FY2024 Proposed Budget

Property taxes and charges for services account for the majority of City revenues. The following table depicts a year-over-year comparison of Iowa City's revenue mix across all funds. All Funds Revenue Comparison of FY2023 versus FY 2024 FY 2023 Revised FY2024 Budget Percent Change Property Taxes $ 66,474,472 $ 68,015,786 2.32% Other City Taxes $ 6,993,578 $ 7,679,492 9.81% Licenses & Permits $ 2,593,050 $ 2,574,121 -0.73% Use of Money & Prop $ 2,875,320 $ 3,299,263 14.74% Intergovernmental $ 47,155,369 $ 35,925,666 -23.81% Charges for Services $ 43,929,943 $ 44,597,034 1.52% Miscellaneous $ 8,498,638 $ 8,912,667 4.87% Other Financial Sources $ 11,911,663 $ 43,423,267 264.54% TOTAL $ 190,432,033 $ 214,427,297 12.60% The increase in Other City Taxes is due hotel/motel tax revenues continuing to recover from the pandemic. The increase in Use of Money and Property is due to increased interest revenue and recovery from COVID-19 impacts on rent incomes. The decrease in Intergovernmental is largely related to the receipt of roughly $9 million in ARPA funds in Fiscal Year 2023. The large increase in Other Financial Sources is due to a projected increase in Debt Sales due to an approximately $29 million in Wastewaster revenue bonds and $14.5 million in General Obligation (G.O.) bonds that are projected in Fiscal Year 2024. The following pie chart displays revenue across all funds for FY 2024 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 (FY 2024)

Misc. 4%

Charges for Services 21%

Other Financial Sources 20%

Intergovernmental 17%

Property Taxes 32%

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 remains

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