Clear Lake City Council approves Fiscal Year 2026 budget

CLEAR LAKE — The City Council in Clear Lake last night approved the city’s Fiscal Year 2026 budget that starts on July 1st. The tax rate for the upcoming fiscal year will remain steady at $9.85 per $1000 taxable valuation.

Acting City Administrator Jacob Widman says operating expenses for the city in the upcoming fiscal year will be lower.   “The total budget citywide is $20.484 million. That is a significant drop from the Fiscal Year 2025 budget because of the Surf District project numbers coming down. The operating budget is $12.7 million of that total budget, or roughly 63%. Capital budget is $6.3 million, which is around another 30%, and then the final percentage of that $20 million is debt service, which will be about $1.4 million.”

Widman says with keeping the city’s tax rate at $9.85 per $1000 taxable valuation, Clear Lake will continue to have one of the lowest city tax rates in the state.  “For Fiscal Year 2025, that $9.85 was the fourth lowest city tax rate of cities 4000 and up in the state of Iowa. You can see the other cities there that were below Clear Lake, Eldridge, Evansdale, Asbury, and then Clear Lake right there in fourth. The highest rate is $25, so much much higher than Clear Lake, was in Keokuk.”

Factoring in an overall average of 1% growth in valuations, the resulting estimated property tax impact for a property owner with a $200,000 home is an increase of $31 for the year.