The Pella City Council held a work session to discuss the maximum tax levy rate at their meeting Tuesday.

Among the reasons why the Pella City Council could consider a property tax increase to the top rate is a $600,000 subsidy for operation of Pella Community Ambulance, consideration of reducing residential assessments by the Iowa Legislature, less state backfill amounts for previous property tax assessment reductions, and higher-than-expected wage increases to the city’s workforce due to inflation.

The city can set the maximum tax rate higher than the current $10.20 per $1,000 of valuation, but still choose to maintain the current effective number residents are currently paying. Two options for an increase would be to go to $11.13 per $1,000 to cover the increased costs of operating the ambulance service or to get to $11.59 per $1,000 to get to 100% of the maximum operational levy amount — which may hold off another increase for several years. No formal action was taken, and a public hearing about the maximum city tax rate will be held on February 21st. Pella’s residential tax levy has not increased in 20 years, and growth in the budget was driven by growing valuations.

The council also discussed rates at Bos Landen Golf Course, which will be fully operated by the City of Pella in 2023. Matt Jennings was named the new Bos Landen Clubhouse Manager and Golf Pro in January.

On the regular agenda was recognition of the Ambulance Service Temporary Advisory Board Members, acceptance of the Civil Service Commission’s Certified Police Officer List, and approval of a resolution to set a public hearing for agreements with MidAmerican Energy, and a resolution to approve a final plat for the South Main Subdivision.