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News :: Vinton property tax increase to cover cost of $2M street repair project
· 10:02am February 12th, 2013
Thursday night, the Vinton City Council held its last budget workshop to put the finishing touches on the city’s annual budget for the city’s fiscal year that begins July 1, 2013 and ends June 30, 2014.
There are two major changes that will affect city property owners. First, we currently receive very low interest rates for general obligations bonds, which is money borrowed by the city for certain projects. The last bond issue was last year for improvements on West 13th Street. The city received an interest rate of 1.68 percent. Our financial consultants believe that we would still receive a similar interest rate.
The City Council has decided that this is the ideal time to borrow money for street improvements around the city. While the specific street improvements need to be finalized and prioritized, the council has decided to borrow $2 million for these street improvements. The annual payments for this loan are approximately $220,000. To make this payment, the city will need to increase the debt service levy resulting in the overall levy rate for the city to increase from $14.64 to $16.15.
The rise in the levy rate means that an owner of a house assessed at $100,000 will see an increase in property taxes to the city of $110. The owner of a commercial business assessed at $200,000 will see an increase of $302 in property taxes to the city.
Garbage fee increase expected
Second, as you may have heard, the county is raising the landfill charge to the cities from $25 per capita to $32 per capita. This is raising Vinton’s fee to maintain and use the landfill by $36,800. This means that the landfill fee on your monthly utility bill will likely increase by $1.50 per month.
The city welcomes all comments verbal and written on the city’s FY 2014 budget. We are anticipating a public hearing on the budget around the beginning of March. You may attend an earlier meeting, held the 2nd and 4th Thursday at 7:00 PM to express views during the citizen’s input section. You may also submit comments in writing to me at City of Vinton, PO Box 529, Vinton, IA 52349 or at firstname.lastname@example.org.
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