A proposed water main extension on Small Tracts Road has been put in front of residents for approval, but delays in the process may jeopardize state funding for the project.
The proposal, for roughly 4,200 feet of new main, would deliver borough water to between 29 and 39 homes on Small Tracts Road. The Alaska Department of Environmental Conservation (DEC) offered $2.5 million to support the project last year, which has a full estimated price tag of $2.835 million.
That funding offer would have been finalized by a motion in front of the assembly in mid-February, but assembly members approved an amendment to hold off on approval until affected residents agreed to form a local improvement district.
That means the decision is now up to Small Tracts households: a majority would have to vote to approve the district, and would then assume responsibility for the funding gap needed to complete the project. That $335,000 needed beyond DEC funding would be added to property taxes of households in the area of the extension.
Borough finance director Jila Stuart said the creation of the LID had always been in the plan and application documents for the project, but was not reflected in the assembly ordinance.
This move from simple assembly approval to citizen approval has significantly lengthened the process. That delay might jeopardize the funding.
DEC, on its project priority list, cites June 1, 2025, as the start date for the project. And according to borough officials, DEC has asked for assurance by June 30 that the project will go through, the end of their fiscal year. Otherwise, the funding might be pulled back.
“DEC was very clear with us that if we are not going forward they are going to reappropriate that money,” said interim borough manager Alekka Fullerton at a public meeting of Small Tracts residents on Monday. Borough finance director Jila Stuart said she hoped a petition signed by a majority of the residents in the local improvement district would “be enough to hold DEC off and keep our money in place.” But that isn’t certain – the only thing that would guarantee the funding would be official assembly approval of an agreement by the deadline.
If the money is pulled back, the borough could reapply in the upcoming DEC funding cycle. But Stuart and grants administrator Helen Alten expressed doubt that the project would be approved for a second time if that happened.
At a public meeting of residents this week, interim borough manager Alekka Fullerton said it wouldn’t be feasible to even approve the project by the end of June.
Residents just this week received an introduction to their role in the process. Should they eventually vote to approve, the assembly would have to give at least 60 days notice before beginning to hold public hearings. Then the assembly decision-making process, including the public hearings, would stretch across, at minimum, three meetings.
The borough has also just opened bidding on a final design for the project, which facilities director Brad Jenson said could take months to deliver. Until that is completed, exact costs for residents won’t be known.
Those mismatched timelines seem to be the result of a late start by the borough. According to Stuart, borough staff first began the application process for DEC’s funding in February 2024. DEC released its list of projects with preliminary approval for funding, including the Small Tracts extension, in July 2024. Once that list was released, the last step needed to secure funding was borough assembly approval for an agreement with DEC. But six months passed before an ordinance was first added to the assembly agenda on January 28, 2025.
Stuart cited turnover in key borough positions – manager, clerk, grants administrator, and facilities director – as part of the reason for that delay. That meant that between when the application went in and when it came in front of the assembly, almost every staff member involved with the process was replaced.
Residents at Monday’s meeting signaled initial interest in the project through an informal show of hands. The borough said that they would offer residents financing for the roughly $10,000 owed per plot at between 1.5% and 2% – a heavily subsidized rate.
Other benefits include installation of between seven and 12 fire hydrants. Stuart also said extending the main would likely raise home values in the area.
That unofficial support is not close to finalized. Interim manager Fullerton emphasized on Monday that signing the petition would not be binding. Especially without the precise cost estimate from the design plans, Fullerton said residents would be free to remove their names from the petition at any time.
But when asked, Fullerton did not have a precise point in the process or calendar date when residents’ commitment would become binding, she said it would likely be when the assembly voted to approve. That looks to be a long way away.