Kenai mayor moves to shield home value from city property tax

Kenai homeowners could see part of their home's assessed value shielded from city property tax under an ordinance the mayor directed the city manager to draft Wednesday, after residents told the Kenai City Council that assessments are outrunning any relief.

James Basden, a Kenai resident and former borough assemblyman, presented five years of figures from his own tax bills. "My home increased over 18.5% over the last 5 years," he said. Seniors, disabled veterans and young homeowners face annual increases they cannot absorb, he said, and renters pay it through rent. The borough exemption increase he backed a year ago buys only temporary cover; "in 2 years," he told the council, he would be back to paying more. Any city action would slow the climb without stopping it, he said, and city revenue would still grow.

Borough voters approved raising the residential exemption from $50,000 to $75,000 of assessed value, effective Jan. 1, 2026, but that exemption does not apply to the City of Kenai's own levy. The city rate is 4.35 mills, or $435 per $100,000 of taxable value.

Former assemblyman Peter Manack urged the council to act rather than leave the question to a petition drive. "I would love for this council to take this issue and make it their own issue," he said. A third resident, Jim Harpring, suggested hiring an outside consultant, pointing to the possible gas pipeline terminus and the housing the area may need.

The mayor said he would sponsor the ordinance, describing it as a $75,000 to $100,000 primary residence exemption, and directed the city manager to bring it forward for introduction Aug. 19 — timing that may or may not let it reach the ballot this fall. City Manager Eubank said he can analyze the lower end: "I do believe we can do a good analysis on enactment of a $75K primary residence exemption."