Unalaska, AK – Last night's city council meeting was focused on financial review.

The work session opened with a presentation of the city of Unalaska's audited financial report for Fiscal Year 2010 by Dan Rozema of KPMG. Finance director Tonya Miller also answered questions about the city's expenditures and revenue.

Expenditures were higher this year, going up 27% to $44.1 million. The city generated $31.1 million in revenue, a 20% drop from the previous year. In 2009, it generated $38.8 million. The drop in revenue was in part attributable to the aftershocks of the recession and to a lower pollock quota.

Next, council handled the suspension of the sales tax penalty for APL. Gene Makarin spoke on APL's behalf, and explained that the delinquency was an oversight and that APL had come forward on its own and paid over $216,000 in back taxes with interest included. While council members were sympathetic to APL situation, they were unable to show any leniency because waiving the penalty would affect how the city treats all customers.

"I shot an undersized moose this year, and I turned myself in. I still had to pay the fine, and it hurt - so I really appreciate your willingness to pay the fine," says Council Member Roger Rowland. "I sat in Mr. Fulton's office today, and we beat this up one side and then down the other and he convinced me that there's nothing that we can do without opening up Pandora's Box, because I appreciate the honor that you came in and stepped forward."

Council addressed one item on the consent agenda, after moving another to the new business portion of the meeting. Council approved a resolution that implements "alternate allocation method" for the shared fisheries business tax program for fiscal year 2011. This tax collection method has been traditionally adopted by communities that are economically impacted by fishing activity outside of their municipal boundaries - like Beaver Inlet -- and it has been used in Unalaska for the past 18 years. The city is expected to collect $435,000 with its continued use.

Council also took up two items of new business. First, council considered an ordinance involving a budget amendment request that would reallocate funds to the police operating budget and increases funding for capital projects. This ordinance has been moved to a second reading and public hearing after a unanimous vote. Additionally a resolution that approve the audited financial statements for fiscal year 2010 was voted on 5-1, with council member Dick Peck dissenting.

An executive session to discuss the PCB lawsuit was tabled until the next meeting.

All members were present.