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Community Notes: City budget plan is fair, responsible

By Dean Andrews, Mayor, Charles City

On Monday, March 1st, the City Council held a public hearing for our annual budget year, which begins July 1st, 2021.

This year’s budget plans for $26,210,937 in anticipated revenues and $25,279,214 in anticipated expenses. These revenues come partly in the form of property taxes, but also include several other sources. Fees for services such as water and sewer, transfers of funds from the community’s TIF zones, and transfers from other governmental entities are just a few of these other sources.

Community Notes: City budget plan is fair, responsible
Mayor Dean Andrews

The portion of the $26 million budget that comes from property taxes paid by our community’s property owners amounts to $4,271,686. This figure is arrived at based on a property tax levy of $15.98/per $1,000 valuation (down from $16.02 in this current year).

To give an example, if your home is valued at $100,000, you pay property tax based on a value of $56,000. This is due to what is called the state residential rollback. The state Legislature sets this value for each year, and this year you pay taxes on 56% of your property value. For commercial properties, this rollback is 90%.

In this residential example, the $100,000 property owner would pay $15.98 for each $1,000 in valuation. That would be $15.98 times 56 for a total annual fee of $894.88. If your house is valued at $50,000 your tax would be ½ of $894.88, and a $200,000 home’s fee would be 2 times $894.88, and so forth.

Some of the items included in this year’s budget are the beginning of loan payments for the replacement of the Charley Western Trail Bridge, a $33,333 (year one of three years) payment to our community’s child care center, TLC, for its proposed move to the North Grand former middle school, $87,500 (50% cost share with county) to AMR Ambulance as well as $60,000 (year one of two years) to help offset the remodel of the fire station for its office space as negotiated in our current contract.

These are in addition to all of the everyday services our citizens receive such as police protection, fire service, community transit service, library services, park and recreation services (including the pool and the golf course), some street activities, and many of the other services the city provides.

The council, the city staff, and I all feel that we have developed a fair budget for this year, trying to keep the levy rate at a responsible level, while still providing the many services and amenities that makes Charles City an enjoyable hometown.

 

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