Earlier in the year, the Sitka Assembly pledged to find more money for city government. And on Tuesday night (01-25-17), they considered a proposal to do so by raising Sitka’s sales tax cap from $3000 to $12,000.
Sitka’s deficit this year is significant – $4 million dollar – and a big portion of that is within the Electric Fund. But rather than bolster the Electric Fund with money from other places, the Sitka Assembly has begun to consider what it would mean for the fund to stand on its own.
The city of Sitka is struggling to pay off the Blue Lake Dam in a big way. The project was largely funded through bond proceeds. But due to a major decline in electric usage by Sitka customers, the city doesn’t have enough money to meet the bond payment.