Assembly Finance Committee Meeting - February 4, 2026
Assembly Finance Committee Meeting - February 4, 2026
The Assembly Finance Committee met on February 4, 2026, to hear presentations from key partner organizations, discuss the return of a $2 million grant from Gastineau Human Services, review the FY27 assembly grant process, and consider placing the 3% temporary sales tax and bond propositions on the October 2026 ballot. The meeting was called to order by Chair Wall, with all members present except Steininger and Hall; Atkinson attended via Zoom.
Consent Calendar
- Approval of Minutes: The January 7, 2026, Assembly Finance Committee meeting minutes were approved without changes.
Travel Juneau Presentation
- Executive Director Liz Perry and Board Co-Chair Serene Hutchinson presented Travel Juneau's performance and budget. Key statistics included: 19 meetings secured for fiscal 2026 with an estimated economic impact of over $3.5 million; a pipeline of $8.3 million in business over the next three years; media audience reach of over 10 million people; and $126,000 in media publicity value. Travel Juneau has seven employees.
- Perry noted the organization has operated on a flat budget for three years (same hotel bed tax grant of $1.267 million) and has made cuts to contracts and initiatives. She warned that significant cuts (e.g., 30%) could lead to loss of market share, citing case studies from Colorado and Sonoma.
- Assembly members asked about metrics (e.g., geofencing, hotel occupancy data, conversion rates). Perry cited a drop in hotel occupancy but stable average daily rates. Hutchinson emphasized that negative national news about Juneau requires proactive marketing.
- When asked about a 30% cut, Perry said it would likely eliminate a department. The board's priority is preserving staff.
Juneau Community Foundation Presentation
- Executive Director Amy Skilbred reported that the combined Juneau Hope Endowment Fund and CBJ Social Service Grant program has distributed $22.6 million over ten years ($11.8 million from CBJ, $10.7 million from the foundation) to 46 organizations. For FY26, grants were given out in September/October 2025.
- She outlined the grant process: letters of interest, professional advisory committee review, listen and learns (six scheduled for later in February 2026), applications due in March, and grants awarded by end of July/early August.
- Skilbred noted there is about $400,000 more in requests than available funding. CBJ provides $50,000 annually to support program administration.
- In response to potential cuts, she stated a 30% reduction ($500,000-$600,000) would lead to hard conversations and likely loss of some organizations, especially given uncertainties in Medicaid and other federal funding.
- Assembly members asked about savings and interest income; Skilbred explained reserves are set aside for market downturns and are not accessible for operations.
Small Business Development Center (SBDC) Presentation
- Business Advisor Hussein presented the Juneau SBDC's impact. In 2025, the center served 114 small businesses (70 new), logged 891 advising hours, and helped clients raise $2.6 million in funding, supporting 142 jobs. In 2026, as of February 24, they had already logged 137 advising hours and helped raise $1.5 million.
- The budget is $158,500 total, with CBJ contributing $28,500 (18% of total). This local funding leverages $4 for every $1, attracting $130,000 in federal and state funds. Without CBJ's investment, the Juneau center would not exist.
- Advising is free and confidential. Common topics include capital/finance, business planning, and growth management. Hussein noted confusion among local businesses regarding CBJ sales tax.
- The center is part of a federally accredited network, and its funding is competitive. Hussein emphasized that CBJ's contribution is catalytic, not duplicative.
Gastineau Human Services Grant Update
- Manager Kester reported that Gastineau Human Services received a $2 million CBJ grant in 2024 to build 51 permanent supportive housing units, leveraging federal dollars. Due to changes in federal funding, those grants are no longer available, extending the project timeline to 5–10 years.
- Motion: Assemblymember Weldon moved to direct staff to work with Gastineau Human Services to return the $2 million to CBJ, with the understanding that they can request funding again when closer to development. The motion passed by unanimous consent after an initial objection by Assemblymember Brooks (who withdrew after clarification).
FY27 Assembly Grant Process and Deadlines
- Finance Director Flick announced that the community grants process will continue, with a deadline of March 15, 2026, for organizations to find an assembly sponsor. Applications will be presented at the April 1, 2026, AFC meeting. The website (juneau.org/grants) provides history and details.
- Chair Wall reminded members that one-time grants require a sponsor each year, while ongoing operational grants appear in the city manager's budget.
2026 Ballot: 3% Temporary Sales Tax and Bond Propositions
- Flick outlined the need to place the temporary 3% sales tax extension on the October 2026 ballot (expires June 2027). The current allocation is 1% operations, 1% projects/grants/other services (mostly operational), and 1% infrastructure. The last date to introduce an ordinance is June 8, 2026; public hearing and action by July 27, 2026.
- Assemblymember Kelly asked about adjusting allocations if exemptions on food/utilities remain. Flick estimated that to hold the operations and infrastructure portions at $14 million each, the middle share would drop to about 0.6% (roughly $7 million).
