The City and Borough of Juneau (CBJ) Assembly formally adopted the Fiscal Year 2027 (FY2027) Municipal Budget and took action on several additional items after public testimony and assembly discussion during a five-hour meeting on June 8 at City Hall.
The FY2027 Municipal Budget was adopted as amended. Notable amendments include service reductions in the form of funding cuts to the Juneau-Douglas City Museum, the Parks & Recreation landscaping budget, Arboretum and Administration departments, the sale of the Mount Jumbo Gym as well as one-time cuts to capital projects and $770,000 in cuts to Partner Agency grants. The budget also included over $4 million in general cost reductions. These cuts came after months of deliberation following the results of the October 2025 Regular Municipal Election, where the passage of Propositions 1 and 2 resulted in significant revenue reductions to CBJ’s general fund.
Other key components of the FY2027 budget approval were the adoption of a 9.92 mill property tax rate for the fiscal year, and an updated five-year Capital Improvement Program.
Three amendments to the municipal sales tax that would increase revenue for CBJ were approved at last night’s meeting:
- The single-item and single-service sales tax cap was raised to $50,000 from $15,000, with a special exemption that the cap remain at $15,000 for car purchases of $50,000 or less;
- The $30 credit for timely online sales tax filing was eliminated;
- The geographic boundaries for CBJ sales tax collection aboard cruise ships were expanded to include sales in 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). CBJ will now cover 100% of the 2025 HESCO improvement costs — removing the previous 40% cost share to property owners who live 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. The pyrolysis project is estimated to reduce CBJ wastewater disposal costs by over $2 million annually.
To review the full list of items introduced, discussed and approved at the June 8 Assembly meeting and to watch recording of the meeting, visit juneauak.portal.civicclerk.com.