The Kenai Peninsula Borough School District building is closed on March 26, 2020, in Soldotna, Alaska. (Victoria Petersen/Peninsula Clarion)

The Kenai Peninsula Borough School District building is closed on March 26, 2020, in Soldotna, Alaska. (Victoria Petersen/Peninsula Clarion)

Budget estimates down in face of pandemic

The borough finance department has had to adjust projections.

The Kenai Peninsula Borough’s budget will take a hit next year due to the global pandemic.

The proposed budget to be discussed at Tuesday’s borough assembly meeting estimates sales tax revenues to be nearly $5 million less than what the department originally budgeted, which was around $27 million. The $4.8 million projected loss of sales tax revenue is a 15% decrease from fiscal year 2020.

The budget will fund the borough’s annual fiscal year, running from July 1 until June 30 2021. Borough Mayor Charlie Pierce has submitted his proposed budget to the assembly, which appropriates $82,824,710 to the borough general fund. The budget funds each of the borough’s departments and assigns contributions to the Kenai Peninsula Borough School District.

A budget presentation included with the proposed budget document shows how other parts of the local economy will be impacted by the COVID-19 pandemic. The presentation says borough residents can expect to see decreasing assessed values, higher delinquency rates for property and sales taxes, high unemployment, low interest rates, low oil prices and higher mill rates or reduced services.

In the proposed budget document, the borough finance department is also projecting a $4.5 million decrease in property taxes, which is anticipated to reduce property tax collections and lower oil and gas property values. Since 2015, oil and gas assessed property has increased 31%, the document said.

The borough’s total budget includes $71,162,283 in revenues for the general fund, which is made up of $38,708,906 in property tax revenue, $27,431,594 in sales tax revenue, $705,000 in state revenue, $3,740,000 in federal revenue and $576,783 in “other revenues and financing sources.” Expenditures for FY 2021 are expected to exceed those revenues by $11,569,299. Compared to the FY 2020 budget, overall expenditures were reduced by $2,705,717.

The proposed budget includes $50 million for the school district, which is about $2 million less than the district received last year. The max amount the borough can contribute to the district is $52,776,437. The district will provide at least $45 million to the district, the assembly decided at their April 21 meeting.

In his proposed budget document, Pierce said basic services will be maintained at current levels.

Gov. Mike Dunleavy’s most recent vetoes of the community assistance funding and school bond debt reimbursement have been noted as “significant factors in the development” of the proposed budget, the document said. The community assistance veto is a reduction of $830,672 the borough was anticipating. Dunleavy’s veto of the state aid for school construction also reduces $2.6 million from the borough, which is proposed to be made up for by fund balance. Total state revenues are expected to decrease by $330,672, or 32% from FY 2020.

The proposed budget includes some funds to address maintenance and capital facility needs, including $1.25 million to the school facilities project fund to address school buildings.

The proposed budget increases funds for the borough’s solid waste program, due to the department’s ongoing maintenance and contractual obligations and storm water requirements, the document said. The solid waste funds are proposed at $7,962,312, an increase of $164,342 from FY 2020.

Service area budgets are comparable to their FY 2020 budgets, the document said.

The assembly will go through the budget line items over the next month to make adjustments and amendments, before the finalized budget is approved in June. The public will have a chance to speak on the proposed budget at the May 19 and June 2 meetings.

More in News

Coast Guardsmen and state employees load the Together Tree bound for the Alaska Governor’s Mansion on a truck on Nov. 29, 2021 after the Coast Guard Cutter Elderberry transported the tree from Wrangell. (USCG photo / Petty Officer 2nd Class Lexie Preston)
Governor’s mansion tree arrives in Juneau

No weather or floating lines could stay these Coast Guardsmen about their task.

The Kenai Community Library health section is seen on Tuesday, Oct. 26, 2021. The Kenai City Council voted during its Oct. 20 meeting to postpone the legislation approving grant funds after members of the community raised concerns about what books would be purchased with the money, as well as the agency awarding the grant. The council will reconsider the legislation on Wednesday, Dec. 1, 2021. (Camille Botello/Peninsula Clarion)
Kenai council to consider library grant again

The council earlier voted to postpone the legislation after concerns were raised about what books would be purchased.

EPA logo
Alaska Native group to receive EPA funds for clean water projects

The agency is handing out $4.3 million to participating tribal organizations nationwide.

fund
Study: PFD increases spending on kids among low-income families

New study looks at PFD spending by parents

Image via the Alaska Department of Environmental Conservation
Nikiski soil treatment facility moves ahead

The facility, located at 52520 Kenai Spur Highway, has drawn ire from community residents.

Commercial fishing and other boats are moored in the Homer Harbor in this file photo. (Photo by Michael Armstrong/Homer News)
Seawatch: Bycatch becomes hot issue

Dunleavy forms bycatch task force.

Rep. Chris Kurka, R-Wasilla, leaves the chambers of the Alaska House of Representatives on Friday, March 19, 2021, after an hour of delays concerning the wording on his mask. On Monday, Kurka announced he was running for governor in 2022. (Peter Segall / Juneau Empire)
Wasilla rep announces gubernatorial bid

Kurka said he was motivated to run by a sense of betrayal from Dunleavy.

The Joint Base Elmendorf-Richardson star is Illuminated on the side of Mount Gordon Lyon on Wednesday, Sept. 11, 2019, just east of Anchorage, Alaska, in observation of the 18th anniversary of the terrorist attacks. A crew from the base went to light the 300-foot wide holiday star, but found that only half of the star’s 350 or so lights were working, the Anchorage Daily News reported. Airmen from the 773rd Civil Engineer Squadron Electrical Shop haven’t been able to figure out what was wrong and repair the lights, but they plan to work through the week, if necessary, base spokesperson Erin Eaton said. (Bill Roth/Anchorage Daily News via AP)
Avalanche delays holiday tradition in Alaska’s largest city

ANCHORAGE — A holiday tradition in Alaska’s largest city for more than… Continue reading

AP Photo/Gregory Bull,File
In this Saturday, Jan. 18, 2020, photo, George Chakuchin, left, and Mick Chakuchin look out over the Bering Sea near Toksook Bay, Alaska. A federal grant will allow an extensive trail system to connect all four communities on Nelson Island, just off Alaska’s western coast. The $12 million grant will pay to take the trail the last link, from Toksook Bay, which received the federal money, to the community of Mertarvik, the new site for the village of Newtok. The village is moving because of erosion.
Federal grant will connect all 4 Nelson Island communities

BETHEL — A federal grant will allow an extensive trail system to… Continue reading

Most Read