ITEM TITLE:
#24-23 - Establishing the 2024 Rate of Real Property Tax and Designating the Number of Mills for Each Dollar of Real Property to be Levied for Municipal and School Purposes
SUBMITTED BY: Jordan Nelson, Finance Director
FISCAL NOTES:
Expenditure Required: n/a
Unencumbered Balance: n/a
Funding Source: n/a
RECOMMENDATION:
Approve
SUMMARY STATEMENT:
This Resolution reflects the maximum levy of twenty (20) mills, pursuant to prior Council discussions during the 2024 budget hearings
• 2024 Assessed values are as follows:
o Oil and Gas Property $2,181,672,560
o Other Real Property $373,266,943
o Total: $2,554,939,503
• 2024 Property Tax Revenue, based on 20 mills: $51,098,790
o 2024 Adopted Budget Revenue: $49,532,108
o Maximum Allowed Revenue: $52,314,272
o 2024 Estimated “over cap” Revenue: none
• 9 assessments on the 43.56 Preliminary Assessment Roll were appealed. The State Petroleum Property Assessor forwarded appeal outcomes totaling ($110,867,610) reflecting the Department of Revenue Informal Conference Decision.
o At a mill rate of twenty mills this decision is the equivalent of $2.2MM in reduced revenue.
o Pursuant to AS 43.56.120, after a ruling by the Department of Revenue on an appeal made under AS 43.56.110, a municipality or owner of taxable property may further appeal to the State Assessment Review Board (SARB) in accordance with 15 AAC 56.030.
• A manifest error on land value for 1 assessment totaling $2.7MM in assessed value will be reflected as a correction in a supplemental roll, due statutory requirements related to corrected assessment values.
• Staff will apprise Council of any procedural formalities arising from a future revision to the assessment roll.