Bagley proposes slight tax increase

Posted: Tuesday, June 01, 2004

Running the Kenai Peninsula Borough will cost real and personal property taxpayers slightly more in tax year 2004 starting July 1, as Mayor Dale Bagley has asked the assembly to consider increasing the boroughwide mill rate by three-tenths of a percent.

If approved, the increase would boost the current 6.5-mill tax levy to 6.8 mills, which would cost the owner of a $100,000 home $680 per year, $30 more than under the current tax regime.

The impact of that increase would be softened by lower taxes in some of the borough's service areas, which are financed through their own mill rates.

For instance, Resolution 2004-055 proposes to cut the Central Emergency Services mill rate from 2.60 mills to 2.35, saving home owners in that service area $25 a year for each $100,000 in property value.

Likewise, the administration proposes cutting the Road Service Area mill rate from 1.5 mills to 1.4 mills, another $10 savings for the same $100,000 home.

Expansion of Central Peninsula General Hospital will require a doubling of the mill rate in the hospital's service area, from .5 mills to 1 mill, a $50 per year increase for property owners within that service area.

Two new service areas are being added this year. Residents within the Lowell Point Emergency Service Area near Seward will begin paying a 1.75-mill levy, while those in the Seward-Bear Creek Flood Service Area will pay a .5-mill rate.

All other service area taxes are expected to remain the same. Here is what they currently pay.

Central Emergency Medical Service Area, 1 mill

Bear Creek Fire Service Area, 2.25 mills

Nikiski Fire Service Area, 2.3 mills

Anchor Point Fire & EM Service Area, 2 mills

Kachemak Emergency Service Area, 1.75 mills

North Peninsula Rec. Service Area, 1 mill

KP Post-Secondary Education S.A., .10 mills

Nikiski Senior Service Area, .15 mills

South Peninsula Hospital Service Area, 1.75 mills

Scott Holt, borough finance director, said the tax revenues generated from the mill rates would provide the largest single source of funding for the borough's fiscal year 2005 budget.

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