Juneau may have to pay 25% of fast-tracked long-term flood fix, vs 10% for conventional project

Higher cost share is because Army Corps is pursuing project under emergency authority, according to city manager; Assembly to discuss flood-cost issues at COW meeting Monday

U.S. Army Corps of Engineers members from its Emergency Operations team walk near HESCO barriers installed by Brotherhood Bridge on April 15, 2026. (Jasz Garrett / Juneau Independent)

By Mark Sabbatini

Juneau Independent

An accelerated long-term flood solution that costs half as much as conventional proposals could end up being more expensive for the city since it might have to pay 25% rather than 10% of the bill, according to a memo being presented to the Juneau Assembly on Monday.

However, efforts are being made to reduce the cost-share percentage for a fast-tracked project, according to the memo by City Manager Katie Koester. Also, until a permanent flood fix is in place the city faces millions of dollars in annual maintenance and related costs involving HESCO barriers and other short-term flood protection measures.

The cost-share question is part of a range of issues involving flood-related funding the Assembly is scheduled to consider at its Committee of the Whole meeting at 6 p.m. Monday.

The U.S. Army Corps of Engineers, which previously was discussing long-term flood projects that might cost $1 billion and take more than a decade to complete, is now seeking an industry partner who can design and implement a project faster and cheaper. The intent is to sign an agreement by the end of the year.

Local mining officials have stated they have the expertise to complete a project such as a drainage tunnel from Suicide Basin for hundreds of millions of dollars less than what the Army Corps has proposed. But even if the cost is reduced by half — say to $500 million instead of $1 billion — the city could pay more ($125 million at a 25% cost share compared to $100 million at a 10% cost share) under the emergency authority provision.

"CBJ needs to be prepared to fund a local cost share for an enduring solution," Koester notes in her memo. "Because USACE is now pursuing this project under emergency authority, the funding cost share is 75/25 instead of 90/10. CBJ is still working with USACE on how to influence that cost share (through named legislation, for example). However, the local ask will be significant."

Koester, in a text message Friday to the Juneau Independent, stated there is a default 65/35 cost share split for conventional Army Corps projects, but the 90/10 ratio for a local flood project is based on it being on tribal lands. She said the tribal land provision does not apply to emergency authority projects.

Because the city’s cost share will be high, regardless of what the percentage is, obtaining funds via means such as a separate property tax or municipal bond will need to be pursued, according to Koester. Moving ahead on such a measure during the coming months will be important as city leaders also appeal to federal and state officials for funding.

"It would be strategic to make this ask with a local commitment from the voters in hand," she wrote. "I suggest a bond/debt question as soon as we have a more reliable total project cost in hand from USACE."

In the meantime, short-term flood mitigation is also proving costly, according to Koester.

"Just under $50M in federal, state, and local dollars was spent this summer alone to protect the Mendenhall Valley," she wrote.

The levees of HESCO barriers along the Mendenhall River and a network of pumps were effective in controlling this month’s glacial outburst flood that peaked at 14.7 feet, with minor damage reported to about a dozen homes. But even though the flood was the lowest in four years, there is still a hefty repair bill, according to Koester.

"Based on our experience with the 2025 GLOF, CBJ anticipates repairs to HESCO barriers and bank armoring

to range between $6M and $12M," she wrote. She noted the Army Corps conducted the repair work after last year’s flood, an essential cost savings since "we simply do not have the resources or capacity to do this work alone," but "CBJ will likely remain responsible for regular maintenance of the barriers (inspection, repairs due to settling, responding to vandalism, and refilling)."

• Contact Mark Sabbatini at editor@juneauindependent.com or (907) 957-2306.