Extra costs in budget, loss of federal funds cited for higher increase from current rate of 10.04 mills.

This is a developing story.

Increasing the mill rate to 10.24 for the budget year starting July 1, up from the current rate of 10.04 mills, was approved by Juneau Assembly members on Wednesday night.

That increase is larger than the proposed rate of 10.19 mills that’s been in the proposed budget since it was introduced in early April. City Finance Director Angie Flick said the city is facing extra costs in its budget due to changes made by Assembly members last week, as well as the loss of federal Secure Rural Schools program funds that Congress so far is omitting from next year’s federal budget.

The rate passed by the Assembly Finance Committee on Wednesday means property owners would pay $10.24 for every $1,000 in taxable value of their properties — equating to $100 more than this year’s rate for a $500,000 home.

The full Assembly still needs to vote on the mill rate as well as next year’s budget, which is scheduled at a meeting June 9.

Flick told Assembly members a mill rate of 10.44 is needed to pay for the extra budget costs as well as the loss of federal funds. However, an amendment by Assembly member Alicia Hughes-Skandijs to set the mill rate at that level failed by a 3-6 vote. An amendment by Assembly member Christine Woll to set the rate at 10.26 failed by a 4-5 vote before the 10.24 rate passed unanimously.

• Contact Mark Sabbatini at mark.sabbatini@juneauempire.com or (907) 957-2306.