Soldotna council adopts biannual FY26–27 budget with pay and community grants as amended

The Soldotna City Council adopted Ordinance 2025-014 on June 11, 2025, approving the biannual operating budget for fiscal years 2026 and 2027 as amended.

The administration told the council its revenue assumptions include a 2% growth over FY25 for local sales projections and an estimated 5% increase in remote seller sales tax for FY26; taxable assessed values were described as rising about 7.6% year over year. The City Manager also noted an approximate 8% rise in health insurance costs. "We particularly noted that we are taking a conservative approach," the City Manager said during the presentation.

Vice Mayor Parker moved three administration-requested amendments that the council adopted by roll call: (1) update insurance renewal estimates using Alaska Public Risk Alliance actuals (an increase of roughly $18,200 in FY26 and a larger, specified increase in FY27), (2) reflect the city manager and city clerk wage and benefit increases following annual evaluations (FY26 increase about $15,428; FY27 about $9,358), and (3) increase funding to implement a retention pay program (FY26 about $100,052; FY27 about $23,216). Each amendment passed on recorded votes called by the clerk.

Councilman Chilson carried a separate amendment to support CARTs (a regional transportation/service nonprofit). Chilson said the city would appropriate $10,000 in each fiscal year but guarantee $5,000 annually and lock the remaining $5,000 in each year to be released only if a neighboring municipality (the City of Kenai) contributes more than $5,000; the city would match any amount above $5,000 up to an additional $5,000. "Every dollar that we can give them is exponentially benefiting the community through the access to grant dollars that they have," Chilson said. The motion passed 5–0.

The council also debated and amended a request from the Soldotna Little League. Council member Wexler moved to increase Little League funding by $8,000 for FY26 and FY27; after discussion the council amended the request to provide $8,000 for FY26 and $0 for FY27, with a requirement that the league report back on expenditures. That amendment and the main motion as amended passed on a 5–0 vote.

Vice Mayor Parker then moved an amendment that revised fund totals and produced the final budget figures before the council. The ordinance as amended passed on a 5–0 roll call vote and was adopted that evening.

What’s next: The ordinance was adopted as amended; the city manager and finance staff will report back as specified in several amendments (for example, notification/reporting when matching funds to CARTs are released and post‑expenditure reporting from Little League).