The Clearwater City Council Tuesday adopted the city’s 2017 preliminary levy in the amount of $999,852.
That represents a 4.58% increase over the 2016 levy of $956,060.
The biggest line item increase comes in the fire department levy, which jumps from $64,396 to $85,316.
The general fund will see a big decrease from $642,194 to $515,529, but not because the city will be spending a lot less. It’s because under the new accounting system, the city established a $150,000 levy for capital improvements. That money will be used in the general fund.
Vicki Holthaus of Abdo Eick & Meyers (AEM), the city’s financial advisor, said because of a projected increase in tax capacity, the tax rate should fall in 2017.
The 2016 tax capacity was $1,262,463. Projections put 2017 at $1,331,336, which would drop the tax rate from 75.79% to 75.10%.
The bulk of Clearwater’s tax capacity is in residential homestead property, which totals $605,804. Commercial/industrial makes up $433,954, followed by residential non-homestead ($251,564), personal property ($34,856) and agricultural ($3,564).
Tax impact on different types of property depends on the classification. The median value homestead property of $138,400 will see an increase of $18 for the year, from $862 to $880.
A non-homestead property valued at $76,000 will see a $15 increase.
A $500,000 commercial property will see a $195 increase, from $7,011 to $7,206.
Holthaus said the preliminary levy can be reduced but not increased. The final levy is due in December.
Insurance Committee
The council agreed to form a committee to research employee health insurance options.
During budget discussion, Mayor Pete Edmonson said staff’s health insurance premiums in 2017 are increasing by $13,252.
Councilman Rollie Lange agreed to be a member of the committee with Edmonson and Administrator Kevin Kress.
Other Business
In other action the council:
• Accepted the resignation of Lynne Crandall from the Clearwater Planning Commission. Crandall said she has moved to a different township;
• Accepted a $3,000 donation from the Clearwater Legion to be used towards the purchase of a vehicle by the Clearwater Fire Dept.;
• Agreed to cover the cost of any licenses for public works staff that are necessary for them to do their jobs for the city. Administrator Kress said the employees currently pay for their own licenses.
