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Ketchikan council reallocates funds, approves City Hall HVAC contract and pumper‑tanker purchase; property tax levy set
Summary
At its June 4 meeting the Ketchikan City Council approved a set of budget transfers to fund the City Hall HVAC replacement, awarded the HVAC construction contract, authorized purchase of a custom pumper‑tanker, and adopted the city’s 2026 property‑tax levy. The council also voted to restore funding for the Martin Street stairs and approved various consent items.
The Ketchikan City Council on June 4 approved a series of budget and procurement actions intended to keep priority infrastructure projects on schedule while maintaining fiscal reserves.
Council approved Resolution 26‑3021, a transfer of appropriations that reallocated money to the building‑maintenance account to help fund the City Hall HVAC replacement project. Council members debated whether to strip funding for a Martin Street staircase project to cover the HVAC shortfall; after discussion the council amended the transfer to keep the Martin Street stairs funded and instead substitute other deferred projects or use reserves for the HVAC outlay. A roll‑call on that amendment carried 4–3.
The council then awarded contract number 2626 for the City Hall HVAC replacement to Dawson Construction and authorized a project budget (including contingency) that staff described in materials as roughly $3.0 million. Opponents criticized the size of the contract and the choice to reallocate capital from other projects while residents face rising costs; supporters said delaying the HVAC work would mean higher costs later and that updated systems are necessary for safety and to meet technical standards. The HVAC award passed by roll call, 4–3.
Separately, the council approved procurement of a custom pumper‑tanker from Custom Fire Apparatus, Inc. at the stated price of $1,056,919.75 and directed staff to pursue financing using the city’s bond counsel to spread payments over time. Fire officials said the existing pumper is nearing 20 years in service and parts are difficult to source; staff said lead times in the apparatus industry are long and that approving the purchase now reduces the risk of future price increases.
The council also adopted Resolution 26‑3020 to levy municipal property tax for 2026, keeping the mill rate at 6.6 mills as required under Alaska law. Finance staff told council members that increases in certified assessed values added roughly $27.5 million in taxable value this year and that projected tax dollars were about $33,480 above the amount budgeted; staff said property tax revenues primarily fund library operations and portions of fire and police services.
Most consent‑agenda items (minutes, fuel contracts and beverage license reviews) were approved without discussion.
What happens next: staff will finalize contract documents and financing ordinances for the HVAC and pumper‑tanker purchases; the amended budget resolution and related appropriation changes will be reflected in updated city financial schedules.
"If we don't do it now, we will be doing that later at twice," one council member said in support of the HVAC project, reflecting the argument that delay would increase future costs. Opponents warned that reallocations carry trade‑offs for other capital work and impose a fiscal message to residents already facing higher costs.
