Public Comment Period for Draft FY 2027 Marine Passenger Fee Proposal Now Open

The public is invited to review and provide comments on the proposal for how to allocate Marine Passenger Fee (MPF) proceeds in the upcoming year by May 3, 2026. Read the funding requests and draft recommendations here.

Each cruise ship passenger visiting Juneau pays a total of $13 in fees per visit. These fees are designated to fund projects directly related to the visitor industry which enhance the tourism experience in Juneau and offset community impacts created by the cruise ship industry. The use of these fees is constitutionally restricted. CBJ and Cruise Lines International Association (CLIA) settled a lawsuit in 2019 with an agreement that governs how and where CBJ spends the fees. 

The public was invited to submit project ideas for consideration in December 2025.  The City Manager is recommending $24,494,599 in operating, grant and capital funding allocations. Proposed projects include but are not limited to:

  • Support for enhanced use of city services by visitors, including funding support for police, fire and emergency services, street maintenance, parks, and increased bus service.
  • Downtown water system upgrades
  • Downtown public Wi-Fi
  • Critical maintenance and extension of the Seawalk
  • Downtown restrooms

The draft recommendation list, along with all public comments received by May 3, 2026 will be submitted to the Assembly Finance Committee for review on May 6, 2026, then forwarded to the Assembly for consideration during the upcoming budget cycle.

How to submit comments:
Email [email protected], or mail the City Manager’s Office, Attn: Alexandra Pierce, 155 Heritage Way, Juneau, Alaska 99801.

For more information, contact Alexandra Pierce at [email protected].

April 2nd, 2026|

Assembly Begins FY27 Budget Review Process at April 1 Finance Committee Meeting

The Juneau Assembly will begin its multi-week review of the City and Borough of Juneau’s (CBJ) proposed Fiscal Year (FY) 2027 budget during the Assembly Finance Committee meeting on Wednesday, April 1 at 5:45 p.m. Residents can join the committee meeting in person in Assembly Chambers at City Hall, online at juneau.zoom.us\\j\\93917915176, or by calling 1-253-215-8782 with webinar ID: 939 1791 5176. The ordinances and resolutions pertaining to the FY 2027 proposed budget will be introduced during the Special Assembly meeting at 5:30 p.m. immediately preceding the Assembly Finance Committee. Meeting materials are available at juneauak.portal.civicclerk.com/.

The manager’s citywide budget proposal for FY27, which includes the school district, hospital, and all city enterprises, totals $502 million—down $1.8 million from the FY26 Amended Budget. The FY27 Manager’s Proposed Budget maintains current service levels while reflecting the financial impacts of voter-approved ballot initiatives, changes in revenue trends, and rising personnel costs due to negotiated wage and benefit increases included in updated collective bargaining agreements with employee unions.

Two voter initiatives approved in October 2025 significantly shaped the FY27 budget. One capped the general government property tax mill rate at 9.0 mills, excluding debt service. The second exempts essential food and residential utilities from sales tax. The sales tax exemptions are estimated to reduce annual tax revenue by approximately $11 million, creating significant pressure on the City’s operating and capital budgets. The mill rate cap was originally estimated to reduce property tax revenue by approximately $1 million. Total borough-wide assessed valuations, including all property types, increased 2.1% over the prior year, with median residential assessed values increasing by less than 1%. While small, this increase largely offset the impact of the mill rate cap and resulted in relatively flat property tax revenue compared to the prior year.

The FY27 proposed budget was developed following direction provided by the Assembly during its December 2025 retreat. In response, the proposed General Fund budget includes $4.6M in expenditure reductions through tightening budget assumptions and $2.5M in additional General Fund revenue from user fees, while maintaining current service levels.

Despite these efforts, the proposed FY27 budget relies on the use of fund balance to maintain operations while the Assembly evaluates potential service reductions during the budget review process. As proposed, the FY27 budget includes $7.7 million in recurring use of fund balance and $2.6 million in one-time fund balance use, reducing unrestricted General Fund balance from $20.7 million to $10.4 million.

Sales tax revenues have been trending lower across several categories, most notably general sales tax and tobacco tax, reflecting changing spending patterns and the impacts of new tax exemptions. The proposed budget also assumes approximately 1.7 million cruise passengers, consistent with recent visitor levels with lower anticipated visitor spending compared to the summer of 2024, but consistent with spending in summer 2025.

The FY27 proposed mill levy is 9.92 mills, consisting of the voter-approved 9.0 mill cap for general government operations and 0.92 mills for debt service.
Personnel costs remain a significant budget driver, increasing primarily due to negotiated wage and benefit adjustments across several collective bargaining agreements with CBJ unions. These increases are mitigated by application of higher vacancy rates, which entails reducing personnel budgets to reflect historical and expected savings due to staff turnover and difficult-to-fill positions. Additionally, costs for education funding continue to shift from the State to the City, adding $797K to the City’s FY27 expenditures. While CBJ is now responsible for these additional expenditures, this cost shift from the State does not result in additional funding to the school district.

