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Spencer

Clay County · How cities work

$2,900 a yearproperty tax on a $200,000 home here, FY27, for every local government ($34.39 per $1,000 of taxable value)1
$1,170 a yearof that goes to the city ($13.84 per $1,000)
$8.0Mproperty taxes the city levies, FY27
$25.2Mcity budget, FY27, without city-run utilities (not yet reported)2

Who runs it

The city council passes ordinances, adopts the budget and sets the city’s property tax.

  • Amy MoserSpencer City Council Ward 3 · elected November 4, 2025
  • Becky PetersonSpencer City Council At-Large · elected November 4, 2025
  • Chuck IllgSpencer City Council Ward 5 · elected November 4, 2025
  • Donavon WunschelSpencer Mayor · elected November 4, 2025
  • Tom NelsonSpencer City Council Ward 1 · elected November 4, 2025
  • David LyonsSpencer City Council - Ward 2 · elected November 7, 2023
  • Donavon WunschelSpencer City Council - Ward 4 · elected November 7, 2023
  • Loren ReitSpencer City Council At-Large · elected November 7, 2023
  • Amanda BareSpencer Spencer Hospital Trustee · elected November 4, 2025
  • Lawrence S. HardenSpencer Spencer Hospital Trustee · elected November 4, 2025
  • Bruce NystromSpencer Hospital Trustee · elected November 7, 2023
  • Julie ChristensenSpencer Hospital Trustee · elected November 7, 2023
  • Steven T. LensingSpencer Hospital Trustee · elected November 7, 2023

Officials are worked out from election results: every member whose four-year term is still running, plus appointments and titles Iowa Funnel has been told about. A resignation may not show yet.

Meetings and agendas

What the council is deciding: each agenda, the resolutions and ordinances on it, and a plain-language summary.

Agendas will appear here as they’re posted. Every council and board posts its agenda at least 24 hours before it meets.

Property taxes

How the bill is collected · What each levy is for

Who gets a property owner’s tax bill in Spencer

Homes and businesses in most of Spencer pay a combined $34.39 per $1,000 of taxable value (FY27). They pay it all to the Clay County treasurer, who passes each government its share; the city sets and gets only its own piece, $13.84. Estimate your bill.

Rates over time

Per $1,000 of taxable value: the typical combined rate people in Spencer pay, and the city government’s own piece of it.

YearCombinedCity’s own
FY20$32.23$12.00
FY21$32.15$12.54
FY22$33.39$12.54
FY23$33.01$13.09
FY24$32.23$13.19
FY25$33.37$13.78
FY26$33.75$13.81
FY27$34.39$13.84
Show the numbers
YearCombinedCity’s own
FY20$32.23$12.00
FY21$32.15$12.54
FY22$33.39$12.54
FY23$33.01$13.09
FY24$32.23$13.19
FY25$33.37$13.78
FY26$33.75$13.81
FY27$34.39$13.84

Compared with places this size3

Spencer’s city property tax rate of $13.84 per $1,000 is the 9th lowest of 22 Iowa cities with 7,800–16,000 people. The middle of the group is $15.01.

Keokuk: $19.68Fort Madison: $18.84Denison: $18.69Perry: $17.91Waverly: $17.53Newton: $17.10Fairfield: $16.69Webster City: $16.51Grinnell: $15.60Storm Lake: $15.17Boone: $15.13Norwalk: $14.89Oskaloosa: $14.47Indianola: $13.33Pleasant Hill: $12.10Mount Pleasant: $11.94Carroll: $11.25Le Mars: $11.18Sioux Center: $11.05Bondurant: $10.82Pella: $10.75Spencer: $13.84$10.75 lowest$19.68 highestmiddle
See all 22
#PlaceRate per $1,000People
1Keokuk$19.689,462
2Fort Madison$18.849,983
3Denison$18.698,302
4Perry$17.918,046
5Waverly$17.5310,576
6Newton$17.1015,709
7Fairfield$16.699,511
8Webster City$16.517,763
9Grinnell$15.609,495
10Storm Lake$15.1711,627
11Boone$15.1312,461
12Norwalk$14.8915,396
13Oskaloosa$14.4711,575
14Spencer$13.8411,418
15Indianola$13.3316,297
16Pleasant Hill$12.1011,942
17Mount Pleasant$11.948,509
18Carroll$11.2510,125
19Le Mars$11.1810,674
20Sioux Center$11.058,675
21Bondurant$10.829,511
22Pella$10.7510,965

