Ketchikan Gateway Borough Assembly approves rezones, codifies loan rules and adds $1.296M for schools
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Summary
At a March 30 special meeting the assembly approved rezoning and finance ordinances, adopted rules for Land Trust interfund loans, and approved a $1,296,015 supplemental appropriation to the FY2026 local education fund while pressing the district for clearer reporting.
The Ketchikan Gateway Borough Assembly on March 30 adopted a package of land-use and finance measures and approved a $1,296,015 supplement to the FY2026 local education fund.
The assembly unanimously approved ordinance 21-02 to rezone Lot 2 and Lot 3 of GGUSS 2402 at 6067 Roosevelt Drive from low-density residential (RL) to neighborhood residential (RN), a change staff said would allow subdivision to lots of roughly 10,000 square feet with public water and sewer. "It creates a slightly smaller lot size with the same amount of dwelling units," Planning Director Frank Maloney said, adding the Planning Commission recommended approval and that no substantive changes had been made since introduction.
Members also adopted ordinance 21-03, which places procedures and documentation requirements into borough code for interfund loans from the Land Trust Fund. "This does require the application of interest and a memorandum of loan with an amortization schedule," staff said. Officials told the assembly the new methodology ties an annual adjustment to borough investment returns; staff estimated the new rate that will apply July 1 at about 2.69% and said the requirement will be applied prospectively rather than retroactively.
On a second rezone request, the assembly amended and then referred ordinance 21-04 (the Fitzgerald planned unit development request to change portions of a heavy industrial parcel to a PUD) back to planning staff for additional conditions, including suggested protections for neighboring vegetated buffers. The referral was approved 7–0 and the item was set for a third public hearing on April 20.
In budget action, Finance Director Charlene Thomas presented ordinance 21-05 (amended), a supplemental appropriation for the school district. The assembly approved the $1,296,015 appropriation and set total FY2026 spending authority for the local education fund at $47,933,261, leaving a minimum fund balance of $2,000,000. Thomas and other staff said $925,000 of the appropriation was reserved as buffer to account for year-end accruals; the assembly pressed staff on whether accruals or unused amounts could be reappropriated in FY2027 but were told doing so later would be complex and that the new loan/recoupment MOA allows some recovery of FY2026 overages in future appropriations.
Several members raised concerns about school-district transparency and financial reporting. Assemblymember Dowell urged caution, noting the borough has requested cash-flow projections and monthly reports that the district has not provided. "We simply don't know because the district hasn't been providing the financial documents we've been asking for," he said during deliberations.
Votes at a glance: - Ordinance 21-02 (rezoning Roosevelt Drive) — adopted, unanimous (7 yes). - Ordinance 21-03 (Land Trust interfund loan procedures) — adopted, unanimous (7 yes). - Ordinance 21-04 (Fitzgerald PUD) — referred to planning staff for conditions; third hearing set for 04/20/2026, amendment adopted 7–0. - Ordinance 21-05 amended (FY2026 local education fund supplemental appropriation of $1,296,015) — adopted (roll call majority; recorded No: Arntzen).
The assembly staff said the ordinance language and the MOA governing recoupment aim to prevent unintended reductions in state foundation aid while giving the district limited relief for current-year accruals. The assembly also asked staff to continue pressing the district for more complete cash-flow and monthly reporting. The meeting record shows the assembly approved a number of consent items together and then moved to a work session on parks and tourism policy before adjourning at 8:23 p.m.