The Assembly will review the proposed budget over several weeks and consider potential service reductions and other changes to reduce reliance on fund balance before adopting the final FY27 budget.

The budget includes the following major components, including transfers between funds:

  • $96.7 million for the Juneau School District: A $1.7 million (1.8%) increase over FY26, primarily for commodities and services increases.
  • $233.6 million for Enterprise Funds (hospital, airport, water and wastewater utilities, docks, and harbors): A $20.4 million (9.5%) increase, primarily reflecting expanded services at Bartlett Regional Hospital.
  • $149.7 million for General Government: A $4.6 million (3.0%) decrease through tightening of budget assumptions in response to voter-approved ballot initiatives.
  • $58.7 million for Capital Improvement Projects: A $17 million (22.5%) decrease, due to large one-time appropriations in FY26 for public safety communication infrastructure bonds, Marine Park, airport infrastructure projects, and in response to the voter-approved ballot initiatives.
  • $8.8 million for Debt Service: An $810K (8.4%) decrease in required debt service payments from FY26.

Read CBJ’s proposed Annual Budget for Fiscal Year 2027. The City Manager’s Budget Message is on pages 19-25. Comments on the proposed budget can be emailed to [email protected], or shared in person at the upcoming Assembly Listening Session on April 15, 2026.

For more information, contact Finance Director Angie Flick at 586-5215 or [email protected]. To learn more about CBJ’s budget, visit www.juneau.org/budget.

April 1st, 2026|

USACE, Tlingit & Haida, CBJ and Partners Unified to Address Glacial Lake Outburst Flooding

City, Tribal, and Federal agencies, Alaska Delegation committed to expanded flood fighting and solutions for 2026 and beyond 

Juneau, Alaska – Assistant Secretary of the Army for Civil Works Adam Telle and officials from all levels of the United States Army Corps of Engineers (USACE) visited Juneau’s Mendenhall Valley this week to gain a firsthand understanding and align with local, Tribal, State and Federal agency partners on a multi-pronged approach to proactively protect the community from the annual threat of glacial lake outburst flooding (GLOF) in the near, mid and long-term.  

“As we confront the threat of glacial outburst flooding in the Mendenhall Valley, I have remained committed to balancing short, medium, and long-term risk reduction strategies, and that is why we are here on the ground demonstrating our shared sense of urgency,” said Adam Telle, the Assistant Secretary of the Army for Civil Works. “My office recently launched the ‘Building Infrastructure, Not Paperwork’ initiative in order to build a faster, more responsive U.S. Army Corps of Engineers that anticipates these types of problems like we see at Mendenhall and take action to prevent future catastrophe. By pursuing multiple solutions simultaneously, we are compressing timelines and demonstrating our commitment to protecting the people of Alaska’s capital city.” 

Assistant Secretary Telle was joined in Juneau by Major General Jason Kelly (Deputy Commanding General for Civil and Emergency Operations, USACE), Brigadier General Clete Goetz (Commander and Division Engineer, USACE Pacific Ocean Division), and Colonel Jeff Palazini (Commander, USACE – Alaska District), along with nearly a dozen other officials, engineers, and subject matter experts from all four levels of the USACE. The group toured the Phase 1 and Phase 2 HESCO barrier projects and took a helicopter tour of the Mendenhall River and Suicide Basin on March 23 before sitting down with representatives from the City and Borough of Juneau (CBJ), Central Council of the Tlingit & Haida Indian Tribes of Alaska (Tlingit & Haida), the USDA Forest Service (USFS) and the Alaska Department of Transportation & Public Facilities, as well representatives from Senators Sullivan and Murkowski’s offices on March 24. Senator Sullivan joined the meeting virtually and reaffirmed his commitment to finding solutions to the unprecedented annual GLOF disaster facing Juneau’s residents.  

“From the day he was nominated to lead the Army Corps, I made it very clear to Assistant Secretary Telle that addressing the glacial outburst flooding in Juneau is a top priority for me,” said Sen. Sullivan. “Since then, Assistant Secretary Telle has been an incredible partner, sending his top team to Juneau last year, donating HESCO barriers that saved homes along Mendenhall River, and committing to leverage the key provisions in President Trump’s Day One executive order, ‘Unleashing Alaska’s Extraordinary Resource Potential,’ to cut through red tape and expedite near-term, medium-term, and long-term solutions. I want to thank Assistant Secretary Telle for coming to Juneau and surveying the Mendenhall Valley to better understand the gravity of this threat to one of our state’s largest cities. My team and I will continue to work with Assistant Secretary Telle and the Army Corps to maintain the momentum and deliver solutions that effectively protect the lives and property of the people of Juneau.”  

