Decorah Proposes Lower Tax Levy as Council Questions State-Mandated Hearing Rules

The fire, the vote, the triumph — when it happens, Decorah News shows up. Support us being there. DECORAH — The City Council on Monday outlined a proposed reduction in the property tax levy for fiscal year 2027 while questioning a state-mandated hearing process that drew no public comment, despite significant outreach to taxpayers. The council convened a special meeting limited to a public hearing on the proposed levy, as required under Iowa law. During the hearing, City Manager Travis Goedken presented details explaining both the numbers and the process behind them. The proposed levy is set at $15.52157 per $1,000 of taxable valuation, a decrease from last year's rate of about $16.17. Goedken described the roughly 65-cent reduction as the maximum allowable rate for the upcoming budget, noting the council can adopt a lower figure but cannot exceed the published amount. The hearing itself is part of a relatively new state requirement intended to increase transparency around property taxation. Goedken explained that the law mandates a standalone public hearing focused exclusively on the levy, even if held on the same day as a regular council meeting. To comply, notices were mailed to all taxpayers across the county outlining proposed rates for multiple taxing entities, including the city, schools and county government. Officials said the effort cost roughly $10,000 locally and reached every property owner, a scale they noted can be significantly more expensive in larger counties. Despite that outreach, no members of the public attended the hearing in-person or online. City staff and council members used the time instead to explain the factors driving the proposed levy and to reflect more broadly on property tax policy. Among the key influences is recent state legislation, including House File 718, which alters how local governments calculate and limit certain levies. As a result, the city's general fund levy, which was once capped under an older framework, must be reduced due to growth in taxable valuation, bringing it below previous thresholds. At the same time, officials said adjustments were made to other components of the levy. The city reduced some special revenue levies, such as those supporting employee benefits, to help offset increases in debt service obligations. Those increases are tied to previously approved borrowing, including bond payments for the library maintenance project and additional capital improvements. The first payments on approximately $4.7 million in bond proceeds are scheduled to begin in the FY2027 budget, requiring a higher debt service levy to meet those obligations. Council member Steve Zittergruen, who met with City Manager Travis Goedken to "try to understand the impacts of pending property tax legislation on Decorah," praised city staff and local elected officials as "careful stewards" of taxpayer funds. He pointed to ongoing efforts to manage costs while maintaining and expanding services. "It's your neighbors making decisions about [these things]. We sweat the small stuff. We're excited when we find a way to save $10,000 or $100,000," Zittergruen said. He also noted that local decisions often have unseen impacts. "I want a community that understands better than it seems like from Facebook comments... I wish they understood just how careful we were in an environment of constantly rising labor costs and inflationary pressures on cities." Zittergruen added that modern expectations for city services—including well-equipped police and fire departments, improved infrastructure and expanded community amenities—differ significantly from past decades, when lower taxes corresponded with fewer services. "I don't think the people we serve would be happy with a city that only provided the services that people had back then," he said, noting that rising costs are often tied to tangible improvements in safety and quality of life. The discussion also touched on public perception and communication challenges. Council members said misunderstandings about property taxes are common and often amplified by incomplete or misleading information. Members were particularly critical of the state-prescribed notice format, which they said can overstate potential tax increases by assuming uniform property valuation growth, in some cases projecting increases far higher than taxpayers actually experience. "There are some in Des Moines that recognize that the current form does not hold muster," Goedken said, noting that alternative formats under consideration could provide clearer, more individualized estimates. Mayor Andy Carlson acknowledged that low turnout at such hearings is common statewide. Local leaders across Iowa, from small towns to larger cities, reported similarly limited public participation despite the required notices. Still, some officials said the lack of attendance is evidence the need for more proactive outreach beyond formal hearings, encouraging council members to engage residents directly in conversations about how tax dollars are spent and why rates change over time. After remaining open for more than the minimum recommended time—guidance suggests at least 10 minutes when no public comment is offered—the council formally closed the hearing. Stay connected and informed! 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