The City of Soldotna would see its first sales tax bump in more than four decades under an ordinance going before the city council Wednesday. If approved, the sales tax would increase from 3% to 3.5% in 2027. The city estimates the change could bring in about $1.7 million to Soldotna each year.
The proposal comes about two weeks after city officials told council members about a need for more city revenue to pay for projects. That issue has been top of mind as the council stares down around $9 million worth of work needed at the Soldotna Regional Sports Complex, on top of the city’s other infrastructure needs.
Council member Linda Farnsworth-Hutchings is sponsoring the proposal. She wrote in a council memo that the proposal is meant to proactively address the city’s current needs and prepare for the city’s future needs. Over the last two decades, Farnsworth-Hutchings wrote, the city spent more than $25 million in operating funding on projects.
The tax bump is up for introduction Wednesday. If introduced, the ordinance will advance to a public hearing and final vote next month.
