Assembly discusses raising marine passenger fee to replenish Harbor Enterprise Fund

Petersburg Borough Assembly members on Aug. 4 discussed a proposal to increase the borough’s marine passenger fee from $5 to $8 per person and to direct the additional $3 per passenger into the Harbor Enterprise Fund.

Member Valentine introduced the discussion and explained the rationale: with roughly 10,000 cruise passengers visiting Petersburg in a typical year, an extra $3 per passenger would yield roughly $30,000 annually that could be dedicated to the harbor enterprise to help replenish funds drawn down for negotiations with a cruise operator or for capital projects. Valentine proposed that $5 of the $8 remain in the general marine passenger fee fund (used for restroom maintenance, harbor services and visitor‑related costs) and $3 be routed directly to the Harbor Enterprise Fund.

Members raised questions about whether $8 is an appropriate rate, and some suggested the borough could consider a higher fee that better reflects revenue from cruise guests. One member observed that larger ports charge substantially more (noting Ketchikan and Juneau as examples in a comparative study) and urged staff to model different scenarios. Concerns were also raised about how the borough would allocate money and the need to avoid overly prescriptive restrictions on how funds can be spent. Member Lynn recommended leaving some flexibility for the manager and finance staff to direct funds where most needed.

No ordinance or fee schedule change was introduced at the meeting. The item remained a discussion item; members asked staff to return with a formal proposal that includes revenue projections, allocation language and legal considerations before any fee change is scheduled for adoption.