Assembly roundup: rezoning, airport funds, opioid grants and sewer-rate hike approved

The Ketchikan Gateway Borough Assembly on May 5 approved a set of ordinances and routine items spanning land use, transportation infrastructure, public-health grants and utilities.

Key outcomes - Rezoning, White Rock Estates (Ordinance 20-64): The Assembly adopted ordinance 20-64 as amended to rezone a tract in White Rock Estates Phase 4 from Planned Unit Development (PUD) to PUD and Suburban Residential (RS), clarifying that the PUD portion will allow 20 dwellings and that an adjacent RS lot allows two units (22 total in the project area including RS). Motion to adopt by Assemblymember Arntzen; amendment substituting corrected exhibits passed unanimously; final vote recorded as 6-0.

- Airport terminal Phase 1 appropriation (Ordinance 20-67): The Assembly appropriated $32,881,974 for phase 1 of the Ketchikan International Airport terminal expansion. Funding sources include federal Airport Improvement Program grants (majority), a $1.8M Congressional grant, a $1M Bipartisan Infrastructure grant, an anticipated FFY26 federal grant, and local match funded by airport revenue bonds and airport reserves. Motion by Assemblymember Bailey; ordinance passed 6-0.

- Opioid settlement grant program (Ordinance 20-68): The Assembly appropriated $100,000 from nationwide opioid settlement proceeds to be awarded via a borough-administered grant program to support local strategies on prevention, treatment, harm reduction and recovery. The Assembly asked staff to finalize application criteria; ordinance passed 6-0.

- Wastewater rates (Ordinance 20-69): The Assembly approved a fee increase that raises recurring sewer charges from $54 to $57 per month per equivalent dwelling unit (EDU) for the Mountain Point sewer system, a 5.5% adjustment. The measure passed 4-2 (yes: Matson, Palmer, Otis, Bailey; no: Arntzen, Thompson). The public works director said the increase narrows a projected small deficit and reduces the need for larger increases in coming years.

Other votes and routine items - Acceptance of claims: Assembly approved presented claims totaling $806,396.25 by roll call vote. - Consent calendar: The Assembly approved the consent calendar (contracts and minutes) as amended; one consent item (employment agreement for borough manager Ruben Duran) was removed for later consideration and subsequently postponed by Assembly action. - Employment agreement (transferred item): The Assembly postponed consideration of the borough manager employment agreement to a future meeting after members requested additional review and the opportunity to conduct an evaluation; the motion to postpone passed 5-1.

Planning and project notes - The planning director described the White Rock Estates amendment as a design that reduces buildable density in the PUD center and leaves open common area. He said the RS lot was sized and limited to a 30-foot height to better match adjacent homes; quadplexes in the PUD were described as 40-foot height. - Finance staff and the airport manager explained the airport appropriation will be funded by a mix of federal grants (Airport Improvement Program, FFY25 and anticipated FFY26 funds), a congressional grant and local airport revenue bonds and reserves; a projected additional federal grant of roughly $9M programmed for FFY26 is expected but not yet appropriated.

Why this matters The appropriations and rate changes approved by the Assembly carry multi-year effects: the airport terminal appropriation commits the borough to a multi-stage federal grant-funded capital program with local bond matching; the wastewater rate increase affects monthly utility bills for connected properties; and the opioid-settlement grant funds establish a local funding stream for prevention and treatment programs.

Speakers (selected) - Frank Maloney, Planning Director (presented rezoning 20-64) - Charlene Thomas, Finance Director (presented airport and grant appropriations) - Alex Pierra, Airport Manager (discussed federal grant programming) - Morgan Berry, Public Works Director (presented wastewater rate proposal)

Documentation and next steps The Assembly set public hearings where required (for example, the FY26 school-funding substitute set for May 19 and June 2). Staff said they will bring back grant criteria for the opioid-settlement program and follow up on implementation details for the airport bond and sewer-rate administrative steps.

Ending The package of approvals advances several capital projects and local grant programs while generating modest revenue from utility rate changes. Assembly members said they expect continued public outreach and staff follow-up on grant criteria, financing details and the manager-employment evaluation requested for a future meeting.