Borough proposes $580K budget with new staff, building upgrades

The Kodiak Island Borough Assembly reviewed the proposed fiscal year 2027 budget Wednesday night. The plan includes new staff positions, energy cost savings, and accessibility improvements.

The budget adds a construction management position to the engineering department to handle hospital projects. Borough Manager Aimee Williams said the position will pay for itself over time.

"We are looking to add another person to the projects office to assist with construction management and the handling of the additional hospital projects," Williams said. "But in the long run, I think we'll save that fund way more than that position costs."

The borough has nearly eliminated its reliance on diesel heating at the borough building by switching to an electric boiler. Assembly Chair Scott Johnson noted the timing of the switch.

"We use the electric boiler almost exclusively," Johnson said. "And how lucky are we right now when you look at the price of diesel that we don't have to be completely reliant on that."

The budget includes $147,000 for an ADA accessibility project at the borough building entrance. Johnson said the need became clear after watching residents with mobility devices struggle to enter the building.

"We are planning an entryway project to make our sidewalks, our door, and our entry ADA to better meet the needs of the community," Johnson said. "It's something I don't really think about until I saw someone with a walker with wheels try to get in our building, and it was pretty bad."

The project will grind down high sections of sidewalk and add cement to low areas. The doors alone carry a significant cost. Any major changes will require installing an exterior button to open the doors automatically.

Insurance costs are dropping by more than $40,000. The borough earned prevention credits through maintenance staff conducting self-evaluations of borough buildings. Williams said the Alaska Rural Property Insurance Association had originally planned to visit and appraise all insured buildings across the state but shifted to a prevention credit system instead.

Maintenance staff completed evaluations at multiple locations. They checked the Port Lions School during a fire project visit and other rural schools when staff traveled for other purposes.

The engineering and facilities department budget shows lower-than-expected salary expenditures for fiscal year 2026. The engineering facilities director position has been vacant for about eight months. Williams said some employees received additional pay to cover extra duties, but the main position salary was not paid out.

The department also lacks an environmental specialist, further reducing salary costs. Williams said the borough has been trying to recruit for the position, including considering a candidate from Wyoming. The borough could not justify the $6,000 relocation cost.

The borough building now runs almost entirely on its electric boiler rather than diesel. The change saves significant fuel costs. The electric system was installed by Kodiak Electric Association, which told the borough it could require switching to diesel during periods of high electricity demand. That has not happened. The borough hopes to continue operating on electricity alone. Williams said she is confident in the energy budget numbers for the coming year.

Johnson noted that borough tenants including the YMCA and Red Cross benefit from affordable space in borough buildings. Their rent covers expenses. The arrangement provides the organizations with parking and proximity to schools while avoiding costs to the borough's funds.

Johnson emphasized the budget's cautious approach given competing demands. "As we're in a year in which we have a lot of competing demands, I don't want to add extra in unless we like really think that we know that we're going to need it, because I would hate to have $50,000 sitting there that we don't need and then it not going somewhere else," Johnson said.

The assembly will continue budget discussions at future work sessions before adopting the final budget for fiscal year 2027. The fiscal year begins July 1.