Unalaska, AK – Last night, city council made changes to the current budget and talked about the state of the future budget.

An ordinance creating a budget amendment for housekeeping on a number of capital projects, including the upgrade of sewer lift station panels, received both a public hearing and second reading. The ordinance passed unanimously and requires no new spending.

Council also adopted one item on the consent agenda. The appointment of fire chief Andrew Palmeri to the IFHS board of directors was confirmed. During the regular session the council also approved travel for the mayor to the Alaska Municipal League (AML) conference, held in Anchorage this May. Most costs associated with the trip will be reimbursed by AML.

The bulk of the meeting focused on presentations related to the budget or future city planning. The work session opened with a presentation on the community support program, which provides grants to local non-profits. Because the amount of funding available for the community support program is formula driven, just over $790,000 is allocated for the coming year - a drop from last year. However, the requests from non-profits amount to nearly $960,000.

Nine non-profits applied for grants this year, all of which have previously received funding from the city. Among the groups asking for city funding are the Aleutian Arts Council, APIA, Iliuliuk Family and Health Services behavioral health services, the Museum of the Aleutians, the Qawalangin Tribe culture camp, Unalaska Community Broadcasting, the Unalaska Convention and Visitors Bureau, Unalaska Senior Citizens, and USAFV.

Most made the same funding requests as last year. While no group asked for more money than they received in Fiscal Year 2011, three groups - Unalaska Senior Citizens, APIA, and the CVB -- did request less money. Eight of the non-profits received perfect scores on their funding requests, but IFHS Behavioral Health Services were only scored 68 out of 100 and received demerits for auditing problems and questions about the department's "financial and operational accountability."

Mayor Shirley Marquardt explains that the scoring system is more a judgment of the grant application than a non-profit's performance.

"It's not meant to be an indicator of who should or should not be funded," says Marquardt. "It is simply an indicator of how well the information we received fit into the criteria the council said they want to see in order to make a decision."

Council also heard a presentation on the Carl E. Moses small boat harbor rates. Ports Director Alvin Osterback reported the results of a Northern Economics study that uses the rates charged by Kodiak as a basis of comparison. The proposed daily base rates are lower than Kodiak, but the annual rates are comparable.

Council member Katherine McGlashan says that she's optimistic that the new harbor will be a revenue-generator and that she likes the idea of trying to get as many annual leases as possible, and then renting out spots on a daily basis when the annual lease holders are out at sea - a process known as "hot slipping."

"I know that we have a huge waitlist, so I'm not worried that our small boat harbor is going to be empty," says McGlashan.

Council also heard a presentation on "PILT" -- or payment in lieu of taxes. That process involves an accounting measure where revenue-generating enterprise funds - like electric and ports - pay money into the general fund. PILT was introduced because some local business owners felt that the city had an unfair advantage since their properties weren't required to pay taxes. The process has been used for over three decades, and some council members and the mayor wondered whether there was still a benefit to it.

Council also heard information on the road improvement master plan and the installation of a third engine at the powerhouse from Public Works Director Nancy Peterson.

Council wrapped up by moving into executive session to discuss legal matters involving the EPA.

All council members were present for the meeting.