Kodiak Assembly sets mill rate at 8.75, rejecting school increase

The Kodiak Island Borough Assembly set the fiscal year 2027 property tax mill rate at 8.75 Thursday, choosing the lowest rate option that still balances the budget. Property owners will pay less than under the 8.91 mill rate the assembly had advanced to hearing earlier in the budget process. The school district will not receive an additional $475,981 beyond the adopted $800,000 increase over fiscal year 2026.

The assembly first rejected a higher mill rate of 9.15 that would have directed the additional funds to the school district. That amendment failed 5-2, with Assembly Members Zac Johnson and Scott Smiley voting yes. The assembly then adopted the 8.75 rate by a 5-2 vote, with Johnson and Smiley opposed.

Assembly Member Zac Johnson, who proposed the 9.15 rate, said the lower rate leaves nearly $500,000 in authorized revenue uncollected. "By failing to collect the full MAPTOR amount tonight, we would be voluntarily eliminating nearly $500,000 in revenue generating capability capacity in next year," Johnson said.

Deputy Presiding Officer Bo Whiteside opposed the higher rate, citing rising costs residents face. "Kea raised their electric rates by 12.5%. The City of Kodiak recently is entertaining, and I'm not quite clear if they've adopted it yet, but they are looking to increase the water and sewer rate by 5%," Whiteside said.

Assembly Member Jeremiah Gardner moved to adopt the 8.75 rate. "I ran on wanting to lower taxes. I believe, I'll say it over and over again, we got to tighten our belts," Gardner said. He cited the school district's recent identification of budget inefficiencies, noting that approximately $900,000 was cut from their budget with no positions eliminated.

Assembly Member Scott Smiley supported the higher rate, warning about next year's budget constraints. "I'm most worried about next year. And if we don't get the full amount for MAPTOR, then we are, at least there's the threat of problems next year," Smiley said.

The 8.75 rate increases facilities maintenance funding from $320,000 to $380,000 while preserving approximately $500,000 in revenue-generating capacity under the borough's MAPTOR formula for next year. The fiscal year 2026 areawide total was 10.16 mills.