2026-06-08 - Regular Assembly Meeting
Summary
Built from the official minutes of Regular Assembly Meeting No. 2026-12. No video is posted, so there is no transcript or timing.
- Called to order at 6:01 PM by Mayor Weldon; adjourned at 10:26 PM. All nine members present. Recess about 7:39 to 7:53 PM; meeting extended to 10:30 PM.
- FY27 operating budget (ordinance 2026-01(b), $545,829,100) adopted by unanimous consent after about two dozen speakers, most pleading for City Museum funding. Amendments to restore museum funding, forgo a stipend and move marine passenger fees all failed.
- Property tax levy for 2026 adopted by unanimous consent at 9.92 mills, down 0.32.
- Sales tax cap ordinance 2026-27 adopted 6-3 as amended, with a $50,000 threshold; the agent commission repeal for travel, lodging and tours (2026-25) failed 4-5.
- Capital Improvement Program adopted; six transfers approved on consent.
- HESCO barrier loan appropriation of $18,015,000 adopted; Local Improvement District 210 cost split changed to 0/100.
- Ordinances 2026-11 and 2026-23 were deferred to the next regular meeting for lack of time.
- Eleven late-filed senior and disabled veteran exemption requests approved by unanimous consent.
Public participation on non-agenda items
- Cole spoke for the 1 percent seasonal sales tax initiative, citing a similar tax in Ketchikan.
Telephone Hill Redevelopment
- Two speakers questioned $1.4 million in consultant spending and about $9 million set for demolition, and asked that money go to community needs such as the City Museum.
FY27 Operating Budget
- Public comment: Cadiente urged a 5 percent across-the-board cut and a hiring freeze; Cannon urged a Gross Smelter Return tax tied to a permanent fund and a special meeting; McIntyre-Coble questioned a $2.2 million school security contract.
- Woll moved adoption, noting about $5 million in canceled projects, $2.4 million in new revenue and $4 million in efficiencies against a roughly $14 million structural deficit.
- Amendment 1, Brooks, forgo $12,000 in Assembly stipends: failed 2-7 (yes: Hughes-Skandijs, Brooks).
- Amendment 2, Hall, $261,000 recurring for the City Museum: failed 4-5; the one-time funding variant by Kelly also failed 4-5.
- Amendment 3, Hughes-Skandijs, move $360,000 of marine passenger fees from private dock security and restrooms to the seawalk: failed 4-5. The City Attorney warned of possible suit from the dock operators under the CLIA settlement.
- Budget adopted by unanimous consent. Total mill levy 9.92 (areawide 6.24, roaded 2.45, fire 0.31, debt service 0.92), adopted on Steininger's motion.
City Museum Funding
- Clough said the museum was bearing a disproportionate share of cuts and that one collections and one administrative position would effectively close it. Nelson, President of the Friends of the museum, urged keeping key staff.
- About a dozen other speakers supported full funding, including artists, volunteers and a state museum curator.
- Hall's restoration amendment failed 4-5 (yes: Hall, Steininger, Kelly, Brooks). Hughes-Skandijs and Woll cited the fund balance; Weldon cited missed service reduction targets.
Sales Tax Cap Change
- Ball (Kensington Mine) opposed removing the cap; Richardson favored a moderate increase.
- Eliminating the cap failed 3-6; EV exemption failed 2-7; tiered vehicle cap carried 8-1; lowering to $20,000 failed 1-8; $50,000 threshold carried 6-3. Ordinance as amended carried 6-3 (no: Hall, Brooks, Weldon).
Agent Commission Sales Tax Exemptions
- Ordinance 2026-25 would have repealed the agent commission exemption for travel, lodging and tours. Fanning and three others warned of cascading tax; Richardson said rental cars would be taxed twice.
- Adkison moved adoption; Smith amended the effective date to January 1, 2027 (unanimous). Failed 4-5 (yes: Adkison, Kelly, Woll, Hughes-Skandijs).