While CBJ and USACE technical staff communicate daily on their efforts to understand, plan, protect and prepare for the next and future GLOF events, Tuesday’s discussion allowed USACE and local leadership to connect directly on their current work, future plans, and commitment moving forward. Also on Tuesday, Assistant Secretary Telle hosted a press conference with local media that covered these same topics alongside local leaders and other USACE officials. A full recording of the press conference is available at youtu.be/mwHLM-B29UI. 

“Keeping Juneau safe from the persistent danger and damage caused by glacial flooding will require careful collaboration among local, state, and federal agencies—which is why this roundtable was so critical to ensuring we are all pulling in the same direction,” said Senator Murkowski. “I greatly appreciate Assistant Secretary Adam Telle and the U.S. Army Corps of Engineers for traveling to Juneau to engage directly with local leaders and see firsthand the challenges we are facing. I remain focused on working with the City and Borough of Juneau, Tlingit and Haida, and our state and federal partners to advance short-, medium-, and long-term solutions that will keep the people of Juneau safe.”  

Excavators cleaned snow from HESCO barriers during the group’s tour on Monday as both USACE and CBJ contractors mobilized on flood fighting construction efforts planned for completion before a 2026 GLOF. CBJ’s teams are preparing to raise, repair and – in places – reconstruct the existing Phase 1 HESCO barriers following the availability of updated inundation modeling and observations from the 2025 GLOF. USACE is moving forward with the Phase 2 HESCO barrier project installation, which will include riverbank armoring and installation of temporary (HESCO) flood barriers to construct a fortified, complete temporary flood barrier along the unprotected, populated riverbank areas of the Mendenhall River. USACE has also committed to providing technical assistance for the Phase 1 reconstruction, as well as critical on-the-ground flood-fighting tools, including a sandbag filling machine and dozens of pumps that will be strategically deployed ahead of a 2026 event.  

“Our community is strong and resourceful, but what we are facing is unprecedented.” shared Juneau Mayor Beth Weldon. “Our conversations with Assistant Secretary Telle and his team at USACE this week reconfirmed that they are by our side, fighting with us to find the practical and technical solutions that will protect Juneauites immediately and for the long term. We are grateful for the flood fighting resources provided via the USACE that have and will continue to reduce the risk of devastating flood impacts for thousands in the Valley who face this extremely unique challenge every year. These annual GLOF events are predicted to increase in size and risk, and through our partnership with Tlingit and Haida, along with the support of our federal delegation, we will continue to communicate the urgency of delivering a long-term solution alongside critical short-term efforts.” 

As another GLOF event is likely just months away, ASA Telle’s visit to Juneau included discussion of actions being taken now and the need to identify and investigate feasible enduring solution.  

“This week’s meeting reinforced that we are all moving in the same direction toward an enduring solution to the Mendenhall Glacier flooding,” noted Tlingit & Haida President Chalyee Éesh Richard Peterson. “I joined the City and Borough of Juneau Mayor and her staff, the Assistant Secretary of the Army for Civil Works, and Corps leadership in a productive conversation focused on how we respond with urgency and unity. At this time, we continue to believe the lake tap is the most viable long-term solution, and I appreciate the Corps reaffirming that position while also acknowledging that all options remain on the table. We need immediate triage for the short term, a clear path for the mid-term, and a durable answer for the long term. Our community deserves nothing less.” 

For more information about CBJ and partner efforts to protect against future glacial lake outburst floods, visit bit.ly/CBJGLOF.

Contact:  
John Budnik [email protected]  
Ashley Heimbigner [email protected] 
Dixie Hutchinson [email protected] 

March 26th, 2026|

USACE to Mobilize Phase 2 HESCO Barrier Flood Fighting Project Next Week

The United States Army Corps of Engineers (USACE) – Alaska District in partnership with the City and Borough of Juneau (CBJ) will begin the first phases of the Phase 2 HESCO barrier project installation along the Mendenhall River during the week of March 16, 2026. USACE contractor Sealaska Constructors will be leading the work, which will begin with bank armoring along Clinton Drive and move south along the unprotected areas of the river. The public is asked to avoid the construction area for their safety and the safety of workers, residents and property owners.  

