Property tax rate for City of Decorah would go up in 2014-2015

A tentative budget put together for 2014-2015 for the City of Decorah would see a decrease in the property tax levy rate for regular operations, but an additional levy for borrowing to pay for a new fire truck and the Highway 9 project.  As a result, the overall 2014-2015 city mill rate would be set at $13.70 per $1,000 of assessed valuation.

Decorah City Council members held a long budget review session Tuesday to go over spending requests.  They tentatively approved $128,824 in new spending requests, but still were able to lower the operational property tax levy to $12.49 per $1,000 of assessed valuation.

But the Highway 9 project and the need to pay for a newly-purchased fire truck weill add $1.30 per $1,000 in assessed valuation to the overall levy.

City Administrator Chad Bird says the increase should be temporary.  The city will pay off several existing bonds in two years, lowering the overall repayment amounts.

The Decorah City Council will meet February 3rd and set a date for a public hearing on the 2014-2015 spending plan.