Cordova city officials have made it clear they’re not anticipating a positive outlook during this year’s budget season – and they expect more cuts on the horizon.
“I’m thinking it’s going to be worse,” Sheryl Glasen, city comptroller, told the City Council during a budget work session on Oct. 29. “It makes me sick to my stomach to say that, but I do want to be very clear: I’m not hopeful.”
The tenor of the work session was tense, with a lot of city officials seemingly exasperated by the budget woes.
City staff proposed a second round of cuts at the work session – slashes they say might be necessary to balance next year’s municipal budget. Those proposed so far include cuts to the Cordova School District, the Cordova Family Resource Center, the Cordova Police Department, the Mt. Eyak Ski Area, and more.
But one particular entity – the Cordova Chamber of Commerce – seems to be in the cross fire of the city’s budget discussions for the second year in a row. The city, after cutting $40,000 from the chamber for Fiscal Year 2025, has now proposed slashing its contribution to zero for 2026 – a $70,000 cut.
Chamber of Commerce Executive Director Cathy Renfeldt told The Cordova Times recently that a cut to zero would be “devastating” for the organization, which she said turns every $1 into $2 through membership, sponsorship events, and services.
And while city staff and council members alike agreed the chamber provides excellent services for Cordova’s business community, some City Council members said during the Oct. 29 work session that they need more quantitative data to verify a direct link between chamber events and city revenue.
If data points to a clear link between chamber services and city revenue, many council members said they’d consider downsizing their proposed $70,000 cut to the chamber by about half – brainstorming ways to contribute $35,000 at least. They even floated potentially allocating some of the city’s surtax or sales tax dollars to the chamber.
“Cutting something that generates revenue for the city seems like the wrong path, when we have things that don’t generate revenue for the city,” Council Member Mike Mickelson said.
But members seemed to agree that if data doesn’t support a direct correlation between the chamber and city revenue, they might not feel comfortable with even a $35,000 contribution.
“If we’re willing to cut this much from the law enforcement budget, I’m not willing to put $35,000 back into the chamber,” Council Member Wendy Ranney said. “It’s not an easy decision, but we’re down to health and safety at this point.”
In an effort to boost city revenue and offset the deficit, the City Council over the last year has given the OK to raise property taxes, and indicated it would support downsizing city positions and various extraneous expenses. In addition, Cordova City Manager Samantha Greenwood told the council that city staff won’t fill its communications and grant position next year, which will save more than $93,000 in what would have been salary.
“Our reality is harsh too,” Greenwood said during the Oct. 29 work session.
“It doesn’t benefit the employees or help the community, nickel-and-diming each department to death,” Council Member Cathy Sherman added. “Because then you’re also ruining morale and dedication and good employees.”
The council has also deliberated on selling and/or leasing city-owned assets – most recently releasing a request for proposals for the breakwater fill lot this summer, and entertaining an idea for a privatized T-Dock.
But even so, the Oct. 29 budget session demonstrated the city still has a large deficit.
“The community needs to understand this is what it is right now, and I don’t see a bright future either,” Sherman said.
In the next budget work session, on Nov. 5, city officials are anticipating facing even more cuts and difficult decisions.
“This is a very, very difficult time,” Mayor Kristin Smith said. “We welcome the public’s input.”
The Nov. 5 budget work session is scheduled to begin at the Cordova Center at 5:30 p.m. It will be followed by a public hearing, a guest speaker, and then the regular City Council meeting.
This story was updated to include information about the communications and grant position.
