Most Kenai Peninsula Borough property owners will pay less in property tax this year after the borough assembly on Tuesday unanimously approved several reductions.

The amount of money someone pays in property tax in a fiscal year is calculated by dividing a set value called the mill rate by 1,000 and then multiplying that number by the assessed property value. The Kenai Peninsula Borough’s general fund mill rate, applied to all borough properties, will be reduced to 3.85 this year, down from 4.30.

Multiple reductions are also set for Nikiski property owners, who pay additional property taxes for local service areas including North Peninsula Recreation Service Area and Nikiski Fire Service Area. Mill rates for the Central Emergency Service Area and Kachemak Emergency Service Area will also be reduced.

The only borough mill rate increasing this year is for Seldovia Recreation Service Area. That’s because, Kenai Peninsula Borough Mayor Peter Micciche said, a community effort in Seldovia called for support of operation of the pool at Susan B. English School this winter. The pool is set to be closed by the Kenai Peninsula Borough School District on July 1.

“It’s rare that people will say ‘yes, I want to be taxed more,’” assembly member Willy Dunne said during the meeting. “But that’s exactly what the residents of Seldovia did. For good reason.”

Micciche, in proposing the mill rate reduction this week and in recent months, says the borough has taken in more in property taxes than it needs because of sharply increasing property values. The borough is required by state law to assess properties to their full value and even as the borough’s mill rate has been unchanged in recent years, rising values mean rising property taxes.

“Most borough residents will pay less in property taxes this year than they did last year,” he said. “After so many years of escalation, it’s time for us to really take that into account … We’re losing families because it’s a very expensive place to live, amongst other reasons.”

Traditionally, Borough Attorney Sean Kelley said during the meeting, the mill rates would be set after the assembly had finalized its budget. The borough’s budget, which originally had been scheduled for action during the meeting and ahead of the mill rate legislation, has been delayed to June 17 amid ongoing conversations about education funding. Kelley said that while the activity is “a little inverse this year,” the borough had to approve its mill rates by June 15 according to state statute.

A full recording of the meeting and the text of the resolution can be found at kpb.legistar.com.

Reach reporter Jake Dye at jacob.dye@peninsulaclarion.com.