Primghar Looks at Financial Future

 

August 16, 2018



Primghar City Council agenda for Monday August 13 included a discussion on it, Capital Improvements Levy. A Capital Improvement Levy can be imposed for the limited purpose of purchasing necessary capital; machinery, tools, software, and/or computers. According to Ewoldt to the council, Primghar needs to make significant investments in computers, vehicles and other capital that can be used for cemetery work, golf course or upgrades to Sneaker’s Run to name a few.

Ewoldt explained to the council that the current budget, without changes will experience a shortfall of as much as $68,000. FY19 runs July 1, 2018 through June 30, 2019. She emphasized this is a budget prediction and actual results will be different. But she was clear that changes need to happen either an increase in income or a decrease in spending or programs. The State’s roll back of commercial and industrial property taxes is frozen at the 3-year level, but is estimated to cost an average of $90,000 where it was instituted. The state has not reimbursed any city for the rollback.


A Capital Improvements Levy maximum is $.675 per thousand. If the levy were on the books today, Ewoldt estimates it would raise $13,700 for the city of Primghar for specific purposes. She further explained that this levy, once passed, does not have to be used annually and its rate can be adjusted. Adding those dollars could go a long way to balancing the approximately $300,000 per year budget.

The council agreed to start the process to put the question on a coming ballot.

 

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