Johnston Council Discusses Tax Levy Increase

Johnston residents have been expecting an increase to their city property tax rate next year, but the question remains how large of an increase will be passed on.

The discussed the fiscal year 2012-13 budget once again Tuesday evening, a process that began in December when department heads detailed needs for next year.

On Tuesday, the council instructed department directors and city administrators to go back to the drawing board to see what spending cuts could be made to lessen an increase in the city's property tax rate.

"Residents are expecting to see an increase in the property tax levy," said Mayor . "I would like to suggest as an upper limit not going above $11.30."

Are there areas where the city can trim spending? Services to be cut? Make your suggestions in comments below.

The city's current property tax rate is $11.09 per $1,000 of assessed valuation.

An increase was expected after residents passed a for a new public safety building and fire station annex. The referendum was passed on the basis that the debt levy tax would not be raised more than 42 cents per $1,000 of assessed valuation.

The first proposal during Tuesday's discussion was to raise the property tax levy to $11.59 per $1,000 of assessed valuation. Meaning the average household in Johnston would pay about $56.16 more in property taxes each year.

If the levy were to remain at $11.09, residents on average would still pay more than last year by $8.78. The increase is in part because of a reduction by the Polk County Assessor's Office on valuations. However, not all homes in Johnston were affected by the decrease.

Dierenfeld proposed capping the increase to no more than $11.30, as it has been the highest tax rate in Johnston historically.

Previous to the current fiscal year, the tax rate has been between $11.27 and $11.30 per $1,000 of assessed valuation since the 2006-07 fiscal year.

Because of declining property values, if the city were to maintain current property tax rates it would need to cut expenses by nearly $371,000.

Councilman said the community expects certain service from the city.

"If we cut back on trail repairs, we're gonna hear about it this summer," he said. "If we cut back on mowing grass in the medians, we'll hear about that. If we have one fewer snow plow out when it snows, we'll hear about that."

Although there will be an increase in the tax levy, residents will still pay roughly $100 less on average than they did 10 years ago, Temple said.

"Today we're much larger, we have more personnel, more fire protection, more police," Temple said. "It's not a number like going from $1,000 to $1,500 or $2,000; it's a changes that is kind of within the changes we've done in the past."

City staff will bring updated budgets and any suggestions for spending cuts to a council work session on the budget at 6 p.m. Monday, Jan. 23 at .