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Newell council opens hearing on proposed FY27 property tax levy to cover insurance and staffing
Summary
The Newell City Council opened a public hearing April 6 on a proposed increase in the FY27 property tax levy, prompted by rising insurance costs and plans to hire additional staff. City Clerk Heather Copp explained the levy calculation and said the city currently covers about 90% of employee insurance.
The Newell City Council met in special session April 6 and opened a public hearing on the proposed fiscal year 2027 property tax levy, Mayor Justin Lyman said at the start of the 5:30 p.m. meeting.
City Clerk Heather Copp told the council and members of the public that the levy represents the total dollars needed to fund city services, and she distinguished that total from the tax rate applied to assessed property value. Copp said the city’s current rate is 14 and the proposed rate is 16, and she attributed the increase largely to higher insurance costs and planned new hires needed to maintain services such as sheriff, fire, ambulance, library and parks.
Copp told a resident who asked how the levy was determined that the city receives only a portion of property tax collections—about 30%—and that assessed property value changes are driving increased levy needs. She also said the city currently pays about 90% of employees’ insurance premiums and uses a high-deductible plan, which she said helps reduce costs; she added that the city’s insurance obligations include both employee health coverage and property insurance for municipal assets.
Resident Michael Jensen asked how the levy amount was calculated and whether employees would be expected to contribute more toward health insurance; Copp provided the explanation above in response. The council did not take a final vote on the levy at the meeting.
Mayor Lyman closed the public hearing at 5:44 p.m. and announced a second public hearing, when the council will consider adopting the FY27 budget, is scheduled for Wednesday, April 22 at 5:30 p.m. The council approved the meeting agenda earlier in the session on a motion by Councilmember Bill Henrich, seconded by Councilmember Steve Taylor; the clerk recorded the vote as "all ayes." The meeting adjourned at 5:46 p.m. on a motion by Councilmember Larry Nielsen, seconded by Councilmember Quinten Robinson; the clerk recorded "all ayes."
