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Finance committee recommends $40,000 study to assess cruise-passenger fee spending
Summary
Skagway's finance committee recommended the Assembly approve a $40,000 cruise passenger cost study (CPV) to quantify municipal services used by cruise passengers and to guide CPV spending. Staff cited prior audit findings and said the port will fund the study.
The Skagway Finance Committee on Jan. 15 voted to recommend the municipal assembly approve a $40,000 cruise passenger cost-study proposal from McKinley Research Group to determine how CPV (cruise passenger) fees are being spent and which municipal services benefit passengers.
Manager Deitch explained that CPV funds are collected by the state and must be spent on passenger benefits. She reviewed a past audit in which the municipality had been criticized for applying CPV funds to a playground project that also benefited the school, and said the purpose of the study is to provide up-to-date, defensible percentages for budgeting. “The purpose of the study is…to determine how we're spending CPV funds and whether it's appropriate,” Manager Deitch said.
Alex moved and Potter seconded a recommendation to the assembly to approve the study in an amount of $40,000. The committee voted unanimously to forward the recommendation. Members confirmed the port department's contractual line item will be used to fund the contract.
Committee members said updated data will help the municipality resist future audit findings and better allocate CPV revenues in departmental budgets.
