Assembly begins budget review process at April 5 Finance Committee meeting

The Juneau Assembly will begin its multi-week review of the City and Borough of Juneau’s fiscal year (FY) 2026 budget during the Assembly Finance Committee meeting on Saturday, April 5 at 8:30 am. Join the committee meeting in person at City Hall, online at juneau.zoom.us/j/93917915176, or call 1-253-215-8782 with webinar ID: 939 1791 5176.

The City Manager will introduce the proposed budget during the Special Assembly meeting preceding the Assembly Finance Committee on April 5. The manager’s citywide budget proposal, which includes the school district, hospital, and all city enterprises, totals $480 million—down $8.9 million from the FY25 Amended Budget. The budget aims to maintain status quo operations while advancing Assembly priorities and ensuring continued services to the community. It proposes a property tax increase of 0.15 mills, resulting in a total mill levy rate of 10.19 mills.

The budget reflects revised projections for sales and tobacco tax revenues based on updated forecasts and actual collection trends. Property tax revenue has seen a slight increase of just $200K after factoring in exemptions, including those for seniors, veterans, hardship cases, and economic development. This amount includes the proposed 0.15 mill increase. Borough-wide property valuations have remained stable, with a modest 0.3% increase in FY26 compared to FY25.

Expenditures in FY26 are largely in line with current services, with non-personnel costs in General Government increasing by less than one percent. The primary uncertainty lies in personnel costs, particularly in relation to the ongoing collective bargaining agreements. Additionally, costs for education funding continue to shift from the State to the City, adding $570K to the City’s FY26 expenditures. This cost shift does not result in additional funding to the School District.

As proposed, the recurring FY26 budget is balanced after consideration of a $1.75 million lapse and has no impact on general fund balance. The proposed budget also includes $4.4 million in one-time expenditures. These one-time expenses are proposed to be funded from the City’s unrestricted general fund balance.

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

• $95 million for the Juneau School District: A $9.6 million (11.2%) increase over FY25, primarily for employee wage and benefit adjustments and reduced vacancy rates due to the stabilization of the School District after facility closures and consolidations last year.
• $211.1 million for Enterprise Funds (hospital, airport, water and wastewater utilities, docks, and harbors): A $1.2 million (0.6%) increase, reflecting small inflationary pressures.
• $148.3 million for General Government: A $13.7 million (8.5%) decrease, largely due to one-time capital investments and community grants issued in FY25.
• $61.1 million for Capital Improvement Projects: A $19.6 million (24.2%) decrease, due to large one-time appropriations in FY25 for public safety communication infrastructure, a re-write of CBJ’s Title 49 code, and glacier outburst flood mitigation.
• $9.6 million for Debt Service: Flat compared to FY25, including the first payments for the public safety communication and wastewater utility infrastructure bonds that were approved by voters on the October 2024 ballot.

Read CBJ’s proposed Biennial Budget for fiscal year 2026. The City Manager’s Budget Message is on pages 19-22.

For more information, contact Finance Director Angie Flick at (907) 586-5215 or [email protected].