The City and Borough of Juneau Assembly Finance Committee approved a plan to spend $4.68 million in funds expected to come from Juneau’s Marine Passenger Fee in 2012.
With nearly 1 million cruise passengers expected to visit Alaska this summer, the city is already slicing up its piece of the pie for projects and programs in fiscal year 2013.
City Manager Kim Kiefer presented her plan to the Assembly Finance Committee on Wednesday night.
Under the plan, passenger fee funds will go to help maintain flower beds and grass, fund crosswalk guards and reimburse special training of city safety and emergency workers that deal with cruise ships or cruise passengers. Funds go to beef up security along the waterfront and to keep public restrooms clean.
Capital City Fire and Rescue typically recoups only 36 percent of costs incurred in rescue of cruise passengers. Kiefer budgeted $25,000 to help offset these losses. Another $50,000 is dedicated to offset emergency response costs incurred by the non-profit Air Rescue Northwest.
Injured and sick cruise passengers have helped put many miles on Juneau’s ambulance fleet. On one ambulance in particular in 2011, 465 out of 482 transports were related to the cruise industry. $175,000 in 2012 passenger fees will help purchase a new ambulance.
Half a million dollars is earmarked for upgrades to the city’s steamship dock. The dock needs a new anti-corrosion system. Juneau’s waterfront walk project is set to receive $671,810 for continued design.
During Wednesday’s meeting, Assembly Member Jesse Kiehl moved to remove from the list a $25,000 appropriation for repairs and improvements to a retaining wall owned by Franklin Dock Enterprises.
“I’m trying to find a line, I’m trying to find a limit,” Kiehl said. He compared it to private retaining walls at Juneau residences holding back Mount Roberts.
Assembly Member Ruth Danner asked City Manager Kim Kiefer if the allocation was just “maintaining other people’s stuff?”
Kiefer said the project was funded last year and the company is asking for additional funds to finish. The stabilization of the slope and other improvements is needed, now or in association with the Sea Walk project.
“To me it is a very close tie to infrastructure that we want to do,” Kiefer said. “It’s a close tie to where we spend our money anyway.”
The sea walk project is in the public interest, Assembly Member Randy Wannamaker said.
“I believe it is an appropriate use in these circumstances,” Wannamaker said.
Assembly Member Ruth Danner said in contrast to last year when Juneau’s private docks received similar sums from the passenger fee fund, about $600,000 each, this year the AJ dock has a substantially larger sum. The culprit, she said, is a $175,000 atrium entrance to the dock. Danner asked if the allocation was appropriate.
Kiefer said she and her staff deemed all of the projects on the list as appropriate use of marine passenger funds.
”Otherwise they wouldn’t be on the list,” Kiefer said.
Mayor Bruce Botelho said the city never worked under the assumption of parity. All are equally welcome to submit projects, he said. But screening must be consistent and any given year “one would assume some difference of allocations,” Botelho said.
The committee passed Kiefer's final determinations on to the full Assembly without objection.
• Contact reporter Russell Stigall at 523-2276 or at russell.stigall@juneauempire.com.
Comments (17)
Add commentWas there a public hearing
Was there a public hearing process on all of these allocations? :p
Public Fees or Private Profits?
Passenger fees that come to the CBJ are the result of a 1999 local initiative, which was fought strenuously by the cruise industry and the two private dock owners. Marine passenger fees have now brought $50 million to the CBJ, revenues spent on public projects that benefit all passengers, ships and Juneau residents. However, the recent decision by the Assembly to direct more public fees to the private docks is unfortunate and misguided.
The same cruise lines and dock owners who lobby to oppose all fees and taxes now have both hands out in Alaska to scoop up what revenue remains. In the US, the cruise industry pays 1% total in all taxes, most of that to Alaska. These are passenger fees that should be spent on public waterfront projects, but not as a cover for private profits.
Chip Thoma, Responsible Cruising in Alaska
Tourism
It appears that all of the money is earmarked to benefit either the tourists directly or the tourism industry. I didn't see where any of the money is going to Capital Transit even though the tourists ride the city buses thereby making them more crowded. Can somebody please again tell me why tourism benefits the actual citizens of Juneau?
Capital Transit Revenue
Passenger fees (MPF) that have gone to Capital Transit in the last 10 years are detailed in a recent 4/12 MPF Expenditure History by the CBJ. In rough numbers, $2.4 million has gone to the local transit system, an average of $240,000 a year. This is an on-going expenditure that will continue.
No cruise ship funding
to assist in a new landfill? These guys bring a lot of garbage to town.
Free Landscaping
I think some cruise tourists walked by my house last year. Can I get some funds to spruce up my yard? I could also use a new deck. Thanks!
Sarcasm aside, I actually enjoy the clean and tidy look of the downtown area, the flower baskets, state flags, etc...
But I agree with Kiel that fixing the Princess Corporation's retaining wall with tax money DOES seem to be giving public money to help private industry.
The fund is fed by a targeted tax...
...and therefore those funds should be used to mitigate impacts and provide upgrades and improvements related to that targeted industry. I appreciate that the cruise lines pay this tax, allowing for city officials, who can ascertain the community need, to distribute the funds accordingly. It is also important to note that the cruiselines also provide millions in donations to nonprofit organizations throughout the communities of Alaska.
Private docks...and Rescue..
