Finance committee forwards 10.24 mill levy to full assembly after extended budget debate

The Assembly Finance Committee voted May 21 to forward a mill levy ordinance to the full Juneau City and Borough Assembly with a mill rate of 10.24 mills.

The measure was forwarded to the full assembly for final action after an extended committee debate over competing proposals. Mayor Weldon initially moved a mill rate of 10.19 mills; Assemblymember Atkinson moved to amend the mayor’s motion to 10.44 mills, but that amendment failed in a roll-call vote, 3–6. Committee discussion ranged from accepting the manager’s proposal (10.19) to covering recurring spending additions and potential revenue shortfalls by increasing the mill rate further.

Why it matters: The mill rate funds the municipal general fund; small changes affect property-tax bills across the community. Staff told the committee that recurring changes the assembly had already added to the budget would require an increase to about 10.44 mills compared with the manager’s proposal and identified several specific ongoing cost and revenue items the committee weighed.

Staff numbers and members’ questions

A staff memo itemized recurring additions that the assembly had approved and revenue risks staff described as likely but not certain. Staff said recurring additions total about $460,000 — including $130,000 to restore library funding, roughly $86,000 for communications supplies and services, $75,000 added outside-cap school funding, $71,000 for junk-vehicle contracts, a law-department FTE (~$66,000), and other personnel and grants changes — and that those recurring costs translate to about 0.07 mills.

Staff also told the committee it is monitoring two potential revenue losses: Secure Rural Schools (described in the packet as roughly $550,000, about 0.08 mills) and a community assistance program (about $624,000, about 0.10 mills). Staff summed those two risks as roughly 0.18 mills of revenue at risk. “So in revenue, we’re losing the equivalent of 0.18 mills. On the expenditure side, we’ve added 0.07. And so the combination of that takes you from the 10.19 to the 10.44,” a staff presenter said.

Members pressed staff for concrete impacts to homeowners and the school district. Staff said the difference for a median-valued home (listed in the packet at $515,500) moving from a 10.04 mill rate to 10.19 would be about $98.50 annually. Committee members also asked whether, if Secure Rural Schools funding failed, the city would be legally required to replace the revenue; staff replied that the Secure Rural Schools money is largely used for streets-related projects and operations and that, if it did not come, the city would look either for general-fund support or program reductions.

Key votes and amendments

- Amendment to change the mill rate from 10.19 to 10.44 (mover: Assemblymember Atkinson): failed on roll call, 3 ayes (Assemblymember Hugh Scandes; Assemblymember Atkinson; Chair Wall), 6 nays (Smith; Kelly; Hall; Mayor Weldon; Bryson; Steininger). (Roll-call appears in the committee transcript.)

- Multiple compromise amendments were proposed during the meeting, including an amendment to set the mill rate at 10.24 (mover: Assemblymember Bridal/Bryson) and a separate attempt to change it to 10.26 (moved by the chair during discussion); a motion to set 10.26 failed in a recorded vote. After the debate and amendment votes the committee chair asked if there were objections to moving the ordinance as amended with a 10.24 mill rate; there were none, and the committee forwarded the mill-levy ordinance to the full assembly.

What the committee forwarded

Mayor Weldon moved Ordinance 2025-03 (the mill-levy ordinance) to the full assembly "as amended with the mill rate being 10.24"; the chair announced "Any objections? So moved," and the ordinance was forwarded to the full assembly for consideration.

What committee members said

- Mayor Weldon said she preferred 10.19, noting uncertainty around some state and federal revenues and cautioning against taxing for revenue that is not certain.

- Assemblymember Atkinson argued for 10.44, saying the committee had agreed to recurring additions and that a more conservative rate would better cover known costs.

- Assemblymember Bryson and other business owners warned that larger swings between seasons or sudden changes in rates can affect local commerce and urged smaller, incremental steps.

Next steps

The committee forwarded Ordinance 2025-03 (mill levy) with a 10.24 mill rate to the full assembly for final consideration.

Votes at a glance

- Amendment to set mill rate to 10.44: failed, 3–6 (ayes: Hugh Scandes; Atkinson; Wall). Roll-call appears in committee record.

- Ordinance 2025-03 (mill-levy), as amended with mill rate 10.24: forwarded to full assembly (no roll call recorded on introduction; chair announced no objections).