Skagway Assembly removes $300,000 design line from public works budget amendment after hours of debate

The Skagway Assembly on March 5 debated whether to include a $300,000 design estimate for a potential new consolidated public works facility in a FY26 budget amendment and ultimately removed the design line before approving the ordinance on first reading.

Vice Mayor Potter introduced ordinance 26-02, saying the packet item would fund three things: basic ventilation and equipment for the existing public works shop, a donated ultrasound for the clinic, and a $300,000 design estimate for a new public works facility at a 15‑acre site intended to be part of a future bond package. "This ... finally puts to bed the ... bond issue that narrowly passed but was never issued," Potter said, arguing that including design work would allow the assembly to prepare a bond question for the October ballot.

Assembly members Waddell and Hillis pushed back on process and scope, urging that the ventilation and clinic items be separated from the larger design expense. "This is not the process," Assembly member Waddell said, arguing that members had received only a line item and a plot rectangle that morning and that the council should see engineering documents before committing design funds. Hillis said voters would expect a clearer plan for what would happen to the public works site if the facility were moved. "If I'm gonna approve a bond to spend a bunch of money to move public works somewhere else, they need to know what's gonna happen with that land afterwards," Hillis said.

Assembly member Henry described environmental and cost concerns tied to demolition and remediation of the existing public works site, saying the building likely needs demolition and ground remediation "as it's full of petroleum products" and that those items should be accounted for in any bond package.

Members made a series of amendments. Assembly member Hillis moved to remove the third whereas clause and, with a subsequent motion by Waddell, to remove the $300,000 public works consolidation engineering and design line from the ordinance. The amendment to remove the $300,000 passed in recorded roll calls and the assembly approved the main motion as amended, 6–0. Clerk Burnham recorded the votes.

The ordinance now advances without the $300,000 design allocation; several members asked staff to return to the assembly with more detailed engineering estimates and clearer options for separating immediate safety-related expenditures (ventilation, ultrasound) from long‑range design and bond packaging.

What happens next: the ordinance was approved on first reading as amended; assembly members said they expect further committee review, additional cost estimates, and the chance to consider a possible bond measure for voters later in the year.