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Seldovia adopts FY2026 budget; dock fund remains in deficit
Summary
Council adopted Ordinance 25-12b to appropriate the FY2026 annual budget. City Manager Heidi presented a generally balanced budget but warned the dock fund remains in the red absent additional AMHS stops; council voted 4-0 with one absent to adopt the budget.
Seldovia City Council approved the FY2026 annual budget (Ordinance 25-12b) on May 27 after hearing a detailed presentation from City Manager Heidi about revenue assumptions, fund reallocations and pressing capital needs.
Heidi described the budget as "balanced" overall while noting that the dock fund is projected to be in a deficit position unless additional ferry or AMHS stops materialize. She told council the FY26 package includes a 2.9% cost-of-living adjustment for many employees (with exceptions for some contract positions), a 4.5% increase in health insurance costs and a 10% projected increase for general liability that, in practice, the city is seeing lower costs due to insurer changes.
Heidi reported estimated FY26 figures: an ending fund balance of about $346,016, assigned funds estimated at $588,711 and a two-month revenue target that would bring a healthy target total to roughly $735,337; she characterized the city as "about halfway there" toward that target. The budget also anticipates a $50,230 state senior-meals grant application (included in the budget contingent on award). For water and sewer, the FY26 plan includes capital items and matching funds to buy two new lift-station pumps; Heidi said a state revolving fund with up to 75% forgiveness is available to reduce the local match.
On the dock, Heidi said roughly 96 additional AMHS/ferry stops would be needed for that enterprise fund to fully balance; council appropriated $5,000 from the major maintenance and repair fund for crane maintenance and inspection and discussed a near-term inspection quote.
Following the presentation and limited Q&A about harbor day rates and sales tax composition, Council member Keith Lee moved to adopt Ordinance 25-12b and Council member Langbark seconded. The council voted to adopt the FY2026 budget by a 4-0 vote with one absence.
Why it matters: The annual budget sets city priorities, funding for capital and operating programs, and assumptions that will guide staffing, repairs and grant applications for the coming year. The dock fund deficit highlights a revenue risk tied to ferry service levels outside local control.
What happens next: The adopted appropriation becomes the city's FY2026 budget; staff will pursue grant awards (including the senior-meals request and raw water transmission funding) and return to council if grant outcomes or cost estimates require amendments.
