The Kenai Peninsula Borough School District Board of Education joined the Kenai Peninsula Borough Assembly for a joint work session regarding the Fiscal Year 2022 education funding requests from the school district Tuesday afternoon.
With regards to bond requests, Kevin Lyon of KPBSD spoke regarding the importance of previously-deferred school district projects not being rejected immediately: “The desire is to avoid instant voter rejection of perceived ‘unreasonably large’ funding requests, even if it’s presented as an urgent one-time need to get caught up. This list was formulated and prioritized to gain acceptance for at least partial funding. A step in the right direction is better than no step at all. If you take our deferred maintenance on our facilities, there’s $190 million, based on the renewal/replacement schedule that’s deferred – and that’s after discounting foundations and structures that we feel will be OK to continue on for the next 20 years.”
He went over a list of needed bond projects, including upgrading HVAC software, repairing earthquake damage that allows energy to seep out of school buildings, as well as replacing a Kachemak Selo building that is deemed to be unsafe to be inside of when snow is on the roof, among other projects.
What costs are involved? “The cost of the bond proposal is approximately .28 mils, or 27.8 per $100,000 of assessed value. So, we’re looking at a 20 year bond with no debt reimbursement on that. These projects that are being completed will be eligible for a grant, if they’re completed within the regulations. Down the road, we would be eligible to get those reimbursed back to us at whatever – 30, 40, 50% – whatever the state’s gonna do at that point in time.”
Mayor Charlie Pierce asked for additional time to discuss each bond issue with more specific information: “I think it would be beneficial for the assembly – I’d like for the administration to have an hour of your [school board’s] time to bring in some staff that are directly involved in a lot of the decisions related to the list and enlighten you a little bit as to what our plans are, how we plan to attack the issues that are at-hand.”
Assembly Member Richard Derkevorkian used the district’s COVID-19 mitigation policy to attempt to invalidate their financial request: “You’re essentially asking every property owner in the borough to invest in you – the KPBSD. You say this is to have a safe environment conductive to learning. For the last ten months, most children’s homes have been their safe environment because you wouldn’t open these schools to the children for in-school learning, even though other districts in the state have managed in-person learning successfully. I just want you guys to think about that because you’re asking property owners to pay another $29 million and raise their property taxes.”
Mayor Pierce later took issue with the Board’s methods of spending, given the current economic environment. Superintendent John O’Brien told Mayor Pierce that he is open to having future discussions once the Mayor’s efforts to get the state legislature involved are successful.
Liz Hayes of KPBSD offered a presentation on the preliminary Fiscal Year 2022 budget.
Brandi Harbaugh, Finance Director for KPBSD, offered a presentation regarding budgetary projections. Her presentation showcased a revenue option of raising the sales tax cap from $500 per invoice to $1,000, with an aim of generating $3.3 to $3.5 million annually. Such an action would require legislation from the borough assembly.
