Borough budget gets 2nd look

The Kenai Peninsula Borough budget is getting a second look.

The assembly will hold a second public hearing tonight on an ordinance to revise the current budget to reflect revenue realities imposed by the results of the Oct. 4 municipal election.

The ordinance, introduced by Mayor John Williams at the Jan. 3 meeting, would cut about $780,000 in spending, cuts made necessary, he said, when voters turned back a 1 percent sales tax increase. This reduced the borough’s projected revenue stream by more than $5 million.

Revenue reductions beyond the current budget have been projected at $7.6 million in fiscal year 2007, $7.7 million in 2008 and $7.9 million in 2009.

Williams already has canceled a $600,000 appropriation for the purchase of a new financial software system; eliminated the program manager position in Community and Economic Development Division (saving $59,800 this year); made other staffing changes projected to save $38,050, stretched a five-year payment plan on new sales tax software to seven years (saving $58,200 per year); lowered appropriations to the Public Employees Retirement System, health insurance and car allowance accounts in the mayor’s department, saving another $16,400; and saved another $7,500 in reduced communications costs.

The new ordinance would formalize those reductions in the current 2006 budget.

A proposal to cut operational funding to the Kenai Peninsula Borough School District by $70,000, made possible by lower-than-expected enrollment, and a cut of $60,000 for landscaping (a total of $130,000 in reductions) is expected to see an amendment Tuesday.

The school district said the $60,000 cut to school maintenance might affect its ability to raise state revenues since, in effect, the borough would no longer be funding schools to the legal cap.

A proposed amendment would include language whereby the district would reimburse the borough the $60,000, reducing the overall cut to $70,000.

The assembly also is expected to hold a public hearing on Ordinance 2005-19-38, accepting and appropriating $38,000 from the U.S. Department of Homeland Security for firefighting equipment for the Anchor Point Fire and Emergency Service Area.

Other measures up for public hearing include:

· An ordinance clarifying conditions for material site permits.

· An ordinance that would make other changes to borough code regarding material site permitting.

· A resolution approving a mutual aid agreement between the borough, the Municipality of Anchorage and the Matanuska-Susitna Borough.

The assembly also is expected to confirm the following people for appointment to the borough boards of adjustment and equalization.

Board of Adjustment:

· Katheleen Haywood, Seat A

· Betty Glick, Seat B

· Marilyn Kebschull, Seat C

· Michelle Medley, Seat D

· Malcolm Brown, Seat E

· Mark Osterman, alternate

Board of Equalization:

· Betty Glick, Seat A

· Michelle Medley, Seat B

· Jerry Hobart, Seat C

· Mike Wiley, Seat D

· Saylor Rehm, Seat E

· Billy Joe Creary, alternate

· Katheleen Haywood, alternate