Sitka Assembly Meeting - September 8, 2026: Childcare Funding, Solid Waste Rates, and Cruise Tourism Concerns

The City and Borough of Sitka Assembly held a regular meeting on Tuesday, September 8, 2026, at 6:00 PM in the Assembly Chambers. The meeting covered department quarterly reports, public comments on cruise tourism, new business including solid waste rate adjustments and supplemental appropriations, a major discussion on childcare funding sources, and the authorization of sales tax-free days. An executive session on pending legal matters was held from 8:18 PM to 9:29 PM, and the meeting adjourned at 9:30 PM.

Consent Calendar

• Approved the minutes of the August 21 and 25, 2026 Assembly meetings unanimously (7-0).

Public Comments & Testimony

• Cruise Tourism (First Persons to Be Heard): Klaudia Leccese (Small Town Soul president) and Larry Edwards (Small Town Soul secretary) expressed strong opposition to the 2027 cruise ship schedule, citing a record 34,161 additional visitors over 2026, with 22 days over 7,000 passengers, 3 days over 8,000, and 2 days over 9,000. They argued the voluntary Memorandum of Understanding (MOU) has failed, noting the dock company's birthing policy was not followed, and called for a regulatory ordinance setting a daily limit between 5,000–7,000 cruise passengers. Barbara Bingham and Peter Hagan also commented on congestion and safety concerns.
• Childcare Funding (during Item E): Sherri Blankenship (business owner) supported a voluntary public-private partnership (PPP) modeled after Tourism Best Management Practices, suggesting a $150-per-employee contribution and inviting larger cruise industry users to the table. Joel Markis (Betty Elias Early Learning Center board president) urged continued diligence, highlighted a cautionary tale from Haines, and stressed the need for diverse funding. Klaudia Leccese shared personal experience and supported moving forward. Jacquie Foss (fisherman) preferred a 0.5% summer sales tax increase over a seasonal shift, noting summer is also salmon season.
• Cruise Tourism (Second Persons to Be Heard): Larry Edwards reiterated that the MOU failed due to lack of coordination, referenced past assembly statements, and urged direct regulation by ordinance.

Discussion Items

• Solid Waste Rate Ordinance (ORD 26-21): Municipal Administrator John Leach introduced an ordinance to establish a code rate for roll-off containers, previously unregulated. The rate is set equal to equivalent volume of existing 300-gallon containers. Three categories were created: standard commercial, public good (government agencies, grocery stores for food waste), and neighborhood cost share (for bear mitigation, requiring a designated account holder). Assembly members discussed qualifications for public good, the pilot program on Indian River ($47,000 cost), and implementation details. The ordinance passed first reading 7-0.
• Supplemental Appropriations (ORD 26-22): Finance Director Brooke Volschenk presented a housekeeping ordinance to reappropriate $50,000 for athletic field/track revitalization into FY27 (combined with $30,000 already budgeted) and to cover budget overages, including $96,339 for the fire department due to retirements, leave cash-outs, overtime, and health insurance. No fund balance impact. Passed first reading 7-0.
• Childcare Funding and Implementation Model (Item E): Sponsors Mosher, Riley, and Christianson led discussion on a funding source to support local childcare. They reviewed a proposed public-private partnership (PPP) where businesses voluntarily contribute (e.g., $150/employee) to a 501(c)(3) that also holds city sales tax proceeds for childcare stabilization, operating grants, family scholarships, and continuing education. The assembly debated three sales tax scenarios to generate ~$1 million annually:
  • Scenario 1: 0.5% summer sales tax increase (Mayor Eisenbeisz leaned here; supported by Riley and Mosher for simplicity and easier voter communication).
  • Scenario 2: 4% winter/7% summer (supported by Ystad and Carlson; concerns about administrative complexity and revenue fluctuation).
  • Scenario 3: Year-round 6% (not favored).
  • Discussion included sunset dates (initial proposal 5–7 years, later consensus leaning toward 10 years), effective dates (possible April 1, 2027, but prepaid bookings may require a one-year delay), and voter approval via special election on February 2, 2027. No formal vote; direction given to staff to prepare ordinance with scenario 1 (0.5% summer increase) and a 10-year sunset.
• Sales Tax-Free Days (Item F): Mayor Eisenbeisz recused due to direct business benefit. Assembly authorized Friday, November 27 and Saturday, November 28, 2026 as sales tax-free days, excluding fuel, alcohol, tobacco, and marijuana, and not affecting ongoing obligations. Motion passed 6-0.

Key Outcomes

• Approved: Minutes (Consent Agenda), board appointments (Ben Hughey, Callie Simmons, Alysha Guthrie), ORD 26-21 (first reading), ORD 26-22 (first reading), and sales tax-free days (November 27-28, 2026).
• Directed: Staff to draft an ordinance for a 0.5% summer sales tax increase to fund childcare, with a 10-year sunset, for first reading in October 2026 leading to a February 2, 2027 special election. Sponsors will also pursue a voluntary business engagement campaign for the PPP.
• Executive Session: Held from 8:18 PM to 9:29 PM on pending legal matters; excluded municipal administrator and clerk.
• Reports: Mayor attended Alaska Municipal League summer conference; Administrator noted interest in a Citizens Academy; Clerk reported election reminders and board vacancies; Liaisons reported on Planning Commission (land suitability study for Osprey and Sitka High subdivisions, landslide analysis) and Parks and Recreation Committee (commercial recreation survey, disc golf proposal).