FY2023 Adopted Budget

The following pie chart displays revenue across all funds for Fiscal Year 2023 only. The chart shows the heavy reliance on taxes and charges for services to support the various projects and services contained in this budget.

All Funds Revenue Sources

Misc. 4%

Charges for Services 23%

Other Financial Sources 15%

Intergovernmental 17%

Property Taxes 35%

Use of Money & Prop, 1%

Licenses & Permits, 1%

Other City Taxes, 4%

It is imperative to consider how the overall revenue and expenditure recommendations in this budget will impact local households and businesses. The proposed property tax rate is $15.63, the lowest tax rate in Iowa City since Fiscal Year 2002. Just a decade ago, Iowa City’s tax rate was one of the highest in the state at $17.84 and since then we have reduced our tax rate by over 12%. In recent years, tax levy rate reductions have been made possible predominantly through decreases in property taxes levied to repay debt. Based on a lower property tax rate and a minor rate increase for expanded recycling, yard waste, and refuse services, it is estimated in Fiscal Year 2023 a household with a $200,000 assessed home value will pay approximately $4 less in taxes and fees for basic City services compared to the previous year. The following bar chart illustrates the estimated overall financial impact of tax and fee changes to the average household in Iowa City . The table uses $100,000 in assessed home value so the reader may easily calculate tax payments based on their own home value. The Fiscal Year 2023 Refuse Rate includes a $3 monthly fee increase encompassing $1.50 in Yard Waste, $.50 in Recycling, and $1 in Refuse, supporting the heightened demand and cost increases for these curbside services.

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