Special Assembly Finance Committee Joint Meetings with Docks and Harbors Board and School District Board - March 19, 2026

The Juneau Assembly Finance Committee held two joint meetings on March 19, 2026: first with the Docks and Harbors Board to review the FY27 enterprise budget, and then with the Juneau School District Board of Education to review the FY27 school district budget. Both presentations highlighted strong financial management, upcoming capital needs, and ongoing revenue challenges.

Docks and Harbors Budget Presentation

• Matt Creswell, Harbormaster, presented the FY27 budget for Docks and Harbors, an enterprise department comprising the docks (cruise ship operations) and harbors (small boat harbors, launches).
• Docks Enterprise: Revenues exceed expenditures; FY27 contribution to fund balance is approximately $692,000, bringing the end-of-year fund balance to $4.65 million. A new cruise ship dockage fee structure nearly doubled revenue; $2.464 million will transfer to CBJ general fund. FTEs increased by 0.01 to 19.74 through reprogramming. The cruise ship electrification project is estimated at $60+ million (35% design expected by fall).
• Harbors Enterprise: Revenues continue to outpace expenditures; FY27 revenues $7.15 million, expenditures include $880,000 draw on fund balance for capital projects. Fund balance projected at $1.204 million at end of FY27. Major capital projects: Aurora Harbor Phase 4 (final phase, occupancy by May 1, 2026), new drive-down float (grant-funded), new Aurora Harbor office ($5 million), Statter Harbor breakwater study (estimated $100 million project, 80/20 split), North Douglas launch ramp ($30 million), Fishermen's Terminal property ($10 million placeholder). Insurance costs tripled from $258,000 to $757,000 since FY22.
• Discussion topics:
  • Revenue diversions: The docks enterprise loses $717,000 in marine passenger fees and the harbors enterprise loses approximately $450,000 in raw fish tax (state shared revenue). Total diversion to CBJ general fund is $3.67 million.
  • Board members expressed concerns about the raw fish tax diversion, with Matt Later stating it feels like being penalized for fiscal responsibility. Clayton Hamilton (fisherman) noted harbors are doing fine but acknowledged the need for future investments. Tyler Emerson encouraged looking elsewhere for revenue.
  • Uninsured vessel surcharge (new fee) expected to collect over $100,000 to help cover costs of sunken vessels.

School District Budget Presentation

• Superintendent Frank Houser and CFO Nicole Herbert presented the FY27 adopted budget.
• Enrollment continues to decline by 1.5-2%; projected ADM of 3,767 for FY27.
• The budget assumes a Base Student Allocation (BSA) of $6,660 (flat from FY26). No state increase anticipated.
• Revenue: CBJ appropriation provides 47% ($35,801,900 for general operations plus $2,109,000 for non-instructional shared services); state foundation funding provides 52%; other local sources 0.96%. Hold harmless funding (final year) accounts for nearly 2% of budget.
• Expenditures: Total $81 million, with 75.28% going directly to instruction, 86% to salaries and benefits. The budget balances by using $5.7 million from fund balance, leaving approximately $1.7 million reserve (above the 1.5% policy minimum).
• Non-instructional shared services request of $2,109,000 (slightly less than FY26) covers high school activities, student transportation, food services, community schools, and learn to swim.
• Discussion topics:
  • Fund balance usage and future sustainability: CFO Herbert explained that anticipated vacancies and health insurance waivers typically replenish fund balance during the year, creating a cyclical pattern.
  • Energy efficiency: District is using a Renew America's Schools grant for HVAC upgrades; operations manager can switch between heating oil and electricity to optimize costs.
  • After-school childcare: A proposal from the Chamber of Commerce for expanded summer childcare did not find an assembly sponsor for grant funding; some assembly members are considering an ordinance.
  • Communication and coordination: Extensive discussion about the failed Dzántik'i Héeni (Zontachini) playground project, which suffered from unclear roles and lack of transparency between the city and school district. Multiple members called for a better process for joint facility projects.

Key Outcomes

• Assembly Motion: Passed (7-0-2?) to direct CBJ staff to work with JSD staff to propose a process for better communication and decision-making on joint facility projects.
• School Board Motion: Passed (unanimously) mirroring the assembly motion, directing their staff to participate in developing the process.
• Next joint committee meeting scheduled for March 31, 2026, to discuss potential school bond debt and CIP priorities.