Kodiak Borough advances FY27 budget with 8.91 mill rate to hearing

Kodiak Island Borough Assembly members voted Wednesday to hold the property tax rate steady at 8.91 mills — a decision that, despite how it sounds, will mean a higher tax bill for most homeowners next year.

The Assembly had a choice: lower the rate to 8.59 and give taxpayers a modest break, or keep it flat and steer the equivalent money — about $1.3 million in interest from the borough's facilities fund — toward debt service and maintenance. They picked the second option unanimously, preserving roughly $625,000 in additional revenue capacity for next year.

The catch, as Assembly Member Bo Whiteside noted, is that a flat rate doesn't mean a flat bill. "Assessments go up. That means people pay more." Same rate, higher assessed values, bigger check.

Assembly Member Scott Smiley made the case for holding firm, arguing a lower ceiling would "hamstring" the borough in future years. The case for the cut went largely unmade — it would have required skipping a planned $625,000 contribution to facilities maintenance, and no member pushed for it.

The flat rate also locks in last week's school funding decision: $13.78 million for the Kodiak Island Borough School District, about $836,000 short of the district's request. Assembly Member Zac Johnson plans to propose adding $475,000 at the next meeting but said he doesn't expect it to pass.

Mayor Jared Griffin said staff will prepare additional scenarios, including an 8.75-mill option, before the public hearing at the next regular meeting — the point where residents can weigh in on the tradeoff directly.