City tax levy to increase for 2022-23 budget year in City of Red Oak

Red Oak taxpayers will be seeing a bit of an increase in taxes for the 2022-23 budget year, starting July 1.
Last year, the levy on regular property was 18.70583 per $1,000 valuation, with 3.00037 per $1,000 valuation on agricultural land. For the upcoming fiscal year budget, city administrator Brad Wright said the tax levy will be increasing, to 19.39224 per $1,000 valuation on regular property, and 3,00344 per $1,000 valuation on agricultural land. Wright said there were several factors behind the need to increase the levy.
“Expenses are up much more than revenues. The City of Red Oak has worked hard to keep taxes down and keep them stable from year to year. One of the ways we have done that is by using fund balances on hand to offset increasing the tax levy. Those fund balances are at a point that we cannot continue to draw from those sources to the degree we have in the past,” Wright explained.
Wright added that overall, the city departments are holding the line and working with the narrowest budgets possible.
“Departments have been held to minimal or no increases in several areas. As far as additions, the only notable one would be the addition of a paramedic position to the fire department. This was in partnership with the hospital, who agreed to fund 50% of that expense in order to assist the Red Oak Fire Department to provide the transfer service we do for the hospital,” commented Wright.
According to Wright, the ongoing COVID-19 pandemic had little to no effect on the upcoming budget, and the city works hard to make things reasonable for Red Oak citizens.
“We do everything possible to continue to provide the services expected by the taxpayers while keeping taxes and fees to the absolute minimum we can,” said Wright.
Now that the restrictions have been eased on ARP funding, Wright said they are evaluating ways to implement the monies in the coming fiscal year.
The city’s 2022-23 FY budget was approved by the council at the meeting March 21.