The $8.10 limit

Spencer’s general levy is $8.10 per $1,000 of taxable value in FY27, at the limit.4 247 of 934 Iowa cities have a higher general levy. All cities.

FY23 $8.10 · FY24 $8.10 · FY25 $8.10 · FY26 $8.10 · FY27 $8.10 (before FY25, the general levy alone)

Outside the limit: $5.74 more5

  • Total Employee Benefit Levies$4.09 · $2.3M
  • Debt Service Levy$1.03 · $633,792
  • Liability, property & self insurance costs$0.62 · $350,821

Tax increment financing (TIF)

$46.5M of taxable value in Spencer is in TIF districts’ increment (8% of the city’s taxable value), 2025 valuations, taxed in FY27.6 It budgeted $1.4M in TIF revenue for FY25.

$1.5M
$1.2M

What that value would raise at each government’s rate, FY277

Taxes on TIF value go to the city’s TIF fund instead of the governments that levy them, including about $595,236 of the city’s own.

  • Spencer schools$502,351
  • Clay County$255,910
YearTIF revenue
FY16$687,244
FY17$835,048
FY18$1.4M
FY19$1.3M
FY20$1.3M
FY21$1.4M
FY22$1.5M
FY23$1.2M
Show the numbers
YearTIF revenue
FY16$687,244
FY17$835,048
FY18$1.4M
FY19$1.3M
FY20$1.3M
FY21$1.4M
FY22$1.5M
FY23$1.2M

The city’s levies, FY27

What the city raises from each levy. The general levy is capped by state law; the others are set aside for one purpose.

  • Consolidate General Fund$4.6M58%
  • Total Employee Benefit Levies$2.3M29%
  • Debt Service Levy$633,7928%
  • Liability, property & self insurance costs$350,8214%

Budget and spending

Reading a local budget

Where each dollar of Spencer’s budget goes, FY26

Business Type / Enterprise: 33¢ of every dollar33¢Public Safety: 20¢ of every dollar20¢Culture and Recreation: 13¢ of every dollar13¢General Government: 10¢ of every dollar10¢Public Works: 9¢ of every dollar9¢Everything else: 15¢ of every dollar15¢

Planned spending from all funds, including city-run utilities like water and sewer (“business type”), which some cities run and others don’t. Transfers between funds are left out. “Cities this size” is the average for the 21 Iowa cities closest in size (7,800–16,000 people).

Where it goesOf each dollarCities this size (21)
Business Type / Enterprise33¢38¢
Public Safety20¢13¢
Culture and Recreation13¢6¢
General Government10¢5¢
Public Works9¢6¢
Everything else15¢32¢

Planned spending, FY27

All funds: property taxes, utility and other fees, state and federal money. “Business type” is city-run utilities and enterprises like water or sewer.

  • Public Safety$9.5M38%
  • Public Works$4.1M16%
  • Capital Projects$3.6M14%
  • Culture and Recreation$3.6M14%
  • Debt Service$1.7M7%
  • Community and Economic Development$1.5M6%
  • General Government$1.1M4%

The state’s FY27 file doesn’t include business type / enterprise yet ($8.7M in FY26), so this total is low.

