City budget on council's agenda

Managing Editor

The Spencer City Council will address the 2009/10 city budget at Monday's 6:30 p.m. session, with the intention of setting a public hearing for March 2.

"You have to balance the need for basic core services with quality of life issues that set Spencer apart from other communities...There are several challenges facing the city. As with most rural areas in the state, population growth is almost non existent. Thus, without that growth, some of the city's operations that depend on revenues to fund them have seen their revenues level off or in some cases go down. The cost to run those operations however, continues to rise. This trend tends to indicate that the city may need to adjust rates for some of our operations...," Spencer City Manager Bob Fagen, wrote to council members in a prepared message.

He detailed, "The proposed budget before you calls for no increase in the property tax rate thus it will remain at $11.72 per $1,000 of taxable valuation. Our taxable valuation not including TIF grew $15,797,579 or 4.5 percent. The total taxable valuation including TIF grew $15,324,093 or 4.09 percent. Despite no increase in the tax levy rate the impact to a resident of a $100,000 home will increase an approximate $1.47 per month in the city portion of their property taxes The total amount a resident would pay in city taxes ($100,000 home) not including exemptions such as homestead or military is $534.31 or $1.46 per day. The impact of the tax rate change to a business with a value of $100,000 slightly increases the city portion of their property taxes approximately 26 cents per month. The total amount the business owner would pay in city taxes ($100,000 business) is $1,172.84 or $3.21 per day."

On a positive note, Fagen advised the council, "The financial condition as it pertains to the general fund is very good. Our reserves remain strong and our debt is low. The city's bonding capacity is at about 25 percent of our legal limit. The bond rating for the City is an A1, which is very good for a city of our size. As more of the debt gets paid off it opens up an opportunity to issue new debt for projects in the future without any impact on the tax rate."

Explaining the tax rates, Fagen wrote, "Balancing the tax impact to the community is a challenging endeavor. According to the data provided to the city by the county, our taxable valuation increased approximately 4 percent. A portion of the increase in valuation is attributable to the change in the state rollback formula.

"...Last year residential property was taxed on 44.08 percent of its value. The 2009/10 rollback formula calls for a residential property to be taxed at 45.59 percent of its value....Even though the tax levy rate will remain the same, due to the State of Iowa rollback change, a resident will pay approximately $1.47 per month more per $100,000 of taxable valuation. A commercial property however will only increase 26 cents per month per $100,000 of taxable valuation."

The city again is putting resources towards community development. In the last fiscal year the City committed to a four-year, $2.5 million dollar private/public initiative that was headed by the Corridor of Opportunity that would put a concentrated effort on bringing more opportunities for economic development into the corridor area. Some of the goals of the initiative are to bring 600 new jobs, make the area the most entrepreneurial in the State of Iowa, thus creating 40 new businesses, reverse the declining school enrollment population and attract more residents and workers to the area. This would be the second year of a four year commitment of $75,000 per year.

Approximately $100,000 is being allocated to Jobs Trust for the sole purpose of providing funds through grants or loans to promote new small manufacturing and industrial businesses as well as artist recruitment. In addition, approximately $47,000 is being allocated to the Spencer Chamber of Commerce to be used for tourism, promotions, community events, and staff. The City is also proposing a total of $5000 to the Main Street Organization. The amount of $152,517 is being allocated to pay this year's debt service on the downtown revitalization project. As you can see, the City believes in a strong Chamber and Main Street.

The Renaissance Initiative Committee has been allocated $30,000 to allow the committee the ability to continue to bi-annually support and invest in a variety of extraordinary community projects not possible within the constraints of customary funding sources, and to encourage innovation in meeting the needs of a progressive community.

The budget also calls for a total of $90,000, for outside agencies. Examples of some of the organizations are: RSVP, NW Iowa Alcohol/Drug Treatment, Upper Des Moines, CAASA, Spencer Area Activity Center, Arts on Grand, Flagfest, Parker Historical Society, RTA, Fireworks, Playground Program, and Band.

The commitment to the Regional Events Center by the City through funding is also part of this year's proposed budget. In addition to the 10 percent of the local option sales tax for the construction of the Events Center, the City also would look to utilize $90,000 of hotel/motel tax revenues as well as an additional $28,000 in Local Option Sales Tax to help in the bottom line for this facility.

Fagen noted, "One the biggest assets the city has is our employees. Each of them has shown the ability to adapt to what ever challenge comes our way.

In other business

* Scott Rinehart, Clay County engineer will appear before the council to offer an update on the status of the West Beltway.

* A public hearing is scheduled on the proposed annexation of the "Green Industrial Center." The property known as the "Green Industrial Center" is located on the west side of the east beltway. This is the property that the City and SMU jointly purchased in 2008.

* A second public hearing is scheduled on the 2009 West Side CDBG Storm Sewer Project. The estimated cost for the total project is approximately $850,000, and the bid letting is set 2 p.m., Feb. 20.

The project for the most part consists of reinforced concrete pipe storm sewer on Second Avenue West from the Little Sioux River to 200 feet north of West Third Street. The project also calls for storm sewer on 3rd Ave. West from West 2nd Street to West 3rd Street. Other items of the project consist of lateral storm sewer, precast manholes, concrete storm water inlets, RCP inlet laterals, removal and replacement of existing street pavements, driveways and sidewalks.

The funding for the project will come from a $300,000 CDBG Grant with the balance coming from CSI and Storm water funds.

* The city has received a request from a developer for the Preliminary Plat of Deerfield Park Third Addition.

* The council will review an amendment to the ordinance that regulates nuisances. The amendment for the most part adds a section that defines when a nuisance exists concerning piles or accumulation of wood or vegetation.

CITY OF SPENCER PROPERTY TAX RATE

Residental & Commercial