[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. [PAGE 2] 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. [PAGE 3] BUDGET CONSIDERATIONS: TheproposedcityregularpropertytaxrateforFY2027is$15.48247and$3.00375forthecityag land tax rate. ATTACHMENTS: Notice of Public Hearing – Proposed Property Tax Levy Proposed Property Tax Levy presentation [PAGE 4] 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. [PAGE 5] FY2027 Proposed Property Tax Levy [PAGE 6] 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 [PAGE 7] 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% [PAGE 8] 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. [PAGE 9] 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. [PAGE 10] 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 [PAGE 11] 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 [PAGE 12] 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 [PAGE 13] 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. [PAGE 14] 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.