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Electric rates, property taxes head council agenda

Daily Freeman-Journal photo by Kolleen Taylor
The city council for Webster City meets tonight at the council chambers, and faces a long agenda. Council members above are Abbie Hansen, City Manager John Harrenstein, Mayor Pro-tem Megan McDonald, City Clerk Sherry Simmons, City Clerk Ashley Ahlers and John Marvel.

The City Council of Webster City meets tonight for its first of two meetings in the month of March. Topping the agenda are two important issues: a possible increase in rates paid by local residents and businesses for electricity, and a small reduction in property tax rates mandated by recent actions of the Iowa Legislature.

Higher electricity rates in Webster City are not a new development. Since 2017, the city has raised rates 1% each year, largely to keep up with inflationary trends in labor and materials costs. Council approved a larger increase of 2.7% in last August to offset increased rates from Corn Belt Power Co-operative of Humboldt, the city’s main supplier.

The revised rate schedule before the council would see a 5% increase on April 1, a further 4% increase effective Jan. 1, 2027, another 2% levied on July 1, 2027 and a final 1% hike taking effect July 1, 2028.

The reason behind these much larger increases can be traced to Basin Electric Power Co-Operative of Bismarck, North Dakota. Basin is a wholesale power generator, and a major supplier to Corn Belt. Basin makes power from coal, natural gas, solar and hydro sources across a nine-state service area.

The Iowa Legislature has been debating significant changes to property taxes during its last two sessions. It has had as an objective the goal of reducing property taxes on both residential and commercial property. They hope these changes will make Iowa more competitive with lower-cost states in attracting and keeping businesses within the state.

If the council agrees, property taxes in Webster City would see an approximate 1% decrease, with further decreases possible in future years.

The memorandum dealing with the measure, prepared by City Manager John Harrenstein, City Finance Director Dodie Wolfgram, and Deputy City Clerks Ann Smith and Sherry Simmons, would set a public hearing on the matter at 5:45 p.m. on April 6, prior to the first regularly-scheduled City Council meeting of April, at City Hall.

Other items on the agenda include:

∫ A measure establishing an enlarged urban renewal area, and approving an amendment to the city’s existing urban renewal area to accommodate re-development of the former Doc’s Stop convenience store at 407 Closz Drive;

∫ an amendment to Chapter 22 of the Code of Webster City, establishing a new Division 3 statute providing a fee for false alarms answered by the Webster City Fire Department;

∫ award of a contract to construct concrete and plumbing for the new East Twin Park shelter;

∫ a measure proposing the creation of a new position of communications director who would serve both the City of Webster City and Webster City Community School District on an equal basis.

Expenses would be shared equally by both entities.

Starting at $3.46/week.

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