Here's why the 2021 City of Decorah budget will include higher spending--and lower property tax rates

City of Decorah officials estimate spending of $13.7 million dollars for city operations by the time the 2020 fiscal year ends on June 30th.  Next fiscal year, it's expected the city will spend $19.8 million dollars.

But as Decorah City Council members have begun reviewing spending requests for 2020-2021, it looks like the property tax rate for next fiscal year might drop by a few cents per thousand dollars of assessed valuation.  That's because $7.5 million of the proposed $19.8 million city budget represents money that will be raised through a bond issue for the Locust Road project.  That means spending on general city operations, for instance, will decrease by half a million dollars.

The city council must approve a budget by March 30th of this year.  Two public hearings will be held on the spending plan--one on February 3rd and a final hearing on March 16th, when the 2020-2021 city budget is expected to be approved.