Ottawa City Commission adopts 2025 budget, sets mill rate at 44.644

The Ottawa City Commission on Sept. 4 adopted the city’s 2025 operating budget and set the mill rate at 44.644 after a public hearing and deliberations.

Director Landis opened the budget hearing, summarizing the budget process and key figures: the city had published a tentative mill rate of 45.0 mills, used conservative revenue estimates, and reported an assessed valuation increase of about 8.4 percent driven in part by roughly $1.6 million in new construction. Landis said the published rate and the county’s calculation produced a revenue‑neutral rate of 43.609 mills and explained the statutory process for declaring an intent to exceed that rate under Senate Bill 13 (2021). “We did publish our rate at 45 mills,” Landis told the commission during his presentation.

The commission first approved a required resolution saying it intended to levy a property tax rate exceeding the county‑calculated revenue‑neutral rate; that resolution passed unanimously by roll call (5–0). With the public hearing closed and no members of the public speaking, commissioners then discussed the budget itself. An initial motion to adopt the budget at an estimated 44.844 mills failed on roll call after several commissioners voted no. Commissioners and staff then debated small adjustments to the communications fund and community‑partner transfers and reviewed an updated revenue projection tied to an anticipated reimbursement to the emergency communications fund.

Commissioner Kaler moved to adopt the budget with a mill rate of 44.644; the motion was seconded and carried on a roll call vote of 4–1, with Mayor Michael Skidmore voting no. City staff said the lower mill rate reduced the city’s ad valorem requirement by about $29,205 (staff estimate presented during the motion discussion). The adopted budget was presented as being within the published maximums for total expenditures and ad valorem required by state budget rules.

The commission’s action establishes the city’s formal spending plan for 2025 and sets the property tax rate that will be used to fund mill‑levy supported funds, subject to the final assessed valuation figures to be published in October. Staff told commissioners the final assessed valuation could change the exact mill calculation but that 44.644 reflected the commission’s policy choices at the Sept. 4 meeting.

The commission recorded the roll call votes in the minutes and moved on to other business at the close of the budget item.