FY2023 Adopted Budget

Iowa City’s tax rate reflects enhanced levels of public services (e.g. full-time fire department, senior center, human rights, transit and library levies, etc.), unique state and federal mandates (e.g. public safety pension contributions), a lack of alternative revenue sources (e.g. LOST, gaming, etc.) and other factors such as a significant number of University of Iowa affiliated tax-exempt properties within the jurisdiction. Continued efforts to reduce Iowa City’s property tax rate have

FY2022 Municipal Property Tax Rates in Eastern Iowa North Liberty $11.52 Coralville $14.28 Iowa City $15.67 Cedar Rapids $15.87 Davenport $16.78

begun to bring our community in closer alignment to the tax rates of other cities in Eastern Iowa. When compared to the ten largest cities in Iowa, Iowa City has moved from one of the highest tax rates in the state to the middle of the pack. Continued emphasis on a competitive tax rate will help support expected growth and facilitate a more affordable environment for residents and businesses. Looking ahead, it is likely Iowa City’s property tax rate will stabilize at or near the Fiscal Year 2023 level. General Fund Overview The General Fund, which includes services such as police, fire, parks and recreation, and general government, represents approximately one third of the total budget. General Fund operations are largely supported by property taxes, which constitute approximately 69% of the total revenue in this fund. A breakdown of General Fund revenue sources is provided in the following pie chart.

FY2023 Revenues & Other Financing Sources excludes transfers

Miscellaneous 11%

Other Financing Sources 1%

Charges for Fees & Services 2%

Intergovernmental 7%

Use of Money & Property 1%

Licenses & Permits 4%

Property Taxes 69%

Other City Taxes 5%

On the expense side, annual expenditure growth in the General Fund is typically around 3% but recognizing the unique financial challenges in the years ahead, the Fiscal Year 2023 budget includes a decrease of 3.74% in General Fund expenditures. Personnel-related costs account for the bulk of General Fund expenses (approximately 75% in Fiscal Year 2023), meaning services and supplies will shoulder the impact of decreased expenditures. A summary of General Fund expenditures by category is provided in the following pie chart.

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