City tax rate will drop by 50-cents in 2017 budget

‘Once again, Clear Lake will feature one of the lowest tax rates in Iowa’

Property owners in Clear Lake will see the city’s portion of their tax bill drop by 50-cents per $1,000 of taxable valuation in the budget proposed to the City Council for fiscal year 2017.

City Administrator Scott Flory presented the budget to the Council Monday night.  The Council set March 7 as the date for a public hearing for the budget.  It must be certified to the County Auditor by March 15.

Under the proposed budget, the tax rate will drop from $10.54  to $10.05 per $1,000 of taxable valuation.  The City’s share of the overall tax rate has been at $10.54 for the previous five fiscal years.   The proposed rate of $10.04 is the same rate which the City had maintained for five consecutive years prior to the 50-cent increase made in 2012 as a result of the voter-approved $2.3 million general obligation bond issued for the new fire station building.

Under the proposed city budget, owners of a home assessed at $150,000 will see a reduction of $41 in their tax asking from the city; owners of a commercial property will see a $66 drop in their city taxes.  However, Flory reminded property owners that the City’s portion of the total tax bill is roughly one-third.  Other entities, such as the school district, sanitary district, NIACC and others, represent two-thirds of a property owners’ total tax asking.

“Once again, Clear Lake will feature one of the lowest tax rates in Iowa for cities with a population greater than 4,000,” Flory told the Council.  In 2016, Clear Lake’s tax rate will rank as the ninth lowest city tax rate in cities of 4,000 or more people.  “I anticipate bettering that in fiscal year 2017— probably top five,” said Flory.

The taxable valuation for the 2017 fiscal year, which begins July 1, 2016 and ends June 30, 2017, continues the positive trend of growth in the community.

The taxable valuation for fiscal year 2017 is $547,715,843, which is a $27,368,508 increase (5 percent) from fiscal year 2016.  Flory noted the increase occurred despite a commercial and industrial property tax rollback