Juneau finance committee asks for ordinance to pay Eaglecrest deficit from general funds

Juneau's Assembly Finance Committee voted without objection Wednesday, on a motion by Mayor Beth Weldon, to have staff draft an ordinance paying off Eaglecrest Ski Area's accumulated deficit of about $2.5 million from unrestricted General Funds.

The money was already set aside. The Assembly had held $2,505,400 in its Restricted Budget Reserve against the deficit, and the ordinance would release that hold and pay from General Funds instead, according to the Nov. 16 tentative agenda. Nothing has been adopted.

"I've already said with a little bit extra revenue that I was going to look at protecting our restricted budget reserves," Weldon said, adding that the motion only sends a draft for members to consider. Committee Chair Ella Adkison said she would have staff draft a separate ordinance to make the reserve whole from fund balance.

The payoff didn't have to happen now. Finance Director Angie Flick's memo also offered paying from the reserve or leaving the fund negative until the fiscal 2028 budget. Asked by Assembly Member Neil Steininger whether waiting would cause trouble, Flick said there were "no real problems" because the reserve already covers the negative balance.

At a Nov. 2 meeting, Flick said the reserve held about $17.6 million and should hold $24 million, with $3.2 million out for glacier outburst flood costs and about $2.5 million set aside for Eaglecrest. Paying the ski area's deficit from unrestricted funds would take the reserve from $17 million to $19.5 million, she said.

Eaglecrest entered fiscal 2026 at negative $691,600 and lost another $1,807,800. The resulting $2,499,400 figure isn't final until fiscal 2026 is audited and closed. When it adopted that year's budget, the Assembly accepted a deficit of $2,531,600 on the assumption the ski area would soon be profitable.

Flick's March memo said the gondola was the revenue meant to repay the reserve. The Assembly voted 8-1 on May 18 to end the gondola deal, repaying Goldbelt up to $12.2 million. Flick wrote in March that a decision against the gondola would make it appropriate to permanently reduce the reserve and restore the Eaglecrest fund balance to zero. The committee's approach would instead zero the fund from General Funds and leave the reserve intact.

A Nov. 2 fiscal update projects fiscal 2027 ending with about $12.05 million in unrestricted fund balance, up from an expected $3.3 million.

Fiscal 2027 is balanced with a larger, partly one-time General Fund subsidy to Eaglecrest of $1,631,900, up from $880,000.

Eaglecrest General Manager Julie Piper told members season pass sales were up about 24% when first-tier sales closed at the end of September. A consultant's strategic business plan by SE Group says breaking even isn't a realistic goal within five years and urges the city to state what level of support it will accept. Flick said a joint meeting between the Assembly and the Eaglecrest board on the ski area's viability is now projected for January, with no date set.

The ordinance is on the tentative agenda for the Assembly's Nov. 16 meeting at 6 pm. City Manager Katie Koester recommends introducing it that night and setting a public hearing for Dec. 14.