A health center's request to Unalaska grew nearly six-fold in a year

A health center's annual grant request to the City of Unalaska grew from $180,000 to more than $1 million in a single year, and the council is deciding what to do about it.

Iliuliuk Family Health Services asked for $1,047,411 in fiscal 2025, up from $180,000, Planning Director Cameron Dean told a council work session Aug. 11. The request has held at $800,000 a year since. No vote was taken.

The jump pushed the whole program past its own guideline. The city aims to keep community support grants at 3.5 percent of average General Fund revenue over the five most recently audited years, plus the balances of two dedicated tax funds. For fiscal 2025 that came to $1,719,896. The council recommended $2,397,146, nearly $700,000 more. Dean's memo notes the guideline is a guide rather than a cap.

City staff have proposed pulling healthcare out of the general grant program entirely, into a separate track tied to the city's Healthcare Planning Assessment, with a committee making recommendations in November.

Acting City Manager Marjie Veeder's memo describes these as "much larger policy decisions for Council to consider, especially in light of recent discussions about changes to our tax structure."

Nothing in the material presented to the council explains why the request grew.

Separately, the council voted Aug. 25 to ease audit requirements on the same grant program. Recipients now trigger a full audit at $40,000 rather than $25,000, and those receiving under $300,000 may file a less expensive review instead. The change does not reach Iliuliuk, whose $800,000 grant remains subject to a full audit. The funding formula was left alone.