City levy declines under next budget

City administrator Dave Mitchell delivered his first annual budget for public review and was able to give council members the one piece of news they are always happy to hear.

The balance sheet translates into a small decline in the city’s property tax levy rate.

$20.35 per thousand dollars in “taxable” valuation, down from $21.55 for the current year.

Very, very roughly that is about $45 reduction on a $80,000 market value home. Fourty-five dollars because the city council reminds property owners that ‘taxable valuation’ is considerably smaller than market value, or other common measures of a property’s worth.

Most years, ‘taxable’ valuation is about half of what you assume to be your property’s market value.

All because the state of Iowa has long ago instituted a program, which rolls back increases in property valuations in a deliberate effort to offset inflation and cushion tax increases.

Read the full story in Tuesday's Ledger.