FY25 Proposed Budget

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.

FY2024

FY2025

Tax Rate

Tax Rate

LEVIES

Dollars

Dollars

per $1,000

per $1,000

General Fund Tax Levies: General

$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

$36,792,773 $4,160,117 $1,578,392

8.402 0.950 0.360 0.000 0.000 9.712 3.003

Transit

Tort Liability

Library

Emergency Subtotal:

$836,222

$41,018,519

$42,531,282

Agland Levy

$4,543

$3,861

General Fund Property Taxes

$41,023,062

$42,535,143

Special Revenue Levies: Employee Benefits

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

3.344 3.344 2.479

$14,644,268 $14,644,268 $11,636,020 $68,815,431

3.344 3.344 2.577

Subtotal:

Debt Service

Total City Levy Property Taxes:

15.633

15.633

% Change from prior year

-0.37%

-2.16%

4.74%

0.00%

SSMID Levy - Downtown SSMID Levy - South District

$505,532 $106,673

2.000 5.000

$544,919 $117,745

2.500 5.000

Total Property Taxes

$66,312,743

----

$69,477,825

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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 service, etc.), unique state and federal mandates (e.g. Chapter 411 public safety pension contributions), a lack of alternative revenue sources (e.g. local option sales tax, gaming, etc.), and other factors such as a significant number of University of Iowa affiliated tax-exempt properties within the jurisdiction. Past efforts to reduce Iowa City’s property tax rate have brought our community in closer alignment to the tax

FY2024 Municipal Property Tax Rates in Eastern Iowa

North Liberty

$11.45 $14.31 $15.63 $16.25 $16.78

Coralville Iowa City

Cedar Rapids

Davenport

rates of other cities in 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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