Docks and Harbors presents FY27 budget, warns of lost marine and fish-tax revenue as major projects loom

Docks and Harbors officials presented the FY27 budgets to the City and Borough of Juneau Assembly finance committee on March 18, saying both the docks and harbors enterprises currently operate with revenues exceeding expenditures but will face significant capital demands and a temporary shift in revenues.

Harbour Master Matt Cresswell said the docks enterprise projects roughly $5.8 million in budgeted activity for FY27, and the department expects a contribution of about $692,000 to its fund balance for the year. He credited a recent change to dockage fees — which produced a near-doubling of cruise-related revenue late in FY26 — for a temporary spike that produced a transfer of about $2,464,000 from the docks enterprise to support CBJ (City and Borough of Juneau) operations.

"Once again our revenues exceed our expenditures," Cresswell said, but added that the fee changes and a separate decision to divert some state-shared revenue away from the enterprise mean "we won't have the same money we've had before to complete projects and other larger expenditures." He also noted a small staffing reprogramming — a roughly one-hundredth FTE adjustment to convert some part-time limited positions into a seven-month benefited harbor officer position — to improve coverage.

Port Director Carl Yukatel described the harbors enterprise as "financially solvent and strong," but said the budget will use fund balance to support capital projects. The harbors FY27 budget was shown at about $7.7 million, with a projected decrease in fund balance driven largely by planned capital work.

Officials outlined a slate of major multi-year projects that would alter long-term financing needs. Cresswell said the cruise-dock electrification study is underway with engineering support and anticipated 35% design by fall, and he estimated the full electrification program at or above $60 million. He also described a Statter Harbor feasibility study (three years, with Docks & Harbors responsible for at least $1.5 million of matching funds) and a potential wave-attenuator project that could total $100 million, with a local share in the ballpark of $20 million if the project advances.

Assembly members pressed staff on two revenue shifts that weaken Docks & Harbors’ traditional funding base: a change in how marine passenger and raw-fish (Alaska fisheries business) tax receipts are now being allocated to the general fund rather than directly to docks/harbors operations. "We wanted the revenue from the docks to increase so we could cover those expenses previously covered by marine passenger fees and so that some of the funding could come back to the community," Mayor Beth Weldon said. Several assembly members and harbor board members expressed concern about removing the raw fish tax from Docks & Harbors, saying that tax funds infrastructure used by the fishing industry.

Cresswell said the department remains operationally solvent but acknowledged that losing those traditional streams reduces money available for capital projects. He listed unanticipated FY26 costs, including recovery and response to the sank seiner Julianne (roughly $150,000 in immediate expense) and winter snow removal costs that had reached about $258,000 at the time of the meeting.

On operations and rates, Cresswell described a recent multi-year phased rate increase and an uninsured-vessel surcharge intended to limit the exposure from derelict or uninsured boats. The surcharge is set as a minimum of $1.00 per foot, a current rate of $1.50 per foot for uninsured vessels, with a cap of $3.00 per foot and an annual review by staff. Cresswell said the surcharge is intended to cover up to 20% of actual vessel disposal costs and to recover some costs from uninsured owners.

Board members and assembly members asked about specific capital priorities, including a potential new Aurora Harbor office, replacement floats at Taku Harbor, long-term North Douglas facilities, and recapitalization needs for the Alaska Steamship Wharf. Cresswell said the department will pursue state harbor matching grants and legislative action to raise the program cap to $7.5 million to make larger projects feasible.

The presentation closed with a list of long-term capital price points for planning purposes: dock electrification (~$60 million), a possible $100 million wave attenuator (local share ~$20 million), North Douglas long-tramp (~$30 million), steamship timber dock recapitalization (~$30 million), and a potential Fisherman's Terminal property purchase included as a placeholder (presenters used $10 million as an initial planning number). Cresswell and Port Director Yukatel emphasized they will continue coordinating with the assembly on grant strategies and design milestones.

The assembly recessed for a brief break before taking up the Juneau School District joint presentation.