As budget deadlines draw ever closer, a pair of meetings will be held at City Hall next week. The Board of Equalization meets Monday at 6:30 p.m., and the Wrangell Assembly will hold a public hearing on the Fiscal Year 2016 budget at 6 p.m. on Tuesday.
Comprised of members of the Assembly, the Board of Equalization meets every year in early May. Forty-eight appeals have been filed this year, after assessors found improvement values had risen by five percent. While property values remained largely unchanged, this increase still affects overall taxable value, translating into higher payments for many residents.
The city’s mill levy rate has stayed the same since 2007, when it was raised to 12.75. After incorporation an outside rate was instituted at 4.0 in 2009, increasing the tax base over the previous year by about $18 million. Since then, total assessed values have generally increased each year, from $125 million to $143 million in 2015.
In the FY16 draft budget, the city finance department estimates real property taxes will rise by about 3.6 percent, from $1.6 million the previous year to $1.66 million. Actual taxes collected for FY14 were $1.56 million.
Assessors review each property in the borough every three years. During the intervening two years adjustments are made according to a review of property sales in the community.
“That’s what drives property values,” Borough Manager Jeff Jabusch explained.
This data is turned in to the Office of the State Assessor in the form of a report. Assessments affect a civic government’s contribution levels to its local school district, so communities are required to keep their tax rolls updated and in line with fair market rates.
Jabusch explained that notices were sent out informing homeowners of the changes on March 21. Following that, people had 30 days to file an appeal with the city. During an average year the borough receives between 15 and 30 appeals.
Assessments are more general than an appraisal, and during the appeal process property owners can bring assessors inside the building for a more detailed view. The burden of proof is on the property owner to demonstrate a discrepancy in the assessment.
“They’ll look at each case individually,” Jabusch said.
If the appellant can come to an agreement with the assessor before Tuesday’s meeting, the board does not need to hear the complaint. Otherwise, the board examines the cases one by one.
Before its regular meeting on Tuesday, the Assembly will hold a public hearing regarding the FY16 budget at 6 p.m.
The current draft has reduced the borough’s public expenditures by about $284,000 to $5.8 million, while general fund revenues have dropped by about $155,000 over the previous year. This should keep the city in the black by about $23,000 for the year.
In light of the numbers, Jabusch feels the city may be in a better position than first feared.
“I think the good thing with the city is we’re financially solid,” he said.
“I think Wrangell is in pretty fair shape,” commented Mayor David Jack. He said the fiscal foresight shown by previous assemblies and saved funds will help the community weather financial storms such as the present one.
There are still some areas for concern as the Legislature continues negotiations for a budget. Jail funding is one such worry; initially the jail was going to be closed, then have its state funding reduced to the 2011 levels. The latest move by the Legislature would reduce jail funding by 33 percent. However, none of this is set in stone.
“We’re trying to get confirmation from the state,” said Lee Burgess, Wrangell’s finance director. “Things like that are still trickling in.”
In a best-case scenario, Wrangell may even have funds available for a few smaller capital budget projects.
“I think we’re going to have a handful of things,” Jabusch said, perhaps around $100,000 worth in all.
Right now the budget is balanced with minimal effects on services, but the city is looking ahead to tighter economic times. Burgess expressed the opinion that the more public involvement there is in setting those priorities, the better.
The draft budget is a step in that direction, the numbers pinned down but not yet sewn into place.
“It’s a starting point to see where we’ll end up,” said Burgess.
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