Juneau: Fiscal Year 2027 Budget, Sales Tax Amendments Approved at June 8 Assembly Meeting

~ Juneau, Alaska - The City and Borough of Juneau (CBJ) Assembly held a five-hour meeting on June 8 at City Hall, where they formally adopted the Fiscal Year 2027 (FY2027) Municipal Budget and took action on several additional items after public testimony and assembly discussion.

The FY2027 Municipal Budget was adopted with notable amendments, including service reductions in the form of funding cuts to various departments and programs. These cuts were a result of months of deliberation following the passage of Propositions 1 and 2 in the October 2025 Regular Municipal Election, which resulted in significant revenue reductions to CBJ's general fund.

Among the amendments were funding cuts to the Juneau-Douglas City Museum, Parks & Recreation landscaping budget, Arboretum and Administration departments, as well as one-time cuts to capital projects. Additionally, $770,000 was cut from Partner Agency grants and over $4 million in general cost reductions were included in the budget.

One key component of the FY2027 budget approval was the adoption of a 9.92 mill property tax rate for the fiscal year. The Assembly also approved an updated five-year Capital Improvement Program.

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In addition to the budget approval, three amendments to the municipal sales tax were also approved at the meeting. These amendments are expected to increase revenue for CBJ and include raising the single-item and single-service sales tax cap from $15,000 to $50,000 with a special exemption for car purchases under $50,000. The $30 credit for timely online sales tax filing was eliminated and geographic boundaries for CBJ sales tax collection aboard cruise ships were expanded to include all CBJ waters.

Over a dozen other items were introduced or up for action during Monday's meeting. One major item included Assembly approval of an ordinance restructuring the HESCO Barrier Project Phase 1 Local Improvement District (LID). This decision will now see CBJ covering 100% of the 2025 HESCO improvement costs, removing the previous 40% cost share for property owners within the LID.

The Assembly also approved forgivable loan funding for both HESCO barrier construction and for the design and construction of a pyrolysis unit for the Mendenhall Wastewater Treatment Plant. This project is estimated to reduce CBJ's wastewater disposal costs by over $2 million annually.

For a full list of items introduced, discussed, and approved at the June 8 Assembly meeting, as well as a recording of the meeting, visit juneauak.portal.civicclerk.com. Residents are encouraged to stay informed and engaged in their local government's decisions.

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