Finance committee approves modified Eagle Crest budget, reserves $3.05M as board outlines multi‑year deficit plan

The Juneau City and Borough Assembly Finance Committee voted on May 14 to approve a modified budget for Eagle Crest and to set aside $3,045,800 in the restricted budget reserve to cover an anticipated multi‑year deficit.

The committee adopted “Option 2” from staff materials — a version of Eagle Crest’s request that restores a 0.61 full‑time equivalent revenue coordinator and reduces some other staffing and program increases. The committee also approved a separate $226,000 capital infusion for mountain maintenance and directed staff to reserve $3,045,800 to cover the program’s projected shortfall in FY26.

Why it matters: Eagle Crest, the city‑run mountain recreation area, is transitioning toward increased summer operations and expects several years of negative fund balances as it expands. Committee members and Eagle Crest board representatives said the shortfall stems from poor recent winter revenue, wage and staffing shortfalls, and deferred maintenance on lifts and buildings. The assembly’s choice to approve the modified budget and hold a multi‑million dollar reserve preserves the operation while the city and board continue planning for longer‑term solutions including summer gondola revenue and capital work.

Staff overview and questions

City Finance Director Christine Flick told the committee that Eagle Crest submitted a FY26 operating request of $6,324,900 plus $235,000 in one‑time items, and that staff included a $930,000 general‑fund subsidy in the manager’s proposed budget. Flick summarized the choices before the committee: allow Eagle Crest to operate with the full requested authority, reduce its operating authority, make a loan or a direct appropriation, or set aside restricted funds as a contingency. Flick cautioned that if the assembly allows an operating deficit, CBJ code requires a reserve be set aside to cover that deficit.

“Per our code, if we run a program into a deficit, we are required to set up a reserve,” Flick said.

Board outlook and timeline

Representatives from the Eagle Crest enterprise board described a multi‑year plan tied to expanding summer operations (including planned gondola activity) and to addressing pay and deferred maintenance. Board representative Michael Saitri said the board expects a period of negative fund balances as summer operations ramp up but argued the plan should produce positive cash flow in later years.

“We already knew going into this budget season… that we were going to be looking at negative fund balances to bring summer operations online,” Saitri said. He added a caution that “we can’t keep telling the public how we’re going to operate and then getting not enough money to meet those needs. We have to get the money first and then tell the public how we’re going to operate.”

Assembly concerns and reserve funding

Several assembly members expressed concern about the depth and duration of the projected deficit and about using the restricted budget reserve for operating needs. Assemblymember Bryson and others questioned whether the restricted reserve — intended for emergencies — was the appropriate source. Mayor Weldon said the committee must identify a funding source when it approves expenditures, and moved to reserve $3,300,000 to the restricted budget reserve earlier in the meeting; the assembly later adjusted the Eagle Crest reserve requirement to $3,045,800 as part of the adopted option.

Committee direction and follow up

The committee approved a motion to adopt Eagle Crest budget Option 2 (packet page 8) with the 0.61 FTE revenue coordinator restored; that motion required $3,045,800 to be reserved in the restricted budget reserve. The committee also directed staff to return with an analysis of what it would take to bring Eagle Crest employees onto the city wage schedule.

Votes at a glance (selected actions taken May 14, 2025)

- Adopt Eagle Crest budget, Option 2 (with revenue coordinator 0.61 FTE added back); reserve $3,045,800 in restricted budget reserve — approved (8–1). - Contribute $3,300,000 to the restricted budget reserve (separate pending‑list action earlier in the meeting) — approved (7–2). - Approve Klinka Hyatt/Click & Hyde Child Care tenant improvements: $1,000,000 (split: $500,000 grant up front, $500,000 recovered via lease adjustments over the lease term) — approved (7–2). - Defer Kahini playground site‑prep pending bond decision (referred to bond discussion) — approved to remain on pending list (5–4). - Remove a $423,000 equipment purchase from the pending list (streets equipment) — removed from pending list (approved by committee action). - Approve Eagle Crest CIP supplement of $226,000 for mountain maintenance — approved (no roll call objection recorded). - JCF social‑services grant increase (one‑time) — approved (final amount set at $250,000 one‑time after amendment). - Southeast Alaska Food Bank one‑time grant — approved $75,000 (roll call recorded; 5–4). - Juno Arts & Humanities Council: one‑time inflationary adjustment — approved (final one‑time increase $8,080; 5–4 on amendment). - Friends of Marie Drake Planetarium one‑time upgrade — approved $78,000 (6–3). - Downtown Business Association one‑time grant — approved $50,000 (7–2). - TrailMix (Eagle Crest trail construction) — motion failed (committee did not approve $54,000; failed by roll call). - United Way of Southeast Alaska disaster preparedness — approved as one‑time $40,000 (amendment from recurring to one‑time passed 5–4, then approved). - Coastal Alaska Avalanche Center backcountry forecast — approved one‑time $24,000 (6–3). - League of Women Voters capital visit program (school civic trips) — approved recurring $10,000 (amendment passed 6–3). - Reach Inc. group‑home heat‑pump / van request — approved $100,000 with a condition requiring grantee to first determine eligibility for existing state/local transportation or heat‑smart programs (motion as amended passed 6–3). - American Legion (veteran event rental support at Centennial Hall) — approved one‑time $2,000 (5–4).

What the committee did not decide tonight

Committee members agreed to continue some remaining budget ordinances and the mill‑rate and full CIP adoption to a follow‑up meeting. The committee also recessed into executive session to continue a collective‑bargaining update; the public meeting concluded after the executive‑session notice.

Context and next steps

Assembly members repeatedly noted that Eagle Crest’s longer‑term financial outlook depends on a combination of higher summer revenues, resolving deferred maintenance, and possible capital strategies such as bond measures or future partnerships. Staff said they will return with additional analysis, including more granular cost and revenue scenarios for the gondola and a staff report on the wage‑parity question for Eagle Crest employees.

The Finance Committee’s remaining budget votes and the city’s mill‑rate decisions are scheduled for follow‑up at the next finance committee meeting and then before the full assembly.

Ending

The committee passed a string of community grants and smaller capital changes before adjourning the public portion of the meeting and moving back into executive session to continue bargaining discussions. Staff and Eagle Crest board members will return with requested analyses ahead of the full assembly’s adoption of the FY26 budget.