City to propose $1 reduction on property taxes

Jan. 21—OTTUMWA — Once again, residents in Ottumwa can anticipate spending less on property taxes in the next fiscal year.

The city estimates it will lower the maximum property tax rate for certain levies by at least $1, the largest cut the city has made in recent history and the second year in a row in which there has been a reduction in the overall rates.

The cut, expected to drop the maximum levy rate to $21.22 per $1,000 of valuation, is a combination of increased property valuations, and the city looking for ways to save money among its other levies.

A public hearing on the the proposed maximum rate is scheduled for the Feb. 1 city council meeting. Last year, the city saved residents about 24 cents.

"I have no idea the last time there was that big of a drop, but I'd like to drop it more," city director of finance Kala Mulder said Friday. "We've been able to save strategically, especially on Post-65 insurance and other insurances.

"We've also been trying to find other revenues to get stuff done," she said. "I'm passionate about saving our taxpayers money."

Mulder said her estimate was conservative, but noted the city has turned to grants to fund many different parts of the community, namely housing, economic development and parks. Also, the city will pursue a grant to hire three additional firefighters and bring the department to full staff.

"We've hit the grants hard," she said.

Mulder's focus now is on providing relief for the city's general fund, which pays salaries for employees. That levy is at capacity of $8.10, but relief in that fund would help pay for more city employees in the future.

Plus, a possible future with an indoor sports complex and revamped Greater Ottumwa Park can bring in more revenue because of hotel and motels, as well as road use tax and local option sales tax.

"My goal when I got here was to get it below $20," Mulder said. "So, we'll try to get it to $20.22."

— Chad Drury can be reached at cdrury@ottumwacourier.com, and on Twitter @ChadDrury