West Point wants $1.50 hike in general levy

TAX HIKE

Well, the biggest reason is there was no tax increases for years and years and years here in town, and the cost of everything kept going up and up and up.”

Gary Peitz, West Point Mayor

WEST POINT – About 20 people filled the West Point Public Library Tuesday night to hear why the city is going to bump the tax levy $1.50/$1,000 of assessed valuation during the next fiscal year.
During a public hearing on the next levy that will go into effect on July 1, the city is projecting a general non-ag levy of $13.29/$1,000 of assessed valuation per a letter sent out to West Point residents. That represents a 14.5% increase in the levy from the current rate of $11.87, or $1.48.
With expected average increases in assessed valuations anticipated in letters that were sent to county taxpayers last week, the total increase owners in the city are looking at paying total closer to 26%.
Lee County mailed out informational letters required by state code that showed an average West Point resident with a home valued at  $110,000 next year will pay $693 in taxes as opposed to $550 this year.
A property owner with a home valued at $330,000 next year will pay an anticipated 27.5% increase in real dollars from $2,429 to $3,098.
Mayor Gary Peitz told the group, who were asking why the city was again looking at such a steep hike in rates, that prior councils had been doing their best to run a status quo budget. But repeated years of deficit spending had now taken their toll, and the city needed to get to their max levy to start to dig out.
The city raised the levy close to $3 last year and City Manager Randy Welding said operations are still in deficit spending.
“Well, the biggest reason is there was no tax increases for years and years and years here in town, and the cost of everything kept going up and up and up,” Peitz said.
“Eventually, you get to a tipping point where you're not getting enough revenue to cover the services that are provided to the citizens. That’s kind of the point that we’re at.”
Pietz said he wouldn’t go so far as to say previous councils should have been raising taxes to keep up with spending, because they were trying to not burden the taxpayers. But now that decision has essentially been made for this council with the city’s costs continuing to rise.
Some residents pondered aloud why there weren’t more people in attendance with the sharp increases in the past two years.
“The same reason only 10% of the people vote,” said another resident in attendance.
Randy Welding said he didn’t anticipate the levy to continue to go up at the rate it has been.
“We don’t plan on it. We’re trying to see how we come out with the value on the levies we're putting out.
Prior to the property tax hearing, the council voted to sell two properties in the South Park Subdivision to Mohrfeld Real Estate for $12,500 each. Mohrfeld has been developing homes in the subdivision and plans are for more new housing on the lots.