Clear Lake council approves Fiscal Year 2021 budget — tax rate one of lowest in state

first_imgCLEAR LAKE — The Clear Lake City Council this week approved the Fiscal Year 2021 budget that starts on July 1st. The tax rate approved for the next fiscal year is $9.70 per $1000 assessed valuation, the same rate for the current budget. City Administrator Scott Flory says the new budget has total expenditures among various programs of slightly over $20.2 million.  $8.8 million is directed toward operations and maintenance; $10.6 million is toward capital; and roughly $900,000 to debt services. The projected ending cash balance on June 30th 2021 in the general fund is over $4 million, which is roughly 52% of the general fund operating budget. “That is a very healthy cash balance to have in the general fund. Generally the rule of thumb on that is about 25 to 30% cash balance in that fund, so we’re sitting really well and for good reason there as well.”Flory says Clear Lake has one of the lowest tax rates in the state.   “It’s a point of pride for us to be able to say that we have the fourth lowest tax rate for communities above 4000 population in this state. Our $9.70 rate juxtaposed to some of the higher communities in the state for the city portion of the tax rate, you can Ottumwa at almost $22.50, that’s obviously well more than double our tax rate. Even Council Bluffs at the bottom end of that grouping at $18.26 is getting close to what double our city tax rate is.” Flory says for a home assessed at $150,000, the city’s portion of a Clear Lake homeowner’s tax bill would be $767.  “So consequently the impact resulting from the fiscal year ‘21 tax rate remaining the same would be approximately a $27 a year decrease for fiscal year ‘21 from fiscal year ‘20. Of course that is purely attributable to the valuation on the residential rollback going from nearly 57% down about 55%. Completely attributable to that 2% reduction in the residential rollback.” It’s the fifth straight year the city’s tax rate has either been steady or lowered, with the rate being lowered from $10.54 per $1000 in Fiscal Year 2016 down to the current $9.70 per $1000.last_img

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