C.F. council passes budget, 3 percent tax increase

Feb 23, 2010 — Waterloo-Cedar Falls Courier

Jon Ericson

Feb. 23, 2010 (McClatchy-Tribune Regional News delivered by Newstex) -- CEDAR FALLS -- A new budget is on the books.

The financial plan approved Monday by the City Council will take in $15.7 million in property taxes, a 3 percent increase.

Residential property owners will bear the brunt, as taxes will increase 2.6 percent for the average homeowner. Commercial and industrial property owners will both see slight decreases in the city's share of taxes.

The situation can be traced to the state property tax rollback. This year, residential property owners will pay a greater share of the assessed value than in the last few years.

"Usually in recent years it's been the other way around -- residential has gone down and the others have gone up. This time, it's reversed," Mayor Jon Crews said.

For the owner of a $200,000 home, the tax increase amounts to $31.56. Black Hawk County and the Cedar Falls School District, the other two major contributors to a property owner's tax bill, have yet to set their budgets for the year.

About a third of the additional taxes collected will pay for an increase in the amount of contributions the city must make to an employee pension fund. Employee salaries make up another substantial chunk of the increase.

The city continued to see growth in property value, primarily in residential real estate, which bolstered the budget.

Councilman Kamyar Enshayan had questioned city spending on some industrial park projects approved for the coming year and the impact those would have on the budget.

"Could that (tax increase) be lowered if we had not committed to so many projects? Like the Ridgeway (reconstruction) project, like the northern industrial park -- would they be slightly lower?" Enshayan asked.

Crews said the council sets priorities for what projects need to be done. If the council wants to reduce the tax burden, members could trim its to-do list.

One other possibility would be digging into industrial park tax increment financing revenues to help support the city's operating expenses. Those revenues have always stayed in the industrial park to fund streets and infrastructure for continued growth.

"I'm sure next year I will recommend we use some money out of the TIF fund for the general fund," Crews said.

Newstex ID: KRTB-0150-42301767