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Clarinda maintains current tax levy rate
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Clarinda maintains current tax levy rate

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HJ - Standard Budget 2

After nearly two months of discussions, the Clarinda City Council approved the city budget for Fiscal Year 2022 during its meeting March 10 at the Lied Public Library.

A public hearing on the proposed budget for the new fiscal year, which starts July 1, was held prior to the adoption of the budget Wednesday night. Clarinda City Manager Gary McClarnon said he had received no oral or written comments on the budget prior to the council meeting and none were received during the hearing.

“I have not heard a word, so I’ll assume people are happy with it,” McClarnon said.

Therefore, the city council unanimously approved a resolution certifying the budget. For the fourth straight year the city tax levy has been set at $17 per $1,000 of taxable valuation.

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During a budget workshop Jan. 13, McClarnon said the Clarinda levy rate compared favorably with other area cities. Glenwood had a rate of $15.67; Atlantic, $16.56; Harlan, $16.95; Shenandoah, $18.43; and Red Oak, $18.68.

Clarinda was also compared to Cherokee and Centerville since those cities are similar in size and tax base to Clarinda. Cherokee has a levy rate of $15.59 and Centerville has a rate of $17.47. To place those numbers in context, McClarnon said Des Moines has a levy rate of $16.61 and the levy rate for Councils Bluffs is $18.46.

Given the changes that have occurred in property valuations this year and the state rollback, McClarnon said the owner of a $100,000 home in Clarinda would pay $22.70 per year in additional taxes during the new fiscal year.

Overall, McClarnon projected the city would have an ending fund balance of approximately $444,000 in the General Fund. That would give the city reserve of 16.8% of the total budget.

“The auditors highly recommend between 10% and 25%, so we’re pretty much right in the middle with that,” McClarnon said.

In other business, the council set a bid letting for April 13 for an improvement project at Clarinda Municipal Airport. A public hearing is set for April 14 after which the council could award the bid.

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