- Ordinance 2026-33 (negotiated sale or lease commissions) was introduced on consent.
Sales Tax Code Housekeeping
- Ordinances 2026-26 (cruise ship sales boundaries, Woll), 2026-28 (repeal $30 seller compensation, Brooks) and 2026-20 (returns and penalties, Brooks) adopted by unanimous consent; no public comment.
Remote Seller Sales Tax Delegation
- Ordinance 2026-21 delegating marketplace facilitator collection to the Alaska Remote Sellers Sales Tax Commission adopted by unanimous consent (Adkison); housekeeping ordinance 2026-22 adopted on Steininger's motion.
Temporary Three Percent Sales Tax Renewal
- Ordinance 2026-13 introduced on consent for public hearing.
School Bond Proposition
- Ordinance 2026-35 ($16,000,000) introduced on consent.
Utility Infrastructure Bond Proposition
- Ordinance 2026-36 ($9,400,000) introduced on consent.
Hotel Bed Tax Allocation
- Resolution 4048 on consent: keeps the voter-approved 2 percent for Centennial Hall and lets the Assembly set annual priorities, adding necessary government expenditures.
Firefighters Union Contract
- Resolution 4049 on consent ratifies the tentative agreement with IAFF Local 4303 (July 1, 2025 to June 30, 2028): 11.28 percent wage increase, CPI increases of 2.2 and 2.1 percent then 1 to 4 percent, $6,000 lump sum in lieu of retroactive pay. Conditioned on union ratification.
Capital Improvement Program
- Resolution 4044(b) adopted by unanimous consent on Hall's motion. Six transfers approved on consent, including $500,000 from the paused Waterfront Museum project to the seawalk and a $756,000 bus barn correction.
Property Tax Exemption Changes
- Ordinances 2026-29, 2026-30 and 2026-31 introduced on consent.
Senior Citizen Disabled Veteran Hardship Exemption
- Ordinance 2026-34 introduced on consent at 250 percent of poverty.
Airport Capital Reserve Appropriations
- $118,407 for runway repairs introduced on consent.
Bartlett Regional Hospital Operating Funds
- $12,000,000 appropriation introduced on consent.
Nonprofit Sales Tax Exemption
- Ordinance 2026-32 introduced on consent.
Glacial Lake Outburst Flood Response
- $18,015,000 HESCO appropriation adopted by unanimous consent on Kelly's motion (loan raised from $7,830,000 to $25,845,000, 50 percent forgiveness).
- Local Improvement District 210 cost split changed from 40/60 to 0/100; Penrose-Fischer thanked the Assembly but said Phase 1 owners were charged while Phase 2 got free federal aid. Smith moved; unanimous.
- Koester: the Army Corps found the full project cost-prohibitive and is designing a phased sheet piling solution for Phase 1; open house June 9.
Mendenhall Wastewater Treatment Plant Pyrolysis Unit
- $2,878,000 loan-funded appropriation (100 percent forgiveness) adopted by unanimous consent on Hughes-Skandijs's motion; the unit would end a recurring $2 million annual biosolids disposal cost.
Crossing Guard Services Funding
- $99,728 from marine passenger fees adopted by unanimous consent on Woll's motion; the expanded service costs $250,976 for the rest of FY26.
Fire Department Interference Ordinance
- Ordinance 2026-11 deferred to the next regular meeting for time.
Failure to Appear Offense
- Ordinance 2026-23 deferred to the next regular meeting for time.
Eaglecrest Communications Tower Lease
- Ordinance 2026-19 adopted by unanimous consent on Hall's motion: lease area grows from about 402 to 1,000 square feet for a taller tower, with a $5,000 amendment fee.
Late-Filed Property Tax Exemptions
- Eleven requests approved by unanimous consent in two motions by Hughes-Skandijs (nine, then two hardship cases).
Other business
- Minutes of April 29 and May 18 approved. Liquor license renewals, no protest. Mayor's report congratulated the state champion baseball team and thanked Woll for serving as Finance Chair.