The Soldotna City Council voted to adopt the biennial operating budget for Fiscal Years 2022 and 2023, which estimates property tax revenue based on a tax rate of 0.5 mills. Administration recommended no change to the current mill rate of 0.5 mills with the projection built into the draft budget that was recently submitted to council. Alaska Statute and Municipal Code require the council to set the mill rate levy on property tax annually prior to June 15th.
Councilman Dave Carey motioned to amend Resolution 2021-023 by setting the mill rate at zero, citing the significant financial setback of the COVID-19 pandemic, “The largest bright spot has been that the Federal government has opened our collective pocketbooks and sent out billions of dollars to keep the country going. The residents of Soldotna have benefited greatly by the many pockets of federal funds. The State of Alaska government has been a speedy conduit of federal funds and has particularly assisted in rent and mortgage payments for harmed individuals. We have received so far $10,178,841 in all areas of assistance in the budget.”
Carey also mentions that the tax doesn’t contribute the way it used to, “The City of Soldotna maintains a property tax based on the demographics of the City 50 years ago. Property tax does not contribute significantly anymore. Most property in Soldotna does not pay property tax. Property Tax makes people not want to live in the City and is a factor against annexation. Our local businesses could lower costs if they did not have to pay property taxes.”
Councilwoman Lisa Parker, “Once you eliminate a tax, it is very difficult to put a tax back in place. We’ve kept our property taxes low, very low. I haven’t heard objections from property owners that the city property taxes are exorbitant and we need to make changes. I am not going to be supportive of this amendment.”
The amendment to put the property tax rate at zero mills failed on a 3 to 2 vote with one excused absence. Council then had to vote on the original resolution which would make the mill rate at 0.5 mills. It passed on a 5 to 0 vote with one excused absence.