FY2024 Proposed Budget

passed through to the Downtown District. Please note that a property tax bill is a function of property value, the taxable percentage of the property as determined by the state, and local levy rates from all taxing bodies. Thus, most property owners’ tax bills will increase despite the City’s stable tax levy rates.

FY2023

FY2024

Tax Rate

Tax Rate

LEVIES

Dollars

Dollars

per $1,000

per $1,000

General Fund Tax Levies: General

$33,996,056 $3,987,192 $1,218,989 $1,133,202

8.100 0.950 0.290 0.270 0.200 9.810 3.003

$34,792,378 $4,080,588 $1,247,543 $1,159,746

8.100 0.950 0.290 0.270 0.200 9.810 3.003

Transit

Tort Liability

Library

Emergency Subtotal:

$839,409

$859,071

$41,174,848

$42,139,326

Agland Levy

$4,211

$4,543

General Fund Property Taxes

$41,179,059

$42,143,869

Special Revenue Levies: Employee Benefits

$14,035,545 $14,035,545 $10,733,062 $65,947,666

3.344 3.344 2.478

$14,364,312 $14,364,312 $10,980,799 $67,488,980

3.344 3.344 2.478

Subtotal: Debt Service

Total City Levy Property Taxes:

15.632

15.632

% Change from prior year SSMID Levy – Downtown SSMID Levy – South District

-0.80%

-2.16%

2.34%

0.0% 2.500 5.000

$426,713 $100,093

2.000 5.000

$426,713* $100,093* $67,488,980

$66,474,472 ---- *FY 2024 SSMID dollars unknown until received by the State January 2023 ----

Total Property Taxes

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. Recent efforts to reduce Iowa City’s property tax rate have brought our community in closer alignment to the tax rates of other cities in

FY2023 Municipal Property Tax Rates in Eastern Iowa North Liberty $11.32 Coralville $14.31 Iowa City $15.63 Cedar Rapids $16.03 Davenport $16.78

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. Looking ahead, it is unlikely additional rate reductions will be possible in coming years, and rate increases could become necessary in response to the many competing financial stressors discussed throughout this transmittal letter. 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

21