FY24 Adopted Budget

The following chart shows a detailed breakdown of the City’s property tax asking for Fiscal Year 2024 compared to the previous year. The emergency levy, employee benefits levy, and debt service levy remained unchanged from Fiscal Year 2023. The total in property tax dollars levied by the City increased slightly over the previous fiscal year due to the residential rollback rate increase, a slight bump in valuations, an increase in Downtown SSMID Levy rates which are 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 propert y owners’ tax bills will increase despite the City’s stable tax levy rates.

FY2023

FY2024

LEVIES

Tax Rate

Tax Rate

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

$33,866,983 $3,972,054 $1,214,361 $1,128,899

8.100 0.950 0.290 0.270 0.200 9.810 3.003

Transit

Tort Liability

Library

Emergency Subtotal:

$839,409

$836,222

$41,174,848

$41,018,519

Agland Levy

$4,211

3.003

$4,543

General Fund Property Taxes

$41,179,059

$41,023,062

Special Revenue Levies: Employee Benefits

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

3.344 3.344 2.478

$13,982,255 $13,982,255 $10,695,221 $65,700,538

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%

-0.37%

0.0% 2.500 5.000

$426,713 $100,093

2.000 5.000

$505,532 $100,673

$66,474,472

$66,312,743

Total Property Taxes

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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 $14.31 $15.63 $16.03 $16.78

Coralville Iowa City

Cedar Rapids

Davenport

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.

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