All right.

This special session of the Seed Rapids City Council will come to order.

I'd like to welcome those of you who are here for the special city council meeting on Tuesday, March 24th, 2026.

I'll note my colleague Tyler Olson is absent today as well as Councilmember Marty Hager.

I'll now accept a motion to approve the agenda.

Motion to approve.

Second.

Thank you.

All in favor?

Aye.

Aye.

Opposed.

All right.

The motion carries.

We will get started, Council.

It's now time for our public hearing.

And I'll remind everybody who wishes to speak today of a few matters just to ensure that we have an orderly meeting.

First, remain at the lectern.

If you have documents you need to share with us, give them the officer and she will get them to us.

You'll notice some lights on the on the podium there.

When it turns you have five minutes total when it turns yellow, you have one minute, and when it's red, we'll ask you to take your seat.

And please be aware that all comments must be directed to the matter of the public hearing.

So no obscene, abusive, loud, threatening, relevant comments will be allowed.

And then finally, so we can have an orderly meeting today.

We ask for no applause, booing, or other disruptions from the audience today.

Does the clerk have any written comments or objections in regard to the public hearing on our agenda?

Your Honor, there are three objections filed.

Three objections filed.

Thank you.

Public hearing will be held to consider the property tax revenue and property tax levy for our fiscal year 2027 budget.

Thank you, Mayor.

Good afternoon, Mayor and the Council.

Abidish Pande Finance Director.

So today the public hearing is about the proposed FY27 property tax levy and the revenue.

Just to give you some uh purpose and the background of this uh public hearing, as per the IO Accord Section 24.2A, uh the cities are required to um have this public hearing before the budgets gets approved or adopted in in um in a few weeks.

Basically, um this requires to further inform and notify the public of changes in property tax revenue, levy rates, and the any kind of related reasons for that increase or decrease.

Uh the county auditors, uh, they mail each taxpayer um showing the proposed city, county, and the school district property tax rates and revenue for the budget year.

Um subsequent to that mailing, the cities hold a separate public hearing um presenting city's maximum property tax levy rate and the revenue information.

Uh at this hearing, at this hearing, any residents or property owner of the city may present any objection or provide any uh uh arguments in favor of that property tax revenue and the levy rate.

Um this public hearing also cannot focus on other aspects of the budget or the full budget.

Um this is the stack payer statement that the property tax owners they received.

Um this notice was also published by the city for the public hearing based on the format that was prescribed by the state.

Um as you can see, there are three different columns in this uh tax statement.

The first column talks about the the current year, which is the fiscal year 2026 uh budget information.

Uh as per that uh column, you can see that the in fiscal year 26, the the city's total property tax revenue is around 128 million dollars, and the current levy rate is 16.65.

Uh the second column is basically it's called the effective property tax, uh, which what does that mean is basically if we kept the the 27 budget at the same level at 26.

Um, you would see the changes in the property tax levy rate, and which would be basically decrease from 1665 to 1635, only if we remain at the same level of FY26.

The third column talks about basically FY27 budget.

Uh as per the proposed budget, um, the property tax revenue uh will go from uh from 128 million to 130.4 million dollars.

However, the the city's property tax levy rate doesn't change from the current year, which is the 1665.

So one thing that I would like to highlight that basically the property tax levy rate remains the same from FY26 to FY27.

There is no property tax levy increase for proposed budget.

What also the increased revenue will fund items such as the liability property and vehicle insurance, debt payment, employee benefits such as the FICA, IPERS retirement, police and fire retirement, and health care benefits.

These are the uh large uh ticketed items.

This um there are some other items also that will be funded, such as the general government operations, but these are the some of the large ticketed items that will be funded from this revenue.

Also um property tax owners received uh along with their statement, they received um uh two examples showing basically the impact of property tax um levy rate on their proper uh on their pro on property taxes.

Uh basically this statement shows two examples.

Um if you were if um in a household sees and their property valuation goes by 10,000 dollars from 100,000 to 11,000 from FY26 to 27, they will see around 26 increase in their property taxes, and the percent change will be around 3%.

Such a uh that's on the residential side.

On the commercial side, if the in this example, if the property value increases by 30,000 from 300,000 to 330,000, they will see around 377 increase in their property tax from the previous year, and that's 11% change.

I would like to point out here this change is only happening because the valuation of those properties have increased.

It is not because of the the property tax levy rate has increased.

Uh for example, if that 100,000 house would have valued at the 100,000 this year, also, they would not see any property tax increase.

Same thing.

If the commercial property was remained to only 300,000 valuation, they wouldn't see that increase as well.

Um with that, um the next steps are basically April 14th, we'll have a motion for the public hearing for budget adoption, and April 28th, we'll have the public hearing to adopt the uh the fiscal year 22027 budget.

With that, Mayor, I will turn it back to you.

All right.

Thank you so much, Abby.

This is a time and a place for a public hearing on this matter.

Does anyone in the audience wish to address council?

Yeah, okay, go ahead.

All right.

Um let the record show a public hearing has been held with um three objections for the record.

That brings us to council comments.

Councilmember Olsen.

Yeah, thank you, Mayor.

Uh uh Abby, we we discussed a lot more detail on your presentation here.

Uh, number one, we had a chart that showed what happened to the state uh uh percentage of taxable and re and revenue because that varies every year with a state law.

We don't control that.

So as I remember, uh the rollback went from about 46% down to 44, which was about a 3% decrease.

And you showed that our budget sheet that are actual valuations and taxable revenue is going to decrease because of that rollback.

Would you explain that number one?

Sure.

Um so yes, um in FY26, the rollback rate was basically around 47%.

So that means like your only 47% of your property was uh taxable.

That percentage has decreased now for this year to around 43.

