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City council to set public hearing date on property tax and other levies

T-R FILE PHOTO
The Marshalltown City Council members, such as Mayor Joel Greer and councilors Sue Cahill, Mike Gowdy, Bill Martin and Bethany Wirin, will hold a special meeting on Monday in the chambers at 10 W. State St.

Marshalltown city councilors will meet in special session at noon on Monday to discuss the fiscal year budget beginning July 1 and ending June 30, 2021.

The meeting is open to the pubic.

Their task is to set Feb. 17 as the date to hold a public hearing prior to approving the maximum property tax generated by specific property tax levies.

This hearing was mandated by the 2019 Iowa legislature as part of a “truth in taxation”

state law, originating as Senate File 634.

“The legislature wanted the taxpayers to see how much more in dollars the city receives, regardless if the levy rate changes,” city finance director Diana Steiner wrote in a memo to mayor and council.

Local governments receive revenue generated by property tax and other special levies to offset expenditures.

Steiner said governments typically focus on property tax levy rate, which for Marshalltown was $15.28 per $1,000 valuation for many years and then was raised 10 cents to $15.38 for fiscal year 2020.

“When property tax valuations increase, the local government has a chance of keeping up with inflation,” Steiner said.

The law requires local governments to pass a resolution if tasing levies are going to exceed 2 percent of dollars in the fiscal year budget.

The legislature enacted the law because from in 2019, 524 of the 942 Iowa cities had a 2 percent increase.

The “truth in taxation” law requires local governments to publish and have a public hearing on the amount of requested dollars for certain specified levies. The levies included are the special levies that were approved by special votes, such as Marshalltown’s library and municipal band, the debt service levy and the capital projects levy.

“Overall, the increased dollars for the city generated by levies would be $290,752, a 2.47 percent increase,” Steiner said.

COUNCIL MEETING:

The Marshalltown City Council will meet at noon on Monday in the council chambers at 10 W. State St.

FOR MORE INFORMATION:

Visit the City’s website for Monday’s complete agenda packet with attachments and to subscribe to agenda notices and department news — www.marshalltown-ia.gov

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