Sitka Assembly Meeting: September 8, 2026 - Childcare Funding, Cruise Tourism, and Ordinances

The Sitka City and Borough Assembly met on Tuesday, September 8, 2026, at 6:00 PM in Assembly Chambers. The meeting covered department quarterly reports, public testimony on cruise tourism, consent agenda approvals, board appointments, first readings of ordinances on solid waste roll-off containers and supplemental appropriations, a major discussion on childcare funding sources and implementation models, approval of sales tax-free days, and reports from assembly members and staff.

Public Comments & Testimony

• Cruise Tourism Overcrowding: Claudia Less, president of Small Town Soul, stated that Sitka faces high downtown congestion and that a record number of cruise visitors are scheduled for 2027—34,161 more than in 2026. She noted 22 days with over 7,000 visitors, including three above 8,000 and two above 9,000. She argued the voluntary Memorandum of Understanding (MOU) with the cruise industry has failed and urged the assembly to set by ordinance a daily limit at the low end of the 5,000–7,000 range, citing the Bar Harbor litigation as precedent for home-rule authority. Larry Edwards, secretary of Small Town Soul, added that the 2027 cruise schedule violates prior birthing policy assurances from Chris McGraw, with days exceeding 8,000 and 9,000 passengers, and called for direct regulation rather than an unenforceable MOU.
• Childcare Funding: Joel Marcus, board president of Betty Elias Early Learning Center, thanked the assembly for addressing childcare and warned of a cautionary tale from a closure in Haines. He urged diverse funding approaches and noted that timing is critical as centers face inflationary pressures and dwindling COVID-era funds. Claudia Less (also speaking as a citizen) and Jackie Foss spoke in favor of the childcare sales tax proposal, with Foss specifically supporting a half-percent summer increase.

Discussion Items

• Department Quarterly Reports:
  • Human Resources (Josh): Staffing at 89% of 20 budgeted positions, recently eked above 90%. Hired seven full-time permanent and one part-time permanent, plus 19 temp/seasonal hires in the quarter. Completed PSEA collective bargaining agreement and annual health open enrollment.
  • Information Technology (Grant Turner): All five full-time positions filled. Completed library public workstation upgrades (modern equipment, improved security). Received 185 help desk tickets, completed 157, with 62% first-contact resolution. IT operating budget ~$2.8 million, ~$660,000 spent plus $93,000 encumbered (about 25% used). Major projects: network infrastructure expansion along seawall, new core network switch, new firewalls, and help desk improvements.
  • Clerk’s Office (Sarah Peterson): Implemented public records request portal. Continued digitizing vault records and recodification project with municipal attorney. Board/commission training ongoing. Work culture club hosted employee picnic. Supported municipal election preparation (candidate filings, ballot programming). Budget expensed 27%.
• Ordinance 26-21 (First Reading) – Solid Waste Roll-off Containers: Administrator John Leach introduced the ordinance amending Title 15 to establish rates for roll-off containers. Rates are set equal to existing container rates (e.g., a 15-yard roll-off at 3,000 gallons charged same as ten 300-gallon cans). Three programs: standard commercial, public good (government agencies, grocery stores for bear issues), and neighborhood cost share (via an account holder, like an HOA). Discussion covered qualifications for public good, administrative burden, and existing pilot in Indian River. Passed 7-0.
• Ordinance 26-22 (First Reading) – Supplemental Appropriations: Finance Director Brooke Falls Gang explained it is housekeeping: reappropriating $50,000 from FY26 for athletic field and track revitalization to FY27 (combined with $30,000 already budgeted, total $80,000). Also covers overages in personnel (largest piece $96,339 for fire department due to retirements, leave cash-outs, overtime, health insurance) and travel/training. No fund balance impact due to offsetting savings. Passed 7-0.
• Childcare Funding and Implementation Model: This discussion/direction/decision item was led by sponsors Tor, Kevin, and Katie. Topics included:
  • Public-Private Partnership (PPP): Katie explained a voluntary 501(c)(3) nonprofit would receive tax-deductible business contributions (e.g., $150 per employee annually) to fund childcare scholarships, while the city contributes a fixed amount from sales tax dedicated to stabilization grants, operating support, and continuing education. The model is inspired by Iowa and Seward (Norwegian Cruise Line donation). Elena (business community) expressed willingness to contribute.
  • Sales Tax Scenarios: Three options were considered: (1) 0.5% summer-only increase (revenue ~$1 million annually); (2) 4% winter / 7% summer with half-percent summer dedicated to childcare (revenue similar to option 1 but administratively complex); (3) not favored. After debate, the body leaned toward option 1 (half-percent summer increase). JJ raised concerns about tourism volatility; Chris worried about opening door for future tax increases. Sunset date discussed: consensus shifted to 10 years to allow data collection and voter comfort. Effective date may need to account for prepaid bookings and business software changes.
  • Next Steps: Sponsors will work with staff to draft an ordinance for first reading in October (second meeting) to allow a February 2, 2026 special election. PPP business engagement campaign will start immediately. A motion to relax rules for public comment passed.
• Sales Tax-Free Days – November 27-28, 2026: Annual authorizations. Tor suggested making it permanent, but Scotty opposed due to revenue loss. JJ recused due to direct benefit. Approved 6-0.
• Executive Session: Moved to executive session with Municipal Attorney Rachel Jones for legal matters, excluding administrator and clerk. Approved 7-0.

Key Outcomes

• Consent Agenda (Item A): Minutes of August 21 and 25 meetings approved 7-0.
• Board Appointments (Item B): Reappointed Ben Hughey to Parks and Recreation Committee (3-year term), Callie Simmons to Library Commission (3-year term), and appointed Alysha Guthrie to Tourism Commission (unexpired term). Approved 7-0.
• Ordinance 26-21 (Solid Waste Roll-off Rates): Passed first reading 7-0.
• Ordinance 26-22 (Supplemental Appropriations): Passed first reading 7-0.
• Childcare Funding Source: Assembly directed sponsors to proceed with a half-percent summer sales tax increase (option 1) with a 10-year sunset, and to develop the public-private partnership. Ordinance to be crafted for first reading in October ahead of a February 2, 2027 special election.
• Sales Tax-Free Days: November 27-28, 2026 authorized 6-0 (JJ Carlson recused).
• Executive Session: Entered 7-0 to discuss legal matters.

Reports

• Mayor Eisenbeisz: Reported on Alaska Municipal League (AML) summer conference; AML is working on five-year strategic plan to increase capacity for local governments; urged inclusion of tribes in growth plans. Noted data centers are coming and encouraged early regulation.
• Administrator John Leach: Attended Alaska Municipal Managers Association session; highlighted a “citizens academy” model from Fairbanks (14-week program for residents to learn about departments, culminating in mock assembly meeting).
• Attorney Rachel Jones: Leasing/contracts management software implementation underway; training with finance and contract managers; public records and recodification projects progressing.
• Liaison Reports: Katie reported Planning Commission discussed land suitability study for Osprey and SITKA High School subdivisions, with focus on higher density and workforce housing. Kevin reported Parks and Recreation Committee discussed commercial recreation land use survey (closes Sept 30) and disc golf demonstration project. Clerk reported current board/commission vacancies and upcoming election details (early voting Sept 21-Oct 5, election Oct 6).