Budget compared with what it spent, FY23
FunctionBudgetSpent
Public Works$2.7M$1.9M
Public Safety$5.0M$4.9M
Health and Social Services$0$0
General Government$2.1M$2.2M
Debt Service$932,840$932,700
Culture and Recreation$3.1M$3.2M
Community and Economic Development$2.0M$2.1M
Capital Projects$3.0M$7.2M
Business Type / Enterprise$6.2M$5.9M

What it spent each year

FY24 left out8

$39.0M

Debt, reserves and audits

How local debt works · What an audit tells you

What Spencer owes

$18.7M at June 30, 2026: $1,651 per resident. 434th most per resident of 939 Iowa places of its kind (the list).9

$20.7M
$18.7M
June 30OwedPer resident
2026$18.7M$1,651
2025$20.7M$1,824
2024$20.6M$1,822
2023$14.5M$1,280
2022$15.2M$1,346
2021$14.4M$1,271
2020$15.2M$1,345
2019$14.9M$1,314
2018$14.2M$1,255
2017$12.3M$1,090
2016$10.7M$945
2015$12.6M$1,109
2014$14.1M$1,244
2013$15.5M$1,371
2012$15.8M$1,397
2011$17.2M$1,521
2010$11.0M$969
Show the numbers
June 30OwedPer resident
2026$18.7M$1,651
2025$20.7M$1,824
2024$20.6M$1,822
2023$14.5M$1,280
2022$15.2M$1,346
2021$14.4M$1,271
2020$15.2M$1,345
2019$14.9M$1,314
2018$14.2M$1,255
2017$12.3M$1,090
2016$10.7M$945
2015$12.6M$1,109
2014$14.1M$1,244
2013$15.5M$1,371
2012$15.8M$1,397
2011$17.2M$1,521
2010$11.0M$969

Up 70% since 2010.

The 5% limit10

General obligation debt is $11.0M, 20% of the limit of about $55.5M (5% of $1.11B, the full value of its taxable property in 2024).

10 obligations at June 30, 2026
KindForPaid off byOwed
General ObligationUrban Renewal project for acquisition of property, utility improvements, and street construction2037$5.5M
Revenue Bondstreatment plant improvements2041$2.8M
Revenue BondsCombined Sanitary / Storm sewer separation project2032$2.6M
Revenue Bonds2016 WTP Improvements2037$2.3M
General ObligationCIP issuance for 2024-20252034$1.7M
General ObligationGO Sewer Improvement Bonds funded by SRF for 4th Ave W Phase II infrastructure2038$1.0M
General Obligation4th Ave W sanitary sewer separation project2037$926,000
General ObligationCity Hall Remodel / Sewer Improvements2029$835,000
General ObligationUrban Renewal project for acquisition of property, utility improvements, and street construction2028$715,000
General ObligationPederson Park Lighting / Street Improvements2028$285,000

General obligation bonds are repaid from property taxes; revenue bonds and loans from the fees or revenue they’re tied to. On the Treasurer’s site

Money in reserve

The state’s budget files don’t include cities’ fund balances11. Spencer’s latest audit has them: Financial Statement, period ending Monday, June 30, 2025 (PDF).

Audits12

The latest: Financial Statement for the period ending Monday, June 30, 2025 (PDF), released Tuesday, June 30, 2026, by a CPA firm.

