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

Cordova City Council members agreed Wednesday to carry about $1 million of unexpected forest receipts and raw fish tax revenue into 2027. Finance Director Sheryl Glasen told the council she expects next year's fish tax revenue to be "unprecedentedly low."

The agreement came at a work session, where no formal vote was taken.

The city received $1.6 million it had not budgeted this year. Glasen proposed leaving about $600,000 in the 2026 budget to cover costs that run over and revenue that falls short. That includes the $181,000 school funding increase the council approved in May without deciding how to pay for it, and an urgent boiler replacement at the Public Safety Building. City Manager Sam Greenwood said rough numbers put the boiler at $65,000, pending a final quote. The biggest unknown, third-quarter sales tax revenue, will be updated Nov. 4.

Glasen recommended moving the remaining $1 million into reserves for next year's budget. "Without that million in there, honestly, I don't have a plan B at this point," she said.

Members also agreed to budget raw fish tax revenue at $300,000 for 2027. Council Member David Zastrow called that more conservative and said holding over the $1 million "makes good sense."

Council Member Aaron Hansen said he favors replacing aging boilers before they fail but said the city cannot afford that now.

Staff will bring budget amendments to the council. The 2027 budget resolutions are scheduled for Dec. 2.