The Soldotna City Council adopted a resolution, after some discussion, to set the rate of levy for property taxes for the City of Soldotna at 0.5 Mills for the 2024 Fiscal Year beginning July 1, 2023, and ending June 30, 2024, maintaining the current Soldotna mill rate.
Alaska Statute 29.45.240 and Soldotna Municipal Code 3.04.080 require the city to annually set the rate of mill levy by Resolution, prior to June 15.
Interim City Manager Kyle Kornelis spoke on municipal code;
“Soldotna municipal code requires the Council to determine the rate of tax levy by June 15th of each calendar year. The administration is recommending no changes from previous years. The 0.5 mill rate noted in the resolution was discussed and implemented in the proposed operating budget and our previous work sessions, and it is reflected in that document.”
Council Member Carey proposed an amended Resolution 2023-29 to change 0.5 mills to 0.25 mills.
Carey illustrated the fiscal strength of Soldotna;
“ The City of Soldotna is extremely fortunate in that from sales tax we have a significant surplus. If we look at just the last 12 months alone in terms of the amount of increase in sales tax, it’s an additional million. The last few years it’s gone up each time. Acquisition of funds from the public is doing very well and we have a very good source that again is decided by the individuals by what they buy. One of the factors that shape where people live and how they look upon an area is the tax rate. The lower tax on property tax is only seen as more positive.”
Mayor Whitney explained who would gain the most from a mill rate reduction;
“ Though the city has a surplus right now any reduction in this property tax that we have right now, which is minimal to begin with, to the homeowner it’s going to be very little. They’re going to see very little effect. The largest property owners, the Fred Meyer store, they’re the ones that are going to see the largest decrease in their property tax. They’re the ones that are going to benefit not necessarily the property owners in Soldotna. The large property owners or the large businesses who benefit from a lower property tax are not necessarily going to pass it on to the consumer by lowering their prices.”
Council member Jordan Chilson shared concerns on future finances;
“We just had our financial report from Alaska Permanent Capital Management and we’re seeing some pretty concerning trends in the market right now. You know I like to be an optimist and think that’s going to correct. But I think as elected officials charged with governing the financial security of the city, we can’t hope. What we do know is that you know there’s a lot of market uncertainty right now and that you know the $1,000,000 in interest that we’ve typically gained annually or thereabouts is kind of up in flux at this point in time. We do know that in addition to uncertain revenues, we do have certain expenses like you mentioned with the Field House and potentially some increased costs with that.
I think we are incredibly fortunate to be where we are as a City of Soldotna. We’re very healthy financially. We should be proud that we actually have, I believe, the lowest mill rate of any of the incorporated cities on the peninsula. And I think that if you look at the unincorporated areas, we’re just as competitive with them, if not, you know lower than a lot of the unincorporated areas. So I think in that regard Soldotna is holding its own and is a very attractive place to live as far as property taxes are concerned.”
Carey’s proposed amendment failed on a 4 – 1 vote with one absent. Resolution 2023-29, with the 0.5 mill rate, was adopted on a 5 – 0 Council vote.
