New Prague staff presents $5.60 million levy proposal; average residential share estimated at 3.88%

City staff presented the proposed 2025 property tax levy during the Truth in Taxation public hearing, saying the levy has been reduced from an earlier preliminary figure and will be finalized at the council's next meeting.

Josh Tetzlaff, presenting the city's budget overview, said the council approved a preliminary levy on Sept. 2 of $5,685,800 — roughly a 7% increase — and that subsequent adjustments lowered the levy by about $82,000 to $5,603,735, a 5.46% increase over 2024. "Since that time, we have reduced the levy down a little over 82,000," he said.

Staff estimated the average increase to the city portion of property tax for residents at 3.88%, driven by changes in state and county net tax-capacity numbers and department-level changes. Tetzlaff outlined fund-by-fund levies: general fund $4,428,735; EDA $75,000; debt service $831,865; equipment $268,265.

Ken (Community Development Director) and department heads then reviewed program-level changes the levy funds. Ken noted permit and development activity that affects longer-term revenue projections while the police chief and fire chief summarized staffing, grant awards and operational shifts that contribute to department budgets.

Councilmembers questioned staff about a technical change that moved the ambulance fund's small revenue and expense items into the general fund; staff said roughly $200,000 remains in the ambulance fund but the small monthly rents and utility expenses were being handled through the general ledger to simplify accounting. Councilmembers also discussed whether EDA reserves (about $1.1 million in combined EDA balances) or the $75,000 annual EDA levy should be used to offset the levy.

No budgets were approved at the meeting; the council scheduled final action to adopt the 2025 budget and levy at its Dec. 15 meeting.