Storm Lake Schools Propose 8% Property Tax Levy Increase Amid Budget Strains

Storm Lake property owners could pay roughly $140 more per year for every $100,000 of taxable home value under a levy proposal the Storm Lake Community School District is preparing to formally consider. The proposed rate of about $19.35 per $1,000 of taxable valuation is roughly $1.40 higher than the current rate, a jump of nearly 8 percent and about 13 percent above where the levy stood two years ago.

Superintendent Stacey Cole put the situation plainly to the school board: "We can't keep up." Enrollment fell by 44 students year-over-year, directly shrinking the state funding Iowa ties to a single statutory count day. Property valuations used for next year's budget dropped by about $2 million across Storm Lake, Lakeside, and surrounding rural areas, a decline of nearly half a percent. The district is simultaneously carrying a near-$2 million special education deficit while absorbing higher costs for utilities, benefits, and insurance.

To narrow the gap, the district has announced plans to cut about $1.5 million from its spending plan and said it intends to cut another $500,000 to reduce the impact. An extra $143,600 in spending authority will flow through a budget guarantee triggered by the enrollment dip, though officials acknowledged it will not fully close the shortfall.

On the revenue side, the district is pursuing a package of measures alongside the base levy increase: the maximum at-risk program, a 10 percent instructional support levy, and an 8 percent income surtax unchanged from last year. The district also plans to levy $1.75 million of its growing special education deficit, increase its management levy because of rising insurance costs, and reduce its general cash reserve levy to zero.

One source of potential relief is on the horizon. The Iowa Department of Education is implementing a second count day in the second semester, intended to capture mid-year enrollment changes that the current single-count system misses. District officials say the change could benefit Storm Lake, though no firm revenue estimate has been offered.

The proposed rate would sit about 13 percent higher than the levy from two years ago. Before the board can vote, Iowa law requires public hearings, giving property owners in Storm Lake, Lakeside, and surrounding rural areas a formal opportunity to weigh in.