AI summary13

  • A material amount of interest revenue was not recorded in the city's accounting records, and spending exceeded the approved budget in several areas including public safety and capital projects.
  • The city conducted business with a council member's businesses totaling $223,822 and $10,908, which may represent a conflict of interest, and one bank account balance exceeded the city's established limit.
  • The city will double-check interest recording, make efforts to amend budgets before overspending, use the bidding process for large transactions, and has already updated its bank balance limits.
The findings, as the report states them
SCHEDULE OF FINDINGS FOR THE YEAR ENDED JUNE 30, 2025Part I: Findings Related to the Financial Statements INTERNAL CONTROL DEFICIENCY:2025-001 Financial Reporting Criteria - A deficiency in internal control over financial reporting exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements of he financial statements on a timely basis. Properly designed policies and procedures and implantation of the policies and procedures are in integral part of ensuring the reliability and accuracy of the City's financial statements. Condition - A material amount of interest revenue was not posted to the General Ledger. Adjustments were subsequently made by the City to properly report these amounts in the City's financial statements. Cause - City policies do not require, and procedures have not been established to require interest income received from financial institutions to be compared to the accounting records by an independent person. Effect - Lack of policies and procedures resulted in City employees not detecting the errors in the normal course of performing their assigned functions and material adjustments to the City's financial statements were necessary. Recommendation - The City should implement procedures to ensure interest revenue is properly recorded in the City's financial statements. Interest revenue from financial institutions should be compared to the accounting records by an independent person and the evidence of review should be documented. Response - We will double check this in the future to ensure that interest revenue is properly recorded. Conclusion - Response accepted.Instances of Non-Compliance:No findings were noted.61 ### Page 66 CITY OF SPENCER SCHEDULE OF FINDINGS - ContinuedFOR THE YEAR ENDED JUNE 30, 2025Part II: Other Findings Related to Required Statutory Reporting2025-A Certified Budget - Disbursements during the year ended June 30, 2025 exceeded the final amounts budgeted in the public safety, community and economic development, debt service, and capital projects functions. Recommendation - The budget should have been amended in accordance with Chapter 384.18 of the Code of Iowa before disbursements were allowed to exceed the budget. Response - The City will make an effort to amend the budget before disbursements are exceeded, if applicable in the future. Conclusion - Response accepted. 2025-B Questionable Disbursements - We noted no disbursements for parties, banquets, or other entertainment for employees that we believe may not meet the requirements of public purpose as defined in an Attorney General's opinion dated April 25, 1979. 2025-C Travel Expense - No expenditures of the City for travel expenses of spouses of City officials or employees were noted. 2025-D Business Transactions - Business transactions between the City and City officials or employees are detailed as follows:Name, Title and Business Connection Donavon Wunschel, Council Member Partial owner of Midwestern Mechanical Partial owner of Copper CottageTransaction Description Supplies SuppliesAmount$223,822$ 10,908In accordance with Chapter 362.5(3)U) of the Code of Iowa, the transactions with the Council Member may represent a conflict of interest since total transactions with one of the businesses exceeded $6,000 during the fiscal year. Recommendation - The City should go through the bidding process for transactions that could exceed $6,000. Response - The amounts above are the cumulative total of several transactions throughout the year. Seven items over $6,000 went through the bidding process. Conclusion - Response accepted. 2025-E Restricted Donor Activity - No transactions were noted between the City, City officials, City employees, and restricted donors in compliance with Chapter 68B of the Code of Iowa. 2025-F Bond Coverage - Surety bond coverage of City officials and employees is in accordance with statutory provisions. The amount of coverage should be reviewed annually to ensure that the coverage is adequate for current operations. 2025-G Council Minutes - No transactions were found that we believe should have been approved in the Council minutes but were not.62 ### Page 67 CITY OF SPENCER SCHEDULE OF FINDINGS - ContinuedFOR THE YEAR ENDED JUNE 30, 2025Part II: Other Findings Related to Required Statutory Reporting - Continued 2025-H Deposits and Investments - We noted one instance of noncompliance with the deposit and investment provisions of Chapter 128 and 12C of the Code of Iowa and the City's investment policy. The balance at one financial institution exceeded the maximum balance as established by the depository resolution. Recommendation - The City should adopt new limits for depository amounts that exceed the current resolution amount. Response - The City council adopted an updated resolution subsequent to year end. Conclusion - Response accepted. 2025-1 Revenue Notes - No instances of noncompliance with the revenue bond and note resolutions were noted. 2025-J Financial Assurance - As of June 30, 2025, the City has demonstrated financial assurance for closure and postclosure care by establishing a local government dedicated fund as provided in Chapter 567.113.14(6) of the Iowa Administrative Code. 2025-K Urban Renewal Annual Report - The urban renewal annual report for the fiscal year ended June 30, 2024 was approved and certified to the Iowa Department of Management on or before December 1, 2024.63
18 earlier reports for Spencer

State money

What the State of Iowa pays the city each year, and whether it has kept up with prices. Does state money keep pace? 14

What the state pays the city every year

Road Use Tax for streets, the commercial and industrial tax “backfill”, and ambulance reimbursement, paid every year by formula: $2.1M in FY25, up 26% since FY19 while prices rose 25%, so it buys 0% more. Grants are below.

