Juneau draft resolution would round cash payments to the city to the nearest nickel

A draft resolution before the Juneau Assembly Finance Committee on Wednesday would round every cash payment to the City and Borough of Juneau to the nearest five cents. The change would apply to city fees, fines and taxes paid in cash. Payments by check, electronic transfer, debit card or credit card would stay exact.

Finance Director Angie Flick requested the resolution, which the Law Department drafted, according to her Oct. 30 memo in the Assembly Finance Committee agenda packet. The memo says the city's bank no longer provides rolled pennies, and the city would stop using pennies once the resolution takes effect.

The rounding would follow a fixed schedule. Totals ending in 1, 2, 6 or 7 cents round down. Totals ending in 3, 4, 8 or 9 cents round up. A $1.22 cash bill would become $1.20. A $1.23 bill would become $1.25, and a $1.28 bill would become $1.30.

Rounding would apply only to the final cash total, after taxes, fees and discounts. The city would keep setting prices, charging sales tax and calculating fees the way it does now, so customers paying another way would still pay the exact amount.

The draft cites the U.S. Mint's end of penny production in November 2025, which it says contributed to penny shortages nationwide, including in Alaska. Flick's memo says the rounding method follows Government Finance Officers Association best practices and matches common private merchant practices. The Government Finance Officers Association has said pennies remain legal tender, with about 300 billion still in circulation nationwide.

A state bill would set a similar rule for retailers. House Bill 281, which would require retailers to round cash transactions to the nearest five cents, was advanced out of the House State Affairs Committee and referred to the House Finance Committee on May 13, and the Legislature's record shows no action since.

The committee, which includes all nine Assembly members, meets as a work session at 5:30 pm in the Assembly Chambers and online. The resolution is up for discussion, and staff have recommended the committee send it to the full Assembly for adoption. Under the draft, the rounding would take effect as soon as the Assembly adopts it.