The property tax rate levied by the city of Fort Dodge would drop by about 35 cents for the 2014-2015 fiscal year under a proposal introduced Monday evening.
That proposal would set the tax rate at $20.47 per $1,000 of taxable value, down from the current rate of $20.82 per $1,000 of taxable value.
However, City Manager David Fierke said that even though the tax rate will be lower, homeowners may end up paying more due to increases in the value of their property.
The property tax bills homeowners will receive include more than the city's levy. Also included are taxes for the Fort Dodge Community School District, Webster County and Iowa Central Community College.
The city tax rate consists of these elements:
- $8.10 for the general fund, which pays for police and fire protection, parks and recreation costs not covered by fees and many other government services.
- $6.37 for employee benefits.
- $4.54 to pay off general obligation bond debt.
- 55 cents for property and liability insurance.
- 42 cents for Dodger Area Rapid Transit.
- 27 cents for an emergency levy to help balance the general fund.
- 12 cents for the Citizens Central senior citizens center.
- 6 cents for the Karl King Municipal Band.
- 4 cents for the Webster County Emergency Management Agency.
Fierke said the levy amount for employee benefits is down by 47 cents, while the amount for property and liability insurance is down by 6 cents.
The portion of the tax rate that goes for paying off bond debt is up 14 cents. The levy for the band is up half a cent, while the levy for the Emergency Management Agency is new.
The city tax rate will cost the owner of a home with the city's median value of $85,000 about $783, according to Fierke.