Kenai Peninsula Borough Assembly approves $300,000 appropriation for surplus school properties, adopts safety plan and advances several tax measures

The Kenai Peninsula Borough Assembly on June 8 enacted a $300,000 appropriation for utilities, maintenance and insurance of two surplus school properties, adopted a boroughwide safe streets and roads plan as part of the comprehensive plan, approved placing a Nanilchik Recreation Service Area on the ballot and took steps to advance several proposed sales-tax and property-tax measures to public hearing.

The actions matter because they change the borough’s near-term budget posture, make certain roadway projects eligible for federal dollars and send a voter-driven service-area proposal for community recreation — including a pool — to a referendum. The meeting also advanced multiple tax-related ordinances for public hearings on Aug. 5 in Homer, including proposals to adjust the sales-tax cap for inflation and to change the seasonal sales-tax rate schedule, moves that could affect borough revenues and homeowner tax burden if voters approve them.

Finance and appropriations

Finance Committee Chair Tunseth told the Assembly the substitute version of ordinance 20-25-19-01 reduces the original appropriation request for Sterling Elementary and the Nikolaevsk school surplus properties from an earlier estimate of about $720,000 to $300,000. The substitute — which the Assembly approved and then enacted by unanimous consent — was described repeatedly as an appropriation (money set aside) rather than immediate spending.

“This is money to be appropriated, not necessarily spent,” Tunseth said during the committee report. The ordinance authorizes funds for utilities, maintenance and insurance for fiscal year 2026 while final decisions about use and spending are still pending.

Other consent items enacted or set for hearing included ordinance 20-25-13, directing $30,958.82 in previously appropriated state grant funding to community projects (sponsored by the mayor) and ordinance 20-25-19-02, an estimated $70,000 appropriation for replacement of a storage array at the Soldotna Public Safety Communications Center to be paid from the 9-1-1 Capital Replacement Fund.

Public safety and land-use actions

The Assembly moved ordinance 20-25-11 to adopt the 2025 Kenai Peninsula Borough Safe Streets and Roads for All comprehensive safety action plan into the borough comprehensive plan. Assemblymember Eklund noted that placing projects in the plan would make them eligible for federal highway funding, a point attributed to a borough official during the policies committee discussion.

The body also enacted ordinance 20-25-12 to clarify conditional-use-permit requirements and to add a definition of “water dependent”; an administrative amendment to the code language passed by unanimous consent.

Nanilchik Recreation Service Area

Assemblymembers voted to place ordinance 20-25-17 on the ballot to establish a Nanilchik Recreation Service Area, which backers say would help restore use of the community pool. At the public hearing, Nanilchik resident Debbie Carey said the pool provides year-round senior and youth activity and that donors had pledged money to keep the facility open for the summer while the district and borough complete planning.

Tax measures: introductions, hearings and next steps

The Assembly introduced several tax-related ordinances and set public hearings for Aug. 5 in Homer: ordinance 20-25-14 to amend KPB 5.18.430 to annually adjust the sales-tax cap for inflation; ordinance 20-25-15 to amend KPB 5.18.100 to impose a seasonal sales-tax rate schedule (proposed quarters: first and fourth quarters at 2 percent, second and third at 4 percent); and ordinance 20-25-16 to raise the residential property tax exemption from $50,000 to $75,000, subject to voter approval. Finance estimates the $75,000 exemption would reduce borough property tax revenue by roughly $1.9 million.

Vice President Cooper, a sponsor of the seasonal-sales-tax ordinance, said the measure is intended to be net-neutral for residents and to generate revenue that could be offset by a future mill-rate reduction. The tourism industry working group discussed options including a lodging (bed) tax and the seasonal-sales approach; that working group’s report recommended several options, including taking no action.

Resolution on seasonal-tax working group postponed

The Assembly also considered resolution 20-25-030, to establish a seasonal-tax working group for further study. After debate, members moved to postpone the resolution to the next regular meeting and place it on the agenda before the Aug. 5 public hearings. The motion to postpone carried 5–4. The clerk recorded the four “no” votes as Cast by Assemblymembers Tunceth (Tunseth), Cooper, Ribbons and Basen.

Other actions

The Assembly accepted the resignation of Assemblymember James Basen and declared the seat vacant (resolution 20-25-029), confirmed several appointments to service-area and advisory boards and moved other consent items as read by the clerk.

Public comment and next steps

Speakers in public comment endorsed recent grant awards to local transit agencies and commended the borough for matching funds that helped secure vans and vouchers for human-service transportation programs. The Assembly’s next regular meeting will be Aug. 5 at 6 p.m. at the Porcupine Theatre in Homer, with remote participation available; several of the introduced tax measures are scheduled for public hearing at that session.

Ending note: the body front-loaded finance and tax items at this meeting; several proposals will return to the Assembly after the Aug. 5 public hearings for further action or placement on the November ballot.