Matanuska-Susitna Assembly adopts fiscal 2026 budget, sets mill rates; approves small animal clinic and transit adjustments, rejects Big Lake funding removal

The Matanuska-Susitna Borough Assembly on May 13 adopted Ordinance 25-025, the borough—s fiscal year 2026 appropriation ordinance, and set the area-wide mill rate at 8.485 and the non-area-wide mill rate at 0.371 for the fiscal year beginning July 1, 2025 and ending June 30, 2026. The assembly approved the ordinance by voice vote with no recorded objection.

The ordinance funds borough operating, enterprise, education operating and capital funds and sets the surcharge rate for wireline and wireless enhanced 9-1-1 for the same fiscal year. The adoption came after a series of amendments and several unsuccessful motions to reconsider previously adopted amendments.

Why it matters: The assembly—s action fixes property tax rates and the operating budget for the borough for the coming year. Although the new area-wide mill rate is lower than last year—s 8.748, rising property valuations mean the average homeowner faces an estimated $66 increase on their tax bill ($62 area-wide; $4 non-area-wide), the assembly was told.

Most important actions taken

- Ordinance 25-025 (FY2026 budget and levy) was approved and the mill levies were set at 8.485 (area-wide) and 0.371 (non-area-wide). Finance staff reported the average homeowner increase under those rates is $66. The assembly adopted the ordinance after debate and multiple amendment votes.

- Amendment No. 18 (Assemblymember Maxwell Sumner) reduced the area-wide fund—s transfer to several capital accounts and cut the public transit capital project by $250,000 (leaving $750,000). Sumner told colleagues the reduction takes advantage of timing differences between the borough and federal fiscal years and would not reduce service this fiscal year; he said it would lower the area-wide mill rate by 0.017. The amendment was adopted by voice vote with no objection.

- Amendment No. 19 (Assemblymember Dee McKee) increased a non-area-wide capital appropriation by $20,000 to create a low-cost spay/neuter capital project. Staff said the program would be administered by contracting with private veterinary providers and paying a stipend on invoice; at an estimated $100—60-$200 per procedure the $20,000 appropriation would subsidize on the order of roughly 100—60 to 200 procedures, depending on negotiated rates. The amendment was adopted.

- Amendment No. 20 (remove $530,000 for the Big Lake Recreation Center / delay purchase until voters decide) was defeated. Proponents said the project would impose ongoing operating costs on borough taxpayers and argued the purchase and future capital needs should be referred to voters; opponents said the rec center serves multiple borough communities and generates user fees that offset operations. Community Development Director Jillian Morrissey provided the property—s 2024 assessed value as roughly $3.4—6 million. The clerk recorded the vote on the motion as failing, with Assemblymembers Fonoff and McKee supporting the amendment and the majority opposed.

Other votes and reconsideration attempts

The assembly considered and rejected several motions to reconsider previously adopted amendments brought by Assemblymember Maxwell Sumner. Those reconsideration motions for amendments (including Nos. 2, 3, 4, 5 and 6) failed on the floor; the clerk recorded several of those results (for example, the motion to reconsider amendment No. 2 failed with a majority opposed; reconsideration votes on other numbered amendments similarly failed with only a few members in support). Specific recorded support on some failed reconsiderations included Assemblymember Sumner and, in isolated cases, one or two other members.

Public comment and other testimony

At the start of the meeting a member of the public identified as Dr. Fenny addressed the assembly to thank members for supporting a 4% increase in funding for the Matanuska-Susitna Borough School District and highlighted recent district student outcomes. "We are a great investment for your dollars," Dr. Fenny said.

Several assembly members and staff also spoke during debate about distribution of recreational services across the borough, the revenue-offset effect of user fees at facilities such as the Brett Memorial complex and municipal pools, and the potential need to cushion the budget against state-level changes (the manager and members warned the borough could face a multi-million-dollar state-level funding shift affecting school bond debt reimbursement).

What happens next

The ordinance takes effect for fiscal year 2026 (July 1, 2025—6/30/2026) as adopted. The assembly noted staff will publish the final budget documents and that some capital projects remain contingent on grant awards or further administrative steps. Several assembly members urged caution about cutting the fund balance too far because of possible state funding changes in the coming year.

The assembly also approved several smaller appropriations and program directions within the ordinance (including the spay/neuter project and transit timing adjustment) and defeated a motion to remove Big Lake Recreation Center funding without voter approval.

Ending note: Assembly members closed the meeting with parting comments on the budget process; several thanked staff and reflected on multi-year budgeting and the challenge of balancing services across a geographically large borough.