City tax rate will hold steady

For the fifth straight year, the tax rate for the City of Clear Lake will likely remain at $10.54 per $1,000 of assessed property valuation in the 2016 fiscal year.

City Administrator Scott Flory presented the City Council with a preliminary budget at its regular Monday night meeting.  The proposed budget shows total fiscal year expenditures of $12,141,766.  

While the tax rate remains at $10.54 per $1,000 of assessed valuation, a state residential rollback adjustment from 54.40 percent to 55.73 percent in fiscal year 2016 will create a slight increase for residential property taxpayers.  For example, a home with an assessed value of $150,000 will have an increase of $21.08, according to Flory.

The city’s fiscal year 2016 total taxable valuation is $520,347,335, which is an increase of $18,537,159 (3.7 percent).  Fiscal year assessed valuation in the city is $847,156,571.

Major capital projects in 2016 will include work on 14th Avenue North from Logan Drive to North 8th Street, bridge replacement on 12th Avenue South and a intersection contribution at the Highway 122 and Willow Creek Court intersection.   A sidewalk improvement project which involves replacing the base beneath the brick pavers on Main Avenue is also scheduled.  Additional overlay projects and storm sewer evaluation and watermain work is also scheduled.  The relocation of the City Beach area restroom and splash pad expansion is also on the work docket.

Major capital purchases include replacement of two patrol cars for the police department, HVAC control system replacement at the library, purchase of a vacuum street sweeper for public works, and a manual read water meter upgrade.  The city is also contributing to its Capital Reserve Fund to save for public safety equipment including fire truck and ambulance needs.

Flory noted the city’s tax asking represents only about one-third of the total tax bill property owners receive.  The city’s share of taxes is 34.2 percent; other taxing entities, such as the school district, NIACC, Sanitary District and others comprise 65.8 percent of the tax bill.

The city continues to have a very low level of “bonded indebtedness,” according to Flory, with a total capacity of $42,357,800, and only $3,635,500 outstanding (9 percent).  Many Iowa cities are well in excess of 70 percent. Among the 94 cities in Iowa with a population over 4,000, Clear Lake had the seventh lowest consolidated tax rate for fiscal year 2015.  

Now that the City Council has approved the preliminary budget, the plan is published in the Clear Lake Mirror-Reporter.   A budget hearing will be held in the upcoming weeks and the final budget will be adopted at that time.  The final budget is certified to the County Auditor by March 15.

In other business Monday, the Council approved a professional services agreement with Veenstra & Kimm, Mason City, for engineering work on the West 7th Avenue North water main improvement project.  The project involves the reconstruction of the water main between 19th Street West and North Shore Drive. The anticipated bid letting is July 1.