FY25 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 FY2024 versus FY2025

Percent Change

FY2024 Revised

FY2025 Budget

3.8% 4.0% 0.7% -0.2% 21.8% 13.0% -16.7% -61.3%

Property Taxes Other City Taxes Licenses & Permits Use of Money & Prop Intergovernmental Charges for Services

$ $ $ $ $ $ $ $

66,312,743 7,656,308 2,574,121 3,299,263 53,846,889 43,734,534 10,860,983 44,315,267

$ $ $ $ $ $ $ $

68,821,500 7,964,400 2,592,880 3,292,385 65,568,611 49,415,585 9,052,601 17,144,900

Misc.

Other Financial Sources

-3.8%

Total

$

232,600,108

$

223,852,862

The modest 3.8% increase in property taxes follows the previous year where those same tax receipts actually declined. Thus, the two-year growth in property tax receipts is notably low, especially considering the inflationary environment and growing demands on City operations. Larger swings in Intergovernmental and Other Financial Sources are not considered atypical as those categories are influenced greatly by the timing of state and federal grants as well as debt sales. The following pie chart displays revenue across all funds for FY 2025 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 2025)

Misc. 4%

Charges for Services 22%

Other Financial Sources 8%

Intergovernmental 29%

Property Taxes 31%

Licenses & Permits, 1% Use of Money & Prop, 1%

Other City Taxes, 4%

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

17