NOTN- The Juneau Assembly held an extensive meeting last night on the FY27 budget, it was also the last opportunity for public testimony.

During the meeting, city leaders moved ahead with a strained city budget that still trims popular services, including reduced funding for the Juneau Douglas City Museum, the closure of Mount Jumbo Gym, reduced funding for Travel Juneau and Jensen Olsen Arboretum.

It does however preserve both pools, the Diamond Park Fieldhouse and the Douglas Fire station.

Early in the evening officials approved a major change to the city’s sales tax code, raising the cap on single-item purchases to $50,000.

The final version also keeps a lower effective cap in place for most vehicle purchases.

“The situation that we find ourselves in is drastic.” Said Finance Chair Christine Woll, “If we pass the budget that we have put forward tonight, we will have passed a balanced budget, but only because we have eliminated all of our savings to do so. And next year we will look at a $7 million deficit that we will have not have savings to fill.”

Woll warned that without new revenue, the city could be forced to consider closing pools, Eaglecrest Ski Area, the city museum and other services next year.

The Assembly also passed separate measures to tax more onboard cruise ship sales, end a $30 online filing credit for businesses, and advanced debate on repealing a sales tax exemption for travel agent commissions, which small tour operators say would amount to double taxation.

Public testimony earlier in the meeting again targeted the planned $9 million demolition of Telephone Hill, with residents urging the Assembly to redirect that money to schools, housing and cultural institutions instead.

“I urge the assembly to take the $9 million that has been earmarked for the demolition and site work of Telephone Hill and diverted into something that the people want and need, that money belongs to the people of Juneau, and we should get a say in how it is used.” Said Joshua Adams.

Before passage of the FY 2027 budget, residents turned out in force to defend the Juneau‑Douglas City Museum.

“At a time when indigenous land acknowledgements are being removed from public places across the country, this assembly chooses to read one at the start of every meeting. By doing so, you honor a vital part of Juneau’s history, but we must ask ourselves, are we just talking the talk, or are we willing to walk the walk? Just as families cherish their history through heirlooms and photos, our community preserves our identity through the Juneau Douglas City Museum.” Said testifier Jean Mcbride.

Residents warned that deep staff cuts would “devastate” programs, erode public trust and jeopardize thousands of volunteer hours and donated artifacts.

“We’ve all been to the City Museum, and we all love the City Museum. Why in the dickens are you cutting half of its operating budget?” One testifier, Chuck Cohen said, “It doesn’t make any sense. It’s a very small percentage of a very large budget, and we have to get rid of the main director of the museum and the person responsible for public participation, that’s public participation by our children and by ourselves. I think you folks are very short-sighted.”

An effort to fully restore museum funding failed.

“I know that it’s not a large amount. I don’t know how much of an impact it will have, but I don’t feel right asking the community to give up so much.” Said Assembly Member Nano Brooks.

Members “begrudgingly” as Woll put it, passed the roughly $545 million budget, but they still did not meet their goal to cut $2 million in costs.

“I don’t want to make this cut. I don’t, I believe everything everyone said about what the impact will be long term for the museum, even if we want to live in a world where we get to bring the City Museum back, the same thing’s going to happen with Travel Juneau and Eaglecrest, they are going to suffer for the cuts that we are, right now, planning on making to them.” Woll said, “Our fund balance right now is one bad sales tax quarter away from having no funds to deal with our expenses, let alone a major natural disaster or other disaster, and we live in an uncertain world, and that’s what our fund balance is for.”

In a separate 5-4 vote, the Assembly also rejected a to shift $360,000 in marine passenger fees away from security and restroom costs at two private cruise docks and into a seawalk expansion project.

Some members argued cruise companies already collect enough in dock fees to cover those services and said residents don’t understand why the city isn’t “getting more benefit from the industry”

The Assembly moved ahead with a lower property tax rate, the long-term capital improvement plan, and several flood and wastewater projects backed by state revolving fund loans.

“This ordinance sets the mill rate at 9.29” Said City Manager Katie Koester.

With flood season approaching, officials are inviting residents to a public flood preparedness open house tonight, as they weigh costly long‑term protections for riverfront neighborhoods.

Representatives from the U.S. Army Corps of Engineers, the City and Borough of Juneau, the National Weather Service and the Central Council of the Tlingit & Haida Indian Tribes of Alaska will meet with residents  at 6 p.m. at Thunder Mountain Middle School to discuss risks and answer questions.

Officials said they are moving ahead on a “midterm solution” while reinforcing existing defenses this year, but warned that conditions and plans continue to shift.

The city expects annual maintenance for temporary Hesco barriers could run $6 million to $12 million, a cost that could drop if sheet piling is installed as a stronger, permanent river reinforcement.