Juneau would shift $4.5 million from barrier construction to repairs and debt

Juneau would move about $4.5 million out of its glacial flood barrier construction account into two reserves: one to repair riverbank property the barriers tore up, and one to start paying back the state loan that financed the city's share.

The Assembly Finance Committee takes it up at a worksession Wednesday.

The smaller piece, $500,000, goes to the Lands Fund, set aside to restore riverbank property once the barriers come down. Eligible owners could apply for up to $25,000 each. The larger piece, $4,033,711, goes toward the state loan, drawing on general funds and budget reserves.

That loan carries 50 percent principal forgiveness, so Juneau owes no more than $12,922,500 of it. The reserve figure has grown since the ordinances were introduced Aug. 17, when Alaska News reported a $3,563,596 reserve toward the same loan.

There is more borrowing capacity than money to cover it. Of the $25,845,000 the state authorized, the first round of barrier work used $4.6 million and additional work is budgeted at $14.8 million, leaving $6.4 million available. Nothing is set aside for the $3.2 million local share that would come due if the city uses it all.

Not all of the system carries local debt. The Army Corps of Engineers supplied barrier material and paid for Phase 2 and for Phase 1 repairs at full federal cost.

Riverfront residents have objected on two fronts. In testimony on the Phase 1 assessment district, some argued a continuous barrier wall could change how the Mendenhall behaves during an outburst flood. Debbie Penrose-Fischer and Juneau Flood Solution Advocates called the per-parcel assessments inequitable, pointing to four riverfront owners charged $50,000 each for riprap armoring.

Both ordinances are tentatively set for public hearing Sept. 14.