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Following some last-minute adjustments by city administration and the city council, Soldotna lawmakers on Wednesday approved a $15 million-plus budget for fiscal year 2009.

The council also set the property tax levy at 1.65 mills for the coming fiscal year.

City Manager Tom Boedeker asked the council to reduce the proposed expenditure for employee health insurance due to lowered premiums, increase the amount of assistance coming from the state for the Public Employee Retirement System by $305,679 and up the planned expenditure for fuel because of rising petroleum prices.

After the city council approved Boedeker's amendments to the budget, Councilman Peter Micciche offered a number of amendments of his own.

Saying his cuts were aimed at reducing an anticipated budget deficit, Micciche proposed deleting expenditures for installing sprinklers at city hall, building a cold storage building at the new city shops, eliminating one management position, cutting one youth hire job from the city library budget and trimming the city contribution to the visitors center by $6,800.

Boedeker pointed out that two of the proposed cuts -- the sprinklers and the cold storage building -- were capital expenditures and the expected deficit was in the operating budget, not the capital budget.

Micciche's fellow council members, except Scott McLane, however, agreed with all of Micciche's recommendations except cutting the library summer job opportunity and trimming the visitors center expenditure.

In other business, the council awarded a $950,686 contract to Peninsula Construction Inc. for extending city water and sewer service to Kenai Peninsula College.

Boedeker said earlier the contract covers digging and installing pipe along Chugach Drive to reach the city water main along Kalifornsky Beach Road, as well as fastening pipe with a trench portion at College Road. Boring under College Road was completed earlier.

A contract to pave areas around Soldotna Animal Control was approved as well. The council authorized awarding the $52,276 contract to Alaska RoadBuilders Inc.

To avoid the need to tear up new ball fields at Soldotna High School right after the school district builds them, Boedeker asked the council to fast track approval of installing water lines connecting a new city water well to an existing well house.

Boedeker said the city was aware of the Kenai Peninsula Borough's ball field project, but learned only last week that bids were received. The new well connector line goes right under the ball fields.

In order to get the line dug before the ball fields go in, a contract needs to be awarded without going through normal project advertising in the newspaper, Boedeker said. Work would need to start by June 27.

Area contractors have been notified of the project, according to Boedeker, and quotes are coming in.

"It just won't be advertised in the paper," he said.

To assure Soldotna residents are aware, Councilman Jim Stogsdill went on record asking that the council discuss the possible purchase of Birch Ridge golf course at the next council meeting June 25.

Owners Pat and Myrna Cowan have indicated plans to retire and offered the course for sale to the city to ensure it remains a golf course rather than be developed for some other use.

The city has not decided whether to proceed with a purchase.

During a public presentation, former Councilwoman Jane Stein told the council of an opportunity the Kenai Peninsula Foundation has for doubling its donations.

"We have a challenge from the Rasmuson Foundation for a 2-for-1 match if we attain a certain amount by June 30," Stein said. "We still need about $20,000."

The foundation strives to maximize donations to an endowment for the long-term benefit of the community.

Phil Hermanek can be reached at phillip.hermanek@peninsulaclarion.com.