Mason City Council Holds Public Hearing on 2024-25 Tax Levy and Sets Budget Hearing Date - March 27, 2024

On March 27, 2024, the Mason City Council convened a public hearing on the proposed maximum property tax levy for the fiscal year 2024-25 budget, followed by a separate council meeting to set the date for the formal budget hearing. All council members were present. Residents raised concerns about tax increases, budget scrutiny, and assessment practices. The council then unanimously approved April 16, 2024 at 7:00 p.m. as the date for the budget hearing.

Public Comments & Testimony

• Wes Lockley, an East State Street resident, questioned the lack of frugality in the budget and noted that every budget hearing he has seen resulted in an increase. He asked who scrutinizes department head budgets and whether community members are involved. He also cited an instance of a city vehicle hauling firewood outside the county, stating dump trucks cost $200–$250 per hour to operate, excluding driver and liability, and that "the crumbs" of small expenses add up for taxpayers. He expressed willingness to pay for worthwhile services.
• Jim Toba's (name as transcribed) said he could not determine his tax increase from the county auditor's letter. He stated his home's assessed value jumped from about $143,000 to over $200,000, a 25% increase, and that he estimated an 11% tax increase. He expressed frustration as a retiree on a fixed income/social security.

Discussion Items

• Finance Director Brent Henson explained the budget process: it began December 1, included extensive staff-level review and three council workshops in January and February, and would conclude around mid-April. He stated all city council meetings are public.
• Regarding firewood hauling, Henson said the city must dispose of wood from emerald ash borer-infected trees; delivering the wood is cheaper than paying landfill disposal costs. Council member Latham noted the landfill costs over a million dollars (later "about five million") to open a new cell, and asked for more information on delivery destinations to ensure trips aren't too far (e.g., Rockford).
• Henson and others explained the property tax system: assessments, state-mandated rollback, and tax rates from city, school, county, and other entities. The residential rollback is 54.6% of assessed value in the current year and 46.3% for the coming year, partially offsetting a statewide average assessment increase of about 17%. Henson said on average, total city tax dollars for a homeowner with an average assessment increase would be flat or slightly higher.
• Council members Lee, Adams, and Latham provided additional context. Adams cited historical city tax rates: FY21 was 14.38 cents per $1,000; the proposed rate is 13.98 cents, a decrease of about 40 cents over four fiscal years. Latham stated city tax levy makes up about 35–40% of a total tax bill. The city's average tax increase over the last 10 years has been about 2%, below inflation and below the state's approximately 4% increase.
• The state-mandated county auditor notice was criticized; officials clarified the city did not write it, and that it was dictated by the state legislature. The city sent its own explanation.
• Yeshewski asked how assessments are determined. Aaron (likely city administrator) and Henson explained assessments are based on comparable sales, neighborhoods, and property improvements, with a process to challenge them if believed too high.

Key Outcomes

• The public hearing on the maximum property tax levy for the 2024-25 budget was closed after staff responded to all questions.
• A separate council meeting was convened; the council unanimously approved setting the budget hearing for the 2024-25 proposed budget on April 16, 2024 at 7:00 p.m. during the regular city council meeting.