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Potential Change to Seasonal Sales Tax and FY’21 Budget Nome City Council’s Focus

Papers in Nome City Council chambers
Photo: Matthew F. Smith, KNOM file

Nome residents may feel a bit of financial relief this summer, if the Nome Common Council approves a 5% seasonal summer sales tax during their regular meeting tonight.

Under the existing ordinance, goods subject to sales tax in Nome would be taxed at 7% throughout the summer months of June, July, and August. But this year, the council is voting to leave that tax at 5% to give consumers some relief during the coronavirus pandemic and potentially stimulate local sales for a few months. This temporary reduction would only be for the summer of 2020.

The council has the difficult task of estimating the potential impacts the coronavirus pandemic will have on the city budget, which goes to first reading tonight. This year Nome is looking at a General Fund Municipal Budget of $13,599,986.87, down about a million dollars from the most recent amended budget for fiscal year 2020. Those cuts in costs are largely due to reduced spending across departments and not because of lay-offs for staff.

Also, Nome property-owners should expect the mill rate to stay at 13 mills.

Finally, Nome looks to officially end its months-long search for a new police chief. Current Interim Nome Police Chief, Mike Heintzelman, is being offered a three-year contract with an initial yearly salary of $120,000. The council will discuss and vote on that contract tonight.

The Nome Common Council meets tonight for their regular meeting at 7pm in Council Chambers.

Image at top: Papers in Nome City Council’s Chambers at City Hall. Photo from Matthew F. Smith, KNOM file.

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