In court files, prosecutor Sadie Bond said the sentence was "demonstrably unfit" and Justice Virginia Schuler "erred in principle" in handing down the two-year conditional sentence, which allows the man to live at home and keep his job with the territorial government.
The man, who cannot be named pursuant to a court-ordered publication ban, was convicted July 9 of invitation to sexual touching and assault.
During the two-day trial, the Supreme Court heard the victim -- now in her teens -- was assaulted repeatedly over a period of nearly ten years and eventually attempted suicide.
In handing down the conditional sentence, Schuler highlighted several letters of support the man received from friends, including one from his pastor, who wrote: "I believe (his) passion is to shape the lives of his children in a positive way."
But Bond argued that Schuler "overemphasized the accused's previous good character," and gave too much credit to the man after he sought counselling for his daughter.