[PAGE 1]
City of Oskaloosa
City Council Special Meeting
Council Chambers
City Hall, 220 S. Market Street
Oskaloosa, IA 52577
Agenda
Call to Order and Roll Call - Monday, March 23, 2026 - 5:00 P.M.
1. Roll Call
___Mayor David Krutzfeldt,
Council Members:
___ Almond, ___Caligiuri, ___Drost, ___Hermsen, ___Holmberg, ___ Ibrahim, ___Sword
2. Approve Monday, March 23, 2026 City Council Special Meeting
Agenda
3. Public hearing for the purpose of considering the proposed property
tax rate and levy for the city's fiscal year 2027 budget. (Public
Hearing)
Documents:
MEMO PUBLIC HEARING TAX LEVY 20260323.DOCX
FY2027 PROPERTY TAX LEVY PUBLIC HEARING NOTICE.PDF
FY2027 PROPOSED TAX LEVY 03022026.PDF
4. Adjourn
If you require special accommodations, please contact the city manager's office at least 24 hours
prior to the meeting at 641.673.9431.

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AGENDA MEMO
Meeting Type: City Council Special Meeting
Meeting Date: March 23, 2026
Staff Contact: Pamela Nimtz
Department: City Clerk/Finance
ITEM TITLE:
Publichearingforthepurposeofconsideringtheproposedpropertytaxrateandlevyforthecity’s
fiscal year 2027 budget.
STRATEGIC PLAN ALIGNMENT:
Focus Area: 2 – Collaborative Community
Goal Area: 2.2 – Increase the efficiency and effectiveness of the local governments
SUMMARY:
TheStateofIowaimplementedchangestothecitybudgetprocessbeginningin2023.Oneofthe
requirements under this process is that cities hold a separate public hearing on the proposed
property tax rate and levy for the upcoming fiscal year budget. No other city business may be
conducted during this meeting.
NoticeofthepublichearingwaspublishedintheOskaloosaHerald,postedonthecity’swebsite,
and shared through the city’s social media platforms. In addition, the Mahaska County Auditor
mailed individual notices to all property owners within the city.
The mailed notices are intended to provide property owners with an estimate of the change in
budgeted city property taxes for Fiscal Year 2027. The estimates are calculated by applying the
actual FY2026 city tax rate and the proposed FY2027 city tax rate to sample property values.
In the residential example included in the notice, a homeowner is estimated to pay $686 in city
propertytaxesinFY2026and$758inFY2027,representinganestimated10.50%increase.This
increase reflects two factors: the change in the residential rollback percentage, and an increase
in the example assessed value, from $100,000 to $110,000.
For commercial property, the example shows estimated city taxes of $2,980 in FY2026 and
$3,542 in FY2027, representing an estimated 18.86% increase. This increase is also attributable
totwofactors:thechangeinthecommercialrollbackpercentage,andanincreaseintheexample
assessed value, from $300,000 to $330,000.
It is important to note that the figures shown in the mailed notice are illustrative examples and
may differ from the actual taxes owed on a specific property depending on its assessed value
and other applicable tax factors.
RECOMMENDATION:
Staff recommends opening the public hearing, receive oral and written comments, and close
hearing.

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BUDGET CONSIDERATIONS:
TheproposedcityregularpropertytaxrateforFY2027is$15.48247and$3.00375forthecityag
land tax rate.
ATTACHMENTS:
Notice of Public Hearing – Proposed Property Tax Levy
Proposed Property Tax Levy presentation

