HomeMy WebLinkAboutResolution No. 2022-38LJ
KENAI
CITY OF KENAI
RESOLUTION NO. 2022-38
Sponsored by: Administration
A RESOLUTION FIXING THE RATE OF LEVY OF PROPERTY TAX FOR THE FISCAL YEAR
COMMENCING JULY 1, 2022 AND ENDING JUNE 30, 2023.
WHEREAS, Kenai Municipal Code requires that the rate of levy of property tax be set annually not later
than the tenth day of June; and,
WHEREAS, the Council has adopted the "City of Kenai 2023 Annual Budget," which estimates property
tax revenue based upon a tax rate of 4.35 mills.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA:
Section 1. That the rate of levy of property tax for the fiscal year commencing July 1, 2022 and ending
June 30, 2023 be fixed at 4.35 mills.
Section 2. That this Resolution takes effect immediately upon passage.
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 1n DAY OF JUNE, 2022.
Brian Gabriel Sr., Mayor
ATTEST:
Michelle MC, City Clerk
New Text Underlined[DELETED TExT BRACKETED]
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City of Kenai 1 210 Fidalgo A. e, Kenai, AK 99611-7794 1907.283.7535 1 www6naixity
MEMORANDUM
TO: Mayor Gabriel and Council Members
THROUGH: Paul Ostrander, City Manager
FROM: Terry Eubank, Finance Director
DATE: May 24, 2022
SUBJECT: Resolution 2022-38 Establishing the City of Kenai FY2023 Property
Tax Mill Rate
Resolution 2022-38 will establish the rate of levy of property tax for FY2023, tax year 2022. The
proposed rate of levy is 4.35 and will result in $435 in taxes being paid for each $100,000 of
taxable assessed property value. The rate is unchanged and will generate the necessary property
taxes to support the adopted FY23 budget. The last mill rate change for the City was in FY2015.
Your support is respectfully requested.
KENAI
City of Kenai 1 210 Fidalgo Ave, Kenai, AK 99611-7794 1907.283.7535 1 www.kenai.city
MEMORANDUM
TO:
Mayor Gabriel and Council Members
THROUGH:
Paul Ostrander, City Manager
FROM:
Terry Eubank, Finance Director
DATE:
May 24, 2022
SUBJECT:
Information for potential amendment of Resolution 2022-38 Fixing the
Rate of Levy of Property Tax for the Fiscal Year Commencing July 1,
2022 and Ending June 30, 2023.
Councilor Baisden requested information for potential amendment of Resolution 2022-38 that
fixes the mill rate for Fiscal Year 2023, Tax Year 2022. Councilor Baisden asked following
questions (my responses are in BLUE following the question):
1. How much does a 0.10 mil rate decrease effect our annual budget? Taxable assessed
value for FY2023 is projected to be:
Real Property $853,837,800
AS 43.56 Property 49,952,780
Personal Property 49.147,279
$952.937 859
A 0.10 mill change equates to a gross $95,294 increase or decrease in taxes. After
making a slight adjustment, because we do not collect 100% of taxes billed each year, the
impact on the budget would be a $93,390 increase or decrease in property tax revenue.
The citizen tax payers of the Kenai would save $88,494 and the remaining $4,896, which
is the tax on 43.56 property, would be a revenue gain for the State of Alaska.
2. How much savings would a property owner see from a 0.10 mill rate decrease for every
$100,000 of taxable assessed value. 0.10 mills produces $10.00 in tax per year per
$100,000 of taxable assessed value on property.