Decorah council elects enterprise‑fund option for Hively Street debt and sets property tax levy hearing with lower levy figure

Councilmembers voted to use enterprise funds to cover the Hively Street improvement project’s utility‑related costs and set a separate public hearing for the proposed property tax levy.

City staff explained three repayment options: use water and sewer; use water, sewer and stormwater (which would cover more of the project); or not use enterprise funds. Several councilmembers said they preferred including stormwater in the repayment plan and noted that if stormwater spending is reduced, a rate adjustment might be necessary later to restore balance.

Following discussion, Councilmember Neil moved that water, sewer and storm be used to help cover associated Hively Street costs; the motion passed unanimously. The vote was procedural direction—no final budget adoption occurred during the meeting.

On the separate levy item, staff recommended reducing the employee benefits levy by $259,700 to bring down the proposed levy. Council agreed to set a public hearing for the property tax levy notice with that adjustment. Staff said the adjustment would lower the proposed levy to about 15.527 (from about 16 previously). The council set the property tax levy hearing for April 6 (council discussed scheduling at 5:00 p.m. but agreed 5:15 p.m. was acceptable). Councilmembers thanked staff for managing the bond rating and fiscal position that allowed the levy reduction.

These actions represent policy direction and scheduling of a public hearing; the actual levy and budget will be adopted in a subsequent hearing after public comment and final budget work sessions.