Liberty council sets 2025 property tax levy at 0.7929%, lowest in 36 years; reserve set for senior tax credit uncertainty

Miss McClure, a city staff presenter, opened a required public hearing on the proposed 2025 property tax levy and recommended setting the levy at 0.7929. She told the council the figure is based on preliminary county assessments and the state auditor's calculation tool and, if approved, “the 2025 levy would be the lowest levy rate in 36 years.”

McClure walked the council through assessment changes in the preliminary data: real-estate assessed values rose about 22.6 percent versus 2024 final values, personal property assessments were down about 10.5 percent, and the aggregate preliminary assessed value was up roughly 15.7 percent. She said new-construction valuation grew to about $16.8 million in 2025 from $8.5 million in 2024, noting that previously tax-abated industrial projects are rolling onto the tax rolls and contributing to that increase.

The presentation flagged uncertainty from Senate Bill 190, the senior tax-credit program enacted in 2023. McClure said the credit is opt-in for qualifying seniors and requires an annual affidavit; because the county and city use different methodologies to estimate first-year revenue impacts, staff provided two scenarios. She said Clay County’s estimate ranged “anywhere from 25 to 30 thousand” in year-one revenue loss, while the city’s own estimate was “anywhere from 115,000 to 120,000.” Because the impact could compound in later years, staff and the budget committee recommended setting aside a roughly $100,000 reserve to help offset potential shortfalls.

Budget-committee members told the council they had discussed the levy on Aug. 6 and recommended the 0.7929 rate as a prudent step that balances current revenue with the city’s economic-development gains. Council members repeatedly cited recent industrial investments — including a $175 million stamping-plant expansion and long-term abatements that are now phasing down — as the reason the city could lower the levy while maintaining services.

With no public speakers during the hearing, Councilmember (speaker 2) moved to waive the rules and consider the ordinance on first reading; the motion passed. The council then voted to approve the ordinance establishing the 2025 ad valorem tax levies for city operations at the recommended rate. The mayor declared the ordinance passed unanimously.

The council directed staff to return final numbers after the county submits final assessments and to report on the actual revenue impact after tax bills are printed. That timing means final accounting will follow the council’s budget actions for the year.

Next steps: staff will finalize the levy submission to meet state deadlines and monitor Clay County’s final assessment methodology and enrollment in the senior tax-credit program.