The Kenai Peninsula Borough Board of Equalization convened on May 28, 2025, via Zoom to address property assessment appeals and discuss valuation methodologies. The meeting focused on the assessment of land and improvements in the Russian Village 2 Market Area, with key discussions surrounding the valuation process and specific property assessments.

The meeting began with an overview of the property assessment valuation process. The assessing department explained that the first step in developing a cost approach is estimating the land value at its highest and best use. This involves reviewing and statistically testing reported land sales in the market area. The assessed value is then determined by combining the land value with the value of any improvements, in accordance with Alaska state statutes.

The board reviewed two specific parcels of land. The first parcel, a one-acre lot, was inspected on April 11, 2025. The appraiser noted that the property owner, Mr. Persargent, requested that the inspection be conducted from the right of way rather than on the property itself. Following the inspection, no changes were made to the assessed values, and Mr. Persargent verbally indicated a desire to accept the assessed value and withdraw his appeal, although this was not formalized in writing.

The second parcel, a 1.2-acre property, included two residential structures. The appraiser reported that the septic system for one structure was no longer functioning, and the other required exterior painting. These conditions led to a reduction in the assessed value by $9,300. Similar to the first parcel, Mr. Persargent expressed a willingness to accept the updated value and withdraw his appeal verbally.

During the meeting, board members raised questions regarding the assessment process, particularly the low median ratio of 31.51% for land sales in the area, which is below state requirements. The assessing department clarified that limited sales data necessitated cautious adjustments to property values to avoid drastic increases or decreases. A 15% increase was applied across the board for the area, but it did not meet the state’s required percentage.

The board also discussed the condition of borough roads in the area, which were described as poorly maintained. However, the assessing department noted that property measurements could not be verified due to the owner's restrictions on access.

In conclusion, the board upheld the assessing department's recommendations for the property values based on uniformity and equity with similar parcels. The meeting highlighted the complexities of property assessment in the Kenai Peninsula Borough, emphasizing the importance of accurate data and the challenges posed by limited sales activity in the region. The board's decisions will guide future assessments and ensure compliance with state statutes.