Mat-Su Assembly rejects lowering property tax cap to 7 mills

The Matanuska-Susitna Borough Assembly rejected an ordinance Aug. 18 that would have lowered the areawide property tax cap from 9.5 to 7 mills. The cap stays at 9.5 mills.

The administration had projected the lower cap would force about $22 million in single-year cuts. Its analysis listed $11 million from schools, the end of animal care, water rescue and community cleanup programs, one fewer ambulance and crew, and seven positions eliminated. Even those cuts would have left $5 million unreconciled.

The areawide rate for fiscal 2027 is set at 7.955 mills. Education accounts for 71% of that rate.

Assembly member Michael Bowles sponsored the ordinance. He said rising property assessments lift revenue even as the mill rate falls, and argued a lower cap would protect residents from large tax increases.

Amendments to set the cap at 9 mills and 7.5 mills both failed. The ordinance first passed, with Dee McKee and Stephanie Nowers opposed. On reconsideration, it failed, with Ron Bernier and Bowles in support.

"I think the way to do it is to actually make the cuts, not just set an artificial cap," Mayor Edna DeVries said.