March 28, 2024

Newton maintains property tax levy, plans $2M for street projects

City council approves FY22 operating budget and funds No. 1 goal to create new comprehensive plan

Upon council’s approval and adoption of the fiscal year 2022 operating budget earlier this month, the City of Newton is set to retain its current staffing levels, make capital improvements to streets/sewers and not raise the property tax levy for the sixth year in a row.

Members of the Newton City Council deliberated and discussed several aspects of the city budget in open meetings from Dec. 7, 2020-Feb. 1, 2021. At the March 15 meeting, the council opened a public hearing — as required by law — before taking any action on the operating budget. There was no public feedback.

The city council voted unanimously in favor of approving the FY22 budget.

The city’s property tax levy remains at $17.14 per $1,000 of taxable value; Newton City Administrator Matt Muckler said in his report about the city budget that this was possible “due to the considerable growth” in the city’s tax base in FY21. Newton’s total assessed property value was about $923 million.

Although not as high as the city would have wanted, Newton’s total assessed property value did increased by roughly $5 million compared to the last fiscal year. The city has seen five consecutive years of assessed property tax growth, but state property tax reform continues to affect the city.

Also, the amount of assessed property value increase was minimal. The city says this will result in Newton receiving less general fund property taxes next year.

Newton City Council’s No. 1 goal is being addressed in the FY22 budget. At its annual goal setting session, the council wanted the creation of a new comprehensive plan to be a top priority. The budget reflects that goal. The city also says the council will achieve its other goal of ensuing no negative balances.

“This is yet another step forward in fiscal responsibility for the city council after last year’s success in ensuring that the general fund undesignated reserves were equal to 25% of expenditures,” city documents say.

The city has not budgeted new employee hires during FY22. All departments are being asked to “hold the line” on new spending for the next fiscal year.

Critical public safety equipment is also included in the FY22 budget, including firefighter personal protective equipment, self-contained breathing apparatus bottles, a new ambulance, power cots for two additional ambulances, new police vehicles and law enforcement equipment.

Newton City Council will take advantage of favorable interest rates as well as the city’s A+ bond rating in order to replace a fire engine and complete environmental clean-up of the former manufactured gas plant site. The city’s FY22 also includes $2 million of asphalt overlays and street reconstruction projects.

“City staff will also be planning for the reconstruction of Union Drive in the coming year,” city documents say.

The FY22 budget also reflects the council’s decision to continue funding the Dangerous and Dilapidated Housing Program (D&D) and D&D 2.0 projects.

About $5 million in projects and equipment will be purchased for the city’s sanitary sewer system, which includes improvements to the Water Pollution Control Plant, new pumps at the southwest pump station and the replacement of a jet/vac truck, city documents say.

Contact Christopher Braunschweig at 641-792-3121 ext. 6560 or cbraunschweig@newtondailynews.com

Christopher Braunschweig

Christopher Braunschweig

Christopher Braunschweig has a strong passion for community journalism and covers city council, school board, politics and general news in Newton, Iowa and Jasper County.