Juneau Parks and Recreation

Comprehensive Plan

July, 1996

Recommendations for land acquisition, project design and development, programming and ongoing maintenance and operation are identified in Chapter Eight of this plan. Funds to support these endeavors will need to come from a variety of sources given current budget limitations. If new sources of revenue are identified in the future, the Parks and Recreation Department should pursue those options as appropriate. The following list of funding opportunities is included for current consideration.

Park In Lieu Fees

These fees are commonly assessed by municipalities in the "Lower 48". The "in lieu" fee is one of two fees levied in the development of new subdivisions. The development of new neighborhoods drives the acquisition of park land for the benefit of the new residents.

The term "in lieu" refers to a cash contribution in lieu of land. Often smaller subdivisions warrant minimal dedication of acreage for parks. The neighborhood is better served if small contributions are consolidated, so payment of fees for land purchase within the planning area is most practical.

The fees are calculated by a formula adopted by local ordinance. Factors generally included in the calculation of fair "in lieu" fees include: the number of housing units to be provided, the average number of residents per unit, the fair market value of the land, and the number of developable acres within the subdivision.

Park Facility Development Fees

Park facility development fees provide money for the development of park sites. While park "in lieu" fees are levied at the time land is subdivided, these fees are typically assessed to the builder at the time a building permit is granted. Usually the amount paid is based on the number of bedrooms planned within the unit.

Real Estate Transfer Fee

This is a local tax assessed when real estate changes hands. It can be assessed on the buyer or seller or both. It can be imposed on raw land sales or on the sale of developed parcels. The funds generated can be appropriated according to the pleasure of the governing body.

Local Option Sales Tax

Juneau voters have shown support for sales tax initiatives related to park land acquisition in the past. Dimond Park and portions of the Mendenhall Greenbelt were acquired in this manner. After sufficient funds have been collected to achieve the goals in the sales tax initiative, the collection of the additional tax ceases. Since sales tax is generated by visitors and residents alike, this may be an appropriate mechanism for funding some recreation facility improvements.

Hotel/Motel Tax

In some communities, the hotel tax is tapped for improvements to the recreation system with the understanding that visitors benefit from these offerings as well. In Juneau, hotel taxes have been collected for approximately 12 years. To date, these revenues have supported the operation of the Centennial Hall Convention Center and have supported tourism marketing efforts.

Visitor Head Tax

If a head tax were levied on travelers to Juneau, it may be deemed appropriate for a portion of these revenues to be directed toward the provision of recreation opportunities that residents and visitors enjoy.

General Obligation Bonds

These bonds require voter approval for a specific purpose defined in the ballot measure. Ultimately an assessment is placed on the property tax rolls. This type of financing will drive the cost of a project up due to the debt service. Municipalities often look more favorably at bond indebtedness when interest rates are low.

Dedication of Percentage of City and Borough of Juneau Lands Fund

As City and Borough of Juneau (CBJ) lands are sold for new residential development, the CBJ Assembly may choose to adopt a policy of setting aside a percentage of the proceeds from the sale of land for the development of parks and recreation facilities to serve the growing population.

Resident Donation

The water and sewer bill could be rounded up with the overage being put into an account for Parks and Recreation.

Special Legislative Appropriations

These are special appropriations created during the state budget process. They are based on the ability of local legislators to influence spending for projects in their community.

Joint Public/Private Partnerships

Under this arrangement, the public agency could enter into an agreement with a private corporation or non-profit entity to cooperatively fund, build, and/or operate a community facility. Typically, the local government can offer land and tax advantages among other incentives. While a public agency may have to concede control or some responsibility, it is a way to develop public facilities at reduced cost.

Private Grants and Foundations

Local governments and park and recreation districts have successfully sought the support of private grantors and foundations for a wide range of projects.

Government Grants

Some grant opportunities related to parks and recreation are listed below. Government grants are becoming uncommon and are usually for modest sums of money when they are available.

Land and Water Conservation Fund: This is a federal grant program sponsored for the acquisition and development of parks and open space. In the early years after its inception, it was a significant funding source for local government. However, the federal government is currently diverting these funds to other programs. When available, it requires a 50% local match.

Intermodal Surface Transportation Efficiency Act (ISTEA): This is a source of federal money authorized through the Federal Highway Administration for transportation related enhancement activities and facilities. Some of the eligible projects include bikeways, scenic easements, historic preservation of transportation related facilities and recreational access. ISTEA grants do not require a specific local match; however, the local agency's ability to secure one is greatly enhanced by a local financial contribution.

Housing and Urban Development Grants: These grants, typically authorized as community development block grants from the Federal Department of Housing and Urban Development can be used for a wide variety of projects. Mostly they are restricted for use in lower income neighborhoods. Grants can be up to 100%.

Capital Development Fund

Local governments often develop revenue sources for capital improvement projects and schedule major capital expenditures. The fund is usually a six year program, renewed annually. The revenue stream associated with the fund is determined by the local governing body.

Transfer of Development Rights

This process is typically utilized when privately held lands desired as conservation areas or open space tracks are designated for preservation. The development rights of the desired parcel are transferred on a second parcel so that it can be developed for greater intensity. If the two parcels are owned by different property owners, the increased value of the second parcel is paid to the owner of the conservation parcel.

Appropriation Through the Annual Operating Budget

Funds for special studies or minor improvement projects can be funded out of the Department's annual budget if approved by the CBJ Assembly.