Cordova Council debates mill rate hike as school funding deadline nears

The Cordova City Council debated Tuesday how to fund a $181,000 budget increase requested by the Cordova School District. Members weighed a property tax hike against using one-time federal payments as a June 3 decision deadline approaches.

City Manager Sam recommended raising the mill rate to 12.07 mills. That would cost the average homeowner around $404 annually. The council raised the mill rate from 9.93 to 11.44 mills in May 2025 to address school funding needs.

The city received $610,749 in federal Secure Rural Schools funding. After grant obligations, around $436,000 to $486,000 remains available.

Mayor Kristin Smith urged residents not to oversimplify the budget debate. She cited declining federal funding, rising fuel costs, and a state formula that reduces contributions when local property values increase.

"The whole issue around school funding is it's not just there's a gap locally and we may or may not raise property taxes to cover it," Smith said.

Public commenter Chris Marino criticized the city for rejecting a $171,000 land sale weeks earlier while now considering a tax increase for schools.

"You cannot reject for sure revenue and then turn around and look Cordova families in the eye and say you'd have to raise your taxes to keep the schools funded," Marino said.

Smith argued that property tax increases are unsustainable for residents facing rising costs. City Manager Sam countered that one-time federal funds do not provide reliable revenue for recurring expenses.

Council Member Mickelson proposed using the federal money for the school increase and reserving the remainder for fuel cost overruns. Mickelson noted that gillnet fleet members plan to visit town less often due to high fuel prices, which will reduce local business revenue.

No decision was made at the May 20 meeting. The council must set the 2026 mill rate by June 3.