Council passes lean FY 2026 budget
By Diana Haecker
The Nome Common Council passed a trimmed-down version of the fiscal year 2026 general operational budget, totaling a tad over $17 million. In work session after work session, the council and city staff whittled the budget down more than $980,000 from $18,028,310, the number discussed in the first reading of the budget at the end of May.
The end of May budget assumed an increase of the sales tax to 7 percent, but the council decided to put to the voters the proposal to raise the sales tax to 6 percent. The pot of property tax earnings also got smaller as the taxable base of real property saw a $186,588 reduction. The most significant savings came from the council’s decision to reduce the school funding by $700,000 to $2.7 million, a reduction in insurance rates, voluntary reduction of the assistant city manager’s hours to 28 hours per week, and removing the part time position of a museum assistant.
To balance revenue with expenses, the budget still needs an appropriation from the savings account of $250,543.20.
During last week’s work session, several community organizations stepped to the podium to plead for continued funding. The Nome Community Center’s executive director Kimberly Bishop made the plea to continue funding the emergency shelter NEST. Reading of names of people who have died due to exposure she said, “When you write off NEST from your budget, you are telling the community that these deaths didn’t matter.” The council restored NEST funding of $35,000.
Community members criticized that funding for outside entities like the Iditarod ($25,000) and Iron Dog ($12,500) and $5,000 for fireworks remained in the budget, while contributions to Nome organizations like the Nome Preschool Association, the Nome Community Center and Nome Winter Sports, among others, was cut. In the end, the council agreed to go through the process of using the annual NSEDC community benefit share to parse out funds for NEST and Nome Community Center youth programs, the Nome Preschool and the Winter Sports Association.
An ordinance to the effect to use the NSEDC funds must go through a public hearing to satisfy grant requirements from NSEDC.
One particular line item became subject to a heated exchange. In last week’s version of the budget, the city slashed their contribution to the Visitor Center, operated by the Nome Chamber of Commerce via contract with the city, in half, to $100,000. In last week’s work session, Chamber President Ken Hughes agreed with the council that, at reduced Visitor Center hours, they can make it work for $150,000. This number was not reflected in the budget amendment to be voted on by the council. Councilmember Scot Henderson inquired as to why? City manager Lee Smith said, according to numbers given to him by the Chamber, the contribution could be further reduced to $130,000. Henderson looked into the audience and asked Chamber President Hughes if this would be acceptable. Councilmember Cameron Piscoya asked for point of order: “Do we normally do this?” referring to seeking comment from the audience outside of the public comment section. Tempers flared, as Henderson defended his request, saying he was seeking clarification. In the end, the council ok’d a contribution of $130,000 to the Visitor Center.
In other business, the council took no action on the adoption of the Downtown Zoning ordinance, since adequate public notice needs to be provided before voting on the item.
Some in the audience were confused as to when it was their turn to give public comment, as the usual public comment section was moved toward the end of the agenda but public hearings were called before each budget ordinance was passed.
The council voted on the Nome School Debt Service fund budget, the Special Revenue fund budget, the Nome Capital Projects fund budget, the Construction Capital funds budget, the Port of Nome budget and the Port of Nome Capital projects budget.
In other business, the council passed through first reading an ordinance raising the sales tax to six percent, subject to approval by the Nome voters. The measure will appear on the ballot in the October municipal elections.
The council also passed a updated job description and salary for the Domestic Violence/Sexual Assault Advocate.
Mayor John Handeland reported that he met with U.S. Secretary of Energy Chris Wright, who was in Alaska for the Governor's Energy Conference. He had a few minutes with the secretary, Handeland said, and “the Secretary did confirm that he's technology agnostic, and that while there was some thought that renewables and some of those things were just going to go by the wayside with the new administration, it's sometimes that's the best technology for some of the areas here, and that the department and the Secretary are open minded on that.”
The next meeting of the Nome Common Council is scheduled for June 23.