Council passes budget, business incentives

by Marianne Gasaway

The Clear Lake City Council adopted the City’s Fiscal Year 2022 budget Monday night.

“There’s a stark contrast between the local and national levels,” stated At-Large Councilman Mike Callanan, who was acting as mayor pro-tem at the meeting.  “We are required to set and live within a budget.  It’s a wonderful situation and process. At the national level that doesn’t seem to happen— and unknown things like wars and pandemics, can cause necessity.  But I appauld the process of municipal governments that set a budget and work real hard to make that.”

Under the unanimously approved budget, the proposed tax rate for the city will remain unchanged from its current rate of $9.70 per $1,000 assessed valuation.  This is the sixth straight year the city’s share of the tax rate has either declined or remained the same. The tax rate decreased from $10.54 to $10.04 in Fiscal Year 2017, dropped to $9.80 in Fiscal Year 2018, and declined to $9.70 starting in Fiscal

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Year 2019.

The recommended tax rate of $9.70 per $1,000 of taxable valuation would result in a tax bill for City government services of $786 in 2021-22 for a residential property with an assessed valuation of $150,000 (with Homestead Credit).  

Financial incentives approved

In other business Monday, the Council agreed to provide up to nearly $1.5 million in financial incentives to two potential, still un-named, commercial developments through an amendment to the City’s Urban Renewal Plan. 

The City will offer the developer of a 47,000 square foot commercial/retail space, with related surface parking, an incremental property tax rebate for 10 years, in an amount not to exceed $850,000.  An additional $350,000 in incremental property tax revenues would be used by the City to finance municipal water and sanitary sewer service mains and laterals needed for the project.  The developer would be required to invest at least $7.5 million in real and personal property.

The second development of approximately 6,000 square feet of commercial space, resulting from the developer’s investment of at least $1 million, would receive an incremental property tax rebate agreement from the City for seven years, in an amount not to exceed $225,000.  An additional $50,000 in incremental property tax revenues would be used by the City to finance municipal water and sanitary sewer connections and related improvements and $15,000 in professional services fees reimbursement for civil engineering and legal fees incurred by the developer.

Pay increase

Clear Lake’s elected officials have approved a pay raise— their first in eight years. 

Compensation for Council members will increase to $300 per month and the Mayor will be paid $700 per month.  The current  pay is $2,500 per year for Council members and $7,500 per year for the Mayor.  

The increases will become effective Jan. 1, 2022.  

Wellness Center Board

City Administrator Scott Flory has asked Council members to be thinking about who they would like to appoint to a Board of Directors which will serve as the governing body for the new community wellness center.  The City and School District, which are partners in the venture, agreed to a five member board, with each entity choosing two members.  The fifth member will be jointly decided upon.  Flory noted there may also be a number of ex-officio members, such as himself and school superintendent Doug Gee.    It has been suggested board members serve four-year staggered terms. The initial board will have some members who only serve two years to facilitate the staggered terms.  Board members may be in place by May.

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