Should a tobacco tax once dedicated to the former city-owned hospital pay for upgrades to local athletic facilities? When the Sitka Assembly meets tonight (7-22-25) it will consider whether to put that question out to voters in the municipal election this fall. 

The Sitka Community Hospital was sold to SEARHC in 2019, and the fund associated with the hospital is restricted to supporting the retirement of former employees. That fund also takes in around $800,000 a year from the city’s tobacco tax. City staff estimate that the fund will begin generating a surplus in the coming years, but unless the city charter is updated, that money cannot be spent. Sponsors of the ballot initiative have proposed updating the charter so the money in the fund can be put toward repayment of bonds for a potential sports and recreation facility. 

In other business, the assembly will make a final determination whether to contract with the Chamber of Commerce to provide visitor services for the city through the end of the calendar year.  

The Sitka Assembly meets at 6 p.m. tonight. Raven News will broadcast the meeting live, following Alaska News Nightly.