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Assembly discusses raising marine passenger fee to $8, with $3 dedicated to harbor enterprise fund
Summary
Assemblymembers discussed a proposal to increase the borough's marine passenger fee from $5 to $8 per visitor, with $3 of the increase earmarked for the harbor enterprise fund to help repay a recent transfer and support harbor operations.
The Petersburg Borough Assembly discussed a proposal on Aug. 4 to raise the marine passenger fee from $5 to $8 per passenger, directing an additional $3 per visitor to the borough’s Harbor Enterprise Fund.
Member Valentine introduced the discussion and said the borough receives roughly 10,000 cruise visitors annually; at that volume an extra $3 per passenger would return approximately $30,000 a year directly to the Harbor Enterprise Fund, she said. “No cruise ship can skirt this,” Valentine said, noting the fee applies to all visiting passenger vessels.
Members asked for context and possible alternatives. One assemblymember noted that larger Southeast ports charge substantially more — citing Juneau and Ketchikan figures referenced in a Ketchikan study — and suggested the borough might consider a steeper rate if warranted. Another member urged flexibility in how added revenue is spent, saying managers should retain discretion to shift funds among harbor needs.
Supporters argued a dedicated harbor share is a way to reimburse the enterprise fund for prior transfers and to fund harbor maintenance and services that benefit visiting passengers and the community. “Having that money go directly back to the harbor enterprise fund … gives back to the harbor fund if you're potentially taking from it as we negotiate with [a cruise line],” an assemblymember said.
No formal motion or vote was taken; the item remained a discussion point and will return as a formal proposal if the manager and assembly direct staff to draft ordinance language. Members said they want more detailed revenue projections and legal review before final action.
Valentine described comparative rates in other Alaska ports and said she chose a conservative increase to start the conversation. Assemblymembers raised questions about how increased passenger-related service calls (medical transports, emergency response) should factor into any fee increase.
The borough will not change the fee without subsequent formal action; staff were asked to return with a proposal if the assembly wants to pursue an increase.
