Kenai staff present FY2026–2030 capital plan; $25 million FAA grant expected for runway work, adoption set for Jan. 15

City of Kenai staff on Wednesday presented a draft FY2026–2030 Capital Improvement Plan at a joint work session of the City Council and several advisory commissions, saying the plan will guide grant requests and the FY2026 operating budget and that formal adoption is scheduled for Jan. 15.

City Manager Terry said the document “serves as a foundation, for our efforts to solicit grant funds, both at the federal and state level,” and that the administration is targeting mid‑January for adoption to submit requests into the state CAPSIS system. Lee Fry, the city’s public works director, told the meeting the airport runway rehabilitation project is in design and that staff “are expecting around $25,000,000 of grant funds to be coming to us this fiscal year.”

Why it matters: the draft plan groups projects by fund (airport, general fund, water and sewer, and several smaller funds) and sets priorities that will determine which projects the city pursues with state and federal grant programs, local match funds and internal timing. Several large items are contingent on securing outside grants, staff said, which would delay construction if funding is not available.

Airport projects Lee Fry said the draft includes three near‑term airport priorities: completion of runway rehabilitation (design nearing completion), a taxiway rehabilitation project (design funded locally pending FAA grant timing) and a future roof replacement for the flight service/airport control building. Fry said the city anticipates adding local match funds to the runway project and is “expecting around $25,000,000 of grant funds” from the FAA this fiscal year. He also said the airport will not likely receive substantial FAA funding for terminal road and parking lot work because those assets generate revenue and the FAA typically limits…