Funding for the Haines Economic Development Corporation (HEDC) and the Southeast Alaska State Fair have been added to the Haines Borough’s budget for the upcoming fiscal year.
The assembly at a meeting Tuesday voted by wide margins to fund the two institutions. The $20,000 for HEDC passed 5-1 with Gabe Thomas the sole “no” vote, and $40,000 for the fair was unanimously approved.
In an April 12 funding request, HEDC board president Greg Schlachter justified the need for borough funding by describing the organization’s support to residents during the COVID-19 pandemic.
“(Former director) David Simmons estimated nearly (two million dollars was) brought into the community with our assistance. We anticipate a continued need in 2021 to help people navigate COVID relief programs with the passage of the American Rescue Plan Act,” Schlachter wrote.
Prior to the current fiscal year, HEDC had received roughly $90,000 annually from a sales tax-supported borough spending account designed to support tourism promotion and economic development. Last June, the assembly eliminated funding for the organization, citing a decrease in sales tax revenue due to the pandemic.
Schlachter said although the organization switched to a grant-funded model after losing borough funding, there are some operational costs grants don’t tend to cover.
“A grant from the borough provides operating support to HEDC, a type of funding that is critical to the organization but hard to secure through grants,” he wrote, adding that HEDC has brought nearly $400,000 in grants and contracts into the borough in the past year.
Thomas, who voted against the funding, said he’s concerned about draining money from the borough’s tourism and economic development fund, which is also used to support the tourism department and a $48,000 contract for lobbyist Ted Popely.
The assembly appropriated $30,000 from the same tourism and economic development fund to support fair operations, supplementing the funding with $10,000 from leftover CARES Act funds, which must be used for pandemic-driven costs.
The funding exceeds the amount requested by fair board president Spencer Douthit at Tuesday’s meeting. Douthit asked for the traditional $20,000 the borough had put toward the organization in pre-pandemic years, reminding the assembly of the fair’s contribution to the town economy.
“The borough assembly has been wise to invest in the fair. Over $150,000 in direct sales tax revenue is generated from the events the fair usually holds,” he said, listing the Great Alaska Craft Beer and Home Brew Festival and the fair.
Assembly members agreed, unanimously supporting the amendment. Thomas said he would like to see regular support for the fair in future years.
The assembly voted down an amendment from member Carol Tuynman that would have used $50,000 to open the pool an extra two months this summer. Beginning last fiscal year, the assembly has budgeted for a three-month summer pool closure to save money.
Several members of the public testified to the pool’s importance as an exercise venue for senior citizens and a training facility for high school athletes, but the measure failed 5-1 with Tuynman the sole supporter.
The next Committee of the Whole budget meeting will take place on May 18. The assembly will consider capital improvement projects. The assembly has until June 15 to finalize the budget.
Other actions taken by the assembly at Tuesday’s meeting included passage of an ordinance expanding the Historic Dalton Trail Road Maintenance Service Area, adoption of a resolution authorizing proHNS to engineer December storm road repairs, authorization of $60,000 in unused Haines Sheldon Museum payroll to cushion the museum board of trustees’ budget as the organization transitions to a separate nonprofit, and direction to the Mayor and manager to enter into negotiations with the Chilkoot Indian Association (CIA) regarding transfer of the museum building to CIA. The CVN will further report on the proposed transfer in next week’s issue.