Council to Consider Altered Budget Package


Tuesday, November 27 2012
At a meeting Tuesday night, city council will revisit some budget amendments that failed to win support earlier this month.
A $15,000 grant for public safety and a public works request for $32,000 are back on the agenda in the same budget package – along with a much-discussed grant for renovations at the Museum of the Aleutians.
At the last council meeting, the museum’s $75,000 grant was the sticking point that caused the entire budget package to fail. This time, the grant amount is increased to $202,000. That’s the full amount that the museum needs to hold onto the outside grants they’ve already secured, and start building their designs.
Council will conduct a first reading of that budget amendment tonight. They’ll also consider a separate resolution, which lays out a plan for paying off the museum grant. The city would front the money from the general fund, and repay itself over time using bed tax revenue. It would take about eight years, according to current projections.
At Tuesday night's meeting, council will also set the schedule for the fiscal year 2014 budgeting process. And they’ll hear a presentation from Mike Hubbard, an energy consultant. He’s researched the feasibility of different alternative energy resources in Unalaska, to help guide future energy studies.
Hubbard will recommend that city explore a combination of liquid natural gas and geothermal energy, from Makushin volcano. In his report to council, city manager Chris Hladick will give updates on the Makushin geothermal resource, including recent negotiations with the Aleut Corporation.
Council will meet at 7 pm in City Hall. And at a special workshop Wednesday night, Hubbard will return to present a plan for paying off extensive utility upgrades. The strategy council is currently considering includes an average residential rate increase of 65%. It would also require significant payouts from the city general fund.