Cordova holds property tax rate flat at 11.44 mills for 2026

The Cordova City Council voted 7-0 Wednesday to hold the property tax mill rate at 11.44 mills for 2026. The vote keeps the rate unchanged after residents urged restraint during a public hearing.

The decision maintains the current mill rate despite rising city costs and a deferred maintenance backlog. Council members cited public sentiment and economic pressures facing fishing families as reasons to avoid raising taxes. The city received approximately $1.195 million in federal forest receipts that were not budgeted. Council Member Kasey Kinsman said the receipts could help address unexpected expenses during the year.

Alaska municipalities set mill rates annually as dollars of tax per $1,000 in assessed value. A mill rate of 11.44 corresponds to $11.44 in annual property tax for every $1,000 of assessed property value, or $1,144 per year on a $100,000 assessed property. Individual tax bills can still rise if assessed property values increase, even with a flat mill rate.

Public testimony during the hearing framed the decision as a choice between essential services and quality-of-life amenities. One resident warned that raising taxes would drive fishing families out of town. "If this city doesn't understand that fishing is what pays, really pays the bills and the families that work in fishing in this town, that's what, that's where you get most of your money," the resident said. "Raising the mill rate and forcing people out of town to make it where they can't afford to live."

Kinsman, who moved to approve the resolution, said keeping the mill rate flat accounts for increased property values and matches community sentiment. "Keeping the mill rate exactly where it's at accounts for increased value on properties, accounts for just even sentiment in the community of just matching and that for not. Not raising the mill rate. It's staying the same. It's different than the budgeted mill rate adjusted, but the mill rate is staying the same," Kinsman said.

Council Member Mike Mickelson said he had heard from numerous residents opposing a mill rate increase. "I'm in support of keeping it where it is. I've had numerous community members come up and say they oppose raising it. And I certainly understand the financial pressures that we're under right now, but I just feel like this, this isn't the time," Mickelson said.

Council Member David Zastrow acknowledged the city faces a severe deferred maintenance deficit but said the decision prioritizes tax stability for families. "Although yes, our budget, our current revenue is supporting our needs, we have more than established that our needs are not met. And although our budget. We're not in a deficit, I feel like we're in a severe deficit with their maintenance," Zastrow said.