City council will start the budget planning process for 2015 at their first meeting of the new year tonight.

City manager Chris Hladick will discuss where the city will earn its money, and how much, in fiscal year 2015 with the council. The projected revenues next year are $34.8 million. It's more than the projections for this fiscal year, but about the same as the actual revenue in 2013.

In his memo to the council, Hladick says he believes "it is prudent to be conservative given the fact that oil prices are down, State funding will be down and Federal assistance is not even on the radar screen."

Council will also look at new tidelands leases for Resolve-Magone Marine Services. Manager Dan Magone currently pays $13,500 a year total for both tracts he rents. That's been in place since 2005. Council tried to increase the rent in 2010, but the hike was so high that Magone protested.

Now, new tidelands regulations passed in 2012 say that rent has to increase after all -- to 10 percent of the tidelands' appraised value. In this case, that means an annual rate of about $81,000 for one tract and $40,000 for the other. The resolution would spread the increase out over 5 years.

Council is also voting on another tidelands lease resolution. This one would allow outfall and intake lines for the Ounalashka Corporation on Henry Swanson Drive. The lines would serve the new Sea Aleutian Seafood plant on the Ounalashka property.

Council will vote on spending $420,000 on a design contract with PND Engineers for the city dock replacement, which is a capital project. And they'll have to approve a $3.2 million agreement with Knik Construction to finish paving and road projects. Knik is finishing some work that wasn’t completed by Granite Construction in 2012, like adding new asphalt on East Broadway and Airport Beach Roads. They’re also doing new work on Ballyhoo Road and in other spots around town.

Council will also hear one last capital project update from outgoing Public Works Director Nancy Peterson. Peterson and her husband Jeff Hawley, the outgoing director of Parks, Culture and Recreation, are getting ready to retire and leave Unalaska after six years.

The city hasn't hired a replacement for Peterson yet, but Hladick says in his manager's report that a candidate is flying out in February. Recreation manager D. Tyrell McGirt will take over Hawley’s position at PCR on Thursday.

City council meets an hour early tonight, at 6 p.m. at City Hall.