Wasilla Proposes Broader Tax Base to Fund Road Improvements Amid Rising Debt Concerns

Matanuska-Susitna Borough officials are taking significant steps to address local infrastructure needs by proposing a new tax aimed at funding road improvements. During the assembly meeting on July 16, 2025, discussions centered around the necessity of diversifying the tax base to include visitors who do not currently contribute to property taxes, thereby alleviating some financial pressure on local residents.

The proposal, which was introduced to the public on June 3, has been the subject of extensive outreach efforts, including interviews, news articles, and presentations to local chambers of commerce and community councils. This proactive approach aims to ensure that residents are well-informed about the potential impacts of the tax.

A key point raised during the meeting was the increasing burden of debt on the borough's finances. Currently, annual debt payments account for approximately 12% of the area-wide mill rate, a figure projected to rise significantly in the coming years. The assembly highlighted that state funding for education and transportation has diminished, shifting the financial responsibility entirely onto local taxpayers. This change underscores the urgency of the proposed tax, which aims to create a more sustainable funding mechanism for future infrastructure projects.

The assembly also discussed the implications of recent voter-approved ballot propositions, which authorized $118 million in debt for education and transportation improvements. With interest, the total cost to taxpayers is expected to reach around $168 million, emphasizing the need for a broader tax base to support these initiatives without overburdening property owners.

By implementing this new tax, officials believe they can reduce reliance on property taxes and distribute the financial responsibility more equitably among residents and visitors alike. The assembly's commitment to addressing these financial challenges reflects a forward-thinking approach to community development and infrastructure sustainability. As discussions continue, the borough aims to finalize the proposal and move towards a more balanced fiscal strategy that supports essential services and improvements for all residents.