ITEM TITLE:
#26-28 - Establishing the 2026 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 Resolution 26-28.
SUMMARY STATEMENT:
The 2026 Property Tax resolution assumes a levy of 20 (twenty) mills, which is consistent with the most recent Council level discussions.
Assessed Values, mill rates, and tax levies are summarized below:
Oil & Gas Property: $2,971,037,510
Other Real Property: $395,339,937
Total: $3,366,377,447
Mill Rate: 20.00
Revenue: $67,327,549
Staff’s estimate of the ad valorem revenue limit (“tax cap”) in 2026 is $58.9M.
This yields “over-cap” revenues of $8.4M, that may only be kept by the City of Valdez to pay principal and interest on bonds.
2026 scheduled debt payments, excluding defeased debt, is $6.5M.
• An additional pre-payment to principal on GO22 totaling $1.9M is required pursuant to AS 29.45.100 if the mill rate is set at 20 mills.
o The pre-payment figure is subject to change as the Oil & Gas Property Value has been appealed to the State Assessment Review Board (SARB)
o Staff may bring a Budget Resolution prior to the end of the fiscal year for any additional appropriations to debt service.
Summary of Attachments (by date received):
February 26, 2026 - Preliminary Assessment Letter to Mayor and Roll
March 31, 2026 - Informal Conference Decision (ICD) correspondence
April 20, 2026 - Notices of State Assessment Review Board (SARB) Appeal, Hearing, and Prehearing Conference.
April 28, 2026 - Certified 2026 Real Property Tax Roll