What you need to know:

• A proposed Matanuska-Susitna Borough budget would raise this year’s average property tax bill by $115. The budget lowers the mill rate compared to last year. However, because the average assessed value of Mat-Su homes increased significantly year over year, final tax bills would rise under the proposal.
• The budget funds borough administrative costs and capital projects, including voter-approved road and school construction, landfill upgrades, a $2.5 million barge ramp at Port MacKenzie and $1 million for public transportation.
• Public hearings and budget deliberations before the Borough Assembly are scheduled in over the next six weeks, with a final vote expected before tax bills are issued in June.

PALMER -- Mat-Su property owners can expect slightly higher tax bills under a proposed Matanuska-Susitna Borough budget that goes before the Borough Assembly this month.

The proposal would increase the average borough property tax bill by $115 compared to last year, officials told the Assembly during a preliminary budget presentation Wednesday.

The proposed budget covers borough administrative expenses and capital projects, including voter-approved road and school construction, $1 million for public transportation, landfill upgrades and a new $2.5 million barge ramp at Port MacKenzie.

It proposes an area-wide rate of 8.612 mills, or $861.20 per $100,000 of assessed property value. The average assessed value of a single-family home in the borough for 2025 is $388,091 – a 5% increase over last year.

The proposed mill rate is a slight decrease from last year's areawide rate of 8.748 mills, or $874.80 per $100,000 of assessed value. But because assessed property values have increased year over year, a lower mill rate does not necessarily mean a lower tax bill, officials said.

The budget also includes a proposed non-areawide mill rate of 0.371, or about $37 per $100,000 of value, for property owners outside the city limits of Palmer, Wasilla and Houston. Revenue from that tax pays for services such as fire protection and road maintenance. The proposed rate is slightly lower than the current rate of 0.38 mills but would add an average of $4 to tax bills because of increased property values, officials said. 

Wednesday's budget presentation did not include details on total proposed spending for the upcoming fiscal year, which begins July 1. That information is still being developed and will be delivered to the assembly at a meeting scheduled for Tuesday, borough Finance Director Cheyenne Heindel said in an interview.

The proposed budget includes some updates to improve efficiency, such as outsourcing ambulance billing to a private contractor, Borough Manager Mike Brown said during the meeting. It also expands certain borough services, including purchasing and expanding programs at the Big Lake Lions Recreation Center and developing a new shooting park at the Jonesville Public Use Area in Sutton, he said.

“The idea here is that this budget is not a status quo budget. It is aggressive in many ways,” Brown said. “It includes resources that go beyond minor fixes, and it features thoughtful structural changes to drive progress through service improvements, increased efficiency and infrastructure investments.”

The Assembly will hold three public hearings on the budget this month at locations throughout Mat-Su, including the Willow Community Center, the Menard Sports Center in Wasilla, and the Borough Assembly Chambers in Palmer. A series of deliberations are also scheduled for next month, culminating in a final vote. Borough tax bills are mailed annually to property owners in June.

Assembly members can make changes to the budget during the deliberation process, including removing or adding items. The proposed budget includes a buffer of about $1 million to allow for additions without increasing the proposed mill rate, Brown said.

-- Contact Amy Bushatz at contact@matsusentinel.com