So that means basically uh as you pointed, 3% decrease in the pro taxable value of your home.

Um how does that the formula works is basically um now if for example for my property, I wouldn't see uh actually I would experience a tax decrease if my property tax, if the if my property value remained the same at the previous year.

So definitely, because the rollback rates are going down, that helps a property tax owner to experience a lower amount of taxes than the previous year.

Now the second part of that question is what the city assessor does and what we're seeing, because I was looking at mine, and my total tax went up slightly because the area I'm living in, they're selling at higher prices than the assessment, and the state requires the assessor to raise your valuations.

And that's where most people are seeing a possible increase.

So explain that process.

Sure.

So basically, I think you're talking about the equalization and uh um so um the assessors uh basically look at the property values based on some of the areas and how the the all the comparable sales are going in that area, and then as per that factor, they will give a growth rate on that particular uh home prices in that particular area.

And in that case, if um basically the if the property tax the values are increased by let's select five by five percent, that all of that neighborhood or in that area will experience around the same growth um around those houses compared to the previous year.

Um I think the values will be equalized in that particular neighborhood by that percent of growth rate.

However, um again, because of the values how increase or decrease, then they will experience the taxes going down basically.

And if somebody wants to appeal that valuation, that's right, they then apply to the city assessor's office, which is over in public works.

I think that's application time is in the end of April through the first week in May, where they can say, hey, this is way too high.

I think it should be lower.

And and so people that have their vet assessments go up should be aware of that date.

That and it's an online thing you can file online, either for uh file a form or actually go and get a 10 minute presentation.

So we want to encourage people that if that's is the assessment is what's dry.

It's not our levy going up, it's the assessments going up because of house sales that they should get in line over at the assessor's office.

Sure.

I mean, I I cannot speak for the CISUS office.

Uh the one thing is that the city assessor is a separate entity.

Yes, it is.

The city as a city government, this two separate entities.

And and uh they're independent than city government.

Uh however, you're right that um, you know, there is a process that you can appeal your valuation.

Uh I'm not um exactly what is the deadline, but definitely any homeowner who is not agreed to that evaluation can appeal that process.

And as you said, that I would encourage them to contact the other.

Yes, the last week of May and first week of April, you have to have it in.

You don't have a very large filing time, but you can start filing now if you want.

But I think the important thing, uh, we're uh we have a very strong economy, and if somebody wants they they don't want to move, I don't want to move, but my valuation is going up, and that's just because everything around me is selling for more than what the assessor is required to do to meet state law.

Sure.

And that impacts their taxes.

And I'm I'm proud of the fact that uh we were able to hold our levy the same this year, plus they got the rollback of three percent.

So we were very fortunate this year to have those two things happening versus and then the assessment thing is a separate issue.

So I wanted to thank you for that effort.

Abby, I just want to second that because I know firsthand the time and effort that you and the directors with zero balanced uh budgeting um were able to lift make and make this possible.

That was a request to do what we could to hold the line.

Um the things that are under our control.

I know I talked to some folks here in the gallery.

Um, you know, the levy is in our control, and you helped figure out a way to hold that steady.

That is the part that we can play.

Um now, you know, as as my colleague mentioned, um, you know, valuations of homes, that's a whole other thing.

Um, and the state is doing work to support our veterans, for example, and cap that.

Um, I think there's even some legislation now um for seniors trying to cap freeze that.

So um you're not penalized for your, you know, basically your value, your home going up.

But I just want to commend city staff, specifically you, Director Dishbonde for finding a way, because I think people neglect um to remember um what an incredible city we have and incredible city services that our community has rightfully expected from us.

Record historic low crime numbers, a billion dollar flood protection system.

I mean, we are a city with zero contribution from our county, by the way.

Um with state and federal uh dollars.

Um, I'm sorry, it's just the truth.

Um, I just want to let people know what a heavy lift our taxpayers are already doing.

A billion dollars to protect our city.

That's their commitment.

Um, so we have expenses, we have responsibilities, and we take it really seriously, never forgetting, you know, who we report to.

And I wish we could say that you know, everybody across the board was going to get relief this year.

But for us, it really is victory being able to hold the line.

I also want to remind people that you know the city is just one portion of property taxes, a significant almost majority or more than ours, um, go to education, for example.

So I think those the you know, those of you that may have questions about you know where your tax dollars go, don't forget about our other partners in that in that property tax number, because often what you'll see in that letter um isn't necessarily what you're gonna pay, uh, but a lot of figures, a lot of data goes into creating those numbers.

So for our part, I couldn't be more proud and grateful uh that you were able to find a way.

Thank you, Mayor.

Okay.

If there's nothing further, can you do?

Yes, Councilmember Overland.

Avi, uh, in going through the budget, as I always do every year and the rest of us do.

The thing that strikes me, having this is my 11th year on the council is all the encouragement that we've done over the last 10 plus years to grow our commercial and industrial revenue or base has led to increased valuation from commercial and industrial.

And so they certainly play a big role in being able to keep the rate the same for residential taxpayers.

And I don't think we should overlook that.

That that if we hadn't done those things and commercial and industrial hadn't grown the way it has, we'd be taught having a perhaps a different conversation today.

So I too commend you and the staff.

I know you guys have been working on this very hard for the last four to five months.

So thank you.

Thank you.

And the building valuations from last year toppled seven and a half billion.

That's a 300% increase from the year before, to your point, Councilmember Overland.

This town continues to add incredible um tax base.

Sure.

All right.

If there are no other further uh questions or business to come before council, do I have a motion to adjourn?

Motion to adjourn.

Second.

Second, Oralund.

All those in favor say aye.

Aye.

Aye.

Those opposed say no.

And the motion carries, we are adjourned.

Thank you, Council.