The Kenai City Council has approved its annual operating budget on June 4th for the upcoming fiscal year, adopting a $42.1 million spending plan for FY2026.
The newly enacted ordinance outlines funding for general government operations, city services, employee compensation, and capital improvements for the fiscal year beginning July 1, and ending June 30, 2026.
The ordinance also adopts the city’s updated salary schedule and employee classification plan.
A notable feature of this year’s budget is the Council’s decision to commit $2.84 million from the General Fund balance for future capital improvements. The funds will support maintenance and facility upgrades outlined in the city’s 2026–2030 Capital Improvement Plan.
General Fund expenditures total $22.4 million, while other major allocations include over $10 million for special revenue funds, such as water and sewer, airport operations, and senior citizen services, and $3.86 million for capital project funds.
Many of the council members commended the work that was put into the budget, including Kenai City Mayor Brian Gabriel.
“I know there’s a lot of work that goes into this budget that starts months before the budget work session and a lot of work that goes into this document to try to align with the policy and goals of the council.” Said Mayor Gabriel.
Find the full budget here.
The ordinance takes effect on July 1, 2025.