Ketchikan City Mayor Bob Sivertsen delivered the annual State of the City address to the Greater Ketchikan Chamber of Commerce on Wednesday. He said that the state of the city is strong, and highlighted the city’s budget, capital improvement projects, and local economic drivers.
Sivertsen talked about his love for Ketchikan, calling it a place “defined by resilience, hard work and a deep sense of community.” He takes pride in building a future for the next generation.
“So this year, as we look ahead to 2026, we do so with a clear understanding of both the strengths and the challenges,” Sivertsen said. “Our economy continues to evolve. Our tourism sector remains strong, and our local businesses continue to innovate, but we also face a physical landscape that demands focus and discipline.”
Sivertsen went on to say that inflation continues to push project costs higher, and that revenues are not keeping pace with the city’s obligations. But he said the city has a responsibility to fund essential services, like police, fire, utilities and others.
Sivertsen told the chamber that it’s searching for a new city manager, something he said the council “doesn’t take lightly.” The council selected a new city manager in December, but the candidate withdrew his name for consideration in January. Sivertsen said they’ve received many applications for the position, and so far, have narrowed the search to 11 candidates.
There are hundreds of capital projects on the city’s wish list, Sivertsen said, from water and sewer upgrades around Park Avenue to a roughly $40 million diesel generator replacement at the city’s Bailey power plant. The city’s electricity runs mainly on hydropower, but diesel generation is used as a backup.
“The budget discussions are not easy, but they are responsible, and they reflect the simple truth. Ketchikan must protect the services that protect our people, while being flexible and innovative in how we deliver everything else,” Sivertsen said.
He also said tourism is one of the city’s “strongest economic engines.”
“But as we grow, we must grow responsibly,” Sivertsen said. “That means investing in infrastructure and supporting both residents and visitors, managing congestion and ensuring that tourism enhances rather than overwhelms the community.”
In the city’s third financial quarter last year, Sivertsen said more than 40% of jobs in Ketchikan were tourism related. He said total visitors to the city last year was 1.6 million, most of them arriving via cruise ship.
Before concluding, Sivertsen said the city collected $19 million in sales tax last year. He said 70% of that was collected during peak tourist season – April through September.
Sivertsen also talked about the city and borough working together to attract the Coast Guard to homeport a new icebreaker in Ketchikan. The Coast Guard’s fleet is undergoing an expansion that could bring several new icebreakers to Alaska. Sivertsen said if a Coast Guard ship comes to Ketchikan, that could bring new families and revenue to the city.
Sivertsen kept his eyes on the water and talked about the city’s shipyard, which was recently undertaken by JAG Marine Group. He said the shipyard has seen growth since the takeover, and is looking for funding to build a third drydock.
Sivertsen ended his address by stating that the city is strong, and will only grow stronger with the community’s support.
“We face challenges, but we face them together, and together, we’ll continue to build a city that’s safe, vibrant and full of opportunities,” Sivertsen said.
The city mayor’s address came just weeks after Ketchikan Gateway Borough Mayor Austin Otos gave his first state of the borough address. In that speech, Otos highlighted the borough’s public works initiatives and state advocacy efforts, among other things.
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.