In late October 2025, USACE accepted CBJ’s request for USACE Public Law 84-99 Advance Measures Assistance to provide technical assistance and temporary flood protection against the increasing future glacial lake outburst floods (GLOFs) at 100% Federal cost with no cost to the Public Sponsor (CBJ). The Advance Measures scope will include riverbank armoring and installation of temporary (HESCO) flood barriers to construct a fortified, complete temporary flood barrier along the unprotected, populated riverbank areas of the Mendenhall River – referred to as Phase 2 – prior to July 15, 2026. 

USACE is also providing technical assistance for the repairs, fortification, raising, bank armoring and other associated items related to the Phase 1 HESCO flood barrier installation to continue to protect against the increasing GLOF events. CBJ is responsible for the implementation and construction of the work with its contractors. Mobilization of Phase 1 HESCO barrier repairs will begin later this month for completion by July 2026. The estimated cost of the Phase 1 repairs will be funded by an Assembly transfer of funds from the Capital Civic Center project and Alaska Department of Environmental Conservation State Revolving Fund Loan.  

CBJ’s Engineering and Public Works department has spent the six months since the last major GLOF event documenting damage, analyzing impacts and utilizing the latest available hydrologic and hydraulic modeling to develop plans to raise, repair and reinforce the existing Phase 1 HESCO barriers. The goal of this ongoing work, in coordination with the USACE, is to ensure that these critical but temporary flood fighting projects provide as much protection as practicable until a longer-term solution is in place.  

CBJ project managers have and will continue to coordinate directly with property owners and impacted residents along both the Phase 1 and Phase 2 project areas. More information about flood fighting, flood emergency preparedness and the pursuit of an enduring solution is available at bit.ly/CBJGLOF. 

For more information about the Phase 1 and Phase 2 HESCO Barrier Flood Fighting projects, please contact [email protected].  

March 13th, 2026|

Update from the City Manager: Pushing for an Enduring Solution to Glacial Lake Outburst Floods

February 27, 2025

Good afternoon,

Earlier this week, I shared the difficult news regarding the change in direction by the U.S. Army Corps of Engineers (USACE) on an enduring solution to the ongoing threat of glacial lake outburst flooding (GLOF) in the Mendenhall Valley. I want to acknowledge the weight of that update as it threatens the longevity of our entire community. Many of us have invested years of effort, advocacy, and hope into advancing a long-term solution.

In summary, USACE informed us late last week that it is pivoting away from advancing the lake tap as the identified long-term solution. While they indicated continued interest in addressing the flooding threat, the emphasis was on robust flood fighting. Whatever the long-term solution is, we will need USACE supported flood fighting to get there. However, I am deeply concerned that all planning and design efforts have been diverted to flood fighting leaving uncertainty around an enduring solution.

Since Monday, we have been actively engaging with our federal delegation and senior USACE leadership. I met with staff from Dan Sullivan’s office and with Lee Forsgren, Assistant Secretary of the Army (Civil Works). The Assistant Secretary re-affirmed his commitment to an enduring solution for Juneau. However, it is yet to be seen what that looks like.

I also met with staff from Lisa Murkowski’s office and have continued to keep Representative Begich’s office informed. I want to emphasize that our delegation remains dedicated advocates for this project and for Juneau. Their engagement this week has been evidence of that.

During a hearing on Wednesday before the Senate Environment and Public Works Committee, Senator Sullivan directly questioned USACE leadership about the Corps’ change in position. A recording of the hearing is available here, starting at the 1:59 mark. In the hearing, the Senator underscored the urgency of the threat facing our community, pressed for accountability regarding the reversal, and sought clarity on both interim protections and a permanent fix. Testimony from Army officials reiterated a stated commitment to working toward a durable solution for Juneau and senior USACE officials committed to Senator Sullivan to travel to Juneau this spring. That visit will be an important opportunity to demonstrate the unique and imminent threat facing our community and to press for clarity on the path forward.

At the same time, the City and Borough of Juneau (CBJ) is taking action. This week we submitted a Congressionally Directed Spending request for $8 million to support the geotechnical and planning work necessary to advance the lake tap solution, which is the most cost-effective, will take the least amount of time and is most likely to reduce flood risk without disrupting the entire Valley. Most importantly, it is supported by science and received a coordinated endorsement from Tlingit & Haida, the USDA Forest Service and CBJ. The geotechnical work will answer unknowns about the quality of the rock and refine what right now is a very basic cost estimate. We are continuing to push forward on every available front that may get us closer to the enduring solution for Juneau.

Thank you to the many residents who have reached out this week asking how to help. Supporting our federal delegation’s advocacy efforts and continuing to make your voices heard is one meaningful way we can stand together.

We will keep the pressure on. We will continue fighting to protect our community and our future. And I invite you to keep advocating alongside us.

Respectfully,
Katie Koester, City Manager
City and Borough of Juneau

February 27th, 2026|
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