Pella council sets maximum property-tax levy at $11.33 and schedules public hearing

The Pella City Council voted to set the maximum property-tax levy at $11.33 per $1,000 of taxable valuation for the required public hearing on April 7, giving the city greater flexibility while staff continues to refine project cost estimates.

Staff explained two options: maintain the current levy ($10.75 per $1,000) or adopt Option 1 raising the maximum to $11.33 driven mainly by an anticipated ~60¢ increase in the debt-service levy to fund the University Street Extension. Staff said Option 2 would reduce the operating levy by about 13% while adjusting the debt-service levy differently. Staff emphasized the council is not obligated to adopt the maximum but setting the higher number provides flexibility if bids and debt needs require it.

During discussion staff gave a preliminary engineering cost range for the University Street/Baseline Drive project: construction roughly $5.2–5.3 million, with total project costs rising "north of six" million after engineering and land acquisition. Resident Harry Erlick urged the council to select the lower option at the public forum, saying the city should "hold the line" given other upcoming projects. Council members expressed concern for residents facing higher costs but also noted uncertainty about pending state property tax legislation and the need for flexibility to finance several capital projects now estimated at roughly $6.2 million.

The council moved to set the higher maximum (11.33) for the public hearing and took a roll-call vote; the motion passed. Staff said more concrete debt-service numbers should be available after the University Street bids are received.