The city property tax levy in Fort Dodge would rise to $20.36 per $1,000 of taxable value under a proposal released Monday night.
A desire to bulk up account that pays for employee health insurance is a major factor in the proposed increase, which would raise the levy 44 cents above its current level of $19.93 per $1,000 of taxable value.
City Manager David Fierke introduced the tax increase to the City Council Monday as its members continued reviewing the proposed budget for 2012-2013.
''To be quite blunt, we put together a levy that is high,'' Fierke said.
''It puts us in the strongest financial position within reason,'' he added.
Of that increase, 40 cents would be earmarked for the employee health insurance account. Jeff Nemmers, the city clerk and finance director, said that increase would add $200,000 to the insurance fund balance, providing a cushion for any massive health care claims.
The proposal also increases the levy for Dodger Area Rapid transit by 4 cents.
Councilmen Kim Alstott and Andy Fritz asked if it would be possible to leave the property tax rate at its current level and still get the needed money, thanks to an increase in the taxable value of property in the city.
Fierke said the city will take in more money thanks to rising values.
He asked the elected officials to give him some direction on the property tax rate during their meeting next Monday.
The major elements of the proposed tax rate are:
- $8.10 for the general fund
- $6.25 for employee benefits
- $4.44 for paying off general obligation bond debt
- 61 cents for property and liability insurance
- 49 cents for DART
- 27 cents in an emergency levy to help balance the general fund
There are also smaller levies to support the Webster County Emergency Management Agency, the Karl King Band and Citizens Central.
Contact Bill Shea at (515) 573-2141 or bshea@messengernews.net