The proposed 2026-27 budget for the City of Sioux Center includes updates and improvements that range from emergency vehicles to accessible park updates. The City Council is considering a decrease to the city’s portion of the levy rate to $11.05 per $1,000 of taxable valuation, about a 1.76% decrease. 

The council reviewed the general fund budget this past week. 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. 

“This is the 16^th time in the past 17 years that the City has decreased its tax rate or held it steady,” said Sioux Center Finance Director Darryl Ten Pas. “Since 2008, the city levy rate has decreased 20.92%. The City is able to decrease the tax rate in part thanks to ongoing cost control measures throughout the organization.”

If a residential property had no change in value, the 1.76% levy rate decrease and a decrease in residential rollback means that property would see a 7.8% decrease in taxes paid. For example, for a home that retained its value at $250,000, the City’s portion of taxes will decrease by about $103. However, if a property's valuation increased, that would impact the property's tax bill.

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 on March 2 and hosting a public hearing on the property tax levy on April 7. Following that, the council will decide whether to approve the 2026-27 budget.

Additional budget highlights:

Utilities contribution

Sioux Center’s 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 2026. 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. The City’s portion will come from various sources, including road use tax, local option sales tax, tax increment financing, and dollars previously set aside for this project.

Public Safety

The police department will be replacing a vehicle and updating laptops, and the ambulance service will be updating cardiac monitors.

Parks, trails, and athletic fields

A new, accessible fishing pier and shelter are planned at Bridgeview Park, which will be funded in part by donations. Accessibility improvements are planned near the new ball diamonds on the former fairgrounds. Additional bleachers and a scoreboard replacement are planned for the football field. Trail additions north to the new residential area and pond are being considered for 2026-27 as well. 

All Seasons Center and joint use facilities

A failing heating/ventilation/air conditioning unit will be replaced. The front desk and some arena doors will be updated. Ten Pas highlighted the benefit of sharing ownership of recreation facilities with Dordt University and Sioux Center Community Schools, noting that more than 2/3 of the budget for the All Seasons Center, American State Bank Sports Complex, and Open Space Athletic Fields is covered by joint-use contributions and people paying for admission.

Local Option Sales Tax 

Sioux Center has a 1% Local Option Sales Tax on sales, which include sales to many out-of-town shoppers. About $840,000 in Local Option Sales Tax (LOST) will go into the general fund as property tax relief and about $150,000 is slated to go toward trails. LOST funds have also been used for development of various amenities and attractions, such as Siouxnami Waterpark, the American State Bank Sports Complex and various other areas in the community.