Between Monday, December 4, and January 3, 2024, submissions for local projects funded through per-passenger cruise ship fees will be accepted, as per an announcement by the City and Borough of Juneau published on Friday.
The 1999-established US$5 per-passenger fee (endorsed by local voters) is allocated for "projects or operational services that provide services to cruise ships and passengers, and mitigate community impacts created by the cruise ship industry." Additionally, passengers contribute a $3 port development fee and a $5 state commercial passenger vessel excise tax.
With a record 1.66 million cruise ship passengers visiting Juneau this year, an estimated $21.6 million in funds is available. A review of passenger fee infrastructure requirements earlier this year identified over $218 million in potential projects from fiscal 2024 to 2028. These projects range from shore power installations to the acquisition of the Franklin and AJ docks.
However, due to a 2019 settlement resulting from a lawsuit against Cruise Lines International Association/CLIA Alaska, there are restrictions on how the city can allocate passenger fees. Alexandra Pierce, the city’s tourism manager, noted that funds can only be expended on matters directly related to cruise ships. She stated:
"We're pretty limited on how we can spend the fees, so we have to take that into consideration. We look at our infrastructure needs, we look at the projects that we really need to do, we look at the requests that fit into that. And sometimes we get great ideas that don't really fit within our passenger fee program, but are just a good idea for the local government."
City officials have proposed various projects in the past year, including $10 million to cover approximately half the cost of expanding the downtown Seawalk, $1 million towards the proposed Capital Civic Center, and $2 million for Marine Park improvements.