Committee reviews borough costs to maintain former school properties; Sterling figures revised

The Kenai Peninsula Borough Finance Committee on July 8 heard an introduction to Ordinance 2025‑19‑01, which would appropriate funds to cover utilities, maintenance and insurance for school facilities the borough is taking custody of.

Robert Ruffner, planning director, told the committee the borough is accepting surplus school facilities from the school district and has estimated the costs to keep the buildings functional. He said the facilities have specialized features — including a sprinkler system and heating constraints because of soil conditions — that raise upkeep needs and that the borough is looking for a local caretaker to handle day‑to‑day oversight until a longer‑term plan is developed.

Ruffner estimated annual costs in the “$250,000–$300,000” range in his remarks but said he did not have the finance figures memorized. Finance staff later provided a more specific breakdown: administration staff said they initially used $360,000 per school when crunching numbers but that current estimates are Sterling Elementary nearer $320,000 and Nicolaides School nearer $300,000. The administration said it could amend the ordinance to reflect lower, school‑specific amounts.

Committee members asked whether the appropriation would be spent if the school district decided not to vacate a building. Mayor Michicky said appropriations are not spent automatically and that the borough would use only the funds necessary for any school actually relinquished. Members discussed amending the ordinance to remove Sterling Elementary from the appropriation if the district keeps it open; one committee member said the amendment could be offered later in the evening and staff confirmed that would be possible.

No formal action or vote occurred at the July 8 meeting. Administration staff said if additional funds were needed later in the year they would return to request them. A public hearing was scheduled for Aug. 5, 2025.