After months of work, the Skagway Borough Assembly finally approved its 2026 budget at its December 4 meeting. And, though the budget still funds several capital improvement projects, Assembly members were able to trim almost $1 million from when their previous reading in November.
The 2026 budget was approved at $13.3 million, down more than $960 from its second reading in November.
“We’re trying to spread it (funds) to many needs, many problems and many wants across a budget that works,” said Skagway Borough Mayor Orion Hanson. “It’s a challenge.”
Assembly members wrapped up the budget process by unanimously approving an amended budget at the third and final reading. Among the items included in the new budget, which goes into effect on January 1, 2026, is approximately $54,000 for the Municipality to fill an IT technician position. The position will be based on 30 hours per week and will come without benefits.
Additionally, Assembly papers set aside $100,000 for the remodeling of the Port of Skagway office. Half of the funds had already been figured into the budget. The other $50,000 come from the cancellation of the Wave Barrier project. The Wave Barrier project was expected to cost Skagway $1.5 million, but was deemed unnecessary in October when KPFF divers inspected the municipality’s steel pipe piles and panels forming its current wave barrier and determined them to be in good overall condition.
Assembly members also pushed through an amendment that calls for $27,500 for five new picnic tables, two commercial dryers and repairs to existing laundry equipment and electrical needs at the Garden City RV Park.
In other business, the Assembly unanimously rejected a “Cruise Passenger Costs to the Municipality of Skagway” from the McKinley Research Group, LLC due to inaccurate figures.
They also voted to postpone a decision on Resolution No. 25-29R calling for the borough to approve a conceptual rendering from architects as part of its Main Street redevelopment project. The Assembly voted unanimously to reduce the scope of the sidewalks in Concept 5, reducing them from 10 feet wide to 8, with the creation of a “green strip” area between the sidewalk and the curb. The inclusion of the “green strip” will offer numerous environmental benefits, including natural filtering of water escaping onto the roadways and, by extension, into the waterways.
The postponement will be until engineers can develop and deliver new updates.
The Assembly also authorized Borough Manager Emily Deach to draft a letter to the Church of Latter Day Saints informing them the borough was not interested in selling the site of the former clinic site. The Municipality has previously maintained it plans to build on the property, when it’s status in a bond process is determined.
The LDS church has expressed an interest in the property twice via letters.
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