AkGlobe News - Juneau: Assembly begins budget review process at April 5 Finance Committee meeting

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~ Juneau Assembly Begins Review of FY2026 Budget

The Juneau Assembly will commence 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. The meeting will take place in person at City Hall, but can also be accessed online at juneau.zoom.us/j/93917915176 or by calling 1-253-215-8782 with webinar ID: 939 1791 5176.

The proposed budget, which includes the school district, hospital, and all city enterprises, will be introduced by the City Manager during a Special Assembly meeting preceding the Finance Committee on April 5. The total budget amounts to $480 million, which is $8.9 million less than the FY25 Amended Budget. The main goal of this budget is to maintain current operations while also advancing Assembly priorities and ensuring continued services to the community. It includes a proposed property tax increase of 0.15 mills, resulting in a total mill levy rate of 10.19 mills.

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

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The majority of expenditures in FY26 are consistent with current services, with non-personnel costs in General Government increasing by less than one percent. However, there is some uncertainty regarding personnel costs due to ongoing collective bargaining agreements. Additionally, education funding costs continue to shift from the State to the City, resulting in an additional $570K in expenditures for FY26. However, this cost shift does not result in any additional funding for the School District.

The proposed recurring FY26 budget is balanced after considering a $1.75 million lapse and will have no impact on the general fund balance. The budget also includes $4.4 million in one-time expenditures, which will be funded from the City's unrestricted general fund balance.

The major components of the budget, including transfers between funds, are as follows:

- $95 million for the Juneau School District: This is 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.

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- $211.1 million for Enterprise Funds (hospital, airport, water and wastewater utilities, docks, and harbors): This reflects a $1.2 million (0.6%) increase, mainly due to small inflationary pressures.

- $148.3 million for General Government: This is a decrease of $13.7 million (8.5%), largely due to one-time capital investments and community grants issued in FY25.

- $61.1 million for Capital Improvement Projects: This represents a decrease of $19.6 million (24.2%), primarily 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: This remains flat compared to FY25 and includes the first payments for the public safety communication and wastewater utility infrastructure bonds that were approved by voters on the October 2024 ballot.

For more information on CBJ's proposed Biennial Budget for fiscal year 2026, interested parties can contact Finance Director Angie Flick at (907) 586-5215 or refer to the City Manager's Budget Message on pages 19-22.

Filed Under: Government, City

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