Tax hike on tap
FD city spending projected to be $87 million
-Submitted graphic <Br> The proposed Fort Dodge city property tax rate for the fiscal year is $20.43 per $1,000 of taxable value. That levy is divided up to provide money for many different government functions as shown here in this graphic. This levy is for the city government only. Webster County, the Fort Dodge Community School District and Iowa Central Community College will each have their own levies.
-Submitted graphic <br> The general fund budget for the city of Fort Dodge, which pays for many government programs, is on track to finish the last fiscal year on June 30 with a $118,000 surplus. This graphic shows the fund as originally budgeted and what the current actual budget figures are. The general fund budget for the city of Fort Dodge, which pays for many government programs, is on track to finish the current fiscal year on June 30 with a $118,000 surplus. This graphic shows the fund as originally budgeted and what the current actual budget figures are.
-Submitted graphic <Br> The proposed Fort Dodge city property tax rate for the fiscal year is $20.43 per $1,000 of taxable value. That levy is divided up to provide money for many different government functions as shown here in this graphic. This levy is for the city government only. Webster County, the Fort Dodge Community School District and Iowa Central Community College will each have their own levies.
-Submitted graphic <br> The general fund budget for the city of Fort Dodge, which pays for many government programs, is on track to finish the last fiscal year on June 30 with a $118,000 surplus. This graphic shows the fund as originally budgeted and what the current actual budget figures are. The general fund budget for the city of Fort Dodge, which pays for many government programs, is on track to finish the current fiscal year on June 30 with a $118,000 surplus. This graphic shows the fund as originally budgeted and what the current actual budget figures are.
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A roughly $87 million Fort Dodge city budget that includes a property tax increase which brings the levy back to the previous rate appears set for the fiscal year that will begin July 1.
The City Council received a final report on the budget and the property tax levy during a workshop Monday evening. The elected officials did not ask City Manager David Fierke to make any changes, so Fierke will prepare the budget documents for final approval during a council meeting next month.
The proposed budget is for the fiscal year that begins July 1, but state law requires cities to approve their budgets in mid-March.
The city staff began working on the budget last fall, and the council has been reviewing it in a series of meetings that began in December.
Fierke told the council that the total expenditures from all funds are about $87.1 million.
That's down from the current budget of about $93 million.
As is usually the case, the toughest part of the budget to balance is the approximately $14 million general fund, which pays for police and fire protection, parks and recreation, the public library, the airport, the Blanden Memorial Art Museum and many other government functions.
To help balance it, Fierke ordered a 2 percent cut in the commodities and contractual expenses budgets of each agency. That move saved $296,000.
He also revised the projected revenue upward by $204,000 based on the latest projections. Most of that revenue increase is expected to come from the Fire Department's ambulance service.
"We're still conservative in the way we estimate revenue," Fierke said.
The property tax rate of $20.43 per $1,0000 of taxable value is up from the current level of $20.17 per $1,000 of taxable value.
According to Jeff Nemmers, the city clerk and finance director, last year the City Council asked the staff to cut the property tax rate, and there was a sufficient cash balance to do so.
"Last year was an intentional push-down," Fierke said.
Despite the increase, the levy remains consistent with some recent fiscal history in the city. In 2019-2020. the rate was $20.43 while in 2018-2019, it was $20.42.
"We're not really raising it, we're putting it back," Councilman Jeff Halter said.
Mayor Matt Bemrich said the return to the higher rate is driven mainly by employee retirement costs the city must pay.
The proposed levy for next year includes $6.12 for employee benefits.
The current figure for paying those benefits is $5.91.
"I fully support your proposed levy," Bemrich said.
The city's property tax levy is divided up to provide revenue for specific purposes. The levy breaks down as follows:
• $8.10 for the general fund, which pays for police and fire protection, parks and recreation, library, the Blanden Memorial Art Museum and other government functions.
• $6.12 for employee benefits.
• $4.36 to pay off general obligation bond debt.
• 61 cents for emergency management and 911 dispatching.
• 46 cents to pay for property and liability insurance.
• 34 cents to support Dodger Area Rapid Transit.
• 27 cents in an emergency levy to help balance the general fund.
• 12 cents for Citizens Central.
• 5 cents for the Karl L. King Municipal Band.
The $20.43 per $1,000 of taxable value is only the city government's tax levy. Webster County, Fort Dodge Community School District and Iowa Central Community College will each levy their own property taxes.