The Cordova City Council appears to be mostly set on their budget for next year – which includes cuts to a few city-funded entities, including the Chamber of Commerce.
At a Nov. 20 work session, the council was mostly united on moving forward with their latest Fiscal Year (FY) 2025 budget proposal – which outlines the city’s in-kind contributions, revenue streams, grant matches, maintenance projects and cuts. In those cuts is a $40,000 slash to the Cordova Chamber of Commerce’s budget – which has been causing a stir around town in recent weeks – as well as cuts to the school district (-$90,000) and the Mt. Eyak Ski Area (-$20,000).
Cathy Renfeldt – executive director of the Cordova Chamber – told the council during public comment that she knows times are difficult.
“I know it is not a reflection of our work that is causing these cuts,” she said.
But, Renfeldt also contended that the Chamber’s work plays a role in the overall financial stability of the municipality.
“I think that a lot of the work that the Chamber does affects those revenue numbers that you’re looking at,” she told the council. “And it’s going to be difficult for us to reach those [citywide] goals with a cut in funding like this, but we’re going to keep trying.”
The city has been discussing cutting its financial contributions to the Cordova Chamber for months – as well as re-negotiating the lease agreement on its downtown building. The Chamber has operated out of the same city-owned building downtown rent-free since 1999, originally because of an agreement between the municipality and the 501(c)6 nonprofit that the Chamber would be a sort of extension of city services. That’s also why the Chamber receives city dollars.
But, as Cordova’s municipal budget has tightened so will those of local entities, said Cordova City Council Member Dave Zastrow during the work session.
“I wish it didn’t have to be that much, but with everything that we are cutting and how we have been struggling to find other revenues I don’t know what else we can do at this point,” he said. “So, I’m looking at this as being pretty much our final product and would feel comfortable moving it forward.”
Council members Cathy Sherman, Wendy Ranney, and Kristin Smith also voiced their support for the FY 2025 budget as it stands now.
Tom Bailer, another member of the council, said the city needs to be focusing more on the long-term fiscal health of Cordova. He argued that over the last few years the city has relied on federal COVID-19 relief funding and focused on short-term fixes, instead of looking to decrease spending overall.
“We got some big expenses that we are not prepared for,” he said. “It’s sad … Once [the money is] gone it’s gone, and the lower you get the easier it is to deplete. It’s just the way it works.”
No immediate action was taken at the Nov. 20 work session – but the council plans to vote on the FY 2025 budget at the body’s meeting on Dec. 4, according to City Clerk Susan Bourgeois. The Chamber’s lease is also set to be brought back to council after the budget process.
For the full Nov. 20 work session budget draft, visit the City Council agenda webpage at cityofcordova.net.
