Juneau assembly tables nonprofit sales tax changes, approves flood funding
Published 4:30 am Wednesday, September 16, 2026
The City and Borough of Juneau (CBJ) advanced key flood mitigation funding measures and took up a controversial proposal to narrow sales tax exemptions for nonprofits during its regular meeting Monday night.
The assembly approved a package of ordinances tied to the ongoing glacial lake outburst flood (GLOF) response and the temporary HESCO barrier system along the Mendenhall River, which included accepting a $582,000 grant from the Tlingit Haida Regional Housing Authority for additional barrier phases and riverbank repairs.
Nearly $428,000 in FEMA reimbursement was appropriated for flood response and repairs, and $500,000 was transferred into a Lands Fund reserve for eventual riverbank restoration after the barriers are removed. More than $4 million was also moved into a Debt Service Fund reserve to help cover future repayment of the state HESCO loan.
Deputy city manager Robert Barr said that the grant would support repairs of riverbank damaged in the August 2024 flood that affected 173 tribally-owned residential structures and 470 families.
“This grant would contribute toward the repair of 1,300 linear feet of riverbank along the Mendenhall River that was damaged by the 2024 glacial lake outburst flood to protect homes from additional loss and damages,” he said.
The assembly also held a public hearing on an ordinance that would require most nonprofits to collect sales tax on good, services, and rentals they sell, with limited exceptions for social services and intermittent fundraising. CBJ staff estimated that the proposal could bring in up to $3.3 million in potential new revenue per year.
Public testimony was largely opposed, with speakers from various nonprofits arguing that the measure would add administrative burdens and reduce resources for mission work.
The motion to table the ordinance indefinitely passed by a vote of six to two, with assembly members Nano Brooks and Neil Steininger voting against the motion.
A 3% wage increase plus a one-time lump-sum payment of $2,000 was also approved by the assembly for city manager Katie Koester and municipal attorney Emily Wright. Koester’s salary rises from $236,371 to $243,462, and Wright’s salary reaches $214,925.
Brooks was the only member to vote against the increases.
