The Nome Common Council tabled a proposed overhaul of the city’s pull-tab tax Monday, heard presentations ranging from the Alaska Permanent Fund to opioid overdoses and pressed Nome Joint Utility System management over years-late financial reports.
The council also heard an update on staffing at the Nome Police Department and welcomed a new student representative.
Here are five things to know from the council’s Sept. 28 meeting.
Pull-tab ordinance stalls as council weighs conflict of interest, lost revenue
A proposed overhaul of how Nome taxes pull tabs was tabled before its first reading after Councilmember Scot Henderson raised questions over whether Mayor Kenny Hughes has a conflict of interest.
Hughes is president of the Nome Chamber of Commerce, one of several local organizations that raises money through pull tabs. The Chamber also receives a significant portion of its annual revenue from the City of Nome to operate the Visitor Center.
Hughes said he does not receive a salary from the chamber and did not believe he had a conflict. Henderson disagreed.
“The Chamber of Commerce, as stated in previous meetings, will receive a substantial increase in their income as a result of this particular ordinance,” Henderson said.
The proposal would replace Nome’s sales tax on pull tabs with an excise tax. Proponents of the change including the Chamber and Bering Sea Lions Club say a recent local sales tax increase from 5% to 6% – narrowly approved by voters last fall – is whittling away revenue intended to support charitable organizations.
During public comment Chamber representative Paul Kosto said organizations are facing rising costs while most proceeds are already committed to prizes, taxes and operating expenses.
“The charities are getting very slim margins here,” Kosto said.
The ordinance as proposed would take about $352,000 away from the city’s coffers on an annual basis, according to an estimate prepared by the city’s Finance Director Nickie Crowe. At previous meetings Henderson has expressed concern about the lost revenue, particularly as the city passed its first balanced budget in years this summer.
Rather than resolve the issue Monday, the council unanimously voted to table the ordinance until it receives guidance from the city attorney. The council is scheduled to hold a broader revenue workshop during its second meeting in October.
A busy night at the lectern: Permanent Fund, recycling and Narcan
Council members heard three presentations Monday regarding the Permanent Fund Corporation, a new regional recycling center and efforts to prevent opioid overdose deaths.
Alaska Permanent Fund Corporation Board of Trustees Chair Jason Brune was in Nome ahead of the board’s Wednesday and Thursday meetings. Brune said the fund has grown to roughly $92 billion and now provides about two-thirds of the state’s general fund budget. He also encouraged residents to attend the board meetings at the Mini Convention Center and provide input.
“We work for you,” Brune said. “We want input from Alaskans on what we can do to help manage your money, to help manage the accounts for future generations.”
Environmental Program Director at Kawerak, Anahma Shannon, gave the council an update on renovations to the city-owned monofill building, which Kawerak is converting into a regional recycling center. Shannon said construction will wrap up around April 2027. The facility would receive recyclable and hazardous materials from Nome and surrounding communities for shipment out of the region.
Norton Sound Health Corporation Chief Quality Officer Megan Mackiernan also outlined efforts to make naloxone, commonly known by the brand name Narcan, more accessible. She demonstrated the functionality of two dispensers located at the hospital’s two patient hostels in Nome. Mackiernan also shared pictures of in-house designed outdoor naloxone boxes in 15 regional communities. She said four are ready for Nome, but the outdoor locations need access to electricity to keep the naloxone warm.
NJUS financial backlog draws criticism from resident, council
Nome Joint Utility System General Manager John Handeland faced more questions Monday over the utility’s years-late budgets and financial audits.
NJUS has gone five fiscal years without an approved budget and remains years behind on its annual audits. At the utility board’s meeting last week, Handeland committed to producing a budget by the end of the week. He told the council Monday that he was still working on it and planned to prepare a 2027 budget alongside it.
The financial backlog also drew a pointed comment from Nome resident Steve Smith.
“Who’s responsible? Who’s accountable?” Smith asked. “What are we going to do to fix the problem, or do we just keep kicking the can down the road?”
Smith went further, questioning whether Handeland should continue leading the utility.
“I think it’s time. Let’s send John down the road. Tell him it’s time to retire,” Smith said.
Handeland later appeared remotely for his scheduled report. Council members questioned him about the budget and public access to utility board meetings. Henderson said several constituents have requested the utility meetings be relocated to Nome City Hall. Handeland said scheduling conflicts with city commissions inspired the move to the powerplant, and that the board prefers to keep the meetings there.
Police chief says department won’t reach full staffing until May
Nome Police Chief Mike Heintzelman said the department is rebuilding its ranks, but several newly hired officers still need months of training before they can patrol independently.
Three officers are expected to attend the Alaska Law Enforcement Training Academy in January for about four and a half months. Heintzelman said the department may appear fully staffed on paper, but won’t be fully operational until those officers return.
Among the new hires is Nome-raised officer Son Erikson, who graduated from Nome-Beltz in 2024 and was sworn in last week.
Heintzelman said training officers from the beginning is expensive — estimating the academy alone at $17,000 to $18,000 — but said officers sent through the full academy have historically stayed with NPD longer than officers recruited after becoming certified elsewhere.
“I'm trying to get really good people, get local people, and I'm doing my best to do that,” Heintzelman said. “I can't fill all the ranks with local people because they just don't exist, we have a small city. I'll do my best to try and get people that are going to make Nome their home.”
Lane Schuerch sworn in as student representative
The council gained its newest and youngest member Monday as Nome-Beltz and ANSEP Acceleration Academy senior Lane Schuerch took the oath of office as Nome’s student representative.
The position was created by the council in 2019 to provide Nome-Beltz students with representation in city government. Candidates must attend Nome-Beltz, apply through the school principal, be elected by the student body and then be confirmed by the council.
Schuerch can participate in council discussions and bring a student perspective to the council, but does not have a vote on ordinances, resolutions or other council actions.
Schuerch kept his first council comments brief.
“Happy to be here, and I’m happy to start,” Schuerch said.
Council members welcomed Schuerch and encouraged involvement from other Nome-Beltz students. Outgoing councilmember Maggie Miller urged Schuerch to bring what happens at City Hall back to student government and use the position to raise issues affecting young people.
“Don’t be afraid to speak up,” Miller said.