Show the numbers
SourceFY22FY23FY24FY25
Road Use Tax (streets)$1.6M$1.6M$1.6M$1.6M
Commercial and industrial tax replacement (“backfill”)$253,441$218,156$526,420$527,895

Grants and project money

State grants and money for specific projects (roads, development, natural resources) vary with what the city applies for and wins, so they aren’t counted as the state’s regular support.

$602,853
$15,212
  • State grants$15,212100%
YearGrants and projects
FY19$80,911
FY20$26,062
FY21$162,565
FY22$45,041
FY23$602,853
FY24$438,220
FY25$15,212
Show the numbers
YearGrants and projects
FY19$80,911
FY20$26,062
FY21$162,565
FY22$45,041
FY23$602,853
FY24$438,220
FY25$15,212

Has it kept up with prices?

Each source from FY19 to FY25, after inflation.

  • Road Use Tax (streets)−12%$1.5M → $1.6M, up 11% since FY19 while prices rose 25%, so it buys 12% less
  • Commercial and industrial tax replacement (“backfill”)+72%$244,597 → $527,895, up 116% since FY19 while prices rose 25%, so it buys 72% more

Collected by the state for the city

The local option sales tax is a city tax voters approved; the state collects it with the state sales tax and sends it back. It isn’t state aid. It’s up 33% since FY19 while prices rose 25%, so it buys 6% more.

$2.7M

Federal grants, for comparison: $595,516 in FY24.

Business awards

Every award statewide

State economic development awards

Community college new jobs training: 17 contracts since 2003 worth $2.6M, for 410 pledged jobs.

Awards statewide

Elections

Running for mayor and city council

Filing opens Monday, August 23, 2027: in 284 days.

For the Tuesday, November 2, 2027 election, candidates file Monday, August 23, 2027 to Thursday, September 16, 2027 with the county auditor (or the city clerk, if the auditor names the clerk to take them)15.

In a city that can hold a primary, filing runs Monday, August 9, 2027 to Thursday, August 26, 2027.

Most recent: November 4, 2025

City · 6

Local races from civicAPI and county auditors for Spencer; official results are on each county auditor’s site.

Who has filed for Tuesday, November 2, 2027

Filing hasn’t opened. These seats are expected on the ballot.

  • Spencer City Council - At-Large
    Now held by Loren Reit
  • Spencer City Council - Ward 2
    Now held by David Lyons
  • Spencer City Council - Ward 4
    Now held by Donavon Wunschel
  • Spencer Hospital Trustee (3 seats)
    Now held by Julie Christensen, Steven T. Lensing, Bruce Nystrom
  • Spencer Mayor
    Now held by Donavon Wunschel

Candidates as county auditors and civicAPI list them; a filing can take a few days to appear here16.

Past ballot measures

  • Public Measure EQNovember 7, 2023

    Passed Yes 76.5% (820) · No 23.5% (252)

    Passes with more yes votes than no.

  • Public Measure ERNovember 7, 2023

    Passed Yes 89.6% (956) · No 10.4% (111)

    Passes with more yes votes than no.

When a measure can be on the ballot

  • Tuesday, March 2, 2027 · no bond or debt questions
  • Tuesday, September 14, 2027 · no bond or debt questions
  • Tuesday, November 2, 2027 · any question, including bonds
  • Tuesday, March 7, 2028 · no bond or debt questions

Bonds and other borrowing can only go on the November ballot17.

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