Kenai City Hall on Feb. 20, 2020, in Kenai, Alaska. (Photo by Victoria Petersen/Peninsula Clarion)

Kenai City Hall on Feb. 20, 2020, in Kenai, Alaska. (Photo by Victoria Petersen/Peninsula Clarion)

Kenai to kick off budget process with Saturday work session

Infrastructure is a key theme of the City of Kenai’s draft budget

Infrastructure is a key theme of the City of Kenai’s draft budget for the upcoming fiscal year.

The draft document, which will be the subject of a Saturday work session with city department heads and members of the Kenai City Council, covers the fiscal year 2024, which runs from July 1, 2023, to June 30, 2024.

Kenai City Manager Terry Eubank wrote in an introductory letter accompanying the draft budget that the city is uniquely positioned to make “overdue strategic investments” in the city’s aging infrastructure. That, he said, is because of tax revenue growth and federal stimulus programs.

Eubank and Kenai Mayor Brian Gabriel reported during their “State of the City” address earlier this month that Kenai has seen 22 consecutive quarters of year-over-year sales tax growth. That announcement came as the city finalizes work on the bluff erosion project, which secured crucial boosts from state and federal funding opportunities.

Kenai is able to commit about $5.7 million in general fund reserves for its five-year capital plan, Eubank wrote. The proposal would have an additional $1.9 million transferred to various city funds for capital projects.

Among the city’s other initiatives for the upcoming fiscal year, Eubank wrote, would be new initiatives to spur economic activity in Kenai. He specifically identifies the creation of a program that would revitalize the city’s older structures and make the first $100,000 of business property tax exempt.

No changes are being proposed to Kenai’s sales tax of 3% or to the city’s mill rate at 4.35 mills. Mill rates are used to figure out how much someone will pay in property taxes during a certain fiscal year. To calculate how much property tax they expect to pay, an individual must divide the mill rate by 1,000 and then multiply that by their property’s taxable value.

“Over the last several years, a combination of Federal stimulus and tax revenue growth has put the City in a unique position to make overdue strategic investments in our aging infrastructure,” Eubank wrote. “This has provided long-term benefits while also providing financial stability by lessening the tax burden for our residents now and into the future.”

The Kenai City Council will convene with city administrators for an all-day budget work session this Saturday at Kenai City Hall.

Reach reporter Ashlyn O’Hara at ashlyn.ohara@peninsulaclarion.com.

More in News

Gov. Mike Dunleavy speaks to reporters during a press conference at the Alaska State Capitol on Thursday, April 17, 2025. (Mark Sabbatini / Juneau Empire file photo)
Dunleavy orders freeze on state employee hiring, travel and new regulations due to fiscal crunch

Exemptions allowed for certain occupations and “mission-critical” purposes.

Students stock rainbow trout into Johnson Lake during Salmon Celebration, hosted by the Alaska Department of Fish and Game near Kasilof, Alaska, on Wednesday, May 7, 2025. (Jake Dye/Peninsula Clarion)
Celebrating the cycle of life

The annual Kenai Peninsula Salmon Celebration caps off the Salmon in the Classroom program.

State of Alaska Department of Law logo. Photo courtesy of the State of Alaska Department of Law
Homer woman sentenced for 2020 murder

Sarah Dayan was convicted in December for the murder of Keith Huss.

Borough Mayor Peter Micciche speaks during a meeting of the Kenai Peninsula Borough Assembly in Soldotna, Alaska, on Tuesday, May 6, 2025. (Jake Dye/Peninsula Clarion)
Borough mayor proposes mill rate decrease in $180M draft budget

The budget also follows his “balanced budget philosophy” of spending increases at or below around 2.5% year-over-year.

Kenaitze Indian Tribe chemical dependency councilor Jamie Ball performs during a candlelight vigil marking National Day of Awareness for Missing and Murdered Indigenous Women and Girls at the Raven Plaza, Ggugguyni T’uh, in front of the Dena’ina Wellness Center in Kenai, Alaska, on Monday, May 5, 2025. (Jake Dye/Peninsula Clarion)
Vigil recognizes missing and murdered Indigenous women on national awareness day

Alaska Native women are overrepresented in the populations of domestic violence and rape victims in the state.

Gov. Mike Dunleavy (R-Alaska) speaks to reporters about his decision to veto an education funding bill at the Alaska State Capitol on Thursday, April 17, 2025. (Jasz Garrett / Juneau Empire file photo)
Dunleavy threatens unprecedented veto of education funds in budget unless his policy goals are met

Line-item veto could leave districts with less money for months; legality of such action is questioned

A scene from the PBS children’s series “Molly of Denali.” (WGBH Educational Foundation photo)
‘Molly of Denali’ and other PBS children’s programs on hold as Trump cancels funds

Emmy-winning Juneau writer of “Molly” says PBS told creators the series isn’t being renewed.

A few clouds disrupt the sunlight in downtown Juneau on an otherwise bright day. (Jasz Garrett / Juneau Empire file photo)
Alaska ranks 49th, ahead of only Louisiana, in U.S. News & World Report’s annual Best States survey

State drops from 45th a year ago, led by large drops in opportunity and fiscal stability.

Most Read