Storm Lake residents showed up yesterday expecting to hear why their school property taxes might rise next year—but the first thing they learned was that the increase won’t be as steep as originally advertised.
The district’s proposed levy is now about a 6.5 percent increase, down from the nearly 8 percent jump residents saw in their mailed notices.
Only a handful of residents attended the noon public hearing, where district leaders explained that new statewide property‑tax legislation—passed after the district mailed its required notice for the proposed property tax levy—forced every Iowa school district to recalculate its maximum levy authority. For Storm Lake, that meant the published levy of $19.34 per $1,000 had to be revised down to $19.10, and the total tax dollars the district can collect dropped by more than $140,000.
School Business Official Trudy Pedersen told meeting attendees that the change was mandated.
The legislation is part of Iowa’s ongoing property‑tax overhaul, which compresses levy categories and limits how much local governments can collect. For school districts, it changes how the general fund levy is calculated—including the uniform levy, additional levy, and budget guarantee—resulting in lower maximums than originally published.
Even with the reduction, Storm Lake leaders say they’re still facing a difficult budget year.
Enrollment is down, insurance premiums are up, and the district’s special education deficit has nearly doubled in two years—from about $900,000 to nearly $2 million. The district is proposing the maximum at‑risk program, a 10 percent instructional support levy, and an 8 percent income surtax, along with a management levy increase to cover rising property, auto, liability, and workers’ compensation costs.
Superintendent Dr. Stacey Cole said the district is constantly trying to meet community expectations with fewer resources.
Cole also addressed a question about whether Iowa’s private‑school voucher program is affecting Storm Lake’s finances. Her answer was blunt.
District leaders also walked through real Storm Lake property examples to show how the revised levy affects homeowners. Depending on valuation changes and credits, some residents could see increases of $50 to $113 a year, while others—especially those with stable or lower assessed values—may actually see a slight decrease.
One resident said he came simply to understand why his assessment jumped so sharply. Board members encouraged him and other district residents to contact the county assessor and to make sure they’ve applied for all available credits, including the over‑65 exemption.
The district’s full 2026–27 budget will get its own public hearing at 5 p.m. on Wednesday, April 15. The school board must certify the final budget by April 30.
