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City of Nome Finalizes $17.9 Million Budget for 2025

A long table with a gavel resting on it. American flag in background.
Empty Nome City Council room. (Photo by Brisa Alarcon, KNOM).

The Nome Common Council finalized the city’s fiscal year 2025 budget during its meeting on Monday, June 10. The approved General Municipal Fund Budget stands at $17,948,567.33, reflecting a slight decrease from the 2024 fiscal year’s amended budget. A $2,390,600.97 deficit is expected and will be financed through appropriations.

Revenues

Sales tax continues to be the city’s largest source of revenue, with the 2025 budget expecting $6,950,000, a slight increase from last year’s amended budget. The 5% tax on retail sales of goods and services remains unchanged. 

An increase to revenues from property tax is expected, thanks to an increase in the mill rate. The new rate of 11.5 is expected to bring in $469,297.35 in additional tax revenue. Total revenues from property tax, including personal property tax, are expected to total $4,863,522.62.

Other notable revenue sources include $918,020.73 in payment in lieu of taxes, $285,000 in interest income from a General Fund sweep account, and $150,000 in rental income from city-owned properties. 

Expenses

The largest expense for the city remains the Nome Police Department (NPD). The 2025 budget funds NPD with $4,453,134.84, including $193,341.94 for the Chief of Police and a $1,084,606.40 pool shared by two Sergeants, one Admin Sergeant, seven Officers, and one Trainee Officer. 

Expenses strictly related to NPD salaries and benefits including dispatch staff, community service officers, and an investigator are set to increase $228,411.76. 

NPD expenses have ballooned in recent years. Compared to 2021’s budget of $2,263,087.40 NPD’s budget has nearly doubled, increasing 97%.

For comparison, General Fund expenses –not including NPD– over the same period increased just 36%. 

Nome Public Schools received a $200,000 increase in funding compared to the previous year. The city’s $3.4 million contribution fulfills the amount requested by Superintendent Jamie Burgess at a council meeting held earlier in April. 

The Road Maintenance Department budget will receive a modest increase of $40,860.88, with this year’s budget totalling $2,089,047.65

Expenses related to city administration are set for an increase of $308,384.41, in large part due increases in salary and insurance expenses. Administrative costs are expected to total $1,571,387.93.

Omitted from this year’s expenses in the General Fund budget was the Nome Volunteer Ambulance Department. The service was transferred to Norton Sound Health Corporation at the end of April. 

$50,000 from the Capital Projects Fund has been allocated to Old St. Joe’s Church to replace the flooring. $8,000 has also been set aside to repaint the exterior of the church.

Didn't Make the Cut

The final budget removed funding for a new flatbed tow truck for the Public Works department. The city considered using the truck to launch an impound service but declined to pursue it further citing expenses relating to constructing an impound lot and administrative complexities.

The final round of revisions also saw the Capital Projects budget eliminate funding for improvements to Steadman Park.

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