At Thursday night’s Port Commission work session, the focus was drafting the 2017 Port of Nome tariff. Port Director Joy Baker joined the work session by conference call, and she made a surprising suggestion regarding tariff rates.
“I never thought I’d say this, but I would have to say that it would be my thought that we carefully consider whether a tariff increase this year would be a wise move,” said Baker.
She said commodity dollars are down compared to previous seasons, and any gains in revenue can be attributed to the Quintillion project. Therefore, she thinks attracting new business should be a priority. Four Commissioners agreed that they should hold the tariff at the 2016 rate, including Chairman Jim West, Jr.
“I think we would discourage people from coming here if we raise the rates,” he said.
In contrast, City Manager Tom Moran was in favor of a rate increase. He expressed concern that if the tariff is not adjusted for inflation, the Port of Nome could eventually face a financial crisis similar to the one faced by the Nome Joint Utility Board two years ago.
“If we don’t raise rates incrementally, 5% or 10% annually, guess what? We’re not keeping up with inflation,” said Moran. “That’s the sad fact of the matter. I’m not trying to make money, I’m really not. I’m not trying to operate this thing like a business. But we have to be realists, too.”
No decision was reached about whether to increase or hold the current tariff rates. The Port Commission plans to conclude its tariff discussion at another work session on February 2nd.
