The City of Clear Lake finds itself in good financial health heading into the new year, City Administrator Scott Flory told the City Council Monday night.
    By Dec. 1 of each year, all cities in Iowa are required to submit an annual financial report to the Iowa Department of Management and State Auditor’s Office.  Flory shared highlights of Clear Lake’s financial report for the 2007 fiscal year during Monday’s Council meeting.
    The report states fiscal year 2007 revenues will be $14,791,336 and expenditures $10,795,658.  
    The previous high total for expenditures occurred in fiscal year 2002, when they reached $10,604,432.  Revenues that year were $11,065,787.    
    Flory pointed out the city’s general obligation debt limit is $29,842,847.  As of June 30, 2007, the City has $5.6 million in general obligation (GO) bond indebtedness.
    “It is not uncommon for many cities in Iowa to be above 65 percent in GO debt; Clear Lake is currently at roughly 19 percent,” said Flory.
    He noted the city has several major projects on the horizon which will increase GO debt, such as the addition of a fourth water tower at a cost of $1.9 million.  The Council approved a change order and revised contract with Landmark Inc. at Monday’s meeting.
    The Council also approved an ordinance to implement the recently voter-approved increase in the city’s hotel/motel tax.  The revenues from the 2 percent increase (from 5 to 7 percent) will be distributed to fund the City’s financial commitment to the Lake Dredging & Restoration Project  and other Lake improvement initiatives thereafter (1.5 percent), and the maintenance of permanently located recreational, cultural, or entertainment facilities that are available to the general public within the City of Clear Lake (.5 percent).  The rate increase has an effective date of Jan. 1, 2008.
    The Council set a public hearing for 6:30 p.m. Dec. 17 to discuss an amendment to the Clear Lake Consolidated Urban Renewal Plan.  The proposed Plan amendment would incorporate the area within the vicinity of the Surf Ballroom/Buddy Holly Place Corridor, which was one of the areas identified within the Clear Lake Lakefront Commercial Districts Redevelopment Plan, into the overall Urban Renewal Plan for the City.
    Flory noted a catalyst for the initiative was the redevelopment of the former Dock’s Restaurant site.