The 2025-26 budget for the City of Sioux Center includes updates and improvements that range from emergency vehicles to pickleball courts. The City Council is considering a slight increase to the city’s portion of the levy rate to $11.2440 per $1,000 of taxable valuation, about a 1.16% increase.
The council reviewed the general fund budget Feb. 17. The general fund includes:
- Police, fire and ambulance services.
- Public works including streets, streetlights, airport, snow removal, and street cleaning.
- Culture and recreation – parks, trails, library, rec facilities, and arts/recreation programs.
- Economic development.
- General government uses such as finance/accounting and elections.
“For 15 years, we have kept the City tax rate even or decreased it, but recent state legislation has impacted the ability of thriving cities like Sioux Center to capture some of our growth to help pay for the infrastructure, services, and amenities as we grow,” said Sioux Center Finance Director Darryl Ten Pas.
In addition, the City’s auto, fire and liability insurance has increased more than 30% between Fiscal Year 2022 and Fiscal Year 2024, and the City’s debt service levy increased by about $0.11 to purchase a new fire truck, Ten Pas said.
“Even with this increase, since fiscal year 2008, the city levy rate has decreased by about 19.5%,” Ten Pas said. “Ongoing cost control measures are happening throughout the organization to try to limit additional increases."
With the 1.16% levy rate increase, plus an increase in the residential rollback, set by the state, a residential property that retains the same value will see a 3.37% increase in taxes paid. This means, for example, that for a home valued at $250,000, the City’s portion of taxes will increase by about $45.
The City’s portion of a homeowner’s property tax bill is about 33%. The remaining 67% goes toward the Sioux Center Community School District, Sioux County, and Northwest Iowa Community College.
The next steps in the City budget process include reviewing the utility budget and hosting a public hearing on the property tax levy on April 7. Following that, the council will decide whether to approve the 2025-26 budget.
Additional budget highlights:
Utilities contribution
Our municipally-owned utilities are not required by law to pay property taxes, but they still make an annual contribution to the city’s general fund. In this budget the electric, gas and water utilities will contribute 5% of utility sales to the general fund, which has been the typical practice.
Highway 75
Highway 75 reconstruction continues in 2025. The City and the Iowa Department of Transportation are sharing the costs of this project, with the City covering utility improvements, street lights, engineering, and a portion of paving costs. City funds will come from various sources, including road use tax, local option sales tax, tax increment financing, and dollars previously set aside for this project.
Emergency Response
In 2025-26, the City is budgeting to add a school resource officer at Sioux Center Christian School, which will be funded by the Christian School, as well as ambulance equipment, a new police vehicle, a brush fire truck, and a final payment for a new fire truck. The City budgets for routine emergency vehicle replacement so emergency responders have reliable vehicles as they respond.
Parks and trails
Potential trail additions and connections are being considered for the 2025-26 year. Additional items in the budget include trees, rubber mulch for a play area, and equipment.
Streets & stormwater
An additional staff member for streets/stormwater is included in the budget to help maintain the 60+ miles of City streets and the stormwater system.
Local Option Sales Tax & pickleball
About $825,000 in Local Option Sales Tax (LOST) will go into the general fund as property tax relief and about $200,000 is slated to go toward trails. LOST funds also help pay for planned new pickleball courts, as part of a joint use project with Dordt University and the Sioux Center Community School District.