City proposes keeping tax rate steady in FY 2020

by Marianne Gasaway

Clear Lake continues to be a shining example of taxation done right.

City Administrator Scott Flory presented a preliminary Fiscal Year 2020 budget to the City Council Monday night which keeps the city’s tax rate at a modest $9.70 per $1,000 of taxable valuation.  The proposed rate represents the fourth consecutive fiscal year where the city’s share of the tax rate has either declined or remained constant without an increase.

For Fiscal year 2017, the City tax rate decreased from $10.545 to $10.04; for Fiscal Year 2018 the tax rate was decreased from 10.04 to $9.80; and for Fiscal Year 2019 the tax rate was decreased from $9.80 to $9.70.

Flory’s presentation included notice that the taxable valuation for the Fiscal Year 2020 continues the positive trend of growth in the community.

The taxable valuation  for 2020 is $653,990,344, which is a $46,641,445 increase (7.7 percent) from the preceding fiscal year.

“This is despite a commercial, industrial and multi-family residential rollback,” Flory added.  “The residential rollback for Fiscal Year 2020 is set at 56.92 percent, which is an increase from the Fiscal Year 2019 rate of 55.63 percent.”

The slight change in the residential rollback will result in an increase of approximately $19 for

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a Clear Lake home with an assessed valuation of $150,000, Flory estimated.

The proposed Fiscal Year 2020 budget reflects total expenditures among the various programs of slightly over $14.3 million, of which $8.7 million is directed towards operations and maintenance, $5.1 million towards capital, and roughly $500,000 to debt service, according to Flory.

Major capital projects will include: an alley improvement project, continued 4th Avenue South street rehabilitation from South Shore Drive to 8th Street, completion of the city parking lot improvements and North 32nd Street projects, a South 40th Street bridge project, City Beach area bathroom and Splash Pad expansion and North Lakeview Drive walkway.

Fiscal Year 2020 major capital purchases will include two police patrol cars, including a hybrid, commercial dock materials, various equipment for the public works department and capital reserve add-ons for a police communication system upgrade and ambulance/fire truck.

The City’s constitutional debt limit for Fiscal Year 2020 is $52,513,965 and the City currently has used only 2.6 percent, or $1,357,500 oil its General Obligation borrowing capacity.  That is one of the lowest levels of debt in the country.

“Generally, municipal finance advisors suggest operating in the 60-70 percent range,” said Flory.

For Fiscal Year 2019, Clear Lake had the fourth lowest city tax rate among 94 cities in Iowa with a population over 4,000.  It was only bested by Eldridge (population 5,651 with a tax rate of $6.74), Evansdale (population 4,751, $8.10) and Dyersville (population 4,058, $8.73).  The top 10 list also included larger Iowa cities such as Urbandale (population 39,463, $10.02) and Ames (population 58,965, $10.06).

Clear Lake’s consolidated tax rate ranked within the top five of Iowa cities with a population over 4,000.  Carroll topped that list with a consolidated rate of $25,75.  Clear Lake was fifth at $28.16.

A public hearing on Clear Lake’s proposed budget will be held March 4.

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