Final FY25 Adopted Budget

The value of building permits issued reached an all-time high of $388 million in 2016. The value of building permits was at $153 million in 2022, which was below the ten-year average of $188 million due to construction still rebounding after the COVID-19 pandemic.

Building Permits Value in millions

$120 $160 $200 $240 $280 $320 $360 $400

$40 $80

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Permits 703 645 794 718 618 606 550 580 543 492 Value $153 $138 $388 $217 $193 $232 $87 $135 $153 $275 $0

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. Fiscal year 2023 revenues were up and are a sign of recovery from the COVID-19 pandemic.

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 $1,117,000 for fiscal year 2023, $670,300 funded a portion of the operational costs associated with Fire Station #4 and maintenance of street right-of-way.

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