Kenai adopts $42.1M budget with swim team grant, AV upgrades

Kenai City Council adopted a $42.1 million budget for fiscal year 2027 Wednesday night. The council added $476,402 to the original $41.6 million proposal through four amendments.

The council approved a $46,402 grant for the Peninsula Piranha swim team to cover utility costs if the team reaches an agreement with the Kenai Peninsula Borough School District to operate the Kenai pool. City Manager Eubank told the council the grant requires a formal agreement between the city and the swim team. The team must still secure an operating agreement with the school district. If no agreement is reached, the grant money will lapse back into the general fund. The amendment passed by unanimous consent.

The council also allocated $180,000 for council chambers audio and visual upgrades and $70,000 for airport revenue collection software. City Manager Eubank said the audio and visual project was not in the adopted capital plan. The $180,000 represented a high-end estimate. The airport operates as an enterprise fund, with revenues and expenses accounted separately from the city's general fund. City Manager Eubank estimated the software would recover about $130,000 annually in missed landing and parking fees.

A final amendment revised the ordinance totals to $42,110,296. It reduced the committed general fund balance for future capital improvements from $4,584,359 to $4,303,660.

The council approved the budget as amended by a 5-0 vote. The fiscal year commences July 1, 2026. Implementation falls to the city manager under council policy direction.