The average Bettendorf homeowner would see an overall 5 percent hike in property taxes and city service fees under the proposed $87.1 million 2013-14 budget outlined at recent city council sessions.
The owner of the median-priced home – having an assessed value of $162,235 – would see an annual increase of $42 in property taxes, $18 in sewer fees, $4 in storm water fees and $4.60 in garbage collection cost under the budget proposal.
The city is not planning to raise the current city tax rate – $12.55 per $1,000 assessed valuation – but an increase in property assessments and the state rollback formula would boost tax collections. Commercial property owners would not see an increase in property taxes, unless their property assessment (unrelated to the rollback) changes.
The higher property taxes would offset a projected $391,000 increase for city employee wage increases (due under the current city-union contract), $445,000 for higher health insurance costs, $237,000 for higher pension contributions and a hike of $93,000 for city liability insurance coverage.
The higher sewer fees are needed to pay for the $3.5 million interceptor extension (Forest Grove Road to Indiana), lift station and pumps to serve the I-80/Middle Road corridor. (Another $250,000 is to be spent from the capital improvement fund to extend water mains to the same area.)
The storm water fee hike would help fund three major projects, a $500,000 regional detention basin near the new Hopewell Elementary School, $400,000 for Stafford Creek bank stabilization work between 18th Street and Crow Creek Road and $235,000 for bank stabilization along Duck Creek.
And, the increase for solid waste (garbage/recycling) service is needed to pay for increasing operating costs and the future replacement of vehicles.
City Administrator Decker Ploehn told aldermen the overall cost of city services – property taxes, and sewer, storm water and garbage fees – ranked the third lowest among the 30 Iowa cities with populations of more than 10,000 residents.
"We remain committed to making difficult decisions of increasing revenues through taxes and user fees incrementally, if needed, to balance our budgets annually as our costs increase," Ploehn told alderman. "We do not endorse deferring or holding off on raising fees and taxes only to later having to 'spike' the rates to balance the budget."
Despite the higher revenues projected, the budget includes a $156,000 shortfall in the city's general fund. That deficit could be made up by drawing down the existing general fund reserve or seeking additional cuts in city departmental operating funds.
CLICK HERE to download the city budget Powerpoint presentation.
CLICK HERE to download a PDF of the city budget presentation.
CLICK HERE to download the entire fiscal 2013-14 budget review book (this is a very large file, 35 megabytes).
