Council approves budget resolution, notes fifth year of tax rate reductions

The Lennox City Council met Monday, Sept. 22 at Lennox City Hall. Mayor Danny Fergen and Council members heard agenda items including a public hearing, 

City Administrator, Nate Vander Plaats opened the meeting with an addition to the agenda. 

“On your desk in front of you is a draft agreement to lease some city property for parking,” Vander Plaats said asking for the agreement to be placed in the consent agenda. Approved by Bill Daugherty, seconded by Lauren VanDriel, motion carried.

Mayor Fergen opened a public hearing for Resolution 2025-09-22-01 for the adoption of an ordinance pushing back the annual budget process. 

“We have to certify our labor with the county in a more formal manner and this ensures that we work within the county’s deadlines for 2026 on there and those deadlines did not change. This resolution, drafter by Finance Director, Tyson Dahler, establishes the funding we will request Lincoln County for our property taxes in 2026. State law does cap what’s available for local governments in terms of an increase year-over-year,” Vander Plaats said. 

Vander Plaats reported to the council that as of this year, the growth amount will be capped at no more than three percent and the maximum increase in revenue from property taxes cannot exceed six percent. 

“In addition to our regular property tax revenues, we have to request the amount payable in debt service for the swimming pool general obligation bond. This year, as in years past, we are requesting the full amount of property tax available to us under state law,” he continued. 

Vander Plaats credits Countryside Addition for tax reduction in Lennox, noting that it will be the fifth straight year of tax rate reductions. 

“Every new rooftop in Lennox is another step towards reducing property tax rates for our property owners,” he said. 

Mayor Fergen asked for proponents and opponents of the ordinance before the council. Hearing none, Mayor Fergen closed the public hearing. Motion to approve the resolution made by Billy Welch, seconded by Chad Swier, motion carried. 

Mayor Fergen asked Vander Plaats if there were any parts of the consent agenda he would like to draw attention to. 

“Sales tax data for August wasn’t released until this afternoon, so that’s not reflected in the Performance Management Report, but we did see about a $30,000 increase over last year. It’s 44 percent over last year for August, so that’s good news. We also have a joint operating agreement between the school and the city for the local community library. That amended operating agreement is the result of several meetings and work of our library board and if approved tonight we get a school signature on that as well,” Vander Plaats said. 

Vander Plaats then added more detail about the addition to the agenda he made at the beginning of the meeting. 

“American Bank and Trust is starting their remodel and demolition project, probably this week, and Pitts Construction is looking for a place to park their construction administration trailer. They noticed that we own the lot for the old water plant at the end of the alley and asked if they could use that,” Vander Plaats said. 

The lease agreement mirrors that of the pool agreement and the lease amount will be $1. President Swier asked how long the trailer would be on location. Vander Plaats reported it would be no more than a year. Motion to approve the consent agenda made by VanDriel, seconded by Rob Pederson, motion carried.