City and Borough of Sitka Special Assembly Meeting – April 23, 2026

The City and Borough of Sitka Assembly held a special meeting on April 23, 2026, at 6:00 PM in Assembly Chambers. The meeting focused on approving a lease extension for the Northern Southeast Regional Aquaculture Association (NSRAA), reviewing the FY2027 draft budget across enterprise, internal service, special revenue, and general funds, and discussing the Capital Improvement Plan. Public testimony highlighted concerns about athletic field maintenance.

Consent Calendar

• Approved a lease extension with NSRAA for Block 4, Lots 2 & 3 at Gary Paxton Industrial Park, extending the lease to October 31, 2026, to allow time for renegotiation. Passed 7-0.

Public Comments & Testimony

• Scott Wagner (General Manager, NSRAA) spoke in support of the lease extension.
• Tatiana Perkins, Steven Bunnell, Carrie Iwamoto, and Katie Bunnell (representing Sitka Little League, Sitka Softball Association, and Sitka Baseball Club) testified about deteriorating athletic fields at Kim Sham and Moller complexes, citing poor drainage, safety hazards, and the need for proper sand materials. They requested collaboration with Parks & Rec and local contractors, and consideration of grant funding.
• Josiah Hill provided technical input on the type of sand needed (triangular-cut, not local beach sand) and suggested community partnerships.

Discussion Items

• Item B: FY2027 Draft Budget – Enterprise, Internal Service, and Special Revenue Funds
  Finance Director Brooke Volschenk presented proposed rate increases: Electric customer fee increase (less than $1/month, no energy rate change); Water, 6%; Wastewater, 2%; Solid Waste, 2%; Harbors, 4% (though Ports & Harbors Commission recommended 3%). Discussion included working capital levels, debt service for the critical secondary water project, effluent disinfection mandate (2030 compliance), harbor infrastructure needs, and the airport fund deficit ($390,000 projected). The port director position remains frozen for FY2027. Assembly discussed the McKinley cost allocation study based on 385,000 cruise passengers (current ~600,000) and potential need for an update. No formal action taken on rates.

• Item C: FY2027 Draft Budget – General Fund
  Volschenk explained revisions to eliminate the deficit, resulting in a projected $30,000 surplus. Key changes: health insurance rate reduction from 15% to 8% (negotiated down from 11.6%), freezing a police sergeant position, and removing heat pump projects. Public testimony on athletic fields led to a motion by Carlson to add $30,000 for field sand. After discussion, the motion passed 7-0, bringing total sand budget to $80,000 (including unspent $50,000 from prior year). A motion by Riley to revert FY27 Assembly travel to the Alaska Municipal League conference from 7 to 3 members was amended by Mosher to 5 members. The amendment passed 7-0, and the main motion as amended passed 7-0.

• Item D: FY2027 Capital Improvement Plan
  Volschenk gave an overview of the updated CIP, emphasizing completion of existing projects and phased funding. Discussion included harbor fund needs, coordination between water/wastewater/electric projects, and the strategic importance of the CIP as a planning tool. No formal action taken.

Key Outcomes

• Lease extension with NSRAA approved unanimously (7-0).
• $30,000 added to General Fund budget for athletic field sand (total $80,000 available) – motion passed 7-0.
• Assembly travel to Alaska Municipal League Annual Conference reduced from 7 to 5 members – motion passed 7-0.
• The FY2027 draft budget for Enterprise, Internal Service, and Special Revenue Funds was discussed; no votes taken on rate adjustments. The General Fund budget was revised to show a $30,000 surplus. The Capital Improvement Plan was reviewed without formal action.