the city fiscal note said. The Assembly has approved placing $9 million from the past two years’ budgets into the public infrastructure sinking fund, for various public works projects, and infrastructure maintenance and improvements.
The city memo said the new debt proposed for FY 2024 is a state Department of Environmental Conservation loan to replace utilities on a section of Lake Street (water and wastewater), repair the Lake and Lincoln streets lift station, and a projected $7 million loan to fund an effluent disinfection system for the wastewater treatment plant.”
Sitka Municipal Attorney Brian Hanson, glances at the audience Tuesday night as he recommends the Board of Adjustment postpone considering an appeal of a Planning Commission decision. (Sentinel Photo)
