Most Mat-Su property tax bills to drop under borough plan; rates within cities could rise

What you need to know:

• Most Mat-Su property owners would see lower tax bills under a proposed borough budget, with an average $50 decrease outside city limits. Residents of the region’s three cities would see about a $28 increase due to higher animal services charges.
• The overall proposed reduction is driven by lower mill rates, a shift in how animal services costs are shared across the region, and an increase in fees for most borough services, including recreation, planning and animal care.
• The proposal will go before the Matanuska-Susitna Borough Assembly for a series of hearings and debates before a final vote expected in mid-May.

• Short on time but need the local news scoop? Get free weekly news in your inbox for Mat-Su, from Mat-Su.

PALMER — Most Mat-Su property owners would see a slight decrease in their annual tax bills under a newly released borough budget proposal set for consideration this month.

Average Matanuska-Susitna Borough property tax bills for residents who live outside Palmer, Houston and Wasilla city limits would drop by $50 under the plan.

Borough property taxes for individuals who live within city limits would see an average annual increase of $28 because of a change to animal services charges approved earlier this year.

“What we’re trying to do is listen to what we think we’re hearing from you and the community, and we’re trying to build a budget that looks like what we’re hearing, not what we want to do as a government entity,” Borough Manager Mike Brown told the assembly during a budget presentation Thursday morning. “I think the overall sentiment — it’s fair to say — there’s a lot of concern about increasing property tax. So this budget was built with that in mind.”

Those reduced average tax bills are tied to a proposed decrease in both the areawide and non-areawide mill rates, Brown said. His budget proposes a 7.966 areawide mill rate, or about $797 per $100,000 in property value, a $52 decrease from this year.

It also includes a 0.160 non-areawide mill rate, or $1.60 per $100,000, a decrease of about $35 compared with current rates.

Areawide property taxes are paid by all Mat-Su property owners, while non-areawide taxes are paid only by residents who live outside Palmer, Wasilla and Houston city limits.

Most Mat-Su residents outside city limits also pay borough fire and road service taxes which vary by region. Of the tax rates in those roughly 25 areas, most are proposed to include a slight drop; three could see a small increase, and two would stay the same.

Residents in Palmer and Houston also pay property tax rates set by their city councils. Wasilla does not currently levy a property tax, although such a step is allowed under city code.

The Assembly will hold three public hearings on the budget this month at locations throughout Mat-Su, including the Willow Community Center, the Menard Sports Center in Wasilla, and the borough Assembly Chambers in Palmer. 

A series of deliberations is also scheduled for next month, culminating in a final vote.

Borough tax bills are mailed annually to property owners in June. The borough's 2027 fiscal year starts on July 1.

The proposed reduction in average tax bills comes even as Mat-Su residents saw more than a 7% increase in average property values across the region this year.

Brown’s budget proposal includes a 0.9% increase in areawide and non-areawide spending over last year, which covers all borough services, including road fixes, local education funding, animal care, recreation centers, trail maintenance, borough libraries, and a variety of other functions, such as firearms classes and public bus service. It also includes the repayment of federal funds used to purchase the borough’s defunct Knik Arm ferry.

That spending boost does not translate to higher taxes because of the way costs for animal services fees are newly shared across the region, paired with an upcoming 3% overall increase in recreation service fees approved by the Assembly in December.

Fees for nearly every borough-operated recreation service and facility, except the Big Lake Lions Club, are set to rise in July. For example, an annual parking pass for borough trailheads will increase by $5 to $45, while hourly rental fees at the Brett Memorial Ice Arena will increase by $3 to $88. 

Animal services charges and fees associated with borough permits and planning were also approved for an increase.

Brown’s budget also includes $79.8 million for local school funding. That’s about $7 million less than school officials have requested to avoid a trio of school closures and boost their savings account. Whether borough education funding ultimately sees that increase is expected to be a major part of the assembly’s budget deliberations over the next month.

-- Contact Amy Bushatz at contact@matsusentinel.com