Celebrates clean audit and Lt. Browning’s retirement

By Marcia Kuszmaul

Homer Independent Press

The Homer City Council has proposed a new monthly minimum fee on ratepayers with low water usage. The council also is reviewing options for renewing employee health insurance policies that could increase premiums up to 18.7 percent.


Both rate changes were discussed by the council Monday and will be introduced for further discussion at its next meeting, May 11.


The proposed monthly minimum in water/wastewater rates would be based on 750 gallons of water usage. Ratepayers who use less than 750 gallons a month would pay a flat fee likely within the range of $25 to $30. The council rejected the idea of an across-the-board monthly service fee, which hasn’t been imposed since  Fiscal Year 2022. 


The rate model change was prompted by an analysis from Finance Director Elizabeth Fischer in February that illustrated the $2 million balance in the utility Capital Asset Repair and Maintenance Allowance (CARMA) is inadequate for the city’s aging utility infrastructure. To build up the fund, the proposed rate model will increase the city’s reserve requirement from 15% to 20%. 


According to Utility Financial/Rate Setting Policies, the city must conduct a comprehensive rate study at a minimum of every five years to ensure financial sustainability. The last study was in 2023. 


The city also will need to choose among several options for renewing employee health insurance. Premiums for its current plan with current benefits will increase 18.7%. An alternative plan under consideration would increase premiums by 4.6%, with tiers of lower premiums for higher deductibles and a slight reduction in preferred providers.


Brian Hardy, the USI Insurance Services representative who manages the city’s health insurance, said the rate increase is tied to a year-over-year increase in claims (up 25%) at higher dollar amounts that exceeded the total premiums paid.  Hardy’s complete presentation is available online.


An employee committee is reviewing the options and will provide input into the final recommendation for the May 11 meeting.


Celebrations


Bikky Shrestha of BDO, the city’s independent auditor, congratulated the city for completing an on-time clean audit. The firm issued an unmodified, or clean, opinion on the city’s financial statements and its audit of federal awards on March 31, 2026, with no “significant deficiency or a material weakness” to report in internal controls or compliances.


BDO’s FY25 management letter, city FY25 financial statements and a video of Shrestha’s report is available online.

Lt. Ryan Browning holds the Citation of Honor he received from the Alaska Legislature acknowledging his many contributions to the state in his 25 years of service in Alaska law enforcement at the Homer City Council meeting, April 27, 2026. (Photo by Marcia Kuszmaul/Homer Independent Press)


On behalf of the community, the council congratulated Lt. Ryan Browning on his retirement after 25 years in Alaska law enforcement. Mayor Pro Tempore Shelly Erickson presented Browning with a Citation of Honor from the Alaska Legislature for his sustained commitment to community-focused safety. A recap of Browning’s many contributions, including his commitment to community education, is on the city’s web site.


The Homer Police Department also announced two promotions – Taylor Crowder has been promoted from Investigative Sergeant to Lieutenant, and Tyler Jeffries has been promoted to Investigative Sergeant. 


A video with a full transcript of the April 27 city council regular meeting and supporting documents are available on the city’s web site. The next city council meetings are Monday, May 11.