Kenai Peninsula Assembly enacts property tax rates ahead of budget approval

The Kenai Peninsula Borough Assembly convened on June 3, 2025, to discuss significant legislative matters, including the approval of Ordinance 2025-08 and Resolution 2025-025, which sets property tax rates for the upcoming fiscal year.

The meeting began with a public hearing on Ordinance 2025-08, which received no public comments, leading to a swift assembly discussion. Chair Eklund called for a unanimous consent vote, which passed without objection, enacting the ordinance.

Following this, the assembly moved to Resolution 2025-025, which establishes the property tax levy for fiscal year 2026. Chair Tunseth presented the resolution, noting that many mill rates would remain unchanged, while some would see reductions. Specifically, the general fund mill rate decreased from 4.3 to 3.85, and other service areas, including the North Penn Recreation area and Nikiski fire service area, also experienced slight reductions. However, the Seldovia Recreation service area saw an increase from 0.75 to 1.00 to support local pool operations.

Mayor Michicky emphasized the careful consideration behind these adjustments, stating that the borough aims to provide quality services at the lowest cost. He explained that the increase for Seldovia was in response to community support for maintaining pool operations.

Despite concerns about the timing of setting mill rates before finalizing the budget, legal counsel confirmed that state law mandates mill rates be established by June 15. The assembly proceeded with the public hearing on Resolution 2025-025, with several individuals signed up to speak.

The meeting highlighted the assembly's commitment to fiscal responsibility and community engagement as they navigate budgetary decisions for the Kenai Peninsula Borough.