City and Borough of Sitka Regular Assembly Meeting - May 12, 2026

The Sitka Assembly convened at 6:00 PM on May 12, 2026, for a regular meeting lasting until 9:34 PM. The agenda included the FY2027 budget adoption, a child care needs analysis report, a home rule charter amendment, board appointments, and an executive session to discuss municipal administrator recruitment. All votes were unanimous.

Consent Calendar

• Minutes Approval: The assembly unanimously approved the minutes from the April 21, 22, 23, 24, and 28 meetings.

Public Comments & Testimony

• Kari Sagel, on behalf of the Chamber of Commerce, announced the Center for Community Early Learning Program had been awarded a $15,000 Rasmuson Foundation Tending the Future Fund grant to host a Sitka Child Care Funding Summit. She invited the assembly and city staff to participate in planning and attend the summit.
• Annette Evans and Margaret Galanin thanked the assembly for its support in addressing childcare challenges and expressed appreciation for the members' volunteer commitment.

Discussion Items

• Child Care Needs Analysis Report (Items VII and H 26-093): Blue Shibler, Executive Director of Southeast Childhood Collective, presented the report. Key findings: an estimated 485 children need care, with a supply of 204, leaving a gap of about 281 spaces. Providers cannot expand due to workforce shortages; wages cannot compete with other sectors. Three options were offered: (1) workforce incentives (including utility waivers), (2) per-child operating grants modeled on Juneau's program (estimated $1.0–1.4 million/year), and (3) a blended model adding family affordability subsidies. Shibler stated the private market cannot solve the "market failure" and sustained public investment is needed. The assembly accepted the report (7-0).\n In the subsequent discussion on next steps, Sponsor Thor Christianson expressed support for a model similar to Option 2, with city funding outsourced to an outside administrator. Sponsor Kevin Mosher also supported Option 2 as most effective. Deputy Mayor Timothy Pike reframed childcare funding as an "investment" and stressed defining the program before identifying funding. Assembly Member Katie Riley expressed concern a winter sales tax increase would overburden working families and suggested exploring alternative sources such as adjusting the sales tax cap. Assembly Member JJ Carlson noted revenue options being considered: a 2% alcohol tax (≈$500k/year), a one-percent winter sales tax (≈$1M/year), and a one-percent summer sales tax (≈$2M/year), but cautioned against taxing the same families the program aims to help. The consensus was to hold a work session in June for further deliberation. The assembly also directed the municipal administrator to write a letter supporting the $7.5 million state budget allocation for childcare workforce retention currently in conference committee.
• FY2027 Budget Adoption (Items E and F): Municipal Administrator John Leach introduced the consolidated operating budget for General Fund, Internal Service Funds, and Special Revenue Funds (ORD 26-11) and the Enterprise Funds budget (ORD 26-12), which also amends utility and harbor rates. The budget is fully balanced; expenditure growth is driven by wages, benefits, and infrastructure. Sales tax remains the revenue foundation, but fuel cost volatility and federal funding uncertainty pose risks. Leach thanked Finance Director Brooke Volschenk for exceptional work. Assembly members praised the budget's accessibility and transparency. Both ordinances were approved on first reading (7-0).
• Home Rule Charter Amendment (Item G): Municipal Clerk Sara Peterson presented ORD 26-13, which proposes amending Section 6.01 to remove the mandatory special election requirement within 40–90 days of a valid initiative/referendum petition, replacing it with assembly discretion to call a special election or refer to the next regular election. The last special election cost over $18,200 and placed a significant staff burden. Assembly members supported the amendment, citing increased flexibility while preserving citizen access. The ordinance passed on first reading (7-0) and will appear on the October 6, 2026 ballot.
• Other Ordinances: ORD 26-09 (Donations) and ORD 26-10 (Naming of Public Places) were passed on second and final reading (7-0), with a minor administrative correction noted on the latter.
• Board and Committee Appointments: Michael Hall and Brian McLaughlin were appointed to permanent terms on the Local Emergency Planning Committee under Category 2 (7-0).

Key Outcomes

• Votes: All items passed unanimously (7-0): consent agenda, board appointments, two first-reading budget ordinances, first-reading charter amendment, second-reading ordinances, and acceptance of child care report.
• Child Care Next Steps: The assembly will hold a work session in June to discuss program options and funding mechanisms, with the goal of potentially placing a measure on the October 2026 ballot.
• Charter Amendment: Voters will decide on October 6, 2026, whether to remove the mandatory special election requirement for citizen initiatives and referendums.
• State Advocacy: The administrator will draft a letter supporting the $7.5 million state childcare workforce funding.
• Executive Session: The assembly met from 9:07 to 9:33 PM in executive session to discuss the recruitment of a municipal administrator, considering candidates Jenny Alber and Steven Dahl. The assistant municipal administrator was invited; the municipal administrator and attorney were excluded. Upon reconvening, Mayor Eisenbeisz reported that paths forward were identified.
• Liaison Reports: Planning Commission updates on cruise ship dock ordinance and zoning text change for Gary Paxton Industrial Park; Ports and Harbors Commission meeting last before summer break; Sustainability Commission work on waste reduction and public outreach.
• Other Reports: Mayor reported Alaska Airlines committed to maintaining service despite high fuel prices. Administrator confirmed Senator Murkowski submitted a funding request ($5 million) for the Marine Service Center seawall and crane replacement. Attorney reported two case dismissals. Riley reminded drivers to watch for bicyclists after a severe accident.