Brandi Harbaugh gives a presentation during a joint work session on Tuesday, March 2, 2021, in Soldotna, Alaska. (Ashlyn O’Hara/Peninsula Clarion)

Brandi Harbaugh gives a presentation during a joint work session on Tuesday, March 2, 2021, in Soldotna, Alaska. (Ashlyn O’Hara/Peninsula Clarion)

Mill rate decrease, max school funding included in proposed borough budget

The final document is subject to approval by the Kenai Peninsula Borough Assembly

A mill rate decrease and maximum funding for the school district are components of Kenai Peninsula Borough Mayor Charlie Pierce’s proposed borough budget for the upcoming fiscal year. Fiscal year 2023 begins on July 1, 2022, and ends on June 30, 2023.

Pierce is proposing a mill rate decrease for the upcoming fiscal year, from 4.7 mills to 4.5 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.

About half of the Kenai Peninsula Borough’s revenues for the upcoming fiscal year are expected to come from property taxes, while another 25% is expected to come from sales taxes. All of the borough’s sales tax revenue goes toward funding KPBSD schools. In all, the borough is projecting about $160 million in revenues for fiscal year 2023.

The borough is projecting general fund revenues of about $88.4 million and general fund expenditures of about $94.8 million. Most of the money in the borough’s general fund — about 66% — is expected to go toward education, including for operating costs, debt service and capital projects.

All revenue generated by the borough through sales tax goes to the Kenai Peninsula Borough School District. The borough is currently estimating sales tax revenue of nearly $40 million for the upcoming fiscal year, which marks an increase of about $800,000 from what was forecast during the last fiscal year.

The remaining $12 million would come from property taxes, federal and state revenue and other sources. Also included in Pierce’s proposed budget is $5.25 million in funding for capital projects at school facilities, including money for the borough’s contribution to the construction of a new school in the remote community of Kachemak Selo.

The district last fall identified $420 million worth of maintenance, including $166 million worth of “critical needs.” The district is currently working with the borough to finalize a $65.5 million bond package that, if approved by the assembly, would go before voters this fall and, if passed, fund projects across the district.

The budget proposal also describes a roughly 10% — just over $525,000 — increase in the amount of money the borough expects to spend on various services, such as fees the borough pays to collect remote sales tax, increasing software costs and health insurance costs.

Among the new borough initiatives various borough departments expect to roll out during the upcoming fiscal year are the drawing of new assembly and school board district boundary lines that correspond to the reapportionment plan selected by voters, the completion of a swipe card program to increase safety at borough and school district buildings and the creation of an areawide five-year capital plan.

Also described in the budget as new initiatives are boosts to the borough’s cybersecurity infrastructure, a comprehensive review of borough code by the legal department and continued collaboration by the borough with the Alaska Department of Transportation and Public Facilities for the Cooper Landing Bypass Project.

The final borough budget is subject to approval by assembly members, who have the ability to amend the budget before it passes. The borough’s budget will be up for a second public hearing during the assembly’s June 7 meeting.

A full copy of the draft budget can be found on the borough’s website at

Reach reporter Ashlyn O’Hara at

More in News

Nate Rochon cleans fish after dipnetting in the Kasilof River, on June 25, 2019, in Kasilof, Alaska. (Photo by Victoria Petersen/Peninsula Clarion)
King closures continue; Kasilof dipnet opens Saturday

The early-run Kenai River king sport fishery remains closed, and fishing for kings of any size is prohibited

An "Al Gross for Congress" sign sits near the driveway to Gross’ home in Anchorage, Alaska, on Tuesday, June 21, 2022, after he announced plans to withdraw from the U.S. House race. Gross has given little explanation in two statements for why he is ending his campaign, and a woman who answered the door at the Gross home asked a reporter to leave the property. (AP Photo/Mark Thiessen)
Alaska judge rules Sweeney won’t advance to special election

JUNEAU — A state court judge ruled Friday that Alaska elections officials… Continue reading

Ashlyn O’Hara/Peninsula Clarion 
Soldotna City Manager Stephanie Queen listens to a presentation from Alaska Communications during a meeting of the Soldotna City Council on Wednesday, March 9, 2022 in Soldotna, Alaska.
ACS pilots fiber program in certain peninsula neighborhoods

The fiber to the home service will make available the fastest internet home speeds on the peninsula

Nurse Tracy Silta draws a dose of the Moderna COVID-19 vaccine at the walk-in clinic at the intersection of the Kenai Spur and Sterling Highways in Soldotna, Alaska on Wednesday, June 9, 2021. COVID-19 vaccines for kids younger than 5 years old are now approved by both the Food and Drug Administration and the Centers for Disease Control and Prevention. (Camille Botello / Peninsula Clarion)
COVID shots for kids under 5 available at public health

Roughly 18 million kids nationwide will now be eligible to get their COVID vaccines.

Megan Mitchell, left, and Nick McCoy protest the U.S. Supreme Court’s decision overturning of Roe v. Wade at the intersection of the Kenai Spur and Sterling highways on Friday, June 24, 2022 in Soldotna, Alaska. (Ashlyn O’Hara/Peninsula Clarion)
‘Heartbroken’, ‘Betrayed’: Alaskans react to Roe decision

Supreme Court decision ends nearly 50 years of legally protected access to abortion

Demonstrators gather outside the Supreme Court in Washington, Friday, June 24, 2022. The Supreme Court has ended constitutional protections for abortion that had been in place nearly 50 years, a decision by its conservative majority to overturn the court’s landmark abortion cases. (AP Photo / Jose Luis Magana)
Alaskans react to Supreme Court overturn of Roe v. Wade

The Supreme Court has ended constitutional protections for abortion.

Tara Sweeney, a Republican seeking the sole U.S. House seat in Alaska, speaks during a forum for candidates, May 12, 2022, in Anchorage, Alaska. (AP Photo/ Mark Thiessen)
Lawsuit says Sweeney should advance in Alaska US House race

The lawsuit says the fifth-place finisher in the special primary, Republican Tara Sweeney, should be put on the August special election ballot

Gubernatorial candidate Bill Walker stands in the Peninsula Clarion office on Friday, May 6, 2022, in Kenai, Alaska. (Ashlyn O’Hara/Peninsula Clarion)
Alaska AFL-CIO endorses Walker, Murkowski, Peltola

The AFL-CIO is Alaska’s largest labor organization and has historically been one of its most powerful political groups

A portion of a draft letter from Jeffrey Clark is displayed as the House select committee investigating the Jan. 6 attack on the U.S. Capitol continues to reveal its findings of a year-long investigation, at the Capitol in Washington, Thursday, June 23, 2022. (AP Photo/Jacquelyn Martin)
Federal agents search Trump-era official’s home, subpoena GOP leaders

Authorities on Wednesday searched the Virginia home of Jeffrey Clark

Most Read