Ketchikan Gateway Borough Mayor Austin Otos gave his first State of the Borough address to the Greater Ketchikan Chamber of Commerce Wednesday since elected to the seat last fall. He touched on a number of borough economic development projects, public works initiatives, and state advocacy efforts.
Otos began his address by congratulating attendees for making it through last year’s tourism season, which he says brought over 1.5 million visitors to the borough. He also acknowledged troubles the borough has faced over the last year, like educational upheaval and the Wolfe Point rockslide. But he primarily focused on the positives.
“As someone that has been in local government for seven years now, the information can be overwhelming,” Otos said. “But luckily, you have experts that can answer any questions that you have today.”
After highlighting general information about the borough and its assembly, Otos briefly talked about the island’s revenue in the 2025 fiscal year. He said the borough collected around $35 million in revenue, much of which came from sales and property taxes.
Otos then delved into the borough’s airport on Gravina Island, which he said is undergoing a $40 million dollar expansion to construct a new wing and jet bridge. He also said the borough is looking into a replacement ferry to the airport, which will cost around $32 million. According to several borough assembly members, the airport’s two ferries are nearing the end of their operational lives. Otos also mentioned a free tunnel building contest the borough entered into that could connect Ketchikan and Gravina Island.
Otos talked about the borough’s animal protection, code enforcement and property assessment endeavors. He said the number of senior property tax exemptions in the borough is increasing in part because borough residents are getting older. Those property tax exemptions for those 65 and older are up to $250,000.
“The more exemptions that are given to seniors, those costs shift to other younger generations,” Otos said.
The mayor also talked about a possible expansion to the recreation center. If brought to fruition, that project could double the size of the weight room, build new classrooms or bring a commercial kitchen to the facility. An existing half-cent sales tax proposition to partially fund the project could be brought to borough voters this fall.
“We’re going to do about a $7 million bond to the voters to vote on it,” Otos said. “Again, that money is paid by the half-cent sales tax, and then we’re going to use $3 million in our housing fund to make up the shortfall.”
After discussing the borough’s newly adopted comprehensive plan, housing and land development initiatives and grant programs, Otos talked about the borough’s public works department. He said the borough is working to rebuild the South Tongass fire station, which burned down in 2024. And he said the borough is working on redesigning the North Tongass fire station through cruise ship passenger head taxes.
Otos later spotlighted the borough’s response to last year’s landslide, the transit department being nationally recognized and new hiking trails that could come to the borough.
The mayor closed out his address by highlighting the borough’s advocacy trips to Juneau. He said the top projects the borough is seeking state funding for include wastewater treatment compliance upgrades in Ketchikan, water line replacements in Saxman and a new airport ferry. He also talked about a Washington D.C. advocacy trip where assembly members advocated for a soon-to-be-built U.S. Coast Guard icebreaker to be housed in the borough.
The mayor answered several questions from community members after his address.
Hunter Morrison is a Report for America corps member for KRBD. Your donation to match our RFA grant helps keep him writing stories like this one. Please consider making a tax-deductible contribution.
