City staff asked for big picture budget guidance from the Sitka Assembly during a special meeting Thursday night (1-8-26). During the more than two-hour discussion, assembly members reviewed staff funding requests and discussed fiscal pressures.
Finance Director Brooke Volschenk said some pressures that will shape the development of next fiscal year’s municipal budget include recent wage increases, new operational responsibilities with the airport and marine haulout, and changes in state and federal funding.
“Another big thing is rising costs,” Volschenk said. “So inflation continues to increase the cost of existing services, not just new initiatives. Vehicle and equipment costs have risen significantly, which also increases the level of sinking fund contributions that are needed to maintain the fleet over time.”
The city kicked off budget discussions at a meeting in mid-December, where assembly members talked about capital projects and said they may consider putting a cap on utility rate increases.
On Thursday, they reviewed nearly 20 staff funding requests, including a proposal to put $250,000 towards recycling center upgrades like fencing, lighting, and replacement of the existing oil storage tank.
“I’m still working on finding the complete data on the tank that is out there right now, but I’ve been told it’s from the mid-1900s, which to me is a red flag, and that it came from the SJ campus,” said Public Works Director Mark Seavey. “So a 60 plus year old tank that’s holding 25,000 gallons of waste oil from around our community before it can be shipped out. Being that old is a concern of mine.”
The next budget meeting is scheduled for Feb. 5, where the assembly and school board are expected to have a joint budget work session. The municipal budget process typically wraps up in May when the assembly passes its final budgets.
