The Cordova City Council signed off on cuts to various city and outside entities last week, as it wrapped up a particularly arduous budget cycle for Fiscal Year 2026.
In six separate budget work sessions, city staff and the City Council went back and forth on the best approach to overcoming a $1.6 million budget deficit – primarily brought on by less than projected sales and use tax dollars, rural schools funding, and school bond debt reimbursement. In the end, the council on Dec. 3 approved an FY26 budget, but not without various reductions.
“Staff appreciates the council’s support throughout what has been the most challenging budget development process I have experienced in my 15 years with the city,” Cordova City Manager Samantha Greenwood wrote in a memo ahead of the Dec. 3 council meeting.
The budget cuts for FY26 include nearly $570,000 for city operations and almost $520,000 in city personnel – both in unfilled vacant positions, and two employee layoffs.
The city also cut $200,000 from its contribution to the Cordova School District, $100,000 from the Cordova Community Medical Center, $70,000 from the Chamber of Commerce, and $10,000 each from the Cordova Family Resource Center (CFRC) and the Mt. Eyak Ski Area.
Nicole Songer, CFRC executive director, said the organization is grateful to receive any city dollars – even if that contribution is less than in previous years.
“I recognize that the budget cycle has been very difficult and decisions and reductions across departments have needed to be made, and I truly appreciate the continued support of the City Council, city manager, and city staff for CFRC during this challenging fiscal year,” Songer told the council on Dec. 3.
CFRC is Cordova’s domestic violence and sexual assault shelter in town. The city had originally deliberated cutting all of its funding to the resource center, but ultimately decided on allocating $10,000 so CFRC is still eligible for matching grants.
“This investment is meaningful for CFRC and the community we serve,” Songer said.
The council also decided on cutting its entire financial contribution to the Cordova Chamber of Commerce, $70,000, after multiple intense work session discussions.
“We’re going to try to keep going and see how we do,” Chamber Director Cathy Renfeldt told the council during the last budget work session in November.
She added that the chamber has implemented new revenue streams, including raising membership fees, but said the organization “can only squeeze so much juice out of a turnip, so we’re not trying to squeeze our businesses too hard.”
It’s the second year in a row the council has had to make significant cuts to the chamber – last year the city reduced its financial contribution by $40,000.
The city still, however, provides in-kind services and a workspace for the Cordova Chamber – which equates to more than $35,000 annually, according to Greenwood.
Throughout this year’s budget process, council members and city staff have agreed that this cycle has been particularly gruesome.
Council Member Cathy Sherman, who has lived in Cordova for decades, said in her experience municipal budgeting seems to be really difficult every 25 years or so.
“This was a very painful budget year, as we all recognize,” she said during the Dec. 3 meeting. “I’m hoping 2026 will be a brighter year.”
Council Member Kasey Kinsman agreed, but emphasized that re-working the city’s budget to rely less on state and federal funding will hopefully bode well for Cordova in the long run.
“We’ve laid a really good foundation for years to come,” he said. “I don’t want that to be lost on (the) council, and really, the community.”
