The Cordova City Council last week approved a property tax increase for the 2025 tax year – primarily in an attempt to cover the cost of funding the Cordova School District.
During the council’s regular meeting on May 21, council members voted 4-2 to raise the property tax mill levy from 9.93 to 11.44 mills in 2025. A mill levy is a property tax rate wherein one mill represents $1 of tax for every $1,000 of a property’s assessed value. For example: With a 11.44 mill rate in Cordova, the owner of a $400,000 home will owe $4,576 in property taxes next tax season.
The council decided on the mill levy increase to ensure the city can fund the Cordova School District for the upcoming year – which has requested $2.3 million from the city to stay afloat. Property taxes collected by the city are used in part to fund the school district.
Council members also raised the mill rate to soften the blow from a huge loss of federal funding from the Secure Rural Schools and Community Self-Determination Act – federal grant funding Cordova has relied on to help finance the school district. According to correspondence from City Manager Samantha Greenwood, Cordova received around $742,000 in Secure Rural Schools funding in 2024. President Donald Trump’s administration has slashed that funding for 2025, which has left Cordova to receive just over $13,000 this year.
Cordova Mayor Kristin Smith told the Cordova Times the council isn’t raising property taxes “because we feel like it’s a good time to raise taxes.” She said it was done in an attempt to try to make up the nearly $730,000 loss of Secure Rural Schools funding, as well as the district’s full $2.3 million request.
In addition to schools funding, the council noted other city budget restraints before passing the mill levy increase.
Council member Dave Zastrow emphasized the city’s need for additional revenue to keep services in place, like the Bob Korn Memorial Swimming Pool and the Eyak Lake Skater’s Cabin – which the Cordova Parks & Recreation Department announced would be closing on Aug. 1.
“We’re literally closing down facilities in our community because we can’t maintain them,” Zastrow said before casting his vote to increase the mill rate. “All these things keep people in Cordova.”
Council Member Kasey Kinsman, who also voted to increase the tax rate, said it’s needed to cover the cost of city staff as well, especially in this time of high inflation.
However Council Member Wendy Ranney, while she recognized the fiscal struggle of both the city and the Cordova School District, said she couldn’t support raising the mill rate. She suggested making up the revenue in other areas – proposing perhaps even closing the Bidarki Recreation Center and instead giving that equipment to the schools.
“We’re taxing people out of this community,” Ranney said. “I know that brings in more money and I know we’ve heard people say that they’re willing to pay more, but that’s not the whole community.”
Ranney and council colleague Mike Mickelson were in the minority voting against the increased mill levy. Those in favor of increasing the property tax rate included Zastrow and Kinsman, as well as Council Members Aaron Hansen and Debra Adams. (Council Member Cathy Sherman was absent.)