I have two questions:
First - if the private docks are (presumably) profitable, and how they collect their money - from the ships in docking fees, correct? Why would the city build an atrium on a private dock, any more than they would build a cover over the deck at El Sombrero? To me this reeks of 'good ol boy' handouts.
Second - why does City Fire and Rescue take a hit? Don't the passengers or the ships have insurance to pay for rescue and transport? It seems to me this would be a much better expenditure of city funds, to make sure these services are solvent for tourists and locals alike - than padding the pockets of private dock owners by taking care of all their maintenance, building, and upkeep for them.......
Water
How about using the funds to pay for a downtown water resevoir? They use enough water don't they?
Remarkable
It states on the CBJ website that the Passenger Fee was initiated " to assist in funding projects that enhance the tourism experience and offset community impacts created by the cruise ship industry." It seems the language is broad enough to allow the funds to be infused back into the companies which provide the passengers which provide the fees. Brilliant on the part of the cruise industry really - using a separate fee collected from passengers so various bits of the city's ongoing infrastructure maintenance and development - involved in enhancing the tourism experience - can be subsidized. Anyone for a game of Round Robbin?
On the point of the new ambulance. This is not defined as an additional ambulance or a replacement. If it is simply a replacement - what was the impact on denied service to residents - while the unit was busy 465 out of 482 transports with tourists? If this is an additional piece of apparatus - will it be in service year roud or seasonal & who will pay for staffing it?
Tax
30 year..
Passengers pay the tax the cruise lines contribute nothing to the fund. They do donate money to gain public support and many people would consider donations a cost doing business.
AKNUT - The cruiselines pay the tax...
It is the cruise lines responsibility to pay a per passenger fee. How the cruise lines collect this fee is their perogative. If I were to book a cruise on Princess, to visit SE ports on a 7 day inside passage cruise I would pay ~$120 in port fees per person in my cabin. This is $120 less that I will spend on goods and services on board the ship and on land. As a passenger my discretionary budget has decreased. If I have four people in my cabin, then I will have to pay $480 in fees on top of the normal cabin fare and therefore I may not be able to afford to cruise. If the cruise lines reduce the rates of their cabins, then their yield will be reduced. If their profits are less than potential profits in other areas of the world, then the cruise lines may just decide to leave Alaska.
Donations are not a cost of doing business, that's rediculous. I donate because I want to give back - pay it forward if you will. I also seek donations from businesses. Trust me, all businesses donate because they want to benefit communities they touch.
...
30...You stated: "the cruise lines pay this tax" the cruise lines do not pay the tax the passengers do. Fred Meyer's doesn't pay the sales tax the consumers do; Fred Meyer's does this because they have to otherwise they can't do business in Juneau. The same goes for the cruise lines.
The cruise lines get support from the community for their donations. Donations are a way to thank the community for supporting their business. The donations are also tax deductable for the companies meaning they get a financial break and community support for their business.
I never said that they have to make donations but if they did not support for them would be less and they would have a harder time convincing the city that we really need them. Afterall how do we benefit from a company that takes every penny it earns and give nothing back? Companies are in business to maximize their profits and every move they make is meant to do this.
Having worked in the industry previously for 6 years I know that the cruise lines generally don't much if anything on the cabins and fares. They do however make off like bandits for selling the tours. My experience has been that if a tour costs $200 on the ship they get to keep $100(I saw the amounts for several business that operate in Juneau). That's pretty good and a reason to keep coming back.
Nut...
The cruise lines provide revenue to the CBJ in their docking fees, and the head tax. They funnel consumers, short of 1M, into downtown Juneau every summer. Those consumers spend money in Juneau, providing for sales tax revenues to the CBJ and supporting local businesses (although there are non-local businesses supported as well). Many of these local businesses are shore excursions. How the local businesses choose to market and sell their tours is their responsiblity. Supply and Demand will dictate if they are pricing outside their market. And the indirect revenue allocation throughout the entire CBJ is exponential. It is not the lines that are responsible for ensuring that Juneau get a cut of their revenue, it is Juneau's responsibility to support industry that provides for it's comminuty.
If you don't want the cruise lines to conduct their business in Juneau, then just say so. I have yet to hear citizens complain that the cruise lines don't give enough to charitable organizations, and therefore are not welcome in Juneau.
...
30...try to keep on topic and do not put words into my mouth. I support the industry and benefit from it although minimally right now.
I will support a business that gives back to the community more than one that does not.
@30YR
Funny thing 30YR. Over the years, I've found my quality of life here in Juneau is diminished by the cruise/tourist industry. Our local leaders keep forgetting about the locals, when it comes to improvements.
I'm one of those Juneauites, who endure the long winter, to enjoy the summer activities...which is now completely overrun by tourism. Paying customers now take total priority over local citizens. Right down to the T-SHIRT Co..crossing guards stopping locals, but letting tourist vehicles through.
Your statement "Trust me, all businesses donate because they want to benefit communities they touch", is laughable. You're either naive, or full up to your ears. I'm leaning towards the latter.
Many businesses make charitable donations to get people to see them differently than they really are. It's the accepted way to buy local support that might not otherwise be there.
At least for some of us locals, there is still more to life than increasing profit margin.
Enjoy the sunshine, if you can get around the walking wallets.
4.7
4.7 Million.............really?