City Sets Fee Increase for Kodiak Harbors

logo-w-sunburstKayla Desroches/KMXT

At long last the Kodiak City Council has settled on a five-year rate structure for Kodiak’s harbors and will move forward with a fee increase.

Back in 2012, the council hired Northern Economics to conduct a harbor rates study, which they chose not to use because of a need for more information. In February 2016, Northern Economics did a cash flow and rate study update.

Between last February and now, the council and city staff have gone over multiple rate proposals, and they finally passed one at a regular meeting last week.

City Manager Aimée Kniaziowski said they last adjusted harbor rates in 2011, and the city is in need of funds.

“Costs have certainly gone up and our enterprise fund, the harbor fund, is not in the best shape. There’s some reference to what we project to be the deficit for FY17.”

In the new rate structure, the first year would bring with it an 18.5 percent increase. An inflationary increase of 2.8 percent would follow in each of the following four years.

The council passed the resolution to implement that structure without discussion, and it goes into effect for fiscal year 2018 on July 1.

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