- Manager Kester noted the current allocation provides flexibility, but the real issue is reduced revenue.
- Motion: Assemblymember Weldon moved to direct staff to draft an ordinance for the 3% sales tax using the current allocation, to be brought back to the finance committee for discussion. The motion passed by unanimous consent after Assemblymember Brooks (concerned about grants) withdrew his objection.
- Regarding bonds, Flick presented two options from last year: $8 million for water/wastewater utilities (postponed) and $10 million for school capital improvements (failed). Assemblymembers expressed varying levels of support, with many undecided. Chair Wall noted the need to prioritize and that the joint facilities committee (with school district) should meet to discuss school bonds.
- No formal action was taken on bonds; the matter will be revisited.
Key Outcomes
- Gastineau Human Services Grant: Motion passed unanimously to direct staff to work with GHS to return the $2 million grant, with the option for future funding when the project advances.
- Temporary Sales Tax: Motion passed unanimously to draft an ordinance for the 3% sales tax (current allocation) for the October 2026 ballot, to be discussed further in finance committee.
- Next Meeting: The next AFC meeting is a joint meeting with the airport and Bartlett Regional Hospital on February 25, 2026. Other joint meetings are scheduled for March 4 (Eagle Crest), March 18 (Docks and Harbors, Board of Education), and a gondola discussion on April 1.
Meeting Transcript
I call the February Fourth Assembly Finance Committee meeting to order. Miss Wendell, do you note the role? Thank you, Chair Wall. We have all assembly members present in chambers besides assemblymember Steininger and Hall who are absent and assemblymember Atkison who is available on Zoom. Thank you. That brings us to item C approval of minutes. You have the January 7th Assembly Finance Committee meeting minutes. Any changes to those? See none of those are so moved. That brings us to agenda topics. And these microphones work similar to our old ones. You will just press the button and it'll turn green, and then you can speak. Thank you, Chair Wall. I would like to also introduce Serene Hutchinson who is co-chair of the Travel Juno Board. She is in attendance with me tonight. As a priority partner to CBJ's Travel Juno is proud of its efforts on behalf of the city promoting Juno as an entire destination for visitors for year-round fund. And over the years, the organization has taken on an enhanced visitor programs that benefit Juno overall, including Crossing Guard program, tourism best management practices, otherwise known as TBMP. We are pass-through administrator for those important local programs, and we believe we have demonstrated the effectiveness of those programs, and they are always under continuous improvement. We have a number and of meetings in our pipeline. So these are uh organizations that we have found, uh we have prospected. Also, these are some organizations that have contacted us directly and said we're interested in doing a meeting in Juneau. How do we even start? So uh that list is in your packet. Um, and we have meetings uh that are into 2028, and we also have some planners who are actually starting to look into 2029. Uh so planners are looking to really get things secure several years ahead of the proposed meeting. Um it's very different when you're on the other side. If you're an attendee, for example, uh, we have found that attendees will tend to run up until almost that last minute uh to get their hotel spaces. So we so we have to work with that on both sides, both the long run for the planner and then that kind of short run, making sure that attendees have the information that they need to get to Juno and have all the hotel information so forth. Um we secured uh 19 meetings for fiscal 26 uh so far with an estimated economic impact of over three and a half million dollars. We in the pipeline, we've got about 8.3 million dollars worth of business that were it is either secured or we're looking to secure again over the next three or so years. I would ask you to maybe refer to the page uh page 15 of 73 in your packet um to note the media audience size. Um you will see that we were able to reach um over 10 million people uh for those audiences, and that would include uh anything that's video basically. So if it's a TV program, if it's a mention, uh, if someone has done uh a video on our behalf or we have partnered with videographer, uh that is included in that audience. We also um just over for this fiscal, uh we've already got about 126,000 dollars just in media publicity. So when Juno is mentioned, when travel Juno is mentioned, that registers as a dollar value. So this is return um on our efforts that we may or may not even have had to pay for. A lot of times media will call and say, hey, I just need some information, or can you back up these facts and do some fact checking? And we're happy to do that because we want good information out there. Doesn't cost us anything with some staff time, but then Juno gets out into the into the domain with with accurate information. Um we are seeing a really sizable increase in the number of folks uh on our website who are looking for information or who are uh inquiring to get our guides. I will point out the travel planner and the guide that I have for those of you who are not in attendance at the Lands Committee. These are two publications that we have done for the last couple of years. You're probably familiar with the planner, which is the thicker, heftier version. These are designed for people who are looking to travel to Juno. They haven't decided what it is that they're wanting to do, and maybe they haven't even decided how they're going to get here. So this is to inspire them, to show them what's available, and really get them down into that funnel to make that final purchase. The smaller publication, more magazine-like, is a welcome guide. It is basically the last half of the planner with no attendant context with it or additional content. And we use these for meetings, conventions, and we have them available at our visitor information sites. So they're highly popular, and this is our second summer for doing that.
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