Council approves levy, keeping it at same figure for five straight years

LE MARS — It is “amazing,” according to Le Mars City Council member Mike Donlin.

For the fifth consecutive year, the city property tax levy will remain at $11.90 per $100,000 of valuation. The council held a public hearing on the levy during its Tuesday, March 7, meeting, but no one offered a comment.

The council swiftly enacted the levy, with Donlin, who took part in the meeting via telephone, praising the city’s fiscal restraint during the thumbs-up section of the meeting after asking how long the levy had remained at the same rate.

“I think that’s amazing,” he said.

Mayor Rob Bixenman echoed that.

“I concur as well,” Bixenman said.

The city will collect $6,249,427 in property taxes, down from $6,418,126 during the 2022-23 fiscal year. That is a $168,654 decrease from the previous year, he said, or a 2.6 percent drop.

Keeping the levy at the same rate was accomplished this year even after state government leaders enacted a law to lower the assessed value of most property in the state. Gov. Kim Reynolds signed Senate File 181 on Feb. 20, fixing an error made in 2021 by the state Department of Revenue in 2021.

While it lowered assessed values, it placed an additional burden on local governments as they were completing their budget plans for the upcoming fiscal year. Because of this, taxable property in Le Mars is assessed at $14,172,597 less than in the 2022-23 fiscal year, Bixenman told The Le Mars Sentinel. However, the real value rose 1.72 percent, or by $17,032,783.

The total valuation of the city is actually $1,005,062,626, according to Finance Director Jacob Widman.

On Tuesday, Feb. 21, the City Council noted this change in state law while setting the tax levy for the upcoming fiscal year at $11.90 for every $1,000 in taxable property. The city will collect $6,249,427 in property taxes, down from $6,418,126 during the 2022-23 fiscal year, Bixenman said.

That is a $168,654 decrease from the previous year, he said, or a 2.6 percent drop.

Because of this, taxable property in Le Mars is assessed at $14,172,597 less than in the 2022-23 fiscal year, Bixenman said. However, the real value rose 1.72 percent, or by $17,032,783.

The total valuation of the city is actually $1,005,062,626, according to Finance Director Jacob Widman.

In other news from the meeting:

• The council awarded a bid to Cleveringa Excavating of Alton for a project to install a pipeline between Prospect Street SW and 12th Street SW. It is currently an open ditch.

Cleveringa bid $464,493.62 for the base plan, and $715,603.62 for an alternate proposal. One other bid was submitted by SuBSurfco, LLC, of Sioux City, which bid $576,069.85 for the base and $853,614.85 for the alternate.

City Administrator Jason Vacura recommended accepting the Cleveringa bid and taking the alternate proposal.

“It’s the better deal,” Vacura told the council.

The project will be paid for using tax increment financing dollars, since it is within the city’s urban renewal area.

“The base bid left open ditch remaining on the east and west ends,” Vacura told The Le Mars Sentinel. “The alternate was to complete piping on the west end.”

Some open ditch areas will remain, however.

• The council approved three urban revitalization tax exemption requests. The properties are at 137 19th St. S.E., 1801 First Ave. S.E. and 234 Fifth Ave. S.W.

The city’s Urban Revitalization Plan has been in place since 2016, Vacura told the Le Mars Sentinel. It is designed to encourage new and remodeled housing.

The first two requests were residential and are exempted from taxation on the first $75,000 of actual value added for five years. The last one is commercial, so it is exempted for the entire actual value added for three years. The exemption applies to all taxing entities.

• The council unanimously approved a renewal of the liquor license and outdoor serving area license for Bob’s Drive-Inn, as well as a five-day license at the Plymouth County Fairgrounds on Oct. 6-10.