City Raising Property Tax Levy

As expected, the city of Glenwood is raising its property tax levy and moving forward with the implementation of utility franchise fees as a means of generating revenue to cover expected expenses in its general fund budget for the 2017-18 fiscal year.

The city’s proposed $5.1 million budget for 2017-18 calls for the tax levy to be raised from the current rate of 13.58 (per $1,000 taxable valuation) to 15.50 beginning July 1. In addition to the property tax increase, customers of MidAmerican Energy and Black Hills Energy  residing within the city limits will begin paying a 5 percent franchise fee on their monthly utility bills, according to an ordinance drafted for city council approval.

Mayor Brian Tackett and financial consultant Clint Fichter said the additional revenue generated by the tax levy hike and franchise fees would offset a $300,000 general fund shortfall that’s plagued the city in recent years.

After reviewing the city’s financial practices, Fichter told Tackett and members of the city council in January that although the city has done a good job of keeping expenditures in check in recent years, the operating deficit won’t be erased without additional revenue being generated.

Tackett said it’s clear to council members that additional revenue is needed.

“We need to increase the revenue side so we’re not spending $300,000 out of savings every year,” Tackett said.

According to Fichter’s estimates, the tax levy increase and implementation of franchise fees will provide enough revenue to bring the general fund into the black, actually creating a $78,601 surplus.
For the owner of a home assessed at $100,000, the annual impact of the property tax increase and utility franchise fees are projected to be $262.

Tackett noted even after the proposed tax rate increase goes into effect, Glenwood’s levy would still be lower than current rates levied by several communities of comparable size in the region, including Atlantic (16.72), Shenandoah (19.13), Harlan (17.13), Red Oak (17.23) and Clarinda (17.50).

A public hearing for the city’s 2017-18 fiscal year budget is scheduled for Tuesday, March 14, 7 p.m., at City Hall.