Increase in property values credited with
first reduction since 2019
by Marianne Gasaway
Thanks to steadily rising property values, Clear Lake tax rates are declining.
City Finance Director Creighton Schmidt presented the proposed Fiscal Year 2024 budget for the city to Council members Monday night. The group set a public hearing on the measure for April 3.
The proposed tax rate for FY24 will drop from $9.70 to $9.65 per $1,000 of taxable valuation.
The drop continues a trend in the city’s rate. The rate had been $9.70 since 2019; prior to that it was $9.80.
The taxable valuation for FY 2024 is $808,011,653, which is a $62,386,244 increase (8.37 percent) from FY 2023. The increase comes despite a commercial, industrial and multi-family residential rollback.
Schmidt presented an example of the new tax rate’s impact on a property assessed at $200,000. Under the new rate the city’s portion of the property owner’s bill will increase $4.79, due to a slight change in the residential rollback at the state level. The rollback was adjusted from 54.13 percent in FY 2023 to 54.65 percent in FY 2024.
“So even though our levy amount went from $9.70 to $9.65, it’s a slight increase, but that did help to keep that increase down to a minimal number,” said Schmidt.
The amended FY 2023 budget and proposed FY 2024 budget reflect total expenditures of $20.6 million and $19 million respectively among various programs.
For FY 2024, $10.8 million is directed toward operations and maintenance; $7.3 million toward capital; and roughly $900,000 to debt service, Projected ending cash balance for June, 2024 in the General Fund is $5,731,806, which is roughly 47 percent of the General Fund Operating budget.
Major capital projects in the FY 2024 budget include: South 15th Street Park, demolition at the former Woodford Lumber and Home site, City Hall building safety improvements, water tower paint, a new fire truck, single-axel plow truck, alley and sidewalk improvements, Phase 2 of the 2023 Overlay Project, resurfacing of Highland Drive, West 17th, 18th and 19th Streets, outdoor pickleball/basketball facility, Parks Department tractor, Surf District Project contributions.
