After a taxing evening of public testimony and amendment discussion the Kenai Peninsula Borough Assembly passed the fiscal year 2018 budget by a vote of 8 to 1, with assembly member Stan Welles, the lone dissenting vote.
The Assembly approved a general fund budget of approximately $83 million, an increase over the approximately $80 million 2017 general fund budget.
During the meeting, Borough Mayor Mike Navarre urged the assembly to approve the mill rate increase to 5 mills.
Mayor Navarre: ” I recommend a half a mill increase. Not because I want to raise taxes, but because if we do not raise, if we don’t raise the mill rate. if you look at the budget scenarios that i handed out earlier today. If you don’t raise taxes you will be spending this year, 4.3 million dollars out of the fund balance.”
Assemblyman Dale Bagley’s amendment to maintain the mill rate at 4.5 mills passed 8-1, with assembly member Willy Dunne casting the sole no vote.
Bagley’s ordinance to reduce the number of months that non-prepared foods would fall under borough sales tax failed by a vote of 6-3.
The FY 2018 budget debate included reduced funding for the Small Business Development Center, Kenai Peninsula Tourism Marketing Council and eliminated proposed funding for the Central Area Rural Transit System.