The economy of the Kenai Peninsula continues to recover from the Great Recession over the past 10 years, according to the general fund overview of Fiscal Year 2019 released by Borough Mayor Charlie Pierce online.
Taxable expenditures during FY2019, which ended June 30, were $1.12 billion, an increase of 6 percent from the prior year and a 25.5 percent increase from FY2010.
According to the report, most of the increase for FY19 is attributed to an increase in sales tax collected on motor fuel sales due to an increase in the price of oil, as well as an increase in taxable retail sales due to growth in the Marijuana industry legalized in Alaska in 2017.
Sales tax represents a growing portion of the Borough’s revenue; in FY1998, sales tax revenue represented 21% of total General Fund revenues; in FY19, sales tax revenues represented almost 39%.
Assessed values for oil and gas properties increased from $635 million in FY09, to $1.56 billion in FY19. During this same time frame, oil production has increased from approximately 10,000 barrels per day to approximately 16,000 barrels per day.
The executive summary from auditor BDO LLC of Anchorage showed that the borough’s combined fund balances grew by $11.9 million to $87.5 million, from the prior year. Much of the increase the auditor says is associated with reduced expenditures in the General Fund and Special Revenue Funds while reducing spending throughout the borough.
