Kenai approves annual budget

Published 9:30 pm Wednesday, June 4, 2025

The Kenai City Council on Wednesday unanimously approved an annual budget for the coming fiscal year with flat sales and property taxes.

This year’s budget, according to a memo by City Manager Terry Eubank in the meeting notes, was developed based on budget goals established by the council in December and then was the subject of a work session last month.

The final budget was adopted with all seven members in favor. The draft budget says that the city expects to generate around $74.7 million in revenue next year while spending $85.7 million.

Kenai’s largest expense, 56% of the total spend, is capital outlay, or the money it will spend buying and maintaining facilities and equipment. Next is salaries and benefits, at 21%, and then services, at 12%.

The budget, per Eubank’s memo, includes increased grant funding for the Kenai Chamber of Commerce holiday fireworks and the Central Area Rural Transit System. This year’s budget also restores $1,000 in funding to the Kenai Watershed Forum that was cut last year.

At the council meeting on Wednesday, little discussion was held on the budget, though a series of amendments were offered to increase contributions to various local groups, mostly unsuccessfully. The budget was successfully amended to include a reclassification of the administrative assistant in the city clerk’s office — increasing pay for newly expanded responsibilities. Other successful amendments restored $500 in funding for Industry Appreciation Day that had been cut from the draft budget this year and added $500 in funding for Project Homeless Connect.

The draft budget also says that the city’s mill rate of 4.35 and its 6% sales tax will remain flat for the next fiscal year. The council separately approved those values during the same meeting.

The full budget document and a recording of the June 4 meeting can be found at kenai.city.

Reach reporter Jake Dye at jacob.dye@cmg-northwest2.go-vip.net/peninsulaclarion.