Budget Down, Mill Rate Down, Taxes Down
The mill rate for Fairbanks North Star Borough property taxpayer was set last night (June 11) by the borough assembly.
The Areawide Mill Rate will be 13.891. That means property taxpayers will contribute about $13.89 for every $1,000 dollars of their property value. For example, a $100,000 house would require a payment of $1,389 dollars in taxes. Last year’s was 13.892. This year’s rate is 1/1,000th less.
The assembly passed a budget on May 14. Debbie Brady, Chief Financial Officer, says the value of the property in the borough was underestimated and will bring in about $4 million dollars more in revenue for fiscal 2021. So at that May 14 meeting, the Assembly set aside $1.6 million for property taxes by the Fort Knox mine, which is arguing with the borough over property value, sent an extra $500,000 to the school district to help with pandemic expenses, and assigned $1.9 million back to the borough general fund’s unassigned fund balance, making the draw on fund balance about $5.6 million instead of $7.5 million.
“In accordance with the Assembly’s May 14th actions, the $1.6 million for fort Knox is set aside, $500,000 is going back to the school district, and the remaining $1.9 million is reducing the draw on the general fund’s unassigned fund balance.”
Assembly member Matt Cooper told citizens where to find the figures in borough documents.
“I just want to note for the public listening that Substitute Attachment A has the revised mill rate in it and keeps the mill rate almost the same, and actually very slightly less than last year.”
The borough budget is $140,568,829. That is without the Road, Fire and other Service Areas. It still has to be reviewed and finalized by the borough’s Finance Department. Last year’s (FY 2020) budget was slightly higher at $141,941,342.
Tax bills go out on June 30, and the first installment is due by Sept. 1.