Cordova council backs carrying $1 million in unexpected revenue into 2027

The Cordova City Council agreed at a work session Wednesday to hold back about $1 million of this year's unexpected forest receipts and raw fish tax revenue and carry it into the 2027 budget. Finance Director Sheryl Glasen said fish tax next year is going to be "unprecedentedly low."

"Without that million in there, honestly, I don't have a plan B at this point," Glasen said.

The city took in $1.6 million it had not budgeted this year. A budget memo says that at the same time, "unprecedented inflation and poor fish returns" put more pressure on the budget.

Glasen proposed leaving about $600,000 in 2026 for costs over budget and revenue shortfalls. That includes an additional $181,000 city contribution to the school district, which Glasen said the council had approved without deciding how to pay for it. The memo calls a possible drop in third-quarter sales tax the biggest unknown, and Glasen said she expects an update by the council's Nov. 4 meeting.

Since the memo was written, the city also learned it needs to replace the boiler in the Public Safety Building, which Glasen called "an urgent need." City Manager Sam Greenwood said rough numbers were $65,000, with a final quote pending. It wasn't yet clear whether that included shipping and getting the old boiler out, he said.

"My recommendation is that we hold that and we actually do a budget amendment to move it to budgeted reserves for next year," Glasen said of the $1 million.

Council members also agreed to budget raw fish tax at $300,000 for 2027. Council Member David Zastrow said that meant "not getting too big eyes" about what the city might get. "And I certainly agree with the holding over the $1 million," he said.

Zastrow also asked about the pool's recent boiler repair. He was told it is being paid from $100,000 the council set aside for pool work this year.

Council Member Aaron Hansen said the city should replace aging boilers before they fail rather than after, but is not in a financial position to do that now.

The memo says the budget assumptions are meant to let the city keep current staffing, cover operational maintenance and enter 2028 "in a more realistic and sustainable financial position." Glasen said staff will bring budget amendments forward. Resolutions approving the 2027 budget are set for Dec. 2.