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Assembly presses for facility project list as FY2026 budgets reviewed
Summary
The assembly reviewed FY2026 budget drafts for the general fund, special revenue and several enterprise funds. Members pressed staff for a prioritized, time-sensitive projects list, raised questions about school rent accounting and enterprise depreciation, and discussed several capital-transfer requests.
The Kodiak Island Borough Assembly used much of its April 24 work session to review draft FY2026 budgets for the general fund, building-and-grounds special revenue fund, and enterprise funds including the hospital, Kodiak Fisheries Research Center (KFRC) and research-core apartments.
The meeting revealed multiple line-item and policy questions rather than final decisions: assemblymembers asked staff for a prioritized list of facility projects, clarified how school rent and in-kind services appear in the special revenue fund, and pressed for clearer disclosure of FTE changes between the current year and FY2026.
Key budget items and staff responses
- School funding and rent: Assemblymember Jared asked whether the borough could “zero out” the rent charged to the Kodiak Island Borough School District to help meet a district ask. Staff explained the rent is treated in the buildings-and-grounds special revenue fund and is designated for building care; that in-kind services and repair appropriations are governed by fund restrictions and Department of Education rules.
- Request for project prioritization: Multiple members asked that staff provide a consolidated list of borough-owned facilities, the top needs for each (urgent, near-term, long-term), estimated costs and time sensitivity. Finance director Dora Cross and facilities staff said such a project list exists and will be provided; members said it should be delivered before first reading so the assembly can weigh competing priorities.
- Capital transfers proposed in an upcoming ordinance: Staff presented a quarterly budget-transfer ordinance (third-quarter adjustments) that includes a $450,000 transfer from the general fund to the Signal Hill (Mental Health Building) abatement and demolition project; $300,000 from buildings-and-grounds to the middle-school elevator modernization; and other reclassifications (examples: $1,125,000 to North Star School skylight and roof repairs; $250,000 for major school repairs) to align funds with project status.
- Enterprise funds and depreciation questions: Members asked how noncash depreciation in enterprise funds (for example the hospital and KFRC) relates to available cash for repairs. Staff explained enterprise accounting requires showing depreciation (noncash) while actual repair projects draw on fund balance and operating transfers; members asked for clearer reporting so repair needs are visible to the assembly.
- KFRC and capital needs: Assemblymembers queried several planned KFRC projects (including a new disinfection system and pump repairs) and asked for itemized cost estimates. Staff said the current KFRC capital plan includes a disinfection upgrade tied to a discharge permit requirement and pump overhaul work; some of the work is already budgeted but additional engineering and design figures will be provided.
Assembly direction and next steps: Staff was asked to (1) deliver a consolidated facility projects list with time sensitivity and rough cost estimates; (2) provide a clear table of FTE allocations showing current positions and proposed FY2026 changes; and (3) break out major capital requests (schools, Signal Hill, landfill and KFRC) so the assembly can prioritize funding ahead of first reading.
