Assembly approves $4.99M budget amendment for South Tongass recovery efforts

In a recent assembly meeting held on April 7, 2025, the Ketchikan Gateway Borough Assembly discussed a significant ordinance aimed at appropriating nearly $5 million to address financial needs following a devastating fire that occurred in April of the previous year. The ordinance, numbered 20 62, seeks to allocate $4,990,297 sourced from insurance reimbursements, an interfund loan, and state homeland security program grant funds.

The finance director, Charlene Thomas, outlined the ordinance's key components, which include the appropriation of $3.4 million in insurance funds to reimburse departments for losses incurred during the fire. Additionally, the ordinance includes a $1.4 million loan from the general fund, which has raised questions among assembly members regarding its necessity given the existing insurance funds.

Assembly member Miss Arntzen expressed concerns about the timing of the loan, questioning why it was needed when the borough had already received substantial insurance reimbursements. The finance director clarified that the total insurance coverage for the building was $5.6 million, and the exact replacement costs had yet to be determined. This uncertainty necessitated the loan to ensure timely purchases of essential equipment, such as a new aerial ladder truck, which was crucial for maintaining emergency response capabilities.

The assembly also discussed the implications of charging interest on the loan to the South Tongass service area, particularly in light of the financial strain the fire had placed on the community. Assembly member Thompson proposed suspending interest payments until the borough had actual cash outflows, suggesting that this approach would alleviate some financial pressure on local ratepayers.

After thorough deliberation, the assembly moved to amend the ordinance to clarify the language regarding the funding sources, ensuring that it accurately reflected the intent to appropriate funds from insurance proceeds rather than directly from the South Tongass service area. The amended ordinance ultimately passed with unanimous support.

This meeting highlighted the ongoing challenges faced by the Ketchikan Gateway Borough in recovering from the fire, as well as the assembly's commitment to ensuring financial transparency and accountability in the use of public funds. The assembly's actions reflect a broader concern for the community's welfare, particularly in managing the financial impacts of unforeseen disasters. As the borough continues to navigate these complexities, further discussions and decisions will be crucial in shaping its recovery efforts.