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Kenai Peninsula Borough moves to appropriate $720,000 to maintain two closed school properties
Summary
The borough introduced an ordinance to appropriate $720,000 for utilities, maintenance and insurance of Sterling Elementary and Nicolaides School surplus properties as the borough prepares to assume responsibility after proposed closures.
The Kenai Peninsula Borough Finance Committee introduced an ordinance to appropriate $720,000 to cover utilities, maintenance and insurance costs for surplus property at Sterling Elementary and Nicolaides School, with a public hearing set for July 8, 2025.
The borough's mayor, Mayor Michicky, and borough staff said the appropriation is meant to prevent a funding gap at the start of the fiscal year while the borough finalizes cost estimates for each building. "This ordinance asked to appropriate $720,000 to support the 2 school closures that are currently proposed," Brandy Harbaugh, a staff member, told the committee.
Harbaugh said the $720,000 figure is based in part on an annual appropriation pattern: "720,000 was chosen because, so prep, is cared for through an annual appropriation of $360,000. We're currently at 319,000 of that $3.60. So it's possible that we'll, get to the top of that even in this fiscal year in the next couple of weeks. So, that's where the numbers are derived." She also said the two schools differ in cameras, geography, energy use and insurance exposure and staff are still finalizing building-specific numbers.
Mayor Michicky framed the appropriation as an interim measure while the borough examines longer-term options, including seeking legislative changes and exploring reuse or demolition: "I think we should talk about that more in the future, in the near future, because I think we have some work to do with the legislature." He listed possible outcomes such as leasing space to charter schools, repurposing gyms for community use, or demolishing buildings if reuse is not viable.
Assemblymember Cox asked whether the $720,000 would be an ongoing annual cost. Harbaugh and the mayor said the long-term expense depends on building-specific decisions, potential state action and local reuse or disposal options.
No vote was taken at the June 17 meeting; the ordinance is introduced for later consideration. The ordinance was brought by the mayor and will return with finalized per-building estimates and additional background from the school district and the borough's risk/insurance staff.
Clarifying details provided to the committee included the derivation of the $720,000 figure and the borough's plan to verify last year's energy and maintenance figures with the school district prior to final appropriation. The committee did not take formal action at the June 17 meeting.
