Petersburg Assembly approves second reading of FY2026 budget; amends to explore $1 million contribution toward American Cruise Lines dock design

The Petersburg Borough Assembly on May 19 approved the second reading of the fiscal year 2026 budget, setting the borough’s spending plan for July 1, 2025, through June 30, 2026, and passed an amendment to direct further work exploring a $1,000,000 contribution from the harbor reserves toward a proposed dock facility for American Cruise Lines.

The budget passed by a 6–1 roll call vote, with Mayor Mark Jensen the lone dissenting vote. Member Newman moved the amendment to appropriate $1,000,000 from harbor reserves for a contribution to the proposed dock facility and to direct the borough manager to contact American Cruise Lines to seek agreement on a design — including consideration of “concept number 7” — and to return with a financial plan and timeline. Member Marsh seconded the amendment; it passed 6–1 with the mayor voting no. The amendment specifies that no funds may be spent without a subsequent assembly-approved written agreement.

Why it matters: The amendment would commit the borough to exploring a public‑private collaboration with American Cruise Lines, potentially affecting harbor operations, capital planning and the harbor enterprise fund, which is supported by harbor ratepayers. Assembly members and staff framed the amendment as an effort to keep the borough “at the table” during design discussions and to preserve local control over any new cruise facility.

Budget highlights and public testimony Members heard public testimony during a public hearing on the budget before the vote. Robin Taylor, superintendent of the Petersburg School District, thanked the borough for support to the school district as state funding remained uncertain after the governor vetoed House Bill 57. “We do at least appreciate knowing that there is a piece of fiscal security there to help support next year’s funds,” Taylor said.

Ashley Kawashima, president and founding member of Humanity in Progress, thanked the assembly for including the organization in the community services line item, saying that local support helps the group serve residents amid rising costs. Liz Bacon, a Mountain View Manor board member, described the borough’s proposed $42,000 line item for the program that delivers evening meals to homebound residents. Bacon said the program relies heavily on federal grant passthroughs and local support; she gave program details including that the program serves about 27 meals on average with roughly 95% delivered, and she said the average cost to prepare one meal is about $15.

Assembly debate and harbor concerns Assembly discussion before the amendment focused on balancing economic development opportunities with the harbor enterprise fund’s responsibility to maintain existing infrastructure. Harbormaster Wollan told the assembly the harbor had funds that could keep the borough “at the table” during design discussions but could not cover the full cost of a private facility. "The million dollars would, I believe, keep us at the table, in the design area," Wollan said.

Several assembly members supported pursuing talks with American Cruise Lines as a way to maintain local control over cruise operations and to relieve congestion at existing docks; others warned that taking $1,000,000 from the harbor enterprise fund — which is supported by harbor ratepayers — could reduce capacity to address existing infrastructure needs, including aging concrete floats and ongoing maintenance.

Next steps Because the amendment passed at the second reading, the proposed appropriation will move forward to the third reading where any final appropriation and written agreement would require a subsequent assembly vote. The main budget ordinance also passed its second reading; final adoption will follow the assembly’s remaining readings and any legally required public notice and process.

Votes at a glance - Ordinance 2025‑05 (FY2026 borough budget): second reading passed 6–1 (Mayor Jensen voted no). - Amendment to ordinance 2025‑05 to appropriate $1,000,000 from harbor reserves for discussions/design with American Cruise Lines: passed 6–1 (Mayor Jensen voted no). The amendment requires a later written agreement before any funds are spent.

What assembly members said - "This could be a great opportunity for a public private partnership," Member Stanton Greger said in support of the amendment. - "I'm not in support of taking a million dollars out of the harbor enterprise fund," Mayor Mark Jensen said, citing infrastructure needs.

Ending note Assembly members thanked staff for producing a balanced budget in a challenging fiscal environment and noted the item will return for final action in upcoming meetings.