Unalaska City Council members approved several major spending items at their Tuesday meeting, but warned that the city is facing long-term budget challenges.
The City Council unanimously approved school funding, community support grants and a capital plan with more than $20 million worth of projects.
At the same time, city staff said costs are rising while revenues remain mostly flat.
Interim City Manager Abner Hoage told the council that the problem is structural and that one-time cuts are unlikely to solve budget problems.
“Long-term pressures are really structural and not one-time anomalies,” he said during the meeting.
Council members deliberated over what they called “necessary” items. Those include health insurance for city staff; deferred maintenance projects for city buildings; and approving over $6 million for the Unalaska City School District.
Finance Director Jim Sharpe said the city’s revenue from fish tax was more than expected, but that it won’t make up for rising costs, which include cost-of-living adjustments for city personnel and rising insurance prices.
Council members ultimately approved the items but warned that the city will be in the hole next year — and that difficult decisions are on the horizon.
