FY24 Adopted Budget

It is imperative to consider how the overall revenues and expenditures in this budget will impact local households and businesses. The property tax rate remains unchanged at $15.63. Although this rate represents a 12% reduction in our property tax rate over the past decade, it is likely further reductions will not be possible in the coming years and failure to grow the City’s tax base could actually force property tax rates back upwards. Economic inflation has significantly bloated budgets while diminishing the City’s purchasing power ; 20 – 30% increases in capital project costs have become standard. To address some of these acute challenges in the utility and enterprise funds, this budget includes several rate increases including a 2% Wastewater rate increase, 4% Water rate increase, $1/month Refuse and Recycling rate increase ($2/month total), and $0.50/month Stormwater rate increase. Additionally, this budget includes fee increases of $5/month for monthly parking permits, an increase to special curbside bulky waste and 24-hour tagged refuse pickups, and an increase in the Landfill minimum tipping fee of $7 for Iowa City residents and $7.50 for other county residents. These changes impact only the residents who take advantage of those services. Based on a flat property tax rate and the aforementioned utility rate increases, it is estimated in Fiscal Year 2024 a household with a $100,000 assessed home value will pay approximately $61 more per year (approximately $5 more per month) in taxes and fees for basic City services compared to the previous year (3% increase). The following bar chart illustrates the estimated overall financial impact of tax and fee changes to resident households. The table uses $100,000 in assessed home value so the reader may easily calculate tax payments based on their own home value.

Annual Financial Impact to Residential Households

$2,500

$2,000

$1,500

$1,000

$500

$0

-$500

FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024

Property Taxes

$930

$900

$901

$869

$884

$848

$854

Stormwater

$54

$54

$60

$60

$60

$60

$66

Refuse

$205

$229

$229

$240

$240

$276

$300

Sewer - 800 cubic feet

$433

$433

$433

$433

$433

$433

$442

Water-- 800 cubic feet

$362

$380

$399

$399

$419

$419

$436

Total

$1,984 $1,996 $2,022 $2,001 $2,036 $2,036 $2,098

Percent Change

1.1% 0.6% 1.3% -1.1% 1.8% 0.0% 3.0%

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