Decorah looks at expected income, projects in drafting FY26 budget

By Seth Boyes,

Officials with the city of Decorah are preparing the city’s budget for the upcoming fiscal year. The city’s property tax levy is expected to decrease by approximately 10 cents under the drafted budget, but city staff stressed residents will likely still see an overall increase in property taxes due to levies set by other local taxing entities. (Photo by Denise Lana)

Officials with the city of Decorah are finalizing the city’s proposed budget for the coming fiscal year. 

The city of Decorah plans to levy approximately $3.45 million for its general fund in Fiscal Year 2026, which begins on July 1, 2025. 

Decorah City Manager Travis Goedken said Decorah’s taxable growth actually increased by 3.6 percent compared to the previous year, and the city added roughly $91,000 in property taxes to its general fund, which helps cover city services such as the police and fire departments as well as the city library and the parks and recreation department. Goedken noted that total would have been more, but a recent state bill — specifically House File 718 — restricted the city’s property tax revenue growth to 2.6 percent. 

Goedken also noted the city established a residential tax abatement program a number of years ago, offering 100 percent tax abatement for a period of five years as an incentive aimed at increasing the city’s overall tax base. However, he said the state bill — which was signed into law in 2023 — essentially prevents the city from now collecting on the growth it cultivated years before. 

“We’re being disincentivized for any form of growth other than organic growth,” Goedken said.

Full article available in the February 6 Decorah Leader.

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