Not much jump in mill rate

By ANDREW WELLNER
Frontiersman
Published on Thursday, May 14, 2009 11:35 PM AKDT

PALMER — After the dust had cleared, the borough assembly announced it has held the line on property taxes.

In the last of its budget meetings Wednesday the assembly voted to set the mill rate at 9.980.

Last year, the mill rate was set at 10.326 but revenue sharing from the state pulled that down to 9.645.

“I think we’ve shown people, again, for I don’t know how many years in a row, that we can be fiscally responsible,” said Assemblyman Pete Houston.

The original budget, as proposed by Borough Manager John Duffy, set the mill levy at 10.326. One mill is equivalent to $100 per $100,000 of a home’s assessed value.

Through a series of nips and tucks — $160,000 taken out of the project to modernize locks at borough headquarters, $35,000 saved holding off on buying a search and rescue ATV, etc. — the assembly dropped Duffy’s proposed mill rate.

Interestingly, Assemblyman Rob Wells, long an advocate of farming in the Valley, proposed a motion, which eventually passed, to drop the borough’s contribution to a farmland conservation program from $300,000 to $100,000. He said the move was an effort to get the state and others on board with the program.

“I just don’t believe the taxpayers of the Mat-Su Borough should be pulling this cart ourselves,” he said.

But the biggest drop came in the amount of money the assembly decided to give to the school district. As initially proposed, the budget would have provided $46,108,048 to the school district.

On a motion from Houston, the assembly dropped the borough’s contribution to $45,097,365, eliminating most of Duffy’s proposed increase over last year of $1,390,160. That increase was, itself, quite a bit less than the more than $10 million the district requested.

Houston said he was simply asking the school district, just as the assembly had asked every other department, to keep its budget static.

“In my mind it’s fiscal responsibility,” he said, noting that the though the borough had asked all departments to not hire anyone new, the district’s zero-based budget, supposedly with no increase over last year, had “upwards of 40 new people.”

On the other side, Assemblyman Rob Wells argued that education is not something the borough should “go cheap on,” especially if the assembly was trying to push taxes down below 10 mills, “just to say we did it.” 

“The education budget is the largest portion of our budget and it represents, to me, the primary reason for this government’s existence,” Wells said.

Assemblywoman Cindy Bettine brought up a point seconded by Assemblyman Tom Kluberton: Federal and state money hasn’t yet been factored into the school budget.

Bettine said that with federal stimulus money, in her mind, the district would likely end up adding programs and getting used to a budget that’s substantially larger than last year’s.

Contact Andrew Wellner at andrew.wellner@frontiersman.com or 352-2270.

Comments

11 comment(s)

    To JP wrote on May 16, 2009 12:13 PM:

    " Houston is only 13.326 mills and is going down to 12.98 next year. Right next door... Hmmmm... "

    Wasillans PAY FOR the better PALMER Schools wrote on May 16, 2009 8:30 AM:

    " Why does Wasilla have a less desirable and poorer staffed high and middle school? While “let’s keep it small town” “NIMBY” Palmer has its better HS, even PJMS, but especially the MSBSD renowned teachers-of-the-year absolute prim donna COLONY high and middle schools, are mostly funded by the huge commercial real estate property taxes Wasilla growth pays the borough to feed the school industry.

    Shouldn't Wasilla be getting the better teachers, labs, resources, TROXEL? Oh, that's right you live next to COLONY! "

    bob wrote on May 16, 2009 7:44 AM:

    " Dear "share the tax burden"
    Are you aware that by capping property taxes, you have given a tax break to large corporations who pay taxes? I am sure they are all for your idea. Are you also aware that a sales tax hurts poor people because more of their money, percentage wise, goes to pay for food, clothing and medicine?
    Caps and tax trades are easy, but they are not fair. If you think that any tax 'cap' will last long, you haven't been reading your history books. In the end, you get both taxes. "

    ATV wrote on May 15, 2009 3:58 PM:

    " The $35,000 was for two ATVs along with GPS and all the Personal Protective Equipment necessary to perform safe off-road rescues. "

    offsaopstone wrote on May 15, 2009 1:45 PM:

    " Your mill rate is that high because you pay extra mill rates "as I understand it" for fire service area, road service area, the borough dump etc..... See I can use etc.. to just like the paper. I think all people do if you live outside Palmer, Houston, and Wasilla. It's just one of those things you have to find out yourself. "

    offsaopstone wrote on May 15, 2009 1:35 PM:

    " $160,000,00 dollars for locks? $35,000 for an ATV? Then they use or the frontiersman uses the word etc..... What else did they try to get and didn't, but more important is what did the borough buy at these prices? If I had a $35,000.00 ATV it better be able to cook, clean, do the shopping, and bring in a wage to buy its own gas. You can buy more than one ATV, two-way radio's, and GPS systems with $35,000.00 for search and recue. I'm still trying to figuar $160,000.00 for locks at the borough. "

    Amazed wrote on May 15, 2009 12:52 PM:

    " With "stimulus" funds inflating the school budget this year with new programs,who do you suppose will end up sustaining these programs next year when the "stimulus"funds are long gone?As usual there will be a panic as a "budget crisis shortfall" occurs and the familiar bleat of " It is for the kids!" once again reverberates across the land. Higher taxes and user fees WILL occur as the School District will never cut an existing program as each is deemed vital. The School District must learn to live within their means as we all do in these financially auster times. "

    Observer wrote on May 15, 2009 12:24 PM:

    " PROPERTY TAX OR SALES TAX-YOU CAN'T HAVE BOTH!!!!
    PROPERTY TAX OR SALES TAX-YOU CAN'T HAVE BOTH!!!!!

    A "TAX CAP" IS A TRICK TO GET HIGHER TAXES-IT HAPPENS EVERYWHERE GULLABLE PEOPLE FALL FOR IT!!!!!! "

    jp wrote on May 15, 2009 10:56 AM:

    " then why is our mill rate 15.219 in big lake ? "

    share the tax burden wrote on May 15, 2009 7:48 AM:

    " TAX CAP YES! SALES TAX YES!
    TAX CAP YES! SALES TAX YES!
    TAX CAP YES! SALES TAX YES!
    TAX CAP YES! SALES TAX YES!


    TAX CAP YES! SALES TAX YES!
    TAX CAP YES! SALES TAX YES!
    TAX CAP YES! SALES TAX YES!
    TAX CAP YES! SALES TAX YES!

    TAX CAP YES! SALES TAX YES!
    TAX CAP YES! SALES TAX YES!
    TAX CAP YES! SALES TAX YES!
    TAX CAP YES! SALES TAX YES! "

    THANK YOU wrote on May 15, 2009 7:06 AM:

    " Finally we have a RESPONSIBLE assembly, using Duffy as its advisor and telling TROXEL and to stuff IT! "

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