SOUTH SIOUX CITY, Iowa (KCAU) – South Sioux City Resident, Mike Klassen has been living in the area for over 4 decades, but with the City Council voting to raise future property taxes by 17%, he says he’s now planning on moving.
Klassen says, “I’m going anywhere but here.”
Klassen says the increase in taxes came as a surprise, “They need to budget better and be smarter with the money that they do have.”
But City Administrator, Lance Hedquist says the hike shouldn’t come as a surprise to taxpayers, who voted last November not to raise the local sales tax.
Hedquist says, “We voted against increasing sales tax by half a percent. That half a percent would have resulted in no property tax increase. But the public voted it down and that’s their choice. We have to go on with police and fire protection in the community.”
Hedquist says the city did explore other avenues for acquiring fire department funding but was unsuccessful.
Hedquist says, “The federal government is reducing how much money they pay us for our fire department personal. This was anticipated this was planned, that as the federal money passes out you have to come back with local property taxes to pay for those services.”
Klassen was the only person speaking out against the tax increase at Monday night’s meeting, but he predicts that won’t be the case in coming months.
Klassen says, “It feels like not too many people are interested, but just wait until next year when they get their tax evaluations. Then they’ll be really interested.”