The Nome Common Council convened Monday night for a work session regarding how pull tabs are taxed in the city, followed by an action-packed regular meeting. Here's six takeaways from the July 13 meeting.
Pull tab tax proposal remains under debate
The Common Council spent Monday night’s work session discussing a proposed overhaul of how pull tabs are taxed in Nome. The discussion centered on replacing the city’s current sales tax structure with a potential excise tax based on a game’s “ideal net” — the amount remaining after prize payouts — instead of taxing the face value of every pull tab sold.
The city’s Finance Director, Nickie Crowe, presented estimates showing the change could reduce annual pull tab tax revenue from roughly $397,000 to about $59,000. Several council members questioned how the city would replace that revenue, mere weeks after it passed its first balanced budget in years.
Voters increased Nome’s sales tax from 5% to 6% last fall – effectively a 20% increase. Nome mayor and president of the Nome Chamber of Commerce, Kenny Hughes, said the increase is squeezing profits intended for charitable purposes, rather than the city’s budget. He expressed concern it could force nonprofits to pull out of the pull tab business entirely.
“You’re not understanding that this ordinance is going to increase city coffers, not decrease it,” Hughes said. “If pull tabs go away, you lose all 300 (thousand).”
Council members agreed more discussion is needed before bringing a final ordinance forward.
New taxi company raises concerns over unlicensed competition
Owners of Nome’s newest taxicab business, Bootz & Co. Cab, used the public comment period to ask the city to address what they described as unfair competition from an unlicensed taxi operator just days after launching their new business.
Ashley Earp and Billi Miller said they invested thousands of dollars in insurance, licensing and other requirements to legally operate in Nome, but have experienced confrontations with “rides for donation” driver Steven Longley that they say continues to operate outside the city’s permitting system. Longley admitted during taxicab hearings last year that he operated in a “gray area” of the city’s code.
The pair also reported Longley parking his car near their home and monitoring their activity.
“At this point, I feel unsafe. My main concern is that he doesn't have insurance. I'd worry about someone getting into an accident, like liability. How do you cover that if, God forbid, someone gets hurt?” Miller told the council.
During council comments, several members expressed support for enforcing the city’s taxi regulations. Councilmember Scot Henderson said legitimate businesses “need to be able to operate in a fair environment,” while Councilmember Adam Lust said the city should work to close regulatory “gray areas and loopholes”, especially now that a licensed taxi company is operating.
Outdoor basketball court project moving toward construction
Watch a replay of the July 13, 2026 meeting.
City Manager Lee Smith said work continues on a long-awaited outdoor basketball court, with city staff aiming to complete as much of the project as possible before winter.
According to Smith, rebar and basketball hoops have been ordered and staff are coordinating with contractors so concrete can be poured this fall if weather allows. Council members welcomed the update, calling the project an important addition for local recreation.
“We’re making some pretty quick, timely decisions,” Smith said. “I’m at a 90-plus percent we can get this done.”
The court will measure 84 feet by 50 feet – regulation size for high school games, but slightly smaller than professional courts. A fence will eventually be built around the court.
The city ordered four additional hoops with the hopes of building half-courts on the east and west sides of town. Where the smaller courts could go will be put in front of the council and public in February.
Councilmember Mark Johnson cautioned against installing easily adjustable hoops, noting lower rims often lead to damaged backboards as players hang on them while dunking.
Nome Police Department continues rebuilding staff
Police leadership reported progress filling long-standing vacancies within the Nome Police Department.
Lt. Brandon Barry said three recently hired police officers have completed their field training and are now available for patrol duties. The department has also hired a new dispatcher, with another expected to begin work in August. Barry said recruitment efforts have remained steady, crediting Police Chief Mike Heintzelman and City Manager Lee Smith for expanding outreach through social media and maintaining a pool of potential applicants.
“We’ve got a couple of homegrown — or Nome-grown, if you prefer,” Barry said of the new local hires.
In an email to KNOM, Heintzleman confirmed one of the local officer hires is 20-year-old Nome-Beltz alumni Son Erikson. Heintzleman expects Erikson to start in September.
Councilmember Scot Henderson praised the progress, noting the department is now down to just one officer vacancy and one dispatcher vacancy after previously operating with much larger staffing shortages.
City renews animal services contract
The city approved a new contract with Rural Alaska Animal Resources LLC (RAAR) to oversee animal services.
RAAR’s owner, Emily Stotts, said her work will focus not only on animal care and ordinance enforcement, but also on long-term planning for facilities and future partnerships with the PAWS of Nome nonprofit. She said the goal is to build a sustainable animal services system that meets the community’s needs for years to come.
“My goal is to remain responsive to community needs and take the most responsible path forward in developing an animal services system that the people of Nome can rely on well into the future,” Stotts said.
Smith noted the city is intentionally referring to the program as “animal services” rather than “animal control,” saying the updated name better reflects the department’s broader mission of providing services to the community.
Council, resident raise concerns about La Casita lease process
The city’s lease of kitchen space at the Nome Recreation Center drew questions about transparency and public notice. The kitchen, located within the bowling alley, is being leased to La Casita Taco Shop. The Mexican restaurant is owned and operated by Lucy Valdez, whose partner Jonathan Fuentes serves as building inspector for the city.
City Manager Lee Smith said the city issued a request for proposals in May, contacted interested businesses and ultimately selected La Casita after other potential applicants decided the space was too large or did not fit their operations. The two-year lease requires La Casita pay $2,000 per month in rent as well as utilities estimated between $1,100 and $1,600 per month.
The kitchen was renovated in recent years, in part to provide the city with a reliable space to make meals in case of emergencies. The space is also used by Iditarod staff in March for the Finisher’s Banquet. Provisions for when La Casita may need to vacate the space were not included in the lease agreement.
Councilmember Mark Johnson said he supported using the space for a restaurant but questioned whether the public received enough notice and whether the city should have more clearly disclosed that the business is connected to a city employee.
“Any time we’ve had an employee of the city or even children of the city get hired by the city or do a contract with the city, we’ve had a public announcement under transparency,” Mark Johnson said.
Mark Johnson also suggested the city establish a standard 30-day public notice period for substantial leases and similar agreements.
During the meeting’s second public comment period local business owner, Trinh Johnson, spoke out against the lease. She questioned whether the arrangement was fair to other businesses who have invested in equipment, permits and licensing.
“It's not right for us to bust our butt and then put money back in to provide equipment that runs, and the cost of it coming up here, and then someone just to have it, I mean, I would love to have a kitchen. I can just walk in, and there it is,” Trinh Johnson said. “I really appreciate that you're listening to me, but I'm frustrated.”
Trinh Johnson said the city should ensure all businesses are treated consistently and held to the same requirements.
