Juneau officials outline phased flood-mitigation choices, funding sources and buyout option for vulnerable neighborhoods

City Manager Kester told the Juneau City and Borough Assembly Committee of the Whole the purpose of the staff memo was to frame the decisions the assembly will face ahead of the 2026 flood season and to request policy guidance rather than votes.

Kester said the Phase 1 local improvement district (LID) project is complete from a construction standpoint but remains to be “put a bow on” through certification of the assessment rule, which would allow property owners to seek exemptions or adjustments. “You also have an opportunity to adjust the amount of that LID payment. It just can't be more than $6,300,” Kester said, referencing the maximum amount shown in earlier notices.

Kester noted the city received $880,000 in outside funding for Phase 1 (transcript wording: “Click it in Haida was able to bring $880,000”) and that the Alaska Department of Environmental Conservation (DEC) has offered a 50% forgivable loan for construction-eligible elements of that work. Kester said those outside funds could be used to offset general-fund expenditures or reduce property-owner assessments.

Nut graf: The assembly spent most of the session asking for more engineering detail, clearer cost estimates and legal options for dividing cost responsibility between residential and commercial property owners. Staff repeatedly cautioned that Phase 2 — which would require armoring — is much more expensive and needs better cost estimates before the assembly can make decisions about assessments, special tax districts, or other financing.

Phase 2 uncertainty and questions for staff

Kester described a rough order-of-magnitu…