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CITY NAME: NOTICE OF PUBLIC HEARING - CITY OF OSKALOOSA - PROPOSED PROPERTY TAX LEVY
CITY #: 62-590
OSKALOOSA Fiscal Year July 1, 2026 - June 30, 2027
The City Council will conduct a public hearing on the proposed Fiscal Year City property tax levy as follows:
Meeting Date: 3/23/2026 Meeting Time: 05:00 PM Meeting Location: Oskaloosa City Hall 220 South Market Street Oskaloosa, IA 52577
At the public hearing any resident or taxpayer may present objections to, or arguments in favor of the proposed tax levy. After the hearing of the proposed tax
levy, the City Council will publish notice and hold a hearing on the proposed city budget.
City Website (if available) City Telephone Number
www.oskaloosaiowa.org (641) 673-9431
Current Year Budget Year Budget Year
Certified Effective Property Proposed
Iowa Department of Management
Property Tax Tax Property Tax
2025 - 2026 2026 - 2027 2026 - 2027
Taxable Valuations for Non-Debt Service 387,482,657 452,224,382 452,224,382
Consolidated General Fund 3,201,889 3,201,889 3,628,029
Operation & Maintenance of Public Transit 0 0 0
Aviation Authority 0 0 0
Liability, Property & Self Insurance 287,276 287,276 404,913
Support of Local Emergency Mgmt. Comm. 0 0 0
Unified Law Enforcement 0 0 0
Police & Fire Retirement 400,366 400,366 433,235
FICA & IPERS (If at General Fund Limit) 309,010 309,010 325,574
Other Employee Benefits 474,445 474,445 1,380,424
Capital Projects (Capital Improv. Reserve) 0 0 0
Taxable Value for Debt Service 407,201,233 472,079,471 472,079,471
Debt Service 976,184 976,184 865,789
CITY REGULAR TOTAL PROPERTY TAX 5,649,170 5,649,170 7,037,964
CITY REGULAR TAX RATE 14.45716 12.40117 15.48247
Taxable Value for City Ag Land 1,511,146 1,582,161 1,582,161
Ag Land 4,540 4,540 4,753
CITY AG LAND TAX RATE 3.00375 2.86949 3.00375
Tax Rate Comparison-Current VS. Proposed
Current Year Budget Year
Residential property with an Percent
Certified Proposed
Actual/Assessed Valuation of $100,000/$110,000 Change
2025/2026 2026/2027
City Regular Residential 686 758 10.50
Current Year Budget Year
Commercial property with an Percent
Certified Proposed
Actual/Assessed Valuation of $300,000/$330,000 Change
2025/2026 2026/2027
City Regular Commercial 2,980 3,542 18.86
Note: Actual/Assessed Valuation is multiplied by a Rollback Percentage to get to the Taxable Valuation to calculate Property Taxes. Residential and commercial properties
have the same rollback percentage through $150,000 of actual/assessed valuation.
Reasons for tax increase if proposed exceeds the current:
Increases for FY2027 budget are due to natural growth in salaries, inflation in commodities, and increase in insurance costs.

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FY2027
Proposed
Property
Tax Levy

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FY2022
Property Tax Levy
FY2023
History
FY2024
FY2022 levy = $14.30405
FY2025
FY2023 levy = $14.30365
FY2024 levy = $15.62552
FY2026
FY2025 levy = $15.40514
FY2027 - Proposed
FY2026 levy = $14.45716
FY2027 levy = $15.48247 $0.00 $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 $7.00 $8.00 $9.00 $10.00 $11.00 $12.00 $13.00 $14.00 $15.00 $16.00
General Fund Liability/Insur Employee Benefit Debt Service Emergency Levy Band Levy Emergency Management Levy

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Debt, $1.83399,
11.85%
FY2027
Property Tax Levy
General Fund,
$8.02263, 51.82%
Breakdown Employee Benefits,
$4.73047, 30.55%
FY2027 levy = $15.48247
Insurance, $0.89538,
5.78%

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Debt Service Levy
Employee Benefits Levy
Property Tax Levy
Insurance Levy
Changes
General Fund Levy
$0.00000 $1.00000 $2.00000 $3.00000 $4.00000 $5.00000 $6.00000 $7.00000 $8.00000 $9.00000
FY2027 FY2026 FY2025
 The General Fund levy decreased $0.24068 due to the state limitation factors.
FY2027
 The Insurance levy increased $0.15399 due to addition of ECE/Recreation Center building
FY2026
insurance following completion of Natatorium and projected 8% increase in overall insurance
expense.
FY2025
 The Employee Benefits levy increased $1.67531 due to FY2026 levy utilizing reserve FY2025
fund balance, addition of the city’s portion of E911 benefit expenses, and projected 8%
increase in work comp insurance and 5% increase in employee health insurance.
 The Debt Service levy decreased $0.56331 due to lower expense for bond payments.

