Kenai adopts $42.1M budget with swim team grant, airport upgrade

Kenai City Council adopted a $42.1 million budget for fiscal year 2027 on June 3, approving three amendments totaling $296,402 that fund a swim team grant, airport billing automation, and council chambers technology upgrades.

The council approved $46,402 for Peninsula Piranha Swim Team utilities if the team reaches an agreement with the Kenai Peninsula Borough School District to operate the Kenai pool. City Manager Eubank said the amendment puts funding in the budget to allow the city to issue a grant, but the city still has to work on a grant agreement with the club. The club still has to get an agreement with the district to operate the pool. Sarah Castamore, the team's treasurer, thanked the council for considering the amendment.

A second amendment allocates $70,000 for an automated airport billing system expected to capture $130,000 in currently missed revenue from airport activity. Eubank said the administrative assistant and airport manager monitor landings and transient parkings only during normal business hours, missing evening and weekend activity. The new service will pull from three aviation databases to generate billings automatically.

The council also approved $180,000 for council chambers audio-visual upgrades. Council Member Grimmie said the current infrastructure is dated and does not offer the accessibility residents expect. The upgrade will include cameras that focus on speakers, new microphones, and screens at council seating so members can see presentations.

A fourth amendment proposing to reduce a human resources professional services line item by $4,800 was discussed but rescinded after council members agreed to work on developing an internal employee evaluation process. A final amendment updated the ordinance title and section totals to reflect the three approved increases and reduced the committed general fund balance for future capital improvements from $4,584,359 to $4,303,660.

The final budget totals $42,110,296 across all funds, up from the $41,633,894 draft. The council also adopted Ordinance 3524-2026, which codifies shift differential pay changes, changes the methodology for calculating incentive pay for police officers who receive incentive pay for certification with the Alaska Police Standards Council, and increases paramedic incentive pay from 5 percent to 15 percent. The changes take effect July 1.

The council also adopted resolutions fixing the property tax levy for fiscal year 2027 and amending the comprehensive schedule of rates, charges, and fees to incorporate fiscal year 2027 budget changes.

The budget passed 5-0. The council meets next on June 17.