Unalaska, AK – The City Council will meet tonight to discuss whether to lower the taxes that Unalaska residents pay on their homes. Also on the agenda is a first discussion of whether Unalaska should consider buying a third generator for the new powerhouse.

The rate at which properties on the island are taxed has been the same for the past sixteen years, even though property values have steadily increased, jumping by more than $30 million in the past year alone. That means that homeowners here have owed the city more money each year, something that has some council members considering reducing the rate.

"Considering the amount of revenue we have from property tax, I think a one-mil reduction would be in order," said Councilmember Dick Peck.

Peck's proposed reduction would mean that Unalaskans would pay a hundred dollars less for every hundred thousand dollars of property they own on the island. He said that would be fine for the city, because while the city would be cutting its property tax rate by about 8 percent, the assessed value of property in Unalaska jumped between 10 and 20 percent since last year.

Councilmember Roger Rowland said he wants to wait to hear the discussion about the property taxes at tonight's meeting before making a decision. But he said he does think the city should look at the possibility of giving tax breaks to homeowners who invest in energy efficiency improvements or clean energy technology, like solar panels or windmills, that would otherwise raise the taxable value of their property.

"I was told this would be the time, when we actually set the mil rate and talk about property taxes, to approach the council and the community as a whole with that issue," Rowland said. "I don't know if it'll go anywhere, but I want people to be thinking about it."

Also on the agenda is a first look at the city's capital and major maintenance plan for the next fiscal year. That plan sparked a lively debate at a council meeting last month, when some council members were caught off guard by the news that the city was thinking of buying a third generator for the proposed powerhouse, something that's penciled in at $4 million in the draft budget for next year. The powerhouse project will go out to bid later this month.

Tonight's meeting will be at 7 p.m. at the City Council chambers in City Hall.