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General Fund
• Property values increased 16.43%, but the state limitation factor reduced revenue to 13.04%. This was a large
property value increase due to a revaluation year, and the city does not anticipate the same increase next year.
Future property tax reforms may continue to reduce revenue and may not allow the city to keep pace with growing
expenses. In the future, City Council may need to consider reduction of services.
• Increased revenue covers average increases of cost to provide services:
• Police and Fire unions negotiated 4% increase for FY2027, plus a market adjustment for police officers to
allow the city to offer competitive wages. A 4% increase is budgeted for nonunion employees.
• Costs for supplies and equipment continues to increase yearly.
• City Council has made a concentrated effort to move capital expenses for equipment and projects to other
revenue sources, such as Utility Franchise Fees and Local Option Sales Tax, to reduce the impact on the
General Fund.
Insurance
Property Tax Levy
• Insurance expense is budgeted to increase 8% in FY2027.
• The addition of the ECE/Recreation Center to the General Fund budget resulted in an $84,904 increase to insurance
expense covered by the levy.
Changes
Employee Benefits
• In FY2025, the city planned for the possibility of taking over the 911 Communications Center from the County and
collected additional employee benefit funds for that purpose. The transfer of services did not occur, leaving about
$580,000 in the Employee Benefit Fund at the end of FY2025. When the FY2026 budget was prepared, the city
used this leftover fund balance to reduce the property tax levy for employee benefits. Because that fund balance
was used in FY2026, it is no longer available to reduce the levy in FY2027, which makes the FY2027 amount appear
higher.
• The city contributes about $475,000 per year toward operating the 911 Communications Center, which is about
52% of the total 911 budget. State law allows the city to levy property taxes for the employee benefit portion of
those costs, which is about $140,000. The city’s portion was included in the total employee benefit levy.
• Union contracts for police officers and firefighters approved a 4% increase for FY2027, along with a $2,000 market
adjustment for police officers to assist with retention and recruitment. The total increase in benefits for increased
police and fire wages is approximately $140,000. For non-union employees, a proposed 4% wage increase would
increase benefit costs by about $36,000.

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What the
General Fund Budget Programs
General Fund
General Government $1,455,467
Levy supports
Budget Programs:
Economic Development $196,999
Public Safety – Police, Fire, Building
Inspection (60.43%)
Culture and Recreation – Library, Parks,
Pool (18.14%) Culture and Recreation $1,398,879
Economic Development – Housing/Urban
Renewal, Planning and Zoning (2.55%)
General Government – City Manger, City Public Safety $4,659,855
Clerk/Finance, City Council/Mayor, Legal,
City Hall, Elections (18.87%)
$0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000

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General Fund Expenses by Category
General Fund
Transfers Out $27,586
Spending
Capital Outlay $102,564
Commodities $147,757
Employee salaries and benefits
make up 70.91% of all General Fund
Contractual Services $1,579,092
Expenses. Salary and Benefit
expenditures include 53 full-time
employees, 32 regular part-time Repair and Maintenance $299,156
employees, and seasonal employees
for Public Works, Pool, and Band. Staff Development $87,226
Contractual Services (payments to
Employee Benefits $1,753,737
other governmental agencies,
insurance, technology agreements
Salaries $3,714,082
and other professional services) are
20.48% of expenses.
$0 $1,000,000 $2,000,000 $3,000,000 $4,000,000

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FY2026 Tax Levy Comparison Cities with Population 9,000 to 16,000
30.00000
26.25665
25.00000
How Oskaloosa’s
17.32465
18.24222 15.64054
Property Tax Levy 20.00000
17.65006 15.12578
17.10000 14.45716
15.17441 13.43694
Compares to 14.88638 12.16190 11.50000
15.00000 13.80696
12.18001 11.87050 10.69943
Similarly Sized 10.75095
10.00000
Cities
5.00000
(FY2026 levy information)
0.00000

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The Property Tax Notice from the county
shows all taxing entities and the effect of
proposed property tax rates for next year.
Understanding
Each property owner must consider the property classification (residential,
the Property Tax
commercial, industrial), the rollback percentage that reduces taxable value (44.5345%
for FY2027 versus $47.4316% for FY2026), any tax credits (homestead, military) that
Notice
are applied after rollback, and the proposed tax levy rates from all taxing entities.
The Property Tax Notice also tries to show the impact of any potential increases to
property valuation.

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PROPERTY TAX REVENUE FY2023 FY2024 FY2025 FY2026 FY2027
Taxable Valuation without Ag Land $393,607,341 $383,545,301 $397,367,386 $401,002,232 $466,903,514
Increase/Decrease - Dollars $13,596,689 -$10,062,040 $13,822,085 $3,634,846 $65,901,282
Increase/Decrease - Percentage 3.58% -2.56% 3.60% 0.91% 16.43%
Impact of current
General Fund Property Tax Revenue $3,188,219 $3,106,716 $3,283,570 $3,313,606 $3,745,794
Increase/Decrease - Dollars $110,133 -$81,503 $176,854 $30,036 $432,188
Property Tax
Increase/Decrease - Percentage 3.58% -2.56% 5.69% 0.91% 13.04%
Reform
General Fund Revenue using FY2024 Levy* $3,349,239 $3,379,875 $3,935,329
Change in General Fund Revenue -$65,669 -$66,269 -$189,535
*Combined General Fund Levy, Emergency Levy, and Band Levy
Since implementation of HF 718 resulting in consolidation of General Fund levies and levy limitation
based on valuation growth, General Fund property tax revenue has been reduced by a total of $321,473
FY2025 through FY2027.