Members of the Cordova City Council have voted to invest $772,628 in federal fisheries disaster funds into the municipality’s permanent fund – something the body says will get the best use on the money.
The decision, which followed a lengthy discussion during the council’s Dec. 18 meeting, was unanimous.
City Manager Samatha Greenwood noted in a memo to the council on Dec. 5 that the city received $772,628 for the 2018 and 2020 Copper River and Prince William Sound salmon fisheries disasters. The council did consider a proposal to use a portion of that money for harbor expenses, but ultimately voted unanimously to place the entire amount in Cordova’s permanent fund.
When similar funds were received for the 2016 salmon fisheries, specific criteria were attached to use of the funds, and projects were required to be fisheries-related, Greenwood said. It proved to be an onerous process, and the projects had to be submitted and approved before implementation.
This time the disaster relief funds to the city are more geared toward revenue replacement, Greenwood said.
The award letter of Nov. 13 from the Pacific States Marine Fisheries Commission (PSMFC) in Portland, Oregon, noted that municipalities and boroughs depend on revenue from Prince William Sound salmon landings and other fishery-related activities.
“Local governments were negatively impacted by the fishery disasters, as fishery revenue makes up a significant portion of their operating budgets – supporting services like education, public works, ports and harbors,” the PSMFC said.
The monies, meanwhile, have been earning interest in an Alaska Municipal League account.
Greenwood noted in a memo to the council that by leaving the disaster funds in the account that they, along with the $1 million legislative money, would reduce Cordova’s total budget loss of $3.9 million to approximately $2.1 million. This would help with cash flow and lessen the amount that the city may need from the permanent fund to supplement cash flow in fiscal year 2025, she said.
