Mat-Su Borough Assembly Adopts FY26 Budget

Palmer, AK – The Matanuska-Susitna Borough Assembly has adopted the Fiscal Year 2026 (FY2026) budget. The adopted budget reflects the Borough’s commitment to responsible fiscal management while addressing community priorities, including transportation, recreation, education, and operational efficiencies.

The approved budget reduces the areawide mill rate from 8.748 to 8.485, translating to an average areawide property tax increase of $62 per household, based on an average assessed value of $388,087. The areawide mill rate is the second-lowest mill rate in the past 35 years. “This budget reflects the Assembly’s strong awareness of how taxes affect residents and the financial pressures many are facing,” said Borough Mayor Edna DeVries.”

Key Highlights:

• Education Funding: The budget allocates $78 million for the Local Education Contribution, a 4% increase aligned with the School Board’s request. Additionally, $2.45 million is set aside for school capital projects, including boiler replacements.
• Road and Fire Service Areas: Road and fire service areas received 5% and 3% increases, respectively, to adjust for cost increases and maintain capacity to address capital needs.
• Public Infrastructure & Recreation: An additional $500,000 has been committed to enhance the Jonesville Public Use Area, supporting the development of a public shooting range and amenities.
• Port MacKenzie Development: With federal support, the Borough will advance the construction of a new barge ramp, using $6.7 million in combined funds—$4.75 million from federal sources and $2.5 million in local appropriations—to increase the Port’s cargo capacity and economic potential.
• Operational Efficiencies: Several cost-saving measures are introduced, including:
  • Refinancing previous bonds, saving approximately $4.9 million.
  • Contracting for ambulance billing, saving an estimated $370,000 annually.
  • Continued modernization of systems to enhance online public service delivery: permitting, tax reporting, park and pool reservations, and landfill services.
  • New landfill infrastructure, including a tipping floor and scale house, will improve operations and reduce long-term costs, alongside initiatives for composting, recycling, and leachate evaporation.

“This budget reflects the Assembly’s commitment to sustaining critical services, building infrastructure, and finding efficiencies to make government work better for our residents,” said Borough Manager Mike Brown.

For additional information or to view the adopted budget, please go to https://transparency.matsugov.us/pages/financial-information.