Manager warns Skagway faces multi‑million dollar building maintenance backlog; engineering recommended before bonding

Borough Manager Emily Deach presented the committee with condition-assessment results and a summary of 1–5 year maintenance priorities for four municipal buildings. She said the assessments identify substantial near-term needs and that the municipality does not currently have sufficient cash to complete all projects identified: "We don't have enough money," Deach said as she laid out options including bonding or phasing work over multiple years.

Deach itemized estimated costs in the packet: AB Hall roughly $2,300,000; McCabe about $4,200,000; the rec center about $5,800,000; and the school at $22,000,000 for the work identified in the 2023 assessment. She told the committee staff estimate about $1,000,000 in additional engineering is needed to refine costs and that construction for the 1–5 year items could total just under $18,000,000 in today's dollars. Deach and public works staff urged doing engineering now so the municipality can present clear project scopes if it later seeks bond funding.

Committee members discussed trade-offs between bonding and using sales-tax revenue. Staff noted current cost escalation has been estimated at about 6% annually, increasing the longer projects wait. Committee members said priorities will be necessary if the body chooses to phase work; members flagged the school and incinerator/waste‑management projects as especially high priority because of safety, operational, or cost‑saving implications.

Next steps: staff will continue engineering and develop priority scenarios and budget forecasts for the assembly and finance staff to review before any bond decision.