FY27 Proposed Budget

The value of building permits issued reached an all-time high of $388 million in 2016. The value of building permits was at $149 million in 2025, which was below the ten-year average of $196 million.

One measure of local economic health is hotel/motel tax receipts. The City uses hotel/motel tax receipts to augment funds for public safety, parks & recreation services, and the Convention & Visitors Bureau. Generating revenue from non-Iowa City residents reduces the tax burden on residents.

In 2009, the State of Iowa enacted legislation establishing cities’ right to impose a franchise tax on gas and electric utilities. On February 16, 2010, the City Council passed and approved an ordinance establishing a one percent (1%) tax. Of the $1,003,000 for fiscal year 2025, $601,775 funded a portion of the operational costs associated with Fire Station#4 and maintenance of street right-of-way.

43