Cordova City Council members, faced with dramatic losses of state and federal funds, have tough decisions to make in coming weeks to balance the city’s own budget.
Among them is their annual allocation for the Cordova Chamber of Commerce, which according to Cathy Renfeldt, executive director of the chamber, turns every $1 into $2 through membership, sponsorship events, and services.
Last year, the council cut $40,000 from its annual contribution to the chamber for Fiscal Year 2025.
Over the past two years the chamber has doubled its membership and sponsorship revenue, according to Renfeldt, as well as launched a fundraising event, the Cordova Business Gala – the third annual scheduled for next month on Nov. 22.
But the potential of their city contribution going from $70,000 to zero has forced the chamber to consider other funding options. The board is considering forming a 501(c)(3) foundation under the umbrella of its current 501(c)(6) structure to enable them to apply for more grants.
“We are also looking into ways to better utilize our current office space to increase chamber revenues while fulfilling community and small business needs,” Renfeldt said. “While these are not overnight solutions, the anticipated devasting cuts will impact our ability to bring these new revenue sources to an operational level.”
She recognized the role of City Council members goes beyond balancing the budget, to driving progress and securing the city’s future. But, Renfeldt said while a balanced budget is important, cutting support for the chamber would weaken the community’s foundation and strongest revenue source, and stifle city growth. She added that the chamber does work at a fraction of the cost of an internal city department.
“By continuing its partnership with the chamber, the City Council will champion the city’s long-term success in ensuring the vitality of the local economy, businesses and community life for generations to come,” Renfeldt said.
On a request from the Cordova Times, Renfeldt outlined what she sees as the chamber’s benefits to the local economy in tourism, visitor services, festivals and for local businesses.
A major benefit, according to Renfeldt, is that chamber advocates for the Alaska Marine Highway System and Essential Air Service, both lifelines for residents, visitors and businesses.
She added that the chamber’s work to manage visitor industry growth has been recognized statewide.
“Without the chamber’s efforts Cordova would face the same challenges seen in ports like Juneau, Ketchikan and Sitka, where costly tourism management efforts must now be enacted instead of proactively managing growth,” Renfeldt said.
During chamber events like the 2025 Shorebird Festival, festival “passports” indicate $91,908.39 in local spending from the 140 attendees.
“We estimate at least $32,849.85 in local spending just from the 33 out-of-town visitors at the 2025 Fungus Fest,” Renfeldt added. “If we assume the four dozen local registrants spent even 25% of what visitors did, that’s another $20,157.86, totaling $53,007.71. That totals almost $145,000 of documented local spending directly related to chamber efforts.”
The chamber’s year-round Shop Cordova First campaign boosts local business sales through mechanisms like the Shop Cordova First gift card, which can be used at all local businesses, as well as the Moonlight Madness late night shopping and the Holiday Passport contest and ongoing year-round Shop Local messaging shared via radio, print, and social media.
A funding mechanism already exists to fund the chamber, Renfeldt said. The Accommodation and Vehicle Rental Surtax was originally established to fund the chamber’s destination marketing and visitor services work for the city but has yet to be properly allocated for that purpose, according to Renfeldt.
Meanwhile, she said, the chamber directly strengthens the city’s largest revenue source, the sales tax, through programs that keep money circulating locally.
Renfeldt said that funding cuts could mean the end of various community traditions, like the Old Time Fourth of July, Cordova Fungus Festival, Copper River Delta Shorebird Festival and Holiday Kickoff.
“These events not only enrich quality of life, but also keep people living, spending and investing in Cordova, (and) supporting sales and property tax revenues,” she said.
In addition to the chamber, the City Council is also considering cutting funds to the Cordova Family Resource Center, the Cordova School District, and other organizations and entities.
