Rates will go unchanged at Nome’s Port for the upcoming year.
The City Council met last night to pass the 2016 Port Tariff. The tariff originally included a 10 percent rate hike. Similar to its last meeting, there was another high turnout from the public, many of whom pleaded with the council to reconsider.
“We’re having a tough time in this town right now, and we can’t make it tougher,” urged Robert Hafner, Executive Director of the Nome Chamber of Commerce. He was among the many that spoke out at last night’s meeting.
The public’s message was clear. It was the City Council that waffled.
After more than an hour and a half of public comments and discussion, councilman Lew Tobin proposed a reduction in the rate hike to just 5 percent. Councilman Matt Culley voted against the 5 percent, and the amendment failed.
“I’m straddling the barbed wire fence by my crotch on this one, because we need the money,” Culley explained, “we’ve got to have it.”
The Port Commission recommended a 10 percent rate hike to keep up with operational costs. That’s small compared to the 50 percent increase recommended by a 2013 rate study.
Councilman Culley says its deficit shows poor management.
“We had these opportunities to spend money and get these grants and grow, and it is beautiful,” Culley said. “With that growth we have increased revenue, [but] the problem is with that growth we also got increased expenditures, and we spent down our savings account.”
Despite knowing the Port needs the funds for deferred maintenance, Councilman Culley voted against both the 10 and 5 percent rate hikes. With just four council members present, complete consensus was needed to pass anything at last night’s meeting.
The City Council eventually passed the 2016 Port Tariff amended with a zero percent change in rates.
