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Pella council sets maximum property-tax levy at $11.33 to preserve funding flexibility
Summary
Staff presented two levy options and warned of uncertain bids and pending state property-tax legislation; the council voted to set the maximum FY2027 levy at $11.33 per $1,000 of taxable valuation to preserve flexibility for upcoming projects.
The Pella City Council voted to set the maximum property-tax levy for fiscal year 2027 at $11.33 per $1,000 of taxable valuation, a move staff said preserves flexibility to fund multiple capital projects if needed.
City staff explained two levy options and said the current levy is $10.75. "Option number one would extend that up to $11.33," staff told the council, adding that much of the increase is attributable to an anticipated roughly 60¢ rise in the debt-service levy to fund the University Street extension project. Staff emphasized uncertainty: baseline-drive bids are expected March 10 and state-level property-tax reform proposals for FY2028 could change future planning.
During discussion, council members said they preferred keeping options open while acknowledging resident concerns about higher taxes. After debate, the council approved setting the public hearing and the maximum levy at $11.33 so residents will have the opportunity to comment at the scheduled hearing.
The motion to set the hearing and the levy passed on a roll-call vote with all present voting yes. Staff said it will return with budget details at the March budget meeting and noted that adoption of a maximum levy is not an obligation to levy that amount.
