The Ketchikan city council has decided to use the community’s $2 million gift from Norwegian Cruise Line to help cover lost revenue in the town’s ailing port fund.
The city finance director reported to the council that port revenues fell by more than 99% when cruise ships stopped calling in 2020 — from more than $10 million in 2019 to roughly $82,000 in 2020. And it wasn’t much better this year: Revenue is expected to come in at about $1.35 million, as a limited number of ships operated in the shortened visitor season.
Without an immediate cash infusion, the port fund would be unable to pay its debts by the end of the year, the finance director reported.
The city council voted unanimously to approve the use of the cruise line funds. The $2 million from Norwegian, plus roughly $2.7 million in American Rescue Plan federal aid, will keep the port fund afloat until next May.
“I would very much love to put it toward sewer lines or any of a huge list of other needs that we have in the community,” said Riley Gass, a city council member. “But I think right now we’re in get-through-this crisis mode.”
Norwegian Cruise Line donated $10 million earlier this year to Southeast communities hit hard by the lack of the company’s tourist traffic the past two summers: Juneau ($2 million), Ketchikan ($2 million), Sitka ($1 million), Skagway ($2 million), Hoonah ($2 million) and Seward ($1 million).
Norwegian ships do not call on Wrangell.
Seward committed much of its share to help provide child care services. Skagway set aside nearly half-a-million dollars to pay out as cash to residents this winter, and will use much of the rest as grants for local businesses.
Sitka plans to use its money for improvements to Lincoln Street, the main thoroughfare in downtown.
Hoonah designated its money to cover for reduced sales tax revenues in the general fund.
Juneau’s $2 million is going out to nonprofits and local businesses.
Reader Comments(0)