The Juneau Assembly voted to increase both the city’s property tax and utility rates for the fiscal year that begins in July.
The rate hikes were passed alongside the city’s budget for next year, which the Assembly unanimously approved during a meeting Monday night after months of work.
Next year’s property tax or mill rate is 10.24. It’s higher than last year’s rate, but lower than what’s needed to pay for city spending next year. As a result, the city will dip into savings to fill in the gap. Property taxes make up around 40% of the city’s general fund revenue.
Downtown resident Ke Mell was the only person who testified about the mill rate at a meeting. She kept her remarks short and focused.
“Yes, please increase the mill rate. Pass a balanced budget. We need to pay our way,” she said.
Property tax bills are calculated by multiplying the mill rate by a property’s value. A higher mill rate doesn’t always mean people will see an increase in their bills. This year, the average residential property assessments rose by less than 1%. For a typical $500,000 home in Juneau, the property tax bill will increase by about $100 if the home value stays the same.
Beginning on July 1, residential water and sewer rates will increase by 5%. The rate will continue to increase by 5% annually for the next five years. City officials say the rate hikes are needed to help offset hundreds of millions of dollars in replacements and repairs needed for the city’s water and sewer system in the coming decade.
Juneau’s utility rates have gone up 2% each year since 2020, but that hasn’t kept pace with inflation or repair needs. The rates approved by the Assembly are an increase, but they are less than what the Juneau Water Utilities Division originally proposed and less than the increased recommended by studies.
The Assembly also chose to fully fund the Jensen-Olson Arboretum next year. Mayor Beth Weldon originally proposed cutting all of its funding for next year, but pulled back on that plan after testimony by arboretum member Pat Harris.
“It’s a wonderful space for the community, just to come out and enjoy the gardens and use it for other events as well,” she said. “Please keep it well funded.”
Weldon said she proposed the cut to show how difficult it is to cut even small amounts from the